Woven items overtake knit products
Export of readymade garment (RMG) products grew by 16.61 percent in the first month of the current fiscal year (2022-23) and reached US$ 3.37 billion. Woven has seen comparatively higher growth, that is 23.11 percent, and knitwear grew by 11.80 percent. This export is 3.75 percent more than in July 2020.
Sources said that two sub-sectors of the ready-made garment industry are woven and knit, which are the main export earners of the country.
Earlier, more foreign exchange was earned from the export of woven garments than from knits. The contribution of these two sectors to the export trade was close to each other for several years. But since the start of the Corona pandemic, the knit sector has left the woven behind.
In this difficult time of global economic climate, our economy is confronted with inflation for imports;
EURO is falling against US dollars, and the cost of inputs is on the rise, this growth is showing the resilience of our industry. Yet the outlook is wary of the economic slowdown in advanced economies.
Former President of Bangladesh Garment Manufacture and Exporter Association (BGMEA) and Managing Director of Evince Group Anwar-Ul-Alam Chowdhury said, “We are exporting low-cost clothes during the difficult time of the epidemic. Buyers buy essential clothing. Because of that, the export of knitwear has increased. Now, however, wovens are also being exported well. Lots of orders are coming in. The price is also good. All in all, we can say that we are having a good day.”
Sources said that Bangladesh has regained its second position as the largest readymade (RMG) exporter in the global market beating back Vietnam which had surpassed Bangladesh in 2020.
According to the Export Promotion Bureau (EPB) data, Bangladesh earned $35.81 billion in 2021, while Vietnam earned $32.75 billion in the same period as per the data of the General Statistics Office.
In 2020, Bangladesh lost its second position as apparel exporter to Vietnam, when it earned $27.47 billion against $29.80 billion.
Monzur Hossain, research director of the Bangladesh Institute of Development Research (BIDS), said, “The export sector is in the best condition among the economic indicators. A really surprising leap is seen in this sector. Export income is the biggest contributor to the recovery of the economy after the corona crisis.
Entrepreneurs say garment factories in Bangladesh were closed for 65 days following shutdown due to outbreak of Covid-19 pandemic. Due to this many export orders were dropped or delayed.
Taking advantage of this opportunity, Vietnam as a less affected country climbed on top over Bangladesh as second leading RMG exporter to the global market.
Entrepreneurs say demand for Bangladeshi readymade garments is increasing in the world market again and Bangladesh is overcoming the setback.
Vietnam’s factories were more functional as Covid-19 infection rate was low. As a result, Vietnam earned more. But in 2021 Bangladesh was flooded with more work orders and rapidly reversed the situation.
BGMEA director Mohiuddin Rubel told the Daily Observer that while there is a positive trend in the garment sector, there are still many challenges. The market price of various raw materials, such as textiles fibres, shipping costs, dyes and chemicals is very high. Clothing prices are not rising.
Sources said that Bangladesh has set a target to earn $47 billion exporting apparel products in the fiscal year 2022-23, with a 10.30 per cent growth projection.
Of the total target, $25.60 billion is expected to be earned from knitwear goods. the amount would be 10.28 per cent higher than real export earnings of $23.21 billion. While $21.40 billion will come from woven products and the expected growth rate is 10.32 per cent. It was $19.40 last year.
In the 2021-22 fiscal year, export earnings from RMG products rose sharply by 35.47 per cent to $42.61 billion, which was $31.45 billion in the previous year. Of the $42.61 billion, knitwear products fetched $23.21 billion, up by 36.88 per cent from last fiscal year’s $19.91 billion, while woven items earned $19.49 billion, registering a 33.82 per cent growth.
