The apparel sector is steadily expanding its exports in the non-traditional market as the shipment of clothes to such destinations has increased by 24.26 percent in the first six months of the current fiscal year 2021-22.
In the first six months (July-December) of FY22, Bangladesh fetched $306 crore by exporting garment products in the non-traditional market, according to the latest statistics of the Export Promotion Bureau.
During the same period of the previous (FY21), apparel items worth $246.19 crore were shipped to non-traditional markets.
The United States, Canada, and European countries are generally known as the traditional markets for garment exports. But now Chile, China, Japan, India, Australia, Brazil, Mexico, Turkey, South Africa, and Russia are being considered as new markets for garment exports.
‘With the improvement of the Covid-19 situation in 2021, overall sales of readymade garments products were on the rise in most of the countries. As a result, the demand for clothes has increased globally and as an RMG producing country Bangladesh is getting its benefits,’ senior secretary of the Ministry of Commerce Tapan Kanti Ghosh told BSS.
Besides, cash incentives and duty-free market facilities are also playing a significant role in boosting RMG exports to the new markets, he added.
Talking to BSS, Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan said that garment exports to non-tradition markets, such as Australia, Brazil, Mexico, Turkey, South Africa, and Russia, are growing rapidly.
At present, entrepreneurs are very interested in exporting garments to new markets, but BGMEA is encouraging them not to rely totally on this market, he said.
For consolidating Bangladesh’s position in these new export destinations, the BGMAE president suggested increasing cash incentive to 5 percent from the existing 4 percent.
According to the EPB data, garment products worth $52.94 crore were exported to Japan in the July-December period of the current fiscal year, up by $8.43 crore or 18.93 percent from the same period of the last fiscal.
In July-December of FY22 Russia imported garments worth $34.12 crore from Bangladesh, up by $24.70 crore or 36.10 percent the same period of FY21.
Chile is another new market for Bangladesh’s apparel products as this Latin American country imported clothes from Bangladesh worth $8.17 crore in July-December of FY22, which was $3.88 crore in the same period of FY21. In a span of one year, the export growth to Chile increased by 110.59 percent, according to the EPB.
RMG exports to neighboring countries India and Australia have also increased significantly during the July-December period of FY22. Indian imported apparel products valued $36.59 crore, which was $23.15 crore in the same period of FY21. Apparel export to Australia has reached $39.88 crore, which was $36.45 crore.
