Bangladesh government is likely to set the apparel export target at $37.42 billion for Fiscal Year 2019-20, with a 7.03% growth in export earnings.
Meanwhile, the overall export target from goods to be set at $44.40 billion, with a 6.76% growth target in export earnings.
Export Promotion Bureau (EPB), the state agency dealing with the export-related issues, on June 23 made export target proposal, which would be placed to Commerce Ministry to announce finally.
The proposal already discussed with the major export stakeholders including apparel, leather and plastic sector to learn about the challenges in achieving the target.
According to the EPB proposed export target, $37.42 billion out of $44.4 billion will come from the country’s apparel sector, which is over 84% of the total target. For the RMG sector, the growth target is proposed at 7.03%.
Of the total, $18.47 billion is expected from Knitwear and $18.94 billion from woven products and the expected growth rate is 9.92% and 7.15% respectively.
The target has been proposed considering the world economic outlook, policy changes at important export destinations, stakeholder feedback, supply chain capacity, changes in exchange rates, and global business trends.
According to the proposed export target, $37.42 billion out of $44.4 billion will come from the country’s apparel sector, which is over 84% of the total target. For the RMG sector, the growth target is proposed at 7.03%.
“Government will set a target and the manufacturers will try to achieve the target. It is a common phenomenon. And a $37.42 billion export target for the next fiscal is achievable,” BGMEA President Rubana Huq told Textile Today.
But to me, the target means differently. If we take orders at $2 Freight on Board (FOB), Bangladesh can earn $100 billion by the next two years, should I call it export growth, said Huq.
Does this growth increase the prices of goods or is there any value addition? We want quality growth, not the numeric growth, she added.
Already Bangladesh exports to the US market has increased and if the US-China trade war perception helped further, the export target will exceed, said the BGMEA President.
In capitalizing the opportunity, the government has to come up with the policy support and importance should be given on the value addition, she added.
Meanwhile, trade analysts and economist opined that the target is achievable but the sector people and the government have to come up with steps to attract buyers, who are relocating the business from China.
“Bangladesh already witnessed double-digit growth during July-May period of the current fiscal year. So considering the present trend, the target of $37.42 billion is achievable,” former Advisor to caretaker government AB Mirza Azizul Islam told Textile Today.
But there are challenges to this end. In overcoming the challenges, sector people and the government have to move attracting investment from China and capture work orders from global apparel buyers, who are relocating from China, said Islam.
He also suggested new market exploration, product diversification and move for value-added products to grab more market share.