Faruque Hassan, President, BGMEA, opines. Bangladesh can boost its export earnings by $ 2 billion annually by grabbing the growing global market of man-made fibre (MMF) textiles.
The chief of the country’s apparel sector’s apex body reiterated its request to the government to provide a 10 per cent cash incentive for non-cotton based garment exports for a certain period so that Bangladesh remains competitive in the global market.
Faruque said such efforts will help create employment and boost investment in the sector contributing to the overall economy of the country.
He said the demand for man-made fiber (MMF) textiles all over the world is on the rise with annual growth of 3 to 4 per cent as a substitute for cotton amid changes in global fashion trends.
Currently, MMF dominates global textile fiber consumption with around 75 per cent non-cotton fibre (64 per cent MMF) while the cotton share is only 25 per cent.
The share of MMF has been steadily increasing due to the inherent limitations of growth of cotton and other natural items.
The BGMEA President said they did not ask for a reduction of any tax this time but only wanted continuation of those facilities that are already in place.
He said MMF-based textile trade volume stood $ 150 billion in 2017 while Bangladesh’s share was only 5 against Bangladesh’s competitor Vietnam’s share of 10 per cent.
The BGMEA President said though there was investment in the non-cotton or MMF sector in the past, it was mainly capital investment and technology-based investment.
He said it will encourage investment and exports in the non-cotton sector if 10 per cent incentive is given on export of non-cotton products.