Bangladesh exported apparel items worth $18.33 billion in July-November period of FY23, fetching a growth of 15.61%, from $15.85 billion in FY22
Readymade garment (RMG) export to major destinations across the world witnessed a medium growth – both in traditional and non-traditional markets – in the first five months (July-November) of the current fiscal year 2022-23 (FY23).
According to the country-wise detailed apparel export data of the Export Promotion Bureau (EPB), and compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported apparel items worth $18.33 billion, fetching a growth of 15.61%, from $15.85 billion in July-November period of FY22.
In the above period, apparel manufacturers shipped goods worth $3.47 billion to the United States (US), the largest single export destination for Bangladesh, fetching a scant year-on-year (YoY) growth of 4.07%, from $3.34 billion in the same period of FY22.
In the first five months of FY23, they exported RMG worth $2.71 billion to Germany, the second largest single export destination, registering a narrow growth of 1.88% from $2.66 billion in the same period of the last FY.
Registering medium growth of 11.71%, Bangladesh exported apparel items worth $1.96 billion to the UK, the third highest destination for the country’s RMG products, up from last year’s $1.76 billion, EPB data said.
The apparel export to the other major destinations such as Spain, France, Italy, Netherlands also registered a modest positive growth of 19.15% to $1.39 billion, 38.87% to $1.14 billion, 50.95% to $826.41 million, and 34.39% to $740.29 million respectively.
However, in Poland, exports marked a negative growth of 19.61% to $699.09 million.
During the mentioned period, the apparel export to the overall European Union (EU) market soared by 16.27% to $9.07 billion from $7.80 billion in the same period of the last fiscal year.
During July-November of FY2022-23, exports to Canada reached $623.54 million, fetching a YoY growth of 30.25% from $478.71 million in the same period of last FY.
Non-traditional markets
Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico and some other countries are known as non-traditional markets.
The apparel export to the non-traditional markets reached $3.19 billion with 29.09% YoY growth, from $2.47 billion in the same period of the last FY22.
Among the major destinations of the non-traditional markets, exports to Japan reached $597.83 million, with a YoY growth of 38.11% from $432.86 million in the last fiscal year.
From India, Bangladesh bagged $474.45 million in the July-November of FY22-23, registering a growth of 48.78% from $318.89 million in the mentioned period of the last fiscal year.
Among the major destinations of the non-traditional markets, exports to Australia, South Korea, and Mexico increased by 21.88% to $380.04 million, 30.35% to $198.56 million, and 49.68% to $151.93 million respectively, said the EPB data.
However, exporters said that although export earnings soared in the first five months of FY23, they experienced narrow or sluggish growth rate amid the ongoing global economic turmoil.
But they saw a ray of hope as November earnings hit a record-high.
Earlier, Faruque Hassan, president of the BGMEA, told Dhaka Tribune that export earnings of November were much higher than expected, considering concerns about sluggish Western markets.
“It is a good sign for our sector and a good sign for the county’s economy to make a recovery,” he said, referring to the crucial garment industry.
Talking to Dhaka Tribune, Mohiuddin Rubel, director of BGMEA, said that this positive growth despite the current global economic scenario proved that buyers had confidence in Bangladesh.
“In the post-Covid-19 scenario, the ongoing economic recovery in major markets has been disrupted by the Ukraine-Russia war but we have been successful in our focus on both non-traditional markets and major markets,” he added.
The overall growth and the position of Bangladesh are still good even in this turbulent economic situation, especially compared to the major competitors, he added.
“Now we are very strong in sustainability, circularity, and ESG. We are also optimistic that if we can sustain this growth, surely, we will be better positioned in the future,” he added.
In the non-traditional markets, exports to Japan, India, and Korea have gradually increased, however, Russia was an emerging market but exports seem to decrease due to the war.
The BGMEA is preparing a roadmap to export $100 billion worth of garment items by 2030 and capture 10% of the global market by 2025, riding on exploring new markets in Asia, East Asia, Australia, and the Middle East, where Japan, India, and Australia are majorly focused.
