Desk Report: The country’s ready-made garment (RMG) exports to new destinations have shown a significant increase in recent months. During the first ten months (July-April) of the fiscal year 2017-18, exports have shown an upward trend, EPB and BGMEA sources said.
As per the report from the Bangladesh Post, RMG exports to European Union continue to dominate as a total of $16.2 billion export to EU was registered during this period, up 11.6 percent in comparison with the corresponding period of last fiscal. The overall export growth during this period was 9.37 percent.
The USA was once the country’s single leading RMG export destination. But export there saw a sharp decline at 7.48 percent in the last fiscal, and the trend continued until the first quarter of the current fiscal. But exports to USA have revived considerably with the earnings of $4.3 billion in the 10-month period, a 3.04 percent rise in comparison with the same period last year.
However, Germany has replaced USA recently as the single biggest destination of Bangladesh’s RMG products. BGMEA sources said the government’s policy support along with its tax incentives have helped the traders achieve the export targets.
Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, informed “The government’s policy support has helped the sector take the country’s RMG export at the desired level. The incentives given by the government should be continued in the upcoming budget for the fiscal 2018-19 to further expedite export.”
The government as well as the country’s RMG exporters earlier put emphasis on promoting exports to the non-traditional markets, best known as new markets.
But experts say that the export growth to new destinations was not at a satisfactory level in 2017. However, exports to such destinations increased during the July-April period of the current fiscal. During this period a total of $3.8 billion was earned from the new markets, up 8.5 percent in comparison with the same period last year.
Among the new destinations, China, Japan, Russia, Turkey and India are the potential markets. Export performance to these destinations also broke the past record, BGMEA data shows. During the July-April period of current fiscal export to Japan grew about 10.2 percent, to India 115 percent and to Russia 14.5 percent. These three countries are likely to be the country’s next RMG export hubs.
Salam Murshedy also said that due to the remediation move of the Accord and Alliance the country’s RMG sector achieved sustainability and globally recognized brand-value, which are expected to push the export growth further.