When RMG industry of Bangladesh is facing a challenging moment due to unstopped political turmoil at this time industry has just heard cheerful news from US Ambassador to Bangladesh Marcia Stephens Bloom Bernicat. She expressed her feelings on the running situation and said her country will keep on to work with Bangladesh in achieving its readymade garment export target of US$ 50 billion by the end of 2021. ‘We’ll continue work with the BGMEA to help it reach the goal of $ 50 billion export by 2021, for this “effective” effort from both the government and the industry are needed to ensure workers' rights and safety requirements in the garment industry’ Bloom Bernicat told a press conference at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) conference room after a meeting with the export body leaders in 5th February. ‘Dangerous factories have been closed. New labour law inspectors are hired and over 200 new unions have been recognised, mediation efforts are underway,’ she said adding that the level of transparency involved in factory inspection process is ‘laudable’. The meeting with garment exporters was her first since taking over the responsibility as the ambassador in Bangladesh. ‘We also look at BGMEA to play a key role in guaranteeing workers' rights and safety,’ Ms Barnicat said.
 |
| US Ambassador Marcia Stephens Bloom Bernicat visits
Bangladesh Garment Manufacturers and Exporters Association in Dhaka yesterday.
Atiqul Islam, president of BGMEA, is also seen. Photo: BGMEA |
In the current situation it is seen that from last couple of days Bangladesh RMG exporters are trying to make new export destination of RMG. Honorable Prime Minister Sheikh Hasina is always asking to RMG exporters for annoying to find out new RMG export market beside traditional market the US, EU. The government and garment exporters set a target of exporting $ 50 billion worth of garment items in next seven years in the first Dhaka Apparel Summit held in December last year. Bangladesh will need to grab additional 3 per cent market share of $ 650 billion global garment business by the end of 2021. Now, Bangladesh’s market share in $ 450 billion global garment market is 5 per cent. Bernicat said the most important thing she learned about the RMG, Bangladesh is unparalleled anywhere in the world. Bangladesh has taken serious challenges over tragic events and showing the world how proper response can be ‘mobilised and done’, she said. The US diplomat said the garment sector clearly drives the social change in Bangladesh. ‘My government will help Bangladesh to achieve the target of $50 billion garment export, so that you can become the number one export in the world.’
Bangladesh is the world’s second largest RMG exporters after China. Bangladesh’s market share in the global RMG market is 5 percent with China holding 30 percent of the global apparel market. But in the recent time it is considering that Bangladesh’s apparel exports to different international markets have been experience slower escalation than the challengers including India, Vietnam and Pakistan, putting further mark on the competitive edge of country’s highest export-earning sector. And Bangladesh’s major competitors include India, Pakistan, Myanmar and Cambodia those are striving to grab more stakes in the international market.
According to Bangladesh Export Promotion Bureau (EPB) data, RMG export to US, the largest importer of Bangladeshi apparel products, is also showing a declined trend compared to the last fiscal. Bangladesh’s apparel export posted a 2.38 percent growth during the July-December period of the current fiscal over the corresponding period of the previous fiscal. EPB data show that during the June-January period of the current fiscal year, Bangladesh’s RMG export to the US was 3.58 percent lower compared to the same period last fiscal. Vietnamese RMG export grew by 4.47 percent while India and Pakistan have seen 10 and 20 percent growth in their apparel exports respectively during the same period, according to the export data of Vietnam, India and Pakistan. In addition, the Trans Pacific Partnership which will enable Vietnam to get Duty Free Quota Free access in USA and Philippine’s GSP plus facilities to the EU market have brought in new challenges for Bangladesh’s readymade garment sector.
Table- Bangladesh's RMG Export to World (FY 11-12, FY12-13 & FY13-14 )
|
Million
US$
|
Total
|
||
|
Major
EU Countries
|
2011-12
|
2012-13
|
|
|
Austria
|
51.99
|
52.33
|
57.15
|
|
Belgium
|
559.07
|
565.80
|
775.92
|
|
Bulgaria
|
1.23
|
1.13
|
0.91
|
|
Denmark
|
405.51
|
501.52
|
595.94
|
|
Finland
|
37.10
|
36.36
|
36.18
|
|
France
|
1271.90
|
1390.44
|
1543.79
|
|
Germany
|
3398.89
|
3678.28
|
4377.55
|
|
Greece
|
29.31
|
16.91
|
19.76
|
|
Italy
|
862.62
|
913.20
|
1179.14
|
|
Ireland
|
186.95
|
200.95
|
218.24
|
|
Netherlands
|
552.04
|
584.47
|
680.00
|
|
Portugal
|
32.25
|
29.33
|
42.51
|
|
Romania
|
11.93
|
8.89
|
9.47
|
|
Spain
|
1071.12
|
1218.23
|
1507.56
|
|
Sweden
|
312.94
|
346.37
|
364.46
|
|
U.K.
