Economic Reporter :
Bangladesh’s RMG exports to the global market rose by over 9 percent to over $26 billion in eleven months (Jan-Nov) of the last calendar year, sources said.
However, this growth is less than required to attain the $50 billion export target by 2021 as the sector needs over 12 percent growth to realise the vision.
The sector people attributed remediation process- which helped improve safety standards-to the increased production capacity.
Upon completion of remediation, some RMG units have received more orders from buyers who were satisfied with the safety progress, they argued.
According to the data of Export Promotion Bureau (EPB), during January-November period of the outgoing calendar year (2016), Bangladesh earned $26.09 billion, exporting clothing products, which is 9.03 percent higher compared to $23.93 billion a year ago.
Knitwear products fetched $12.56 billion with an 8.22 percent rise compared to $11.60 billion in the previous year while woven products earned $13.53 billion, which is 9.78 percent higher compared to $12.32 billion a year ago.
“In 2016, Bangladesh has seen a 9 percent growth in RMG export earning, but in 2017, we expect a double digit growth as the production capacity as well as the volume of work orders have increased because of safety improvement and remediation completion in most factories,” Exporters Association of Bangladesh president Abdus Salam Murshedy said.
Last year production in many RMG units was hampered due to the ongoing remediation to improve safety standard in workplaces for ensuring workers’ safety, Salam said.
After the full-fledged completion of Corrective Action Plans (CAPs), the work order flow would increase and it would be possible to attain a double-digit growth, added the business leader.
“In attaining the $50 billion export target by 2021, the current growth is not satisfactory as the sector needs an over 12 percent growth,” according to BGMEA vice-president Mahmud Hasan Khan Babu.
He said in the outgoing year, the sector has seen less investment as manufacturers had to spent a lot on remediation and safety improvement.
But RMG sector requires investment for expansion of existing business to increase production capacity for grabbing more global market share, he said, adding that gas connection is a big challenge for Bangladesh’s RMG.
The country has to put emphasis on technology up-gradation and high-end products as the demands for global apparel products have witnessed downtrend last year.
As per the latest statistics of World Trade Organisation (WTO), the global clothing export market has contracted by around 7.8 percent to $445 billion in 2015.
In 2014, the global apparel export was $483 billion while the global RMG export market is expected to reach $650 billion by 2021.
“In garbing more global market share to attain $50 billion export target from RMG, Bangladesh has to concentrate on capacity building and set strategies to move to high-end and branded fashion segments, BGMEA senior vice-president Faruque Hassan told.
Currently, about 79 percent of Bangladesh export items are concentrated in five basic products – trouser, t-shirt, sweater, shirts and jackets mostly made of cotton.
Hassan said another priority area is market diversification as Bangladesh’s apparel exports are mostly concentrated on EU and North America.
Non-traditional market is the key element to enlarge the export volume. The contribution of non-traditional markets to total export was 2 percent in FY2005-06, which has increased to 15 percent in FY’16, he added.
Bangladesh’s RMG exports to the global market rose by over 9 percent to over $26 billion in eleven months (Jan-Nov) of the last calendar year, sources said.
However, this growth is less than required to attain the $50 billion export target by 2021 as the sector needs over 12 percent growth to realise the vision.
The sector people attributed remediation process- which helped improve safety standards-to the increased production capacity.
Upon completion of remediation, some RMG units have received more orders from buyers who were satisfied with the safety progress, they argued.
According to the data of Export Promotion Bureau (EPB), during January-November period of the outgoing calendar year (2016), Bangladesh earned $26.09 billion, exporting clothing products, which is 9.03 percent higher compared to $23.93 billion a year ago.
Knitwear products fetched $12.56 billion with an 8.22 percent rise compared to $11.60 billion in the previous year while woven products earned $13.53 billion, which is 9.78 percent higher compared to $12.32 billion a year ago.
“In 2016, Bangladesh has seen a 9 percent growth in RMG export earning, but in 2017, we expect a double digit growth as the production capacity as well as the volume of work orders have increased because of safety improvement and remediation completion in most factories,” Exporters Association of Bangladesh president Abdus Salam Murshedy said.
Last year production in many RMG units was hampered due to the ongoing remediation to improve safety standard in workplaces for ensuring workers’ safety, Salam said.
After the full-fledged completion of Corrective Action Plans (CAPs), the work order flow would increase and it would be possible to attain a double-digit growth, added the business leader.
“In attaining the $50 billion export target by 2021, the current growth is not satisfactory as the sector needs an over 12 percent growth,” according to BGMEA vice-president Mahmud Hasan Khan Babu.
He said in the outgoing year, the sector has seen less investment as manufacturers had to spent a lot on remediation and safety improvement.
But RMG sector requires investment for expansion of existing business to increase production capacity for grabbing more global market share, he said, adding that gas connection is a big challenge for Bangladesh’s RMG.
The country has to put emphasis on technology up-gradation and high-end products as the demands for global apparel products have witnessed downtrend last year.
As per the latest statistics of World Trade Organisation (WTO), the global clothing export market has contracted by around 7.8 percent to $445 billion in 2015.
In 2014, the global apparel export was $483 billion while the global RMG export market is expected to reach $650 billion by 2021.
“In garbing more global market share to attain $50 billion export target from RMG, Bangladesh has to concentrate on capacity building and set strategies to move to high-end and branded fashion segments, BGMEA senior vice-president Faruque Hassan told.
Currently, about 79 percent of Bangladesh export items are concentrated in five basic products – trouser, t-shirt, sweater, shirts and jackets mostly made of cotton.
Hassan said another priority area is market diversification as Bangladesh’s apparel exports are mostly concentrated on EU and North America.
Non-traditional market is the key element to enlarge the export volume. The contribution of non-traditional markets to total export was 2 percent in FY2005-06, which has increased to 15 percent in FY’16, he added.
