Pioneering a transformation in the Woolen Industry, Bangladesh is setting its sights on a monumental leap in the high-end woolen garment export sector, aiming to elevate its annual exports to a staggering $1 billion within the next five years. This ambitious stride comes on the heels of Australia contemplating Bangladesh as a viable substitute to China for its wool processing, signaling a potential seismic shift in the global wool industry landscape.
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Presently, Bangladesh imports nominal quantities of woolen fabric from global hubs like China, Italy, or England, fashioning them into exquisite high-value suits, shirts, pants, and knitwear sweaters for export. However, despite its prowess in garment production, the absence of indigenous raw materials—specifically yarn and fabric—hampers Bangladesh’s full throttle entry into the $17 billion market predominantly led by Australia and China.
A significant turning point emerged when a delegation led by Wool Producers Australia visited Dhaka, exploring the feasibility of establishing wool processing units in Bangladesh. The delegates expressed eagerness to collaborate, emphasizing mutual networking to expand wool manufacturing capabilities within the country.
Saleudh Zaman Khan, representing the Bangladesh Textile Mills Association, recognizes a lucrative opportunity stemming from Australia’s inclination to diversify its wool exports away from China. This opens doors for Bangladesh to enter the production of premium-quality woolen yarn, especially coveted materials like cashmere wool. The plan involves integrating new machinery and expertise into existing spinning mills, aiming to position Bangladesh as a hub for woolen yarn and fabric production.
- Collaboration symbols between Bangladesh and Australia
- Global Wool Fiber Market: $30B, expected CAGR of 5.5% to $25B by 2030
- Aims for $1B annual wool clothing exports in 5 years
- Growth from $100M to $1B in woolen garment exports
- Partnerships (e.g., Australia) aiming for $1B woolen garment exports
Market Size: The global wool fiber market, valued at over $30 billion, is projected to steadily grow at a Compound Annual Growth Rate (CAGR) of 5.5% to nearly $25 billion by 2030.
Bangladesh’s Opportunity: With this burgeoning market, Bangladesh sees a significant chance to leverage partnerships, innovation, and local manufacturing to tap into the high-end woolen garment sector.
Key Players and Perspectives:
Energy Pac Fashions Limited: A leading company in Bangladesh already manufacturing high-value suits, emphasizing the potential benefits of local sourcing to reduce lead times and enhance competitiveness.
Humayun Rashid (Managing Director of Energy Pac Group): Advocates strongly for domestic raw material procurement to bolster Bangladesh’s competitive edge. Foresees a substantial increase in annual wool clothing exports from $100 million to an ambitious $1 billion within five years, aligning with industry sentiments.
Transformative Impact: Bangladesh stands at the brink of a transformative era in its textile exports, aiming to carve a niche in the high-end woolen garment sector.
Partnerships: Collaborations with industry giants like Australia highlight Bangladesh’s potential to attain $1 billion in woolen garment exports, signaling a paradigm shift in the country’s textile narrative.
The convergence of Australia’s strategic shift in wool production, Bangladesh’s infrastructure enhancement, and visionary leadership within local companies like Energy Pac Fashions Limited positions Bangladesh at an inflection point. The nation stands poised to not only enter but thrive in the high-value woolen garment market, signaling a blend of tradition and innovation on the global stage.
Import Duties and Collaborative Endeavors
The challenge of import duties weighs heavily on the sector’s progress. Entrepreneurs emphasize the need for duty waivers on wool fiber imports, akin to those for cotton, to bolster exports. Despite efforts to urge the National Board of Revenue for these waivers, progress has been elusive.
However, discussions during the meeting with the Australian delegation on October 23, involving representatives from the commerce ministry, showcased promises of cooperation. Additional Commerce Secretary Md Abdur Rahim Khan affirmed considerations to present these recommendations to the ministry, signifying a potential stride towards overcoming this hurdle.
Bangladesh’s journey towards becoming a prominent player in the high-end woolen garment market appears promising, with strategic partnerships, innovative approaches, and governmental support paving the way for a transformative era in the country’s textile narrative.
Wool Imports to Bangladesh
- China: 75%
- New Zealand: 25%
leading suppliers of wool to Bangladesh
In value terms, China has indeed been a major supplier of wool to Bangladesh, accounting for a significant portion of the country’s imports. This trade relationship has been crucial for Bangladesh’s textile industry, where wool is utilized in the production of various garments and textiles. The figure of 75% you mentioned represents a significant dependency on China as the primary source for wool imports, highlighting the importance of this trade partnership between the two countries. The second position in the ranking was held by New Zealand, with a 25% share of total imports.