Perspective : Bangladesh Textile and Cotton Shafiqul I. Sarker Managing Director, Purbani Bangladesh
population 165 MN
gdp 261 billion
Population Density 1,074 km2
literacy 72.9%
Land 1,47,570 km2
Maritime 1,18,813 km2
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
2
Demographic Dividend 59.21% (15-54 Years)
Strategic Location in Asia
6-7% Gdp Growth rate
28th largest Economy by 2030
Dhaka Nexus
75 Economic Zones
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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BANGLADESH TEXTILE INDUSTRY IN FIGURES
Sari
Knit Woven Other
Lungi
Clothing
Denim
Home Tex
International Demand Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
Home Tex
Domestic Demands 13 March 2019
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2nd Largest
Bangladesh is the second-largest clothing exporter in the world today, behind only China. It has more than 4,500 factories currently operating within the industry, with a majority of them located around Dhaka. (Ref: The Asia Foundation)
In total, the garment and textile sector earns around $31 billion each year in annual exports. That reflects 20% of the GDP. (Ref: EPB Bangladesh) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
$31 billion 13 March 2019
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RMG MARKET SHARE RMG Market Share
7%
6.50%
2016
2017
5.90%
6%
5%
6.40%
4.80%
4.70%
2011
2012
5.10%
5.10%
2013
2014
4% 3% 2% 1% 0% 2015
Figure: Bangladesh’s share of the global apparel market (in percent, Source: WTO) Perspective: Bangladesh Textile and https://www.textiletoday.com.bd/bd-remains-2nd-largest-rmg-exporter-accounting-6-5-percent/ Cotton by Shafiqul I Sarker 13 March 2019
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RMG EXPORT STATUS US$ Billion
Average Growth Rate
50
43.36
35 30
30.61 28.09 24.49
25
35 30
8.76
10.21
10.7
20 15
10 5
0.2
4.08
12.71
12.5
13.24
25
13.83
15.4 12.35
45
40
25.49
19.09
6.56
9.21
16.15
16.59
23.11 6.42
7.9
17.91
1.21
5
13.24
10
28.15
21.52
20 15
RMG Export Growth
0
0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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USA 37%
For knit clothing, the United States takes the top spot for the export market, accounting for 37% of the buyers that happen for the garment industry. Germany and the United Kingdom account for 24% of total knit buys. (Ref: Ritsumei)
Outside of Europe and the United States, only Canada provides more than $1 billion in export revenues to the Bangladesh garment industry each year. In the last reporting year, Canada provided $1.03 billion in revenues. If the nations of Europe are taken independently, that makes Canada the 7th largest market for the industry. (World Integrated Trade Solution) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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0
10
20
30
40
50
60
70
80
67 Bangladesh 40 Indonesia Factories 30 India 10 Sri Lanka
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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Bangladesh has been extraordinarily successful in growing its economy and spreading the benefits of that growth across society. Since the 1980s, the country has averaged 5%–6% annual gross domestic product growth. This growth was accompanied by a significant decline in poverty, an increase in employment, greater access to health and education, and improved basic infrastructure. As a result, the once poor country is now considered middle income.
The next goal is to reach upper-middle-income country status by 2021. This ambitious initiative will require annual GDP growth of 7.5%–8% and will entail overcoming significant obstacles and seizing on new opportunities brought about by changing global circumstances.
Perspective: Bangladesh Textile and Cottonhttps://www.dhakatribune.com/business/2018/08/08/bangladesh-to-set-export-target-of-39by Shafiqul I Sarker 13 March 2019
billion-for-fy19
11
In Million MT Total Production
Import
Total Supply of Bangladesh
0.19
2.01
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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Domestic
Domestic, 0.8
Export (RMG, Other), 1.395
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
Woven & Others
Knit
Woven & Others, 0.395
Knit, 1
13 March 2019
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7.6
7.2 11.4
12.41
11.65
10.3
25 20 15
14.5
6
6
5.5
8
8.7
10
9.6
20
9.8
12
9.8
11.05
14
10.3
9.1
10 7.3
4
5.6
8.3 6.5
5.1
2
5
2.1
0 2006
2007
2008
2009
2010
2011
Spindle Capacity (In Mn) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
2012
0 2013
0 2014
2015
2016
2017
Growth in spindle capacity (%) 13 March 2019
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2450
2250
3000
8.89%
5.56%
5.26%
5750
5000
4250 6.25%
3400
4000
3250
5000
4000
3600
25%
3800
32.65%
6000
5300
7000
6375
47.06%
8000
7600
8000
6800
9000
60% 50% 40% 30%
20%
6%
8.49%
11.76%
10.87% 6.67%
10% 5.26%
10.77%
0%
2000
-10%
1000
-20%
-20%
0
-30%
2004
2005
2006
2007
2008
2009
2010
2011
2012
Cotton Import (In 480 lbs Bales) Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
2013
2014
2015
2016
2017
2018
Growth Rate (%) 13 March 2019
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BANGLADESH: MAJOR COTTON IMPORTER
Year Of 2016
Year Of 2017
Year Of 2018
1st
1st
1st
2nd
2nd
2nd
3rd
3rd
3rd
ď ś Above shown last three year’s Import Status. If we review the last three year's cotton import status, We will see that the Cotton Import Ranking of the Bangladesh is either first or second. Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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Others, 7% India, 26%
West African Countries, 22%
India USA Australia Brazil CIS West African Countries USA, 9%
Others
Australia, 7% CIS, 25% Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
Brazil, 4% 13 March 2019
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India Vs. Others - Cotton Import Growth Import From Others
Import From India
% of Indian Import
49.0%
46.0%
8000
3800
3496
1618 23.8%
40% 35% 30% 25%
4200
20%
4104
5182
3124 3251
2262 3488
1344 1288
3656
1000
2112
2000
1770
26.9%
4000 3000
45%
33.4%
6000 5000
50%
39.3%
37.9%
3530
7000
47.5%
15% 10% 5%
0
0% 2011
2012
2013
2014
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
2015
2016
2017
2018
13 March 2019
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Export Destinations in 2018 (Source CCF Group) Italy, 1.02% Others, 2.26%
China, 2.76% Indonesia, 4.90% Thailand, 5.89%
Malaysia, 6.12% Bangladesh, 36.42%
Italy China Indonesia Thailand Malaysia
Vietnam, 13.65%
Vietnam Pakistan Bangladesh Others
Pakistan, 26.98% Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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Advantage • Pure Shankar 6 is of good quality though it is difficult to source. • Short Lead Time. • Better Cotton Initiative. • Organic cotton.
Scope of Improvement • Quality consistency. • Reduction of Contamination. • Less Moisture content needs to be controlled (Currently, 1% to 2% higher than others). • Reduction of NEPS. • NTBs like Export Banning needs to be avoided.
Perspective: Bangladesh Textile and Cotton by Shafiqul I Sarker
13 March 2019
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