The report on Monday said Bangladesh has the largest apparel export industry in South Asia and, at 6.4 percent, the largest market share of global apparel exports among South Asian countries.
“Bangladesh has steadily increased its share of global apparel trade above the world average and greater than China but lower than that of the Southeast Asian countries,” said the report of the Washington-based lender.
The report, launched jointly with the Bangladesh Institute of Development Studies, a think-tank, highlights that the country needs to improve performance on non-cost factors important to global buyers.
Successfully implementing reforms will help Bangladesh increase exports and capture more jobs from China’s gradual exit from the clothing market and compete with Vietnam, Cambodia, and Indonesia, it said.
“For the US market, a 10 percent increase in Chinese apparel prices would increase apparel employment in Bangladesh by 4.22 percent.”
“The apparel sector in Bangladesh tells a remarkable story of women’s empowerment by significantly increasing female participation in the labour force,” said Qimiao Fan, the World Bank Country Director for Bangladesh, Bhutan and Nepal.
“The apparel industry is extremely important to Bangladesh’s economy, accounting for 83 percent of total exports,” said Fan.
In Bangladesh, the industry is dominated by local firms, but foreign direct investment played a central role in launching the industry, providing linkages to foreign buyers, technology, and knowledge transfer.
The report demystifies the global and South Asian apparel markets, estimating the potential gains in exports and jobs, and identifies policies that can unleash South Asia’s export and job potential.