Bangladesh, currently the world’s second-largest garment exporter, risks losing its prominent position unless urgent measures are taken to address key challenges, including speed to market, administrative inefficiency and a lack of product diversification, particularly in manmade fibres.

Kihak Sung, Chairman and CEO of Youngone Corporation, issued this warning during his keynote address at the Bangladesh Investment Summit 2025, which concluded on Thursday at a city hotel.

He emphasized that while Bangladesh has the potential to become the world’s top garment exporter, strategic reforms are crucial to overcoming obstacles such as geographical limitations and other operational inefficiencies.

The summit, which ran for four days, saw various industry leaders discussing potential solutions and investment opportunities aimed at bolstering Bangladesh’s position in the global market.

Mr Sung highlighted the increasing competition from Vietnam, which exported $44 billion worth of textiles and clothing last year.

‘Vietnam is very close to Bangladesh,’ he said. ‘If we don’t act quickly, we will lose the glory of being the number two exporter.’

He emphasized the importance of speed to market, explaining that Vietnam is ahead of Bangladesh by three weeks in delivering goods to the US. This advantage is critical, as buyers prefer suppliers who can deliver products sooner.

Mr Sung also said that despite workers’ costs being 40-50 per cent higher in Vietnam than in Bangladesh, his company makes more profit in Vietnam due to operational efficiencies.

He suggested that if Bangladesh could reduce customs-related delays by a week to 10 days, half of the current delays would be resolved, helping to mitigate geographical challenges.

Further, he stressed the need for more mechanisation and digitalisation, pointing out a shortage of workers. About 30 per cent of his production in Bangladesh is already automated, with plans to increase this by an additional 20 per cent within two years.

Mr Sung also recommended that Bangladesh focus on producing more value-added items and shift towards manmade fibre (MMF) production, as 70 per cent of global apparel demand is now for MMF products.

He called for policy support and the development of large bonded warehouses, which would provide quicker access to raw materials and enable more efficient production and export processes.

Speaking at the event, Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser, stressed the importance of local preparations to mitigate global risks in the wake of the US’s new tariff regime and cuts in aid.

‘We can’t rely on preferential treatment, whether it’s GSP or other LDC-related advantages. We must become much fitter,’ he said, emphasising the need for reforms, including in the labour sector.

Md Mahbubur Rahman, CEO of HSBC Bangladesh, addressed the high cost of doing business in the country, urging for market diversification, particularly towards India, China, and ASEAN countries.

Echoing Mr Rahman’s comments, Anwar Hossain, Administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the future of the sector depends on both market and product diversification. He also called for increased investment in the renewable energy sector.

The summit featured two panel discussions: ‘Bangladesh Beckons: Export Infrastructure,’ moderated by Shams Mahmud, Managing Director of Shasha Denims, and ‘Sustainability at the Heart,’ moderated by Dr Rubana Huq, Vice Chancellor of Asian University for Women.