The country’s export earnings from readymade garments (RMG) hit $11.33 billion during the July-October period of the 2018-19 fiscal, according to Export Promotion Bureau (EPB) data.
Apart from government’s good policy support and strong dollar rate, the ongoing trade war between US and China has played a crucial part in pushing the export earnings up, experts said.
The export earnings from RMG sector, which accounts for 83 percent of the total exports earnings, went up by 20.08 percent during the period compared to the corresponding period of the last fiscal.
The exports also exceeded the fixed target by 11.5 percent. The target was $10.16 billion for the period.
The export earnings from RMG sector Stood at $9.43 billion during July-October period in FY 18. The total export earnings were $13.65 billion in July-October in the current fiscal year.
The country RMG sector is playing a vital role in developing the economy by earning more than 80 percent foreign currency of total export earnings, economists said. To make RMG growth sustainable, the government has given more emphasis on taking several steps to boost up this sector, they said.
The increasing US spending on the occasion of upcoming Christmas and the ongoing US-China trade war have mainly contributed to the export earnings, exporters opined.
BGMEA president Siddiqur Rahman told Bangladesh Post, “The foreign buyers are now showing more confidence in Bangladesh products as the country has created a good image across the world for running environment-friendly RMG industry.”
He said Bangladesh is now in the top position among the top performing environment-friendly RMG industries across the world, thus rebuilding buyers’ confidence to invest more in the RMG sector.
Bangladesh has been shifting towards making high-value products, which is generating interest among foreign buyers to order more from Bangladesh. He stated that the country needs some fiscal support from the government, including reducing the time frame to discharge export items from ports as well as improving communication systems which can help boost the export flow further.