Synthetic fibres can be used to make many kinds of fashionable garments which are not possible with cotton fabrics. That is why the demand for synthetic fibre clothing is increasing worldwide. We may miss the train if we do not take the opportunity now. China, Vietnam and India have already achieved much of their targets in this area. We need to strengthen and expand the connectivity industry for synthetic fibre. That is why policy support is very much needed from the government.
One hundred percent of the outerwear in the world, including sportswear or raincoats, is now made of synthetic fibre. In all, more than 78 per cent of the world's clothing is made from synthetic fibre. Demand for this specialty has grown significantly as a result of recent coronavirus. This type of clothing is as comfortable as it absorbs sweat quickly. Taiwan, Indonesia, Thailand and China are now 100% artificial fibre-dependent. Scientists have done a lot to diversify the production of such yarns. So in terms of quality, there will be a lot of variety in synthetic fiber yarn. On the other hand, since cotton yarn is made in a natural way, there is little chance for scientists to experiment with.
What Scientists Say: The trade in artificial silk stopped in 1894. It was possible to do business for only two years. Hilaire de Chardonnet, a French scientist, Engineer and Industrialist and the inventor of synthetic fibers, had started an organization of synthetic fibers, almost 127 years ago, which no longer has its application in our current time. In the domain of garments made of natural cotton, a new domination of huge garments made of man-made fibre or synthetic fibre took over.
Demand for Synthetic Fibre: The garment industry in Bangladesh is 100 per cent dependent on cotton. The lion's share of our export is still based on cotton yarn. Cotton yarn mills have been established in our country abundantly. However, the reality of countries like Europe and America is very different. In 2019 alone, synthetic fibre garments worth $19 to 20 billion were exported from one country to another worldwide. It is predicted that in 2025, it will increase to 40 trillion dollars. The United States and India-based research institute Grand View Research has provided such information. According to the Switzerland-based International Manufacturers Federation (ITMF), 78 per cent of the total garments are made of synthetic fibre and the remaining 22 per cent are from cotton fibre.
There are many reasons for the increase in demand for synthetic fibre clothing. Environmental awareness is one of them which is growing among buyers around the world. Cotton production requires a lot of water and land; and in addition, a lot of water is used to dye or smoke or wash the clothes. For this reason, buyers of ready-made garments are inclined towards garments made of synthetic fibre. Another distinctive reason is the rapid change in fashion and there is no match for synthetic fibre in making brand new fashions and clothes. Furthermore, it is comfortable, durable, and beautiful and can be easily checked when it requires different tests.
Garment Industry in Bangladesh: The journey of readymade garment industry actually started in 1976. Since 1980, Bangladesh has been directly exporting readymade garments. Bangladesh and Vietnam are vying for the second position in export of readymade garments in the world whereas China is holding the first position. But in the export of synthetic fibre garments, Bangladesh is lagging behind even Vietnam, let alone China. At present, Vietnam occupies 10 per cent of the world's market for synthetic fabrics. Bangladesh is exporting merely less than five per cent.
However, even though it is late, the entrepreneurs of the readymade garment industry are gradually coming forward to export the garments made of synthetic fibre which will occupy a large share of the market in future. So the readymade garment industry will get a new dimension. Hopefully big industries will invest gradually in this sector. Big brands and consumer organisations are turning to synthetic and recycled fibre to make their businesses last longer. Therefore, Bangladesh's garment exporters should no longer rely solely on yarn-made garments.
How to Make Yarn from Cotton, Synthetic Fibre: Generally we know that yarn is made from cotton, from which garments are made and exported. Needless to say that there is no cotton production in Bangladesh and the spinning mills of our country completely depend on imports.
Like cotton, synthetic fibre too can be made from trees, bamboo or wood. There are two types of synthetic fibre: natural polymers and synthetic polymer fibre. Different types of trees, wood or bamboo, which are the source of plant fibre, are basically considered as natural polymer fibre, among which viscose, tensile and modal are quite popular. And yarn is produced by mixing different amounts of cotton with this fibre. However, since it is plant-based, many people do not like to call it synthetic fibre.
On the other hand, synthetic polymer fibre is made from petrochemicals where discarded plastic bottles are mainly used; and among synthetic fibre Polyester and Nylon are more popular. Yarns made from these fibers are used to produce various types of garments including jackets, raincoats, sportswear and underwear. Likewise, various types of fabrics including T-shirts, shirts, pants are made by mixing cotton with synthetic fibre.
Imports of Synthetic Fibre in the Country: The production and export of synthetic fibre in Bangladesh is gradually increasing due to the demand from the world's best readymade garment importing company but only three or four textile mills in the country are producing synthetic fibre. Most of the spinning mills are producing yarn and cloth by importing polyester, staple fiber, viscose staple fiber and tensile fiber from abroad.