|
2130.07
|
2448.93
|
2598.04
|
|
Cyprus
|
1.18
|
1.17
|
2.53
|
|
Czech Republic
|
63.75
|
72.30
|
110.33
|
|
Estonia
|
3.26
|
3.21
|
1.55
|
|
Hungary
|
2.34
|
3.99
|
9.41
|
|
Latvia
|
1.51
|
2.01
|
2.56
|
|
Lithuania
|
1.16
|
2.23
|
0.82
|
|
Malta
|
0.47
|
0.82
|
2.49
|
|
Poland
|
322.74
|
400.52
|
509.57
|
|
Slovakia
|
56.85
|
70.79
|
73.79
|
|
Slovenia
|
7.37
|
14.65
|
25.73
|
|
Sub-Total
(EU)
|
11375.56
|
12564.85
|
14745.39
|
|
EU
% of World
|
59.59
|
58.40
|
60.21
|
|
Growth%
|
8.13
|
10.45
|
17.35
|
|
USA
|
4529.40
|
4996.58
|
5141.38
|
|
%
of USA
|
23.73
|
23.22
|
20.99
|
|
Growth%
|
-2.07
|
10.31
|
2.90
|
|
Canada
|
874.85
|
980.26
|
1001.97
|
|
%
of Canada
|
4.58
|
4.56
|
4.09
|
|
Growth%
|
-2.21
|
12.05
|
2.22
|
|
Non-Traditional
Markets
|
|
|
|
|
Australia
|
307.54
|
428.44
|
430.76
|
|
Brazil
|
127.78
|
171.84
|
170.24
|
|
Chile
|
16.93
|
28.31
|
33.01
|
|
China
|
104.52
|
139.14
|
241.37
|
|
India
|
55.02
|
75.21
|
96.25
|
|
Japan
|
403.65
|
478.48
|
572.27
|
|
Korea Rep.
|
80.01
|
114.39
|
135.60
|
|
Mexico
|
98.65
|
110.21
|
124.63
|
|
Russia
|
76.49
|
139.55
|
207.74
|
|
South Africa
|
55.76
|
57.66
|
48.55
|
|
Turkey
|
355.93
|
415.31
|
622.37
|
|
Other Countries
|
627.60
|
815.5
|
920.36
|
|
Sub-Total
(Non-Trad.)
|
2309.88
|
2974.04
|
3603.15
|
|
%
of Non-Traditional
|
12.10
|
13.82
|
14.71
|
|
%
Growth of Non- Traditional
|
23.17
|
28.75
|
21.15
|
|
GRAND TOTAL
|
19089.69
|
21515.73
|
24491.88
|
|
% Growth
|
6.56
|
12.71
|
13.83
|
Bangladeshi exporters now pay 15.61 per cent duty to the US for exports of garments that account for 81 per cent of the country’s total exports and 95 per cent of the total exports to America. In fiscal 2013-14, Bangladesh exported goods worth $5.59 billion to the US and imported products of $801.10 million, up from $5.41 billion and $537.80 million respectively from the previous year, according to the commerce ministry. Bangladeshi garment exporters paid $828 million as duty to the US customs last year and $3.41 billion in the last five years, according to the commerce ministry. China pays 3.08 per cent duty to the US for garment exports, while Vietnam pays 8.38 per cent, India 2.29 per cent, Turkey 3.57 per cent and Indonesia 6.30 per cent.
At the conference, president of BGMEA Atiqul Islam focusing the obstacles the sector faces, the strength of the industry, export trend in the world especially in the US, its challenges, and measures that have been taken after the Tazreen blaze and Rana Plaza building collapse to ensure workplace safety. He said, ‘We need a stable political environment to reach the export target.’ ‘The garment industry is the lifeline of the economy. The sector empowered women and Bangladesh is moving ahead’, he added. The number of factories housed in shared buildings has also been declining; 60 percent of garment factories are now housed in purpose-made buildings, he said. Islam said an appreciation of the local currency against the euro and greenback has posed a major challenge for Bangladesh, as exporters are losing money in the exchange process.
Another challenge is the rise in apparel exports from Pakistan to markets in the EU since January 2014, as the EU granted Pakistan the "GSP plus" status for 75 items, of which, 55 are garment items and similar to Bangladeshi products destined for the same markets, he said. Higher bank interest rates and higher workers' salaries are also some challenges for the sector, he added. Bangladesh has to pay higher duty for exporting garments to the US market, Islam said.
BGMEA chief calls upon the government to take initiatives so that the Bangladeshi exporters get to enjoy more export facilities, because there is no alternative to development of proper infrastructure to enhance the competitive advantage of Bangladesh’s garment sector. The apex body of Bangladeshi RMG sector also called upon all concerned to put an end to the ongoing political instability, which is severely affecting production and export in the RMG sector.
Reported by-
Ataullah Al Farhan
Reporter of Textile Tribune
Executive, Bangladesh Textile Today
Email: ftzataullah@gmail.com
0 comments:
Post a Comment