Bangladesh’s apparel export to cross $100 bn by 2030: experts
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'
Apparel industry delegation meets high officials at ILO HQ
A delegation comprising leaders of apparel industry associations in Bangladesh held a meeting with André Picard, Chief Technical Adviser and Head, Actuarial Services Unit, and Anne-Marie La Rosa of the International Labour Organization (ILO) in Geneva, Switzerland on Tuesday. The delegation included President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan, President of Employers Federation of Bangladesh (BEF) Ardashir Kabir, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem, BGMEA Vice President Miran Ali, BGMEA Standing Committee Chair on ILO issue A N M Saifuddin and Secretary-General of BEF Farooq Ahmed. They had discussions about various issues pertaining to the apparel industry of Bangladesh particularly the progress made by the industry in compliance with ILO conventions ratified by the country. READ: CPD, ILO bring together stake holders to develop national industrial safety framework They also discussed employment injury insurance schemes for the RMG sector in Bangladesh. The delegation apprised the ILO of the industry’s ongoing initiatives and programs including ILO’s Better Work Program in the RMG sector to promote decent working conditions in the garment factories. They asserted the firm commitment of the industry to carry forward the achievements made so far in ensuring a safe and decent workplace for workers and their rights and well-being.
Apparel industry carrying 'Made in Bangladesh' mark across the world: BGMEA
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan Thursday said the readymade garments (RMG) industry is not only making a contribution to the socio-economic development of Bangladesh but also bringing glory to the nation. "The apparel industry is carrying the 'Made in Bangladesh' trademark across the world and we are all proud of it. The industry belongs to all people of this country. The development of the sector means the development of Bangladesh and betterment of its people," he said. The BGMEA chief said the next phase of Bangladesh's economic growth will largely depend on the industrial sector where the apparel industry will play a pivotal role. "So it is everyone's responsibility to protect the industry." Read:BGMEA for branding 'Made in Bangladesh' Faruque was speaking at the event "Sustainability of the Apparel Industry of Bangladesh: Policies, Scopes and Constraints" organised by Solidaridad Network Asia and ESTex Foundation at a city hotel. The programme aimed to provide a platform to policymakers and sectoral stakeholders to highlight the policy gaps and needs and constraints and to explore new opportunities and initiate pathways for implementing solutions to the environmental, social, and economic issues to achieve sustainability of the apparel industry of Bangladesh. Faruque called on brands and retailers to be rational in terms of pricing to make the supply chain resilient and sustainable. Also read: BGMEA shares RMG success stories at IAF meeting There is a sharp disconnect between sustainability and pricing mechanisms, and the factories are investing more in safety and sustainability, he said. "Also, prices of yarn, chemicals and other raw materials in the global supply chain have pushed up production costs in garment manufacturing. But prices are not being offered in line with that. The gap needs to be closed," said the BGMEA chief. Mohammad Hasan Arif, general manager of Bangladesh Economic Zones Authority, Selim Reza Hasan, country manager of Solidaridad Network Asia, Syed Naved Husain, group director of Beximco, and Dr Mohidus Samad Khan also attended the programme.
EU market: BGMEA optimistic about GSP+ benefits after Bangladesh's graduation
The apex trade body of Bangladesh's apparel industry has said there is no major barrier for the country to get GSP+ benefits in the European market whenever applicable as the country graduates from the club of least developed countries (LDCs). Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan came up with information during a press conference at a city hotel Saturday while noting that the precondition for the GSP+ on import threshold (7.4 %) has been removed from the proposed GSP regulations for 2024-2034. The conference was arranged to share the outcome of his recent visit to the US and Canada. The BGMEA chief thanked the EU for its favourable initiative to countries like Bangladesh. Everything but Arms (EBA) is a special arrangement for the LDCs, providing them with duty-free, quota-free access to the EU market for all products except arms and ammunition. Read: BGMEA discusses export, FDI opportunities with Bangladesh envoy The BGMEA President said the European Union (EU) is Bangladesh's key export market with around 60 per cent of exports. He said Bangladesh will enjoy the existing duty-free and quota-free market access in the European countries until 2029 following the country's graduation. "The government and the BGMEA are working together to ensure the continuation of the EBA facilities for 12 years after 2029," he said.
Bangladesh-India: Better cooperation to ensure more trade benefits
Bangladesh and India can reap more mutual trade benefits through better collaboration – namely, in the apparel and textile industry – Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said Thursday. "There are great opportunities for Bangladesh and India to complement each other in boosting apparel and textile business in both countries," he said. The BGMEA president made the remarks as Indian High Commissioner to Bangladesh Vikram Kumar Doraiswami paid a courtesy call on the BGMEA leaders at the office of the apparel industry's apex body. BGMEA Vice-President Shahidullah Azim; directors Asif Ashraf, Md Mohiuddin Rubel, Tanvir Ahmed, and Abdullah Hil Rakib, Indian Deputy High Commissioner to Bangladesh Dr Binoy George, and Commercial Representative of the High Commission Dr Pramyesh Basall were also present at the meeting. They discussed existing problems in export-import – namely, in ready-made garments (RMG) and textile industry – possible ways to address them, and potential areas of further collaboration between Bangladesh and India to derive mutual trade benefits. Read: After 56 yrs, Bangladesh-India rail link to reopen Sunday
Need more financial support to repair apparel industry: Rubana
Speakers at a webinar on Saturday said partnership and collaboration between governments of sourcing and supplying countries, as well as brands, suppliers and workers is essential to ensuring the recovery of the apparel sector following the Coronavirus pandemic.