The export of ready-made garments from Bangladesh to new markets increased significantly by 10 per cent, from US $ 7 billion in the same time of the previous fiscal year to a total of US $ 7.70 billion in July-April of FY ’24.
Japan was one of the main recently investigated markets where shipments increased to US $ 1.4 billion, a 6.14 per cent increase. However, there were notable increases in exports of 17.18 per cent and 14.73 per cent to Australia and South Korea, respectively.
A notable rise was also seen in Bangladesh’s RMG exports to the Middle East markets. Saudi Arabia had a 58 per cent increase in exports, but Turkey and the UAE saw growth rates of 54 per cent and 41.96 per cent, respectively.
According to Export Promotion Bureau (EPB) data, overall exports to global markets reached an impressive total of US $ 40.49 billion, compared to US $ 38.57 billion in the first ten months of FY ’23.
SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard, “Thanks to government policy support, especially cash incentives, the industry has been enjoying growth in new market exports since 2009. These new market exports have provided great support to the industry in maintaining growth during tough times, such as the slowdown in traditional markets like the EU, the USA, the UK, and Canada.”
“We have already achieved double-digit growth in these new markets,” he stated. “We now hold nearly 20 per cent of the market in the new markets. Should the government persist in providing policy assistance, particularly in the form of cash incentives, until 2029, our market share in new markets will increase and contribute to market diversification.”
Kochi emphasised that Japan, Australia, South Korea, China, Russia, and other Middle East markets have the potential for further growth. He urged the government to introduce alternative incentives for apparel exports, similar to those provided by competitor countries, to enhance competitiveness.
India has been offering a range of benefits to its exporters, according to the president of BGMEA, even though the nation left the LDC category in 2007.
During the fiscal year 2023–2024, Bangladesh’s RMG industry saw an overall growth of 4.97 per cent. Exports to the EU reached US $ 19.90 billion, up 3.66 per cent from the previous year, according to EPB data, mostly due to robust results in several important EU markets.
RMG exports increased by 6.07 per cent, 3.42 per cent, 17.51 per cent, 20.65 per cent, and 32 per cent to Denmark, Spain, France, the Netherlands, Poland, and other countries.
Nonetheless, clothing exports to India, a neighbour, fell by 22.44 per cent. Since August 2023, there has been a discernible decrease.
