Bangladesh’s apparel export will cross the $100-billion target by 2030, considering the potentials of the markets in Europe, the Uk, and the USA amid declining share of Chinese garments, experts have said. The global apparel market size will be around $1135 billion in 2030. During this period Bangladeshi apparel exporters expect to get at least 10 per cent or $100 billion of the global market share. The current global apparel market volume is around $560 billion, where Bangladesh’s export share was $43 billion in FY 2021-22, up by 36 per cent year-on-year (July to June). Read: Uniform rate: Tk 108/dollar max for remittance, Tk 99/dollar for export income from tomorrow The apparel export saw a good start in FY 2022-23 with July-August earnings reaching $7.11 billion, posting 26 per cent growth compared to the same period of last fiscal year, said Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). International trade expert Dr Mohammad Abdur Razzaque told UNB that Europe and the USA are the potentially growing markets for Bangladesh’s apparel products. Bangladesh has an additional export potential of $20 billion in the EU and the UK, he said adding that currently the country can utilise less than 60 per cent of its export potentials to these markets. Read BGMEA for shoring up Bangladesh-India interactions in apparel, textile Razzaque, who is also chairman of RAPID, a think tank, quoted a recent report in this regard. In order to reach $100 billion target the country has to achieve an annual export growth of 11.45 per cent. As Chines apparel export share is declining in the western market due to rising tension between the West and China, Bangladeshi exporters are likely to take advantage of the situation to boost their products, he opined. China is moving away from low-value-added apparel to more sophisticated items, this can be an advantage for Bangladeshi apparel exporters, he said. Also read: BGMEA, Eswatini for investment in apparel, textile joint ventures The EU apparel market size is $200 billion while the US market is $90 billion to $100 billion. The Chinese market is around $11 billion while the Indian market is 1.1 billion, so Bangladesh has to expand its export share in the EU and US markets by 12 per cent and 15 per cent respectively, Razzaque suggested. In 2030, Bangladesh’s export share in the EU market would have been $65 billion and $24 billion in the US market, which is achievable considering the resilience of the country despite Covid-19 pandemic. In the post-Covid-19 pandemic period apparel export volume of the country is showing upward trends due to the resilience of the country’s people, said Md Jillur Rahman, assistant professor of Economics at Jagannath University. Read Bangladesh to retain fame as safe, sustainable apparel sourcing destination: BGMEA He said Bangladesh’s apparel export to the EU market grew by 59.5 per cent in the January to June period of 2022. It shows the prospects of Bangladesh's growing apparel export to the EU market, he said. Dr Razzaque, however, cautioned that achieving $100 billion export target of Bangladesh’s apparel industry will not be cake walk. Logistic facility, port handling capacity and skilled labour, environment and labour rights will be burning issues. Bangladesh must focus on AI-developed equipment skilled labor and labor wage satisfaction to face the challenges in the coming years. Read 'Electronics exports to overtake apparel'
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has entered a partnership with US-based CNN International Commercial (CNNIC) to promote "Made in Bangladesh" by showcasing the country's success and potential in the international arena. Through this partnership, the apex trade body of Bangladesh's garments manufacturers will team up with CNN to sketch the stories of how the garment industry has been driving Bangladesh forward and contributing to building a more prosperous future it. CNNIC will showcase the compelling stories of Bangladesh's apparel sector – namely, the strides the country has made in ensuring workplace safety, environmental sustainability and workers' wellbeing – said the BGMEA. Read: Apparel industry carrying 'Made in Bangladesh' mark across the world: BGMEA Steps taken by the industry to enhance competitiveness through innovation, diversification, technology upgrading, and upskilling will also be highlighted. The apex trade body signed a memorandum of understanding with CNNIC's local representative Spellbound Communications Sunday. Read: Apparel makers urged not to take export orders without justified rate BGMEA President Faruque Hassan inked the agreement in the presence of Dr Md Jafar Uddin, chief executive officer of the Bangladesh Foreign Trade Institute (BFTI). BGMEA Vice-President Shahidullah Azim, BFTI Director Md Obaidul Azam and Spellbound Communications Managing Director Mohammad Sadequl Arefeen were also present.
