Export of readymade garments is in challenging situation for achieving US$50 billion target by 2021 due to slow growth and rising threat from external factors. Orders’ movements to Vietnam and to other neighbouring countries, g0iven extra facilities by several Asian nations to their garments sectors, gradual price declination and some domestic factors are making Bangladesh’s products less competitive in the international market. Against the government’s projection of exporting $50 billion by 2021 the growth is not adequate and even it missed the target during July-November in the current fiscal. According to Export Promotion Bureau (EPB) statistics, RMG exports in the first five months of 2016 was $11.13 billion which is 5.11 per cent less than $11.73 billion target set by the government. Enamul Haq Khan, Director of the BGMEA said “To achieve the $50 billion target, our growth projection is 10 per cent every year while during July-November the growth was 6.39 per cent worth $11.73 billion from $10.46 billion over the corresponding months in 2015-16. He said “We are lagging behind to meet the target and there are challenges ahead due to rising threats in both local and external markets.” “Our orders are going to Vietnam, India and in Burma, he said. “The BGMEA leader said Bangladesh is providing lesser opportunities to its exporters than the competitive countries. He said “Buyers may have moved to other countries as in price negotiation they find cheaper than in Bangladesh. “The present situation can be solved if the government enhances incentive facilities, make power available and help in developing forward linkage.Md Shahidul Islam, a former senior BGMEA leader said exchange rate is also a problem for export market as the local exporters cannot quote low prices and even they are not encouraged of getting good value against their earned foreign currency. He said the government is artificially controlling exchange rates and at the same time the competitors in Bangladesh let loose the rates. The former leader said in Vietnam, Burma and in India exchange rates are in favour of exports. As a result, the exporters can quote competitive prices at their profit margin. He said “We should come out of saying cheaper labour and we need to think to make availability of other modern facilities at cheaper costs to do business in the competitive world. “Another senior leader in the BGMEA said it is essential to focus on establishing both backward and forward linkage industries so that Bangladesh can achieve its target of earning $50 billion mark from RMG export in the next five years.
