Bangladeshi made apparel items prices continued to fall since April 2013 although the prices of cotton, the main raw material for fabrics, increased during this time. Of the total garment export from Bangladesh, nearly 90 percent are made from cotton fibres. Decline of price can be associated with the constant price pressure from international brands, which is not in our control.
However, the country needs to improve its transport and logistics systems to meet the needs of its growing economy and to boost export growth, according to a recent World Bank report which found that by making logistics more efficient, Bangladesh can significantly boost export growth. It can also maintain its position as a leading readymade garment producer and create more jobs by doing the same.
The report notes that congestion on roads and in seaports, high logistics costs, inadequate infrastructure, distorted logistics service markets and fragmented governance hamper manufacturing and freight, further eroding Bangladesh’s competitive edge and putting its robust growth path at risk. By making its logistics more efficient, the country can significantly optimize its connectivity, business environment, and competitiveness, putting it on the right path to become a dynamic upper-middle-income country.
For Bangladesh, improving its logistics performance provides an opportunity to increase its world market share in garments and textiles, which account for 84 percent of its total exports, expand into new markets, and diversify its manufacturing and agriculture into high-value products.
Improving Bangladesh’s logistics requires a system-wide approach based on greater coordination among all public institutions involved in logistics and with the private sector, increasing the effective capacity of core infrastructure, and removing distortions in logistics service markets to reduce costs and improve quality. At a regional level, harmonizing its logistics systems and aligning its customs with that of its neighbours could turn Bangladesh into an important node for regional freight flows and further boost its trade.