In the first six months (July-December or H1) of the current fiscal year (FY23), garment exports to important global destinations grew moderately - both in traditional and non-traditional markets (FY23), despite looming global recession.
According to the Export Promotion Bureau's (EPB) country-by-country specific garment export data, Bangladesh earned $22.99 billion in the first half of FY23, a 15.56% increase from $19.9 billion in July-November of FY22, despite the global economic downturn.
During the aforementioned period, the United States (US), Bangladesh's largest single destination, imported garments worth $4.27 billion from Bangladeshi manufacturers, reflecting a relatively modest year-on-year (YoY) gain of 1.11% from $4.23 billion during the same period in FY22.
They delivered RMG items worth $3.45 billion to Germany, the second-largest single export market, in the first half of FY23, a 3.54% rise from $3.33 billion in the same period the previous year.
Bangladesh's garment exports to the United Kingdom, the country's third-largest single destination, increased by 11.89% to $2.39 billion in H1 of the previous fiscal year, according to EPB data.
Clothing exports to other important countries such as Spain, France, Italy, and the Netherlands increased by 17.62% to $1.70 billion, 33.08% to $1.41 billion, 59.34% to $1.12 billion and 33.80% to $931.80 million, respectively.
However, like the previous few months, exports to Poland saw negative growth further by 18.43% to $742.34 million.
During the H1 of FY23, apparel exports to the overall European Union (EU) countries soared by 16.61% to $11.50 billion from $9.87 billion in the same period of FY22.
Exports to Canada reached $774.16 million, fetching a YoY growth of 28.42% from $602.82 million in the same period of last FY.
The apparel export to the non-traditional markets reached $4.06 billion with 32.19% YoY growth from $3.05 billion in the same period of the last FY22.
Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico and some other countries are known as non-traditional markets.
Among the major destinations of the non-traditional markets, exports to Japan reached $754.72 million, with a YoY growth of 42.54% from $529.46 million in the last fiscal year.
Bangladesh earned $548.87 million from India between July and December of FY22-23, a 49.99% increase from $365.95 million during the same period the previous fiscal year.
According to EPB data, non-traditional market exports to Australia, South Korea and Mexico climbed by 29.52% to $516.63 million, 35.66% to $255.49 million, and 51.12% to $186 million respectively.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told Dhaka Tribune that export revenues have exceeded expectations in the current market.
“The apparel sector has seen good growth due to increased unit prices following hikes in raw materials prices like the price of cotton yarn and dye chemicals. The same shirt which was $10 in 2021 is $12-$15 currently due to a rise in unit price,” he added.
Moreover, they are currently producing value-added items like a jacket. Now garment manufacturers are exporting jackets at prices around $35-$40, but earlier, they did not receive orders for $30 above valued jackets orders, he explained.
“Exports to non-traditional markets have also increased. Our next target is to increase exports to all these new markets,” he added.
Speaking to Dhaka Tribune, BGMEA Director Mohiuddin Rubel stated that the growth rate is slowing dramatically in most key destinations.
“However, we are in a better position than our competitors because of our infrastructure, workplace safety, green and sustainability,” he added.
He also stated that due to the worldwide economic situation, buyers are cautious while placing orders as they still have significant stock.
“The growth rate may slow slightly in the coming months. But due to the Covid-19 situation in China, orders may shift to ours,” he added.
Regarding the non-traditional markets, he said that they are working to increase growth in these markets as these countries have less impact of current economic turmoil than the major destinations.
“We are focusing on new markets like Japan, Australia, India and South American countries, encouraging entrepreneurs to produce products as per their demand,” he added.
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.
