Bangladesh’s apparel exports earnings have registered a sharp rise by 36.21% to $2.89 billion in the first six months of the current fiscal year, thanks to government incentives.
According to latest data of the Export Promotion Bureau (EPB), Bangladesh earned $2.89 billion exporting clothing products to non-traditional export markets in first half of the current fiscal year, up by 36.21%, which was $2.13 billion in the same period a year ago.
Of the total amount, Knitwear products earned $1.44 billion, which is 29.52% higher comparing to $1.11 billion in the same period a year ago. While woven goods fetched $1.45 billion, up by 43.58%, which was $1.01 billion in 2018.
Meanwhile, total readymade garment exports of the country have seen a 15.65% growth to $17.08 billion in July-December period of FY19, which was $14.77 billion in the same period last year.
Bangladesh’s traditional markets for garment exports are Europe and the United States. While non-traditional markets include Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa, and Turkey.
Apparel exports to Japan stood at $547 million, the highest in the non-traditional category, up by 50.62%, which was $363.31 million in the same period last year.
Our entrepreneurs are now more active in exploring new destinations for export goods and also marketing. In the recent time, they have participated in Expos’ in Asian and other non-traditional export markets, which helped to export more.
Australia contributed the second highest with a growth of 18.46% to $360 million, which was $304.24 million.
India was the third largest importer of apparel products, which imported good worth $270 million, up by 143% compared to b $111.33 million in the same period last year.
On top of that Chile has registered sound growth due to duty-free market access given since 2015. Apparel Exports to Chile rose by 56.21% to $55.96 million which was $35.83 million last year.
Talking to Textile Today, industry insiders have credited the government policy support including cash incentives for the sharp rise in export earnings to the non-traditional markets.
“Present government is very much friendly towards the business community and providing all-out cooperation for the development of businesses,” Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy told the Textile Today.
As part of its policy support, the government is providing 4% cash incentives against export to non-traditional export markets, which encouraged exporters, said Salam, also the Managing Director of Envoy Textile Limited.
In the current fiscal year, the government has increased cash incentive against export to the non-traditional export market, which acted as a catalyst for the sharp rise in export earnings. As of now, the sector people enjoy 4% cash incentives in new markets, which was 3% in the previous fiscal year.
Meanwhile, private sector initiatives to explore market also helped Bangladesh to reach more export destination pushing the exports earnings up. BGMEA is helping manufacturers to participate in international exposition to establish a network with buyers.
“Our entrepreneurs are now more active in exploring new destinations for export goods and also marketing. In the recent time, they have participated in Expos’ in Asian and other non-traditional export markets, which helped to export more,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice President Mohammad Nasir told the Textile Today.
As a result, Exports earnings to those countries have registered sharp growth, said the business leader.
On top of that, bilateral agreement and duty-free market access to some of the countries pushed the exports earnings, he added.
Meanwhile, safety standard improvement was another reason for more workers as they got confidence.
Due to safety standard improvement buyers are placing more work orders as the sector has turned into a safe sector after the completion of Accord on Fire and Building Safety in Bangladesh and Alliance for Bangladesh Workers Safety inspection, said Salam.
He also urged the government to start diplomatic talks to avail duty-free market access to new markets, which have great potentials.