Bangladesh’s drive to expand MMF garments could face a slowdown after a proposed Bangladesh MMF import duty adjustment on key synthetics prompted concern among exporters and textile manufacturers. Industry stakeholders cautioned that diversification from cotton-based lines to non-cotton or MMF-based apparel would be harder if the new measures take effect.
Proposed changes to key inputs
In the national budget speech, the finance minister proposed a 5.0 per cent import duty on polyester staple fibre and an increase in the import duty on PVC resin and PET resin to 10 per cent from the existing 5.0 per cent, citing the need to protect domestic industry. These inputs are widely used in MMF garments production, and manufacturers said the timing is sensitive as demand patterns evolve.
Industry response and export focus
According to industry insiders, the proposal comes as Bangladesh steps up its focus on MMF-based production to align with changing global apparel demand, including Western markets where consumers are moving away from cotton garments. With apparel exports under pressure from weaker global demand and intensifying competition, expanding MMF garments production has been described by stakeholders as essential for sustaining export growth and competitiveness across the Bangladesh textile industry.
Export mix and market trends
Bangladesh remains heavily reliant on cotton-based apparel, which accounts for more than 70 per cent of total garment exports. Globally, around 70 per cent of apparel demand is for MMF-based products, underscoring a mismatch between the country’s export profile and international market trends. Industry data show Bangladesh’s cotton apparel exports rose from about US$3 billion in 2001 to roughly US$33 billion in 2021. Over the same period, exports of MMF apparel increased by about US$8 billion, reflecting steady progress in non-cotton categories within the Bangladesh textile industry.
Competitive landscape and projections
Industry insiders noted that despite Bangladesh’s strong standing in cotton apparel, there is considerable room for growth in MMF and blended garments, where the country’s global market share is estimated at only 5–6 per cent compared with China’s 36 per cent. Studies also indicate that competitors such as Vietnam have built a strong foothold in MMF and blended apparel, particularly in the United States and Japan. According to industry estimates, Bangladesh could generate between US$19 billion and US$20 billion in MMF garment exports over the next five to ten years if constraints are addressed and the sector receives adequate policy support.
Manufacturers added that the proposed rise in duties on PET resin and PVC resin, combined with the new 5.0 per cent levy on polyester staple fibre, may raise costs for MMF garments producers. Stakeholders emphasized that the Bangladesh MMF import duty plan will be closely watched as the sector works to align with global demand and sustain competitiveness.
