Because of the US-China trade war, Bangladesh-based garment manufacturers have an opportunity to sell in the US. Bangladesh has seen the value of its overseas sales rise. For the first time in 30 years, Newage Group, a Bangladesh-based garment manufacturer, is sensing an opportunity to sell in the US and has been getting enquiries from Macy’s and Gap. The Viyellatex Group, also from Bangladesh, forecasts its annual exports to the US to more than double, buoyed by rising orders. About 30 per cent of Viyellatex’s clients are from the US, compared with 20 per cent a year ago.
But for Bangladesh-based companies there’s a roadblock to winning more orders from western firms. Bangladesh needs to improve its supply chain, modernize its garment factories, build highways and reduce red tape at ports to lure more buyers. It takes 168 hours for exporters in the nation to ship from Dhaka, while it takes just 23 hours in Shanghai.
Bangladesh is the world’s second largest garment exporter. The country aims at doubling total exports by 2024. Its economy is expected to expand at a record eight per cent for the next two years. Bangladesh’s garment industry, which employs four million people, accounts for 13 per cent of the gross domestic product.