The volume of export of Bangladesh’s readymade garments (RMG) to Russia is not significant because of the sanctions imposed on that country including bank sector by the US and the European Union over various issues. That is why Russian importers are facing troubles as they used to transact money though the banks with the exporters of Bangladesh. At the same time, our entrepreneurs, due to the complexity of banking and letter of credit (LC), face many problems for direct export to Russia. As a result, buyers and exporters of the countries procuring products from Bangladesh are feeling discouraged. But there is a lot of opportunities to boost up RMG exports to the emerging market in Russia on the occasion of Football World Cup 2018. We could see a possibility of getting duty-free market access of Bangladeshi products to Russia but the possibility is now being missed due to the complexities. From 1985 till date, many investors went to Russia to seize new businesses. Some of the big Bangladeshi companies set up their offices in Moscow over the last few years to increase garment exports to the country as Russia has a great potential market for Bangladesh. Unfortunately, there is no progress in this regard after so many years. Unfortunately, Bangladeshi entrepreneurs cannot increase exports to Russia and CIS countries for lack of necessary steps or lobbying and advocacy. Now let’s come to know about RMG export to Russia, according to BKMEA data bank. The export earnings were $139.55 million in the FY13. The RMG export to Russia in the FY14 fetched $207.74 million with 21.15 per cent growth. The export earnings of readymade garments from Russia in the first quarter of FY 2014-15 amounted to $35.73 million which is 11.84 per cent higher than $31.95 million of the same period of previous fiscal year. The above data shows we can enhance RMG products while huge opportunities are waiting. The Football World Cup offers a huge market of readymade garments. FIFA World Cup 2018 will be held in 11 cities in Russia. Favourite team jerseys of the visitors will travel to various cities. So, It would an opportunity for Bangladesh. These countries should aim to export one billion dollars by 2021, according to the CIS-BCCI (Commonwealth of Independent States – Bangladesh Chamber of Commerce and Industry) president. The world’s biggest sports competition will have a high demand of knitwear and woven products. We should take advantage of this occasion. Surprisingly, global retailers have started coming back to Bangladesh to produce the RMG products after the Rana Plaza building collapse and Tazreen fashion fire. Because of compliance issues almost established in RMG sector. In addition, the RMG sector is gradually going green with the green finance support of the Bangladesh Bank for eco-friendly products. There are more opportunities for global retailers in Bangladesh now. The garment workers’ minimum wage is now between $70 and $100 (new wage structure for readymade garment workers at BDT 5,300 at entry-level) which is the second lowest in the world after Myanmar whereas the average wage for a Chinese garment worker is $500 per month. Another advantage is the low cost of freight. Moreover, vast advantage is China slowly leaving the industry due to continuous labour shortage and rising minimum wages. On the other hand, CIS-BCCI president HK Kabir thinks the fashion market size in Russia and CIS countries will rise to $14,100 million dollars in 2016. Some of Bangladeshi products go to Russia through the EU and Turkey. He also said Germany imports from Bangladesh a polo shirt for $4. This polo shirt is re- exported to Russia for $12. In that case, we can directly export such shirts and other products to Russia through negotiation. It will only be possible to reach our goals if the necessary facilities are made available by the government. As finance minister AMA Muhith said, Bangladesh generally targets US and European markets all the time. If we can ensure access to the Russian market before the World Cup, the country will immensely benefit. Russia and other CIS countries can help achieve the country earn $50 billion by 2021.
