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Prospects for the textile and clothing industry in Bangladesh, 2019

Bangladesh is the world's second largest clothing exporter. Furthermore, it is the second biggest clothing supplier to the EU and the third biggest clothing supplier to the USA. Between 2011/12 and 2017/18, Bangladeshi clothing exports grew by more than 60% and now account for about 85% of the country's total exports. The clothing industry's development has been aided by government policies aimed at encouraging foreign investment and allowing private enterprise to take the leading role. Looking ahead, the industry has set an ambitious clothing export target of US$50 bn for the country's 2020/21 financial year. But to achieve this target, it will have to continue to tackle issues of occupational safety, regulatory compliance and labour rights. Looking further ahead, Bangladesh could lose its tariff-free access to European, Canadian and Australian markets if, as expected, it graduates from least developed country (LDC) status and becomes a middle income country in 2021. If this were to occur, imports from Bangladesh into a number of major markets could become subject to additional tariffs and this could result in a loss in export earnings. On the positive side, labour costs in Bangladesh remain very low, problems of occupational safety are being addressed and the country's clothing industry has strong links with many leading Western retailers. This report examines the development of the textile and clothing industry in Bangladesh, its size and structure, and production and consumption. Also, the report features: a geographical, political and economic profile; a detailed analysis of the country's imports and exports; a thorough review of government policies, investment incentives and foreign investments; a comprehensive study of Bangladesh's infrastructure and human resources and how these affect the textile and clothing industry; and a detailed analysis of its strengths, weaknesses, opportunities and threats (SWOT).

Bangladesh is the world's second largest clothing exporter. Furthermore, it is the second biggest clothing supplier to the EU and the third biggest clothing supplier to the USA. Between 2011/12 and 2017/18, Bangladeshi clothing exports grew by more than 60% and now account for about 85% of the country's total exports. The clothing industry's development has been aided by government policies aimed at encouraging foreign investment and allowing private enterprise to take the leading role. Looking ahead, the industry has set an ambitious clothing export target of US$50 bn for the country's 2020/21 financial year. But to achieve this target, it will have to continue to tackle issues of occupational safety, regulatory compliance and labour rights. Looking further ahead, Bangladesh could lose its tariff-free access to European, Canadian and Australian markets if, as expected, it graduates from least developed country (LDC) status and becomes a middle income country in 2021. If this were to occur, imports from Bangladesh into a number of major markets could become subject to additional tariffs and this could result in a loss in export earnings. On the positive side, labour costs in Bangladesh remain very low, problems of occupational safety are being addressed and the country's clothing industry has strong links with many leading Western retailers. This report examines the development of the textile and clothing industry in Bangladesh, its size and structure, and production and consumption. Also, the report features: a geographical, political and economic profile; a detailed analysis of the country's imports and exports; a thorough review of government policies, investment incentives and foreign investments; a comprehensive study of Bangladesh's infrastructure and human resources and how these affect the textile and clothing industry; and a detailed analysis of its strengths, weaknesses, opportunities and threats (SWOT).


SUMMARY
IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO
THE ECONOMY OF BANGLADESH
DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN BANGLADESH
BANGLADESH: GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
Geographical profile
Political profile
Economic profile
BANGLADESH: INFRASTRUCTURE
Transportation
Roads
Railways
Air
Inland waterways and ports
Sea ports
Power
Communications
BANGLADESH: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING
INDUSTRY IN BANGLADESH
Textile industry
Spinning
Weaving
Knitting
Clothing industry
BANGLADESH: TEXTILE AND CLOTHING PRODUCTION AND CONSUMPTION
Raw cotton production and consumption
Yarn production and consumption
Fabric production and consumption
BANGLADESH: TEXTILE AND CLOTHING EXPORTS
Clothing exports by product type
Clothing exports by destination
BANGLADESH: TEXTILE AND CLOTHING IMPORTS
BANGLADESH: FOREIGN DIRECT INVESTMENT (FDI) IN THE TEXTILE AND CLOTHING INDUSTRY
TEXTILES AND CLOTHING IN BANGLADESH: GOVERNMENT POLICIES AND INVESTMENT INCENTIVES
Government policies
Incentives for foreign investors
Tax exemptions
Import duties
Income tax
Repatriation of invested capital, profits and dividends
Exits
Wholly owned businesses and joint ventures
Tax holidays
Concessionary duty on imported capital machinery
Additional incentives for export-oriented companies
Incentives for non-resident Bangladeshi investors
Export processing zones (EPZ)
TEXTILES AND CLOTHING IN BANGLADESH: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
List of tables
Table 1: Bangladesh: political and economic profile, 2018
Table 2: Bangladesh: economic indicators, 2015/16-2017/18
Table 3: Bangladesh: direct employment in the textile industry by activity, 2016
Table 4: Bangladesh: employment in garment factories, 1984/85-2017/18
Table 5: Bangladesh: number of spinning mills and spinning capacity, 2006-18
Table 6: Bangladesh: registered textile manufacturing operations by type, 2018
Table 7: Bangladesh: number of clothing factories in operation, 1984/85-2017/18
Table 8: Bangladesh: harvested area, production and consumption of raw cotton, 2005/06-2017/18
Table 9: Bangladesh: yarn production and consumption, 2006/07-2017/18
Table 10: Bangladesh: fabric production and consumption, 2006/07-2017/18
Table 11: Bangladesh: textile and clothing exports, 2011/12-2017/18
Table 12: Bangladesh: exports of clothing by major category, 2011/12-2017/18
Table 13: Bangladesh: exports of clothing by leading destination, 2011/12-2017/18
Table 14: Bangladesh: exports of woven clothing by leading destination, 2011/12-2017/18
Table 15: Bangladesh: exports of knitted clothing by leading destination, 2011/12-2017/18
Table 16: Bangladesh: imports of textiles and clothing by type, 2011/12-2017/18
Table 17: Bangladesh: foreign direct investment (FDI) in the textile and clothing industry, 2011/12-2017/18
List of maps
Map of Bangladesh

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