Bangladesh trails Vietnam, China in product diversity: Reports

As per government data, over 80 per cent of Bangladesh’s apparel export earnings from Western market originated from basic items even if local manufacturers recognised the necessity of product diversification.

However, they acknowledged time, investment, and infrastructure support is required for such a transition.

China, meanwhile, maintained its competitiveness due to its diverse product range, despite a decline in its US market share. In contrast, Bangladesh, while experiencing market share growth, remained favoured for high-volume basic items, reflecting its heavy reliance on a few garment categories.

Vietnam capitalised more effectively on the “China shift” with a broader product range.

The export product diversification index highlights the varied sourcing bases for US fashion companies, with Vietnam leading in outerwear, underwear, and swimwear; India in dresses; and Bangladesh in large-volume basic knitwear items.

Bangladesh’s garment export earnings primarily derived from five basic items, but there’s a gradual shift towards value-added production and rising imports of non-cotton materials signal this transition.

While Bangladesh holds potential for diversified goods, achieving this requires increased investment and expertise. Despite ongoing efforts, diversification cannot happen overnight, necessitating a strategic, long-term approach, felt industry insiders.

Comparisons with competitors underscore Bangladesh’s progress, albeit slower while China and Vietnam’s success stems from strong linkages and support systems, reflected in their diverse offerings.

Though Bangladesh’s market share shows promise, sustained efforts are crucial for further growth and diversification, aligning with evolving market demands, experts felt.

Fibre2Fashion News Desk (DR)