Industry insiders said Bangladesh has huge potential to double its man-made fiber (MMF) or non-cotton apparel shipments within years through providing necessary policy support and removing bottlenecks.
A recent study titled ‘Upscaling the RMG Sector’ by Research and Policy Integration for Development (RAPID) identified several policy issues and constraints such as lack of access to duty-free raw materials. The textile industry faces challenges as many MMFs are subject to import duty and cotton enjoys duty-free status.
Inefficient customs clearance and complex duty-back procedures, discriminatory policies on PET bottle and scrap imports and plastic waste exports, limited capital investment support for backward industry, inadequate short-term financing support and grossly inadequate investment are hindering growth.
The findings predict that if Bangladesh achieves the projected market shares of 20 potential products, MMF export earnings can rise by $12.5 bn to $19 bn within a decade. Bangladesh primarily exports cotton-based apparel, constituting 71 per cent of total exports, with cotton apparel exports growing significantly from $3.0 bn in 2001 to $33 bn in 2021, reads the report.
“In contrast, MMF apparel exports have increased by $8 bn over two decades, indicating that Bangladesh is making steady progress in MMF apparel and increasing its footprint in the global non-cotton apparel market.” MMF or non-cotton raw material import data also indicated a rising trend showing the increased usage of those products in manufacturing garments for exports.
According to the Bangladesh Textile Mills Association, Bangladesh imported 30,900 tonnes of polyester staple fibre in the first quarter of 2024, marking a 42.46-per cent rise against 21,644 tonnes of January-March 2023. Similarly, synthetic filament yarn imports rose by 17.42 per cent to 91,766 tonnes during the period from 78,150 tonnes in the corresponding period of 2023. The import of yarn of synthetic staple fibre witnessed a 3.45-per cent rise during the period to 34,728 tonnes, according to data.
Despite its strong presence in the cotton market, Bangladesh has substantial room for growth in MMF and blended apparel, where it holds a 5.6-per cent global market share compared to China’s dominant 36 per cent. Vietnam also excels in MMF and blended apparel in the USA and Japan markets, according to the RAPID report.
The global apparel export industry has undergone significant changes, with the market doubling to $505 bn over the past two decades. In 2021, man-made and blended apparel exports reached $271 bn, surpassing cotton at $219 bn. Global fibre production in 2020 was 109 mn tonnes, with synthetic fibre comprising 62 per cent.
The synthetic fibre market is projected to expand from $70 bn to $115 bn by 2030, signalling a shift towards man-made fibre apparel. Non-cotton fibre-based apparel now represents over 57 per cent of the trade and leading exporters like China, India and Vietnam have significantly expanded MMF and blended apparel baskets.
When asked, RAPID Chairman Dr. MA Razzaque said the global demand for MMF-based garment was mounting as consumers preferred such clothing due to its adaptability, less consumption of water. MMF is versatile and wrinkle-resistant, as it meets consumer needs alongside promising durability, longer lifespan and easier maintenance, according to him.
Bangladesh can earn up to $19 billion from MMF garment exports within the next five to 10 years if existing challenges are addressed, says Dr Razzaque.
The report suggested that Bangladesh consolidate its cotton apparel export market dominance while expanding MMF apparel production and exports.
“Export diversification is not about pivoting away from cotton but about embracing a wider variety of products,” it said.
Bangladesh is the largest cotton apparel exporter for Canada, EU, India and the UK, holding an impressive market share there, according to the report.
Its recommendations included modernising customs clearance procedures, attracting FDI in the MMF sector, promoting a circular economy to enhance sustainability of the textile sector, modernise technology in MMF-based RMG and textile industries, enhancing management capacities and worker skills.
Bangladesh Knitwear Manufacturers and Exporters Association Vice-President Fazlee Ehsan Shamim said MMF imports have increased in recent times, indicating an increase in the use of non-cotton fibre. “It means we’re producing both new products and value-added items,” he said, adding they need ‘supportive’ policy measures, especially those of customs-related, to encourage entrepreneurs to go for such non-cotton segments and attract investment.