More differently abled people should be employed in the country's growing garment industry, based on their abilities and not disabilities. The clarion call has been given by as many as nine associations of physically challenged people, who met the top honchos of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and urged it to play a proactive role in this regard. Representatives of the nine associations met with BGMEA Vice President Shahidullah Azim Wednesday and urged him to encourage its member garment factories to employ more disabled people. Read: BGMEA sees the future in value-added, high-end apparel items The representatives told Shahidullah that "around 10 percent of the total population in the country are disabled to some extent and they are often treated as burden on families due to lack of employment opportunities". Despite having the provision of 5 percent rebate on the total tax of a taxpayer if 10 percent of the total workforce are disabled employees, the representatives said, many employers are unable to recruit physically challenged people. The associations said "if the tax rebate rule is amended to 2 percent of the workforce, it will pave the way for creating more employment opportunities for disabled people", according to a statement. BGMEA Vice President agreed with their proposal of amendment to the tax rebate provision. "Many garment factories in Bangladesh are employing physically challenged people. We will request our members to recruit more people with disabilities in their factories." Read: BGMEA seeks UN support for smooth, sustainable LDC graduation Physically challenged people are also part of the society and want to lead a dignified life by taking part in in the mainstream of development activities, he added. Bashir Al Hossain, programme manager at National Grassroots Disability Organisation; Nasrin Jahan, executive director of Disabled Child Foundation; Ashrafun Nahar Misti of Women with Disability Development Foundation; Nasima Akhter, President of National Council of Disabled Women; Monir Hossain of Disabled Child Foundation; Sushanto Das of National Grassroots Disability Organization; and Samira Haq of Women with Disability Development Foundation, were present at the meeting.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the authorities to ease the export-import audit activities for the garment industry. A delegation of BGMEA made the request during a meeting held recently with the Customs Bond Commissionerate Kazi Mustafizur Rahman at the CBC office. The BGMEA delegation included Senior Vice President SM Mannan (Kochi), Vice President Md. Shahidullah Azim, Director Asif Ashraf, former Director Munir Hossain, Chairman of Mitali Group Syed Abu Yousuf Abdullah and Managing Director of Sparrow Apparels Shovon Islam (Shawn). Also read: Bangladesh can earn at least $ 2bn more exporting non-cotton products: BGMEA chief Additional Commissioners of Customs Bond Commissionerate Khaled Mohammad Abu Hossain and Md. Zakir Hossain were also present at the meeting, BGMEA said in a media release on Tuesday. The BGMEA leaders said the Covid-19 pandemic created an unprecedented crisis in the RMG industry of Bangladesh and it was still struggling to recover from the massive impacts. The support and cooperation of the Customs Bond Commissionerate would help the RMG industry to address the current challenges and turn around, they added. Also read: BGMEA wants continuation of 0.5 per cent source tax They requested for an interim arrangement to continue existing services for smooth export-import and bonded warehouse facility and remove hassle and penalty of the customs authority until re-fixation of the minimum limit of wastages in manufacturing knitwear. The delegation also called for removing complexity in the process of including description of raw materials and other related materials with their HS code in bond licences. The Commissioner of the Customs Bond Commissionerate assured the BGMEA delegation of cooperation to resolve the issues.
President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan on Wednesday hoped 100 percent of workers’ salaries and festival bonuses will be paid before the day of the Eid-ul-Fitr festival. “We urge the all workers not to create any indiscipline. Over 97 percent factory owners paid workers’ salaries. We hope 100 percent workers’ salaries and festival bonuses will be paid before the day of the Eid-ul-Fitr ,” he said while addressing a virtual press conference. The BGMEA president said 1913 factories under BGMEA are operating in the country Of them, 1667 factories are in Dhaka and 246 in Chattogram. The owners of 1866 (97.54%) factories have paid the salary for the month of April up to May 11. Of these, 1652 are in Dhaka and 214 in Chattogram. And the bonus was paid in 1882 factories (1659 in Dhaka and 223 in Chattogram) which 99 percent till yesterday, he added. “Some 15 factories paid salary of April and 8 factories paid bonus on Wednesday in Dhaka. And 32 factories of Chattorgram paid salary and 23 factories paid bonus today. About 800 factories in Dhaka have been brought under close monitoring and payment of salary and bonus has been ensured by cooperating with 44 factories in various ways,” he added. Also read: Workers cannot leave workplaces during Eid holidays: Monnujan “We always want that our workers stay well. In the last 10 years, the facilities of the workers have been increased more. We can provide more facilities in future if our productivity and capacity increase. We have to pass a difficult time in the next three months. We hope that the garment industry will overcome its existing problems from the next year. So, we need more support from banks,” he also said. The new BGMEA president said many factory owners fell in cash crisis due to the COVID-19 pandemic. “We operate factories amid the COVID-19 pandemic lockdown maintaining health safety. So, our cost also went up vastly. Even, some buyers did not pay money as they were bankrupt following the pandemic,” he added. Faruque said 44 lakh workers are involved in the garment industry. “The livelihood of around 5 crore people directly and indirectly depend on the industry. The ages of most of workers are between 18-30 years. So the coronavirus infection rate is low in the industry.” Also read: Clear wages, Eid bonus by May 10: RMG workers According to his written statement, after an unprecedented 18% decline in exports in the last financial year, exports have declined by a further 8.72% in the first 10 months of the current financial year. The export crisis especially in the oven sector has reached a climax. During the month of March, it reduced 24.70 percent while in April it decreased 6.37 percent compared to the same period of FY 2018-19. It has been possible to avoid major catastrophes in the economy thanks to positive decision by the Prime Minster. Faruque said they have taken measures in collaboration with the government so that workers get salary and bonus before Eid.
The Covid-19 crisis has hit the garment sector in the Asia-Pacific region hard, with plummeting retail sales in key export markets affecting workers and enterprises throughout supply chains, according to new research from the International Labour Organization (ILO).