Published in The Independent on Wednesday, 11 April 2018
RMG export up by 9pc in first 9 months
SHARIF AHMED
RMG export earnings in the first nine months of the 2017-18 financial year (FY) amounted to $ 22.83 billion, registering a growth of 9.11 per cent over the same period of FY 2016-17 which was $ 22.83 billion, marking a strong return of big apparel shipments.
Explaining the reason behind the 9.11 per cent growth in the readymade garment (RMG) sector, Bangladesh Garment Manufacturers’ and Exporters’ Association president Siddiqur Rahman told The Independent, “The five months from October to January in FY (2017–18) was the peak season for the shipment of apparel; so, it helped to retain a positive growth trend.”
He cited another reason for the surge, saying, “We have completed almost 90 per cent of the requirements set by Accord and Alliance. Bangladesh is building green factories, and that is known to the world now.
“These are the two reasons which have helped us regain buyers’ confidence after the tragedy of Rana Plaza,” he said.
The top three environment-friendly garment and textile factories in the world were located in Bangladesh, said Siddiqur.
Bangladesh was shifting towards making high-value products, which was perhaps another reason behind the growth, he said.
“I am expecting a growth rate of at least 10 per cent or even more in the coming months,” he added.
Bangladesh had made impressive progress in addressing key Occupational Safety and Health (OSH) and working condition issues in the garment sector over the last four years, he said.
“We have invested around $4 billion in workers’ workplace safety and occupational health,” he added.
Research Fellow at the Centre for Policy Dialogue (CPD) Towfiqul Islam Khan told The Independent, “Bangladesh export earnings has increased in the European market because of three reasons—a stronger European economy, taka depreciation against all foreign currencies, and duty-free access to the European market.
Towfiqul Islam also said, “China has started moving out from manufacturing low-end readymade garment products; so, we have to take the opportunity as early as possible.”
“We need to focus and increase the share of the non-traditional markets,” he said.
According to the Export Promotion Bureau (EPB), woven products earned $11.51 billion, a year-on-year rise of 6.75 per cent from the same period of the FY 2016-17, which was $ 10.78 billion. While the knitwear industry earned nearly $11.32 billion, posting an 11.61 per cent growth compared to the previous year.
According to Export Promotion Bureau (EPB) data for July-March of the 2017-18 financial year, Bangladesh earned $847.85 million from Japan with a positive 5.37 per cent growth from $802.31 million in the same period of FY 2016-17.
Towfiqul Islam Khan said, “Export increased because we started exporting upper-end products to Japan rather than bulk products.”