Increasing demand and buyers’ confidence, local makers’ capacity enhancement, and duty-free market access, among others, have helped the country’s readymade garment (RMG) sector to significantly raise its export earnings – more than double – in last six years, industry people said. They also attributed the government’s policy support, availability of gas and land at reasonable prices, good industrial relation, and both product and market diversification efforts for the gradual increase in export earnings. The country fetched $28.09 billion from RMG (knit and woven) exports in fiscal year (FY) 2015-16, which was $12.49 billion in FY 2009-10, according to the official data. Its contribution to the total foreign currency earnings also increased to 82.04 per cent in last fiscal, which was nearly 77 per cent six years back, data showed. Out of the $28.09 billion income in last fiscal, knitwear sector fetched $13.35 billion, while $14.73 billion came from export of woven items. In 2009-10 fiscal, export earnings from knitwear and woven were $6.48 billion and $6.01 billion respectively. “The huge leap that we have experienced is simply because of change in the EU rules of origin (ROO). After that our export just surged,” said Rubana Huq, managing director of Mohammadi Group. Despite a weakening euro, shipments to the markets of the 27-nation regional bloc, especially of woven items, are on the rise after the EU relaxed ROO that came into effect in 2011, said Faruque Hassan, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). “Both the number of orders from the buyers and their confidence in awarding orders to Bangladesh have significantly increased. Besides, Bangladesh has also proved its capacity with business expansion, product quality, pricing and latest technology,” said Fazlul Haque, managing director of Plummy Fashions. The shift from China also helped in this regard, said Mr Haque, also former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). During the last ten years, Bangladeshi products got duty-free access to many countries, including Canada, Japan, China, India and Australia. The EU’s revised ROO gave a big boost to the local woven exports to that region, he noted. There was no comprehensive plan for the industry from the government, but its policy supports, including providing necessary gas connections and incentive to explore new markets, also helped the sector to flourish, Mr Haque added. Former BGMEA leader Shahidullah Azim said, “Earlier, we used to produce low-rated basic items at prices ranging from $9 to $10 per dozen. But now many of us have opted for more value-added products, whose prices range from $18 to $22 per dozen.” Moreover, there were only eight to ten major items, which now stand at 30 to 35. Bangladesh has enriched its capacity in washing, dying, sequence, embroidery, print and variation in fabric that also helped to add more value to local products, he added. Mr Azim, a woven maker, also said prices of woven items, especially those of denim ones, are on the rise. “Denim is an item, used by both men and women all the year round. Rising cost in China has created an opportunity for us to grab the denim market,” said Abdus Salam Murshedy, managing director of Envoy Group. Sector insiders said in denim segment, Bangladesh now produces more value-added products. Local knit and woven items were confined to some basic items, including shirt, trouser, jacket, t-shirt and sweater. During the last few years the exporters have diversified not only those items but also some more products that have emerged as potential ones for the country. Local woven and knitwear makers are now diversifying their product baskets mainly to enhance competitiveness for the sake of greater sustainability in the global market. Suit, sportswear, workwear, nightwear, socks and lingerie are among the products that have emerged strongly in the recent years. Going beyond the traditional notion of being low-cost and opting for mass production, some of the companies are increasingly moving towards more value-added products, they added. “Some have already invested in product variation, and undergarment and nightwear are some of the knit items that got momentum in recent times,” said Md Hatem of MB Knit Fashion. Some factories are now producing sportswear, and such items are helping them to come out from cotton-based products. There are potentials, as China is becoming more expensive as a producer, he added.
