Bangladesh’s readymade garment (RMG) exports have surpassed the $35.14 billion target for the current fiscal 2021-22 within the first 10 months as the country showed economic stability despite the global crisis.
Exporters said the export order on the RMG sector has rapidly increased on continuing global demand, and the leveraging of anti-China sentiments especially in the US market helped to maintain this strong growth.
Besides, the country can provide quality products at low cost which attract foreign buyers to invest more here, they added.
“While RMG manufacturing hubs such as Ethiopia and Myanmar are faced with internal security problems, Bangladesh is giving buyers a stable environment. Also, lockdowns in Vietnam and China, coupled with financial turmoil in Sri Lanka, are pushing orders towards Bangladesh,” said Shams Mahmud, managing director of Shasha Denim Ltd.
Market analysts said the country’s total export earnings continued an upward trend for the last several months in the current fiscal 2021-22 even during the coronavirus pandemic, thanks to a strong rebound in apparel shipment.
The country’s export earnings stood at $35.36 billion from the ready-made garments (RMG) in July-April this fiscal, up around 36 percent over the previous fiscal. The earning was $26 billion during the same period in the 2020-21 fiscal year.
The overall export earnings also surpassed the set target by 20.52 percent for the first 10 months of the current fiscal, according to the Export Promotion Bureau (EPB) data.
However, the country’s export earnings stood at $31.34 billion from the RMG in the last fiscal.
Ziaur Rahman, regional head of H&M's Bangladesh, Pakistan and Ethiopia, said, “Bangladesh is now one of the most important sourcing countries. 11 percent of the total purchases are now from Bangladesh. It will increase in the coming days.”
He said Bangladesh's ready-made garments industry has become a major 'sourcing hub' for global buyers after the rapid recovery from the Corona pandemic.
“Currently, H&M buys products directly from 300 garment factories in Bangladesh. With the strategy adopted by the industrialists of Bangladesh to improve the working environment, diversify the products and produce high value products, it is highly possible to export $100 billion from this country in the next 10 years” he mentioned.
Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Bangladesh Post, “Bangladesh's garment factories are not only safer but also more dynamic, modern, energy efficient and environment- friendly. Bangladesh is now home to the largest number of green factories.”
“We believe that sustainable development is not a sprint, it is a marathon. We are committed to maintaining the social and environmental excellence we have achieved in the industry. At the same time, we are focusing on building business capacity,” he mentioned.
Shams Mahmud said that increase in export orders in Bangladesh RMG sector is mainly attributed to the unique position that Bangladesh finds itself in.
“The government has managed well during Covid crisis coupled with initiatives taken by the BGMEA president in the past year that helped to boost this sector,” he mentioned.
Besides, proactive measures led by the BGMEA president to promote green initiatives in the RMG sector and best practices are also attracting new buyers to Bangladesh, he added.
However, in the first 10 months of the current fiscal year, the total export earnings stood at $43.34 billion, which increased by 35.14 percent over that in the same period of the previous fiscal, according to the Export Promotion Bureau (EPB) data.
During the same period last fiscal, export earnings were $32.07 billion.