Economic Reporter :
RMG shipments to Japan declined 3.7 percent to $945.47 million in the first 11 months of 2016-17 because of a fall in prices of goods and security concerns.
Though the earnings fell 16.09 percent short of the Export Promotion Bureau’s periodic target of $1.12 billion, exporters hope to cross the $1 billion mark by the end of the fiscal year, an achievement already made in the EU, the US and Canadian markets.
Japan is Bangladesh’s single largest export destination among Asian nations and its market offers promising returns for quality apparel and leather and jute and associated goods.
Exports to Japan have been soaring over the last few years maintaining nearly 20 percent growth every year.
Currently, Bangladesh’s annual export earnings from other Asian countries such as China and India hovers around $700 million each. Exports to Asian markets, especially to that of Japan, started rising as financial recessions of 2008 and 2009 affected the Western world badly.
Moreover, the Bangladesh government offers stimulus packages for exploring new destinations like Japan, China and India. Markets across the world, other than the traditional ones of the EU, the US and Canada, are considered as new destinations.
Another catalyst has been the relaxation of the Rules of Origin by the Japanese government on knitwear and woven garments from least developed countries.
This allowed Bangladesh to enjoy a zero-duty trade privilege and a competitive edge against countries like China, India and Pakistan in meeting Japan’s annual demand for garments worth over $40 billion.
“Garment export from Bangladesh to Japan is rising every year. We are receiving a good response from the Japanese retailers,” said Mohammad Hatem, former Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association.
During the July-May period, Bangladesh exported garment goods worth $696.32 million to Japan, according to data from the EPB. Of this, $374.38 million came from woven items and $321.94 million from knitwear.
RMG shipments to Japan declined 3.7 percent to $945.47 million in the first 11 months of 2016-17 because of a fall in prices of goods and security concerns.
Though the earnings fell 16.09 percent short of the Export Promotion Bureau’s periodic target of $1.12 billion, exporters hope to cross the $1 billion mark by the end of the fiscal year, an achievement already made in the EU, the US and Canadian markets.
Japan is Bangladesh’s single largest export destination among Asian nations and its market offers promising returns for quality apparel and leather and jute and associated goods.
Exports to Japan have been soaring over the last few years maintaining nearly 20 percent growth every year.
Currently, Bangladesh’s annual export earnings from other Asian countries such as China and India hovers around $700 million each. Exports to Asian markets, especially to that of Japan, started rising as financial recessions of 2008 and 2009 affected the Western world badly.
Moreover, the Bangladesh government offers stimulus packages for exploring new destinations like Japan, China and India. Markets across the world, other than the traditional ones of the EU, the US and Canada, are considered as new destinations.
Another catalyst has been the relaxation of the Rules of Origin by the Japanese government on knitwear and woven garments from least developed countries.
This allowed Bangladesh to enjoy a zero-duty trade privilege and a competitive edge against countries like China, India and Pakistan in meeting Japan’s annual demand for garments worth over $40 billion.
“Garment export from Bangladesh to Japan is rising every year. We are receiving a good response from the Japanese retailers,” said Mohammad Hatem, former Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association.
During the July-May period, Bangladesh exported garment goods worth $696.32 million to Japan, according to data from the EPB. Of this, $374.38 million came from woven items and $321.94 million from knitwear.
