Kazi Zahidul Hasan :
Concerned over the receding export growth, business leaders have sought interventions from the government to revive export-oriented industries in the country.
They also urged the government to form a ‘taskforce’ comprising relevant stakeholders with the purpose of understanding international trade dynamics to ultimately increase the export growth.
Bangladesh’s export growth in the just concluded fiscal year (FY) 2016-17 hit 15-year low at 1.69 per cent owing to poor shipment performance from the apparel sector.
“Local export industries are facing tremendous challenges owing to their eroding competitiveness in global arena. This has pushed Bangladesh’s export growth to historic low in the just concluded fiscal year,” M Shafiul Islam Mohiuddin, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation yesterday.
He said, “We need immediate government intervention to prevent falling export growth. And the government should offer sops to export-oriented industries for enhancing their competitiveness.”
The FBCCI leader also called upon the government to formulate a plan of action to achieve higher export growth and assessing the challenges as well as opportunities of local export industries.
“A ‘taskforce’ could be formed for devising the plan,” he added.
Mohiuddin, a leading garments exporter of the country, demanded for reviving the country’s apparel industries considering their contribution to the national economy.
“Traditionally, apparel industry account for over 80 per cent of the country’s total exports. So, the industry needs special care from the government,” he said,
The apex trade body leader mentioned that apparel industry is facing stiff competition from its global peers due to high cost of production coupled with energy crisis. This is a critical area that the government should look into. Otherwise, the country’s export could plunge further.
“Our export posted an unexpected fall in the immediate past fiscal year causing concern to us. Such a development demands immediate government response,” Abdus Salam Murshedy, President of the Exporters Association of Bangladesh (EAB) told The New Nation.
He said Bangladesh is the second largest garments exporter in the world after China. The growth of garments export went down to 0.26 per cent in the FY17 reflecting the real situation of the industry.
“The industry faces major challenges in the wake of falling commodity prices and sluggish demands in major markets like the US and the EU. Even, apparel export continues to fall in the UK, Canada and non-traditional markets taking a hit from economic uncertainty there,” he added.
He mentioned that Bangladesh loses in export markets due to lack of marketing, quality of products or weakness in export conducive infrastructures and competitiveness.
Bangladesh’s export earnings in FY17 stood at $34.83 billion with a shortfall of more than $2 billion from the government-set target of $37 billion, according to the provisional data of the Export Promotion Bureau.
The earnings’ growth was the lowest since the FY 2001-02 when it was negative 7.43 per cent.
According to the data, the export earnings from goods in FY17 fell short of target by 5.85 per cent.
Export earnings from RMG products in FY17 stood at $28.15 billion with a minimal growth of 0.20 per cent. Earnings from the sector, however, fell short by 7.34 per cent against the government-set target of $30.38 billion.
“Both external and internal factors were behind the unexpected export falling in FY17. Shrinking global demand for local apparel products and devaluation of currencies of the major importing countries were the main reasons for the growth.
It is sending the signal that Bangladesh is losing its competitive edge, while its competitors are doing well. The government must come forward to respond with current situation and devise a plan to revive the country’s export sector,” Faruque Hassan, Senior Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The New Nation.
Worried by the falling export growth, he said, “Bangladesh should reduce the cost of doing business and enhance productivity of local industries in order to remain competitive in the global export market. At the same time, it should concentrate more on market and product diversification to boost exports.”
Concerned over the receding export growth, business leaders have sought interventions from the government to revive export-oriented industries in the country.
They also urged the government to form a ‘taskforce’ comprising relevant stakeholders with the purpose of understanding international trade dynamics to ultimately increase the export growth.
Bangladesh’s export growth in the just concluded fiscal year (FY) 2016-17 hit 15-year low at 1.69 per cent owing to poor shipment performance from the apparel sector.
“Local export industries are facing tremendous challenges owing to their eroding competitiveness in global arena. This has pushed Bangladesh’s export growth to historic low in the just concluded fiscal year,” M Shafiul Islam Mohiuddin, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) told The New Nation yesterday.
He said, “We need immediate government intervention to prevent falling export growth. And the government should offer sops to export-oriented industries for enhancing their competitiveness.”
The FBCCI leader also called upon the government to formulate a plan of action to achieve higher export growth and assessing the challenges as well as opportunities of local export industries.
“A ‘taskforce’ could be formed for devising the plan,” he added.
Mohiuddin, a leading garments exporter of the country, demanded for reviving the country’s apparel industries considering their contribution to the national economy.
“Traditionally, apparel industry account for over 80 per cent of the country’s total exports. So, the industry needs special care from the government,” he said,
The apex trade body leader mentioned that apparel industry is facing stiff competition from its global peers due to high cost of production coupled with energy crisis. This is a critical area that the government should look into. Otherwise, the country’s export could plunge further.
“Our export posted an unexpected fall in the immediate past fiscal year causing concern to us. Such a development demands immediate government response,” Abdus Salam Murshedy, President of the Exporters Association of Bangladesh (EAB) told The New Nation.
He said Bangladesh is the second largest garments exporter in the world after China. The growth of garments export went down to 0.26 per cent in the FY17 reflecting the real situation of the industry.
“The industry faces major challenges in the wake of falling commodity prices and sluggish demands in major markets like the US and the EU. Even, apparel export continues to fall in the UK, Canada and non-traditional markets taking a hit from economic uncertainty there,” he added.
He mentioned that Bangladesh loses in export markets due to lack of marketing, quality of products or weakness in export conducive infrastructures and competitiveness.
Bangladesh’s export earnings in FY17 stood at $34.83 billion with a shortfall of more than $2 billion from the government-set target of $37 billion, according to the provisional data of the Export Promotion Bureau.
The earnings’ growth was the lowest since the FY 2001-02 when it was negative 7.43 per cent.
According to the data, the export earnings from goods in FY17 fell short of target by 5.85 per cent.
Export earnings from RMG products in FY17 stood at $28.15 billion with a minimal growth of 0.20 per cent. Earnings from the sector, however, fell short by 7.34 per cent against the government-set target of $30.38 billion.
“Both external and internal factors were behind the unexpected export falling in FY17. Shrinking global demand for local apparel products and devaluation of currencies of the major importing countries were the main reasons for the growth.
It is sending the signal that Bangladesh is losing its competitive edge, while its competitors are doing well. The government must come forward to respond with current situation and devise a plan to revive the country’s export sector,” Faruque Hassan, Senior Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The New Nation.
Worried by the falling export growth, he said, “Bangladesh should reduce the cost of doing business and enhance productivity of local industries in order to remain competitive in the global export market. At the same time, it should concentrate more on market and product diversification to boost exports.”
