Bangladesh MMF Apparel Exports Can Be Doubled By 2025: Study
A Bangladesh study has found that if challenges faced by industry are resolved, exports of the country’s manmade fibre (MMF) apparels can double to US $19 billion by 2025 from the present $8.5 billion.
The Economic Relations Division (ERD) study was done based on the present worldwide market share and export forecast of 20 types of MMF garment products exported from Bangladesh.
The study stressed on implementing a fibre security strategy, to allow duty-free access for all manmade fibres, while also pushing for skill development activities to support MMF investments.
The study found that manmade fibres have import duties of up to 59 percent, while cotton and cotton textiles like yarn and fabrics are exempt from any import duty.
“Absence of a fibre security strategy, import duty on imported manmade fibre, complex duty-drawback procedures and lack of sufficient FDI inflows are key challenges that the sector faces,’ the study noted.
It added that although import duties are refunded upon export of clothing converted from these fibres, exporters are daunted from going ahead due to the time consuming paper work and complexity involved.
Although MMF apparels accounted for 54 percent of worldwide clothing market in 2021, Bangladesh MMF clothing exports accounted for just 29 percent of overall garment exports in the 2022-23 fiscal.
