Bangladesh is sorely in need of governmental support to establish a strong footing on potential man-made fibre (MMF) markets where its competition marches ahead as it fights to maintain its position as the world’s second-largest garment exporter.
As seen by its outpacing growth of traditional clothing, the apparel sub-sector has the potential to revolutionise the worldwide textile trade.
The MMF sector of the garment trade has grown dramatically over the past ten years, but Bangladesh’s contribution to the country’s apparel basket is less than 30%, which is far lower than the global average of 63%.According to industry analysts, if the nation doesn’t increase the amount of MMF in the trade cake, it might lose its current position as one of the leading exporters of clothing.
Ten years ago, cotton accounted for 40% of total fibre use. Today, that percentage has dropped to 26%, while MMF has increased to 63%.To a doubt, we need to increase our proportion of MMF goods, but Mohammad Ali Khokon, president of the Bangladesh Textiles Mills’ Association (BTMA), told the FE that we are not receiving the required policy backing.
He added that VAT for cotton yarn is TK 3, saying, “We have pushed the government to cut VAT on the MMF from TK 6 to TK 3 but it had not materialised yet.”
“Yet, establishing an MMF plant is a significant, expensive issue, hence we requested a duty-free import of capital equipment for the construction of MMF facilities. But, the relevant authorities have not complied with our request “explained Mr. Khokon. The president of the BTMA claims that just 15 percent of the 13 million spindles in textile mills are used to make MMF goods.
According to Dr. Mostafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), the government can take a number of actions to strengthen the MMF industry.”Since this is a capital-intensive industry, there should be credit support from the various government sources, including the export fund of Bangladesh Bank. The government may also create a specific industrial park with infrastructure support for this industry “added he.
“There ought to As this is a relatively new industry for us, assistance with skill development should also be provided, he suggests.
He emphasised that Vietnam, Bangladesh’s primary rival, is “ahead of us in the MMF sector.” Dr. Zaidi Sattar, the chairman of the Policy Research Institute, believes that attracting foreign investment is essential for developing the MMF sector. “We need to take steps to boost this sector since the demand for MMF is increasing globally and it’s a high-value product,” he said.
The amount of fibre consumed worldwide is increasing; it increased from 100 million tonnes in 2016 to 108 million tonnes in 2019. According to an international survey by Lenzing, the MMF market will experience sustained development at a 63 percent share of synthetic fibres. rate of 3% to 4% till 2024.
According to experts, the amount of fibre consumed globally will increase to 140 million tonnes, of which MMF will account for 108 million tonnes. According to Wood Mackenzie, a global business research firm, just 26% of the world’s total fibre usage is made up of cotton, while 56% of it is made of polyester, followed by 4.9% of polypropylene, 4.8% of nylon, and 1.6% of acrylic.
According to industry insiders, the expansion of MMF is due to the growing demand for MMF-based clothing in the fashion business. In contrast to cotton, it is also inexpensive and simple to recycle, according to an RMG buyer. MMF is used in a wide range of end-use industries, including sportswear, casual clothing, women’s dresses, household textiles, carpets, and other industrial fields. all of this making it the perfect “fibre of the future,” he continued.
With more than 4,600 active factories, Bangladesh has established itself as a significant producer in the ready-made clothing industry. Just 27 of the approximately 430 mills that operate in the spinning industry produce manufactured yarn, particularly polyester. Other synthetic fibre production facilities, such as those for nylon, acrylic, and polypropylene, have not yet been constructed in Bangladesh. According to a survey, the global market for man-made clothes reached $179 billion in 2019 and Bangladesh held a 5-percent market share, while Vietnam was its biggest competitor with a 10-percent share.
Just 20% of the country’s need for manufactured yarn is satisfied by Bangladesh’s 27 plants.
Nonetheless, foreign investors are ready to created MMF facilities in Bangladesh after spotting a huge unmet demand. Youngone, a Korean textile manufacturer, has invested $65 million in three facilities and announced plans to invest a further $120 million for two additional MMF factories in the company’s Korean EPZ.
Speaking to the FE, Kihak Sung, the company’s chairman, stated that Youngone has already begun producing polyester materials in its two cutting-edge plants, each of which has a floor area of 430,000 square feet.
He continued, “Both factories will be enlarged soon.Industry analysts claim that because Bangladesh has a robust forward linkage in the garment sector, incentives for MMF production may also be able to draw significant FDI into the nation.