According to BTMA data, 29,146 tonnes of viscose staple fibre were imported in 2016. Last year, in 2020, it increased to 53,289 tonnes, with an import value of Tk. 8.85 billion (885 crore). In 2016, 78,208 tonnes of polyester staple fibre were imported against 96,077 tonnes last year. The market value of this amount of polyester staple fibre is Tk. 9.27 billion (927 crore).
New Investment in This Sector: Entrepreneurs of the country's textile industry have come forward to produce synthetic fibre. Even in the pandemic days, a number of industries have started investing in synthetic fibre production. DBL has already announced an investment of Tk 5.62 billion (562 crore) in the sector, according to media reports.
Importing synthetic fibre, NZ Tex Group made viscose, tensile and modal yarn first and then fabrics with it. The business of this group is growing at a rate of 30 per cent every year. At Bhulta in Narayanganj, the company is investing Tk 1.0 billion to produce polyester fibre from plastic bottles. Hopefully more companies will invest gradually in the production of these fibers. Traders usually make plans to keep production targets in line with demand. Thus, much more is expected to be invested in this sector in the coming years.
How India Is Progressing: Though we feel happy to see that India lags far behind Bangladesh in garment exports, their traders have taken various initiatives to put their business of synthetic fiber garments ahead. Not only that, their government is also cooperating a lot in this regard. The country is currently exporting $1.6 billion worth of synthetic fibre garments annually. To strengthen export of the garment and textile sector, India plans to set up seven large-scale textile parks in three years. Each village will be built on more than one thousand acres of land where world class infrastructure will be built. In addition, India has planned an incentive scheme of Rs 106.83 billion (10,683 crore) for technological development in the textile sector and production of synthetic fibre. The information was presented by Indian Finance Minister Nirmala Sitharaman during the announcement of the 2021-22 budget in February last.
What We Have to Do: BTMA and BGMEA are trying to make various preparations for new investment in the production of synthetic fibre in the country. BGMEA had sought 10 per cent cash assistance in the last budget to capture the market of synthetic fibre of readymade garments. But the government did not get a chance to think deeply about the issue. The BGMEA was of the opinion that this cooperation would enable the garment industry to export an additional $200 million worth of garments.
Entrepreneurs in our country must re-invest in the production of synthetic or recycled fibre, yarns and fabrics due to the obligation of lead time. In order to set up such an industry, at least Tk. 15-16 billion (1,500 to 1,600 crore) is required. Therefore, entrepreneurs need to be provided low interest loans and technical assistance. In addition, it is necessary to create opportunities for foreign investors to come forward with special investments in this sector.
Currently, about 60 textile mills in the country are producing various types of synthetic fibre, yarns and fabrics including polyester, viscose, tensile and modal. In 2016, the number of textile mills was only 50.
Chinese industrialists can be courted to invest in this sector, because, the country has to import $ 6-7 billion (600 to 700 crore) worth of woven cloth every year. If the woven cloth production is declared tax-free, definitely it will usher in foreign investment in the country and our contribution to the export of synthetic fibre garments will be consolidated. On the other hand, the sale of synthetic yarn in the local market incurs Tk.6.0 in VAT and five per cent on clothes which should be revoked. Consequently this will increase investment in this sector.
Since this yarn is made from plastic bottles, the country needs thousands of KGs of plastic bottles which are not available within. Therefore, it is necessary to facilitate the import of duty-free plastic bottles from abroad. As such, the government policy and cooperation are badly needed in this regard and VAT and taxes need to be completely withdrawn from the sector. Then only we can expect that investors will be encouraged to make new investments in this sector.
The present government is creating 100 special export zones while, out of these, few of them already have started exporting. So, we suggest that a special export zone should be set aside for domestic and foreign investors only to manufacture synthetic fibre which will include various facilities and where domestic and foreign investors will set up industries. Then, the main raw material crisis of the readymade garment industry will no longer exist, if synthetic fibres are produced in the country. As such there will be no obstacles for foreign export orders and ultimately the country will get huge export orders. In the meantime, it will reduce the "Lead time" and we will be able to export the readymade garments according to the demand of importers. It will then help create a lot of jobs and increase foreign exchange earnings.
In the fiscal year 2020-21, the export of readymade garments stood at only $31.45 billion. Easily we can double the exports, if we can export garments made of synthetic fibre. Apart from this, if India, China and Vietnam can occupy this market and get hold of it, we will be nowhere near them. Therefore, the government must come forward with necessary policy support.
Finally, for development of this sector, it is necessary to set up an institute nationally with initiatives both from public and private sectors for design, fashion and technological advancement where India, China and Vietnam are already ahead of us. All business organisations including BGMEA, BTMA, BKMEA need to come forward fast to set up research and fashion institutes for the sake of export growth. In the ledger book of our achievements of 50 years of independence, let us start planning and implementing projects to achieve a strong position in "synthetic fibre production" and readymade garment exports.
Abul Quasem Haider is Founding Chairman of Eastern University, Ex. Senate Member of the University of Dhaka. Website: www.chintavabna.com
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