Bangladesh’s textile and apparel industry remains the country’s largest export-earning sector and a major source of employment. However, persistent structural and policy challenges continue to affect its global competitiveness. To ensure sustainable growth and strengthen the industry’s future, several strategic reforms deserve immediate attention.
1. Power Crisis
The shortage of reliable electricity and gas continues to disrupt industrial production, increase manufacturing costs, and reduce operational efficiency. Addressing the energy crisis should remain a national priority. From the author’s perspective, reviewing duty-free import policies and introducing selective duties or VAT on non-essential imports could increase government revenue, thereby creating additional fiscal capacity to strengthen the country’s power supply and ensure uninterrupted energy for industries.
2. Raw Material Bonded Warehouse
Although the government issued the gazette for the Raw Material Bonded Warehouse nearly a year ago, the required infrastructure and implementation framework have yet to be fully developed. Accelerating this initiative would enable textile manufacturers to access raw materials more efficiently and could reduce spinning production costs by approximately 6%, significantly improving competitiveness in international markets.
3. Establish Research and Data Analysis Wings
Strong policy decisions require reliable data. Dedicated research and data analysis units should be established within the Ministry of Textiles and Jute, the Ministry of Commerce, the Export Promotion Bureau (EPB), the Bangladesh Textile Mills Association (BTMA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). These units would provide market intelligence, monitor global trends, and support evidence-based policymaking for the textile sector.
4. Develop a Cotton and Man-Made Fiber (MMF) Policy
Bangladesh remains highly dependent on imported textile raw materials. A long-term Cotton and Man-Made Fiber (MMF) policy should encourage domestic production, investment, and value addition with the objective of meeting at least 50% of the industry’s raw material demand through local sources over the next decade. Such a strategy would reduce import dependency and strengthen supply chain resilience.
5. Declare a National Textile Sector Roadmap
Bangladesh should introduce a comprehensive textile sector roadmap similar to those adopted by competing manufacturing countries. The roadmap should define clear national targets, including increasing textile and apparel exports from approximately US$47 billion to US$100 billion, reducing textile-related imports from around US$32 billion to US$10 billion, and expanding employment from 5 million to 10 million workers within the next five years. A clearly defined roadmap would provide long-term direction for both policymakers and investors.
6. Reduce Lead Time
Improving Bangladesh’s competitiveness requires shorter lead times for global buyers. Continued investment in ports, transport networks, logistics infrastructure, and customs efficiency, along with stronger trade agreements with neighboring countries, would improve supply chain performance and enhance the country’s position as a preferred sourcing destination.
7. Ensure Long-Term Energy Security
Sustainable industrial growth depends on a reliable and diversified energy strategy. Bangladesh should pursue long-term energy security through a balanced mix of natural gas, coal, solar power, and other renewable energy sources. A comprehensive national energy policy will be essential to support future industrial expansion and maintain the competitiveness of the textile and apparel sector.
Conclusion
Bangladesh’s textile industry has consistently demonstrated resilience despite global economic uncertainties. By implementing these strategic policy reforms, strengthening institutional capacity, ensuring energy security, and promoting long-term industrial planning, the country can further enhance its global competitiveness, accelerate export growth, create millions of new jobs, and reinforce its position as one of the world’s leading textile and apparel manufacturing hubs.
