When India saw slum and China faces challenges from mounting trade conflict with US, Bangladesh has a vast opportunity to expand its market base for ready-made garment products through diversification of products and modernization of supply chain.

Bangladesh readymade garment export increased by 20.08 per cent to $11.33 billion in July-October period of the current fiscal year when India's garment exports dropped by 26 per cent due to higher input cost and China faces tough to keep growth pace hit by US sanctions on its products.

Bangladesh export earnings from the readymade garments stood at $11.33 billion in July-October period of the current fiscal year, while knitwear products fetched $5.88 billion, which is 17.83 per cent  higher than the same period a year ago while woven products witnessed 22.61 per cent export growth to $5.45 billion.

In India, the decline is a shock to apparel exporters who blame it on high input costs. Production costs in the northern hubs are high compared to other competing countries. 

Vietnam, a big competitor of Bangladesh, however, witnessed a growth of 17 per cent to US$ 22.56 billion in textile and garment exports in the first nine months of this year mainly for increased demand from US retailers.

In China, the world's biggest exporter of manufactured goods, some factory owners have moved production units to other developing countries such as Bangladesh, Cambodia and Vietnam. This was in search of cheaper wages and a hedge against the political and economic risks that come from reliance on one country.

Bangladesh has also been benefitting in the purchase of cotton as prices decreased 10 percent after China imposed high duty on the import of the natural fibre from the US. China imports $1 billion worth of the white fibre from the US in a year.

Though Vietnam is already benefitting on a massive scale from the US-China trade war, Industry experts say Bangladesh does have the scope to increase gains, especially in garment business. But it needs to diversify its products, reduce lead time through modernizing its supply chain and using technology innovation in its products.

Many manufacturers say American retailers are shifting their work orders and showing more interest in Bangladesh products after the US president Donald Trump imposed more tariffs on China's goods recently.

The Alliance for Bangladesh Worker Safety (Alliance) announced on 10 September that 36 more Alliance-affiliated factories completed all material components outlined in their Corrective Action Plans (CAPs) since the month of July, bringing the total to 400. 

Industry experts say the last decade has seen an increase in garment production in countries like India, Vietnam and Pakistan, as well as Cambodia and Bangladesh due to the labor-intensive nature of garment manufacturing. 

Of Bangladesh's total exports, 79 per cent are concentrated in five basic products: trousers, t-shirts, sweaters, shirts and jackets. Without enough skilled labor, Bangladesh struggles to diversify production and manufacture more high-end garment and textile products.