Bangladesh loses RMG global market share, Vietnam gains
August 11, 2019 - Bangladesh
Despite the scope to gain from the China-US trade war, Bangladesh lost its global market share in apparel exports by 0.1 percentage point to 6.4 per cent in 2018 while Vietnam gained newer market share. But in fiscal 2018-19, Bangla apparel sector export earnings posted a 11.49 per cent growth to hit $34.13 billion from $30.61 billion in the previous fiscal.
Bangladesh's share in the global apparel market was 6.5 per cent in 2017. Vietnam narrowed the gap with Bangladesh, with its market share standing at 6.2 per cent in 2018, up by 0.3 percentage points, which was 5.9 per cent in 2017.
Out of the global apparel export market of $421 billion, Bangladesh grabbed $32 billion in 2018, which was $29 in 2017, according to the World Trade Statistical Review 2019 released recently by the World Trade Organisation (WTO).
Although China still retains its position as the top exporter of apparel products with $158 billion, its market share slid to 31.3 per cent in 2018 from 34.9 per cent in the previous year, according to Bangla media reports.
India's market share came down to 3.3 per cent from 4.1 per cent, while Turkey’s share fell to 3.1 per cent, which was 3.3 per cent a year before.
Experts attribute the slid to lack of delivery capacity and higher appreciation of taka against the US dollar, which affected Bangladesh’s apparel manufacturers’ competitive edge in the global market.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Rubana Huq sees the rise of Vietnam’s market share as a great threat for Bangladesh as it has more advantages. (DS)