Bangladesh becomes largest denim exporter to EU

Bangladesh has passed China as the top denim exporter to the EU, boosting the South Asia nation's garment industry looking to become a $50 billion market by 2021.

Data gathered by the government revealed that Bangladesh shipped about 568 million euros or $612 million worth of denim products to the 28-nation bloc in the first half of last year, accounting for slightly more than 21 percent of the overall market, the highest in the region.

The country has also become the third-largest denim supplier to the US, registering a 12 percent market share. It trailed China and Mexico, which took in 26 and 25.4 percent, respectively.

According to industry experts, the rise can be attributed partly to the heavy financing many of the nation's large denim producers made to obtain advanced machinery.

In an interview with Bangladesh's The Daily Star, Mostafiz Uddin, managing director of Denim Expert Ltd said that local manufacturers have invested a total of $1 billion to acquire 30 denim mills. Combined these have a production capacity of 435 million yards annually.

MS Hasan, director of operations of Amber Denim, another major local denim maker, claimed: “Bangladesh could win in the European denim segment not only for the competitive prices, but also for the quality of its products, shorter lead time and better commitment."

Bangladesh denim manufacturers export products to several global brands, including Levi's, Diesel, G-Star RAW, H&M, Uniqlo, Tesco, Wrangler, s.Oliver, Hugo Boss, Wal-Mart, and Gap.