RMG exports boosting in new markets

Farhad Chowdhury: The overall export earnings of the ready-made garment sector increased by 2.86 percent in the first 11 months of the current financial year, but the revenue in non-traditional markets increased by 6.47 percent. Relatively good growth in non-traditional markets is seen as positive by exporters and economists.
According to the latest data from the Export Development Bureau, export earnings of apparel products from non-traditional markets rose 6.47 percent to $8.18 billion from July 2023 to May 2024, as against $7.689 billion in the same period last year. 18.67 percent of the total export earnings came from new markets.
On the other hand, the overall export earnings of ready-made apparel products increased by 2.86 percent and reached $4,385.6 million as against $4,263.3 million in the same period last year.
Among non-traditional markets, the highest revenue came from Japan.
In the first 11 months of the current financial year, the export of Japanese-made garments has earned $1.48 billion, which is 1.83 percent more than the previous year. Last year exports were $145.79million.
The second highest income came from Australia. From there, the export earnings of the garment industry increased by 11.76 percent to $118.54 million, which was $106 million in the previous year.
Although the Russia-Ukraine war is ongoing, the export income of Russian-made garments has increased by 15.50 percent. The income was $46.23 million, which was $40 million in the previous year.
Exports of apparel goods to India, Bangladesh’s neighbor and second-largest trading partner, fell 23.11 percent and earned $730 million, compared to $950 million in the previous year.
Exports to Bangladesh’s number one trading partner China increased by 23.23 percent. The income was $31.57 million, which was $25.2 million in the previous year.
Exports to the Middle East country Saudi Arabia increased by 58.28 percent. During this period, the income was $27.3 million, which was $17.2 million last year
Exports of Korean-made garments increased by 14.34 percent. In 11 months, the income was $572.8 million. Last year the revenue from garment exports was $500 million.
49.37 percent of Bangladesh’s total garment export earnings come from European Union countries. While exports to non-traditional markets were positive, exports to European Union countries fell by 2 percent. During July-May the income was $2,164.81million.
Apparel exports to the United States fell by 3.43 percent. In the first 11 months, the income was $746.84 million. During the same period last year, the income was $773.38million.
Exports of UK-made clothing products increased by 12.34 percent. The revenue was $5.16 billion, which was $4.59 billion last year.
Regarding the export of garment products, the executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem told, “We are constantly working to reduce over-dependence on the traditional market. As a result, the share of exports to new markets is gradually increasing and the growth rate is higher than that of conventional markets.
To maintain this growth rate and to make it better in the coming days, the ongoing benefits of the government should be continued. Besides, the new taxes imposed in the budget should be withdrawn and the budget should be made export friendly. Otherwise, it will be difficult to maintain this growth in exports,” claimed Hatem.
The executive president of BKMEA said, “Despite India being our neighboring country, we are not able to utilize the potential.” We are not able to increase the export earnings as per the potential. In this regard, the government needs to focus on removing non-tariff barriers and facilitating exports. India is a big market. Because it has a very large population. If we can capture even a small amount of market there it will be a big achievement for us. So, the government should pay special attention to all the potential non-traditional markets including India and exploit commercial rings.
Executive Director of Policy Research Institute Ahsan H. Mansoor said, ‘The positive growth of the new market is promising. But that is less than likely. We should explore new markets more. Because in recent times the market share in the conventional market has decreased in exports.
On the other hand, over-reliance on conventional markets is risky and can lead to negative growth at any time. The economist advised the government and exporters to adopt new strategies to export to new markets.
Ahsan H. Mansoor said, new types of policy assistance should be provided and cash assistance should be restructured; So that garment industry owners are interested in exporting new products and new markets.