RMG exports see moderate growth, EU remains key market
NN Online:
Bangladesh’s Ready-Made Garment (RMG) exports have experienced moderate growth, with the European Union (EU) continuing to be a major market, according to the data from the Export Promotion Bureau (EPB) for the July-January period of the fiscal year 2024-25.
The EU represented 50.15 per cent of Bangladesh’s total RMG exports, with a total value of $11.81 billion, Mohiuddin Rubel, former director of BGMEA, said on Sunday while sharing the data.
Shipments to the United States reached $4.47 billion, accounting for 18.99 per cent of the total share, while the UK market was also significant, with exports valued at $2.5 billion, equivalent to 10.83 per cent of Bangladesh’s total RMG exports during the specified timeframe.
In terms of growth, our RMG exports to the EU expanded by 13.91 per cent year-over-year, with the USA showing a robust increase of 16.45 per cent. The RMG exports to the UK, however, grew at a more modest rate of 4.55 per cent.
Within the EU, Germany emerged as a key market, with Bangladesh’s exports amounting to $2.97 billion, trailed by Spain at $2 billion, France at $1.28 billion, and the Netherlands at $1.25 billion. The growth rates were particularly notable in Germany (13.47 per cent), the Netherlands (27.3 per cent), Poland (13.7 per cent), Denmark (18.56 per cent), and Sweden (26.7 per cent).
Bangladesh’s RMG sector also demonstrated growth in non-traditional markets, with an overall increase of 6.42 per cent, signaling potential for further expansion.
Among these markets, Japan led with imports totaling $721 million, followed by Australia at $512 million, and India at $427 million. Exports to countries like Turkey and Mexico are also significant, amounting to $263 million and $208 million, respectively. While growth in Japan, Australia, India, Turkey, and Mexico is encouraging during this period, exports to Russia, Korea, China, UAE, and Malaysia have declined.
The continued growth in exports is heavily reliant on the EU and USA, which remain the primary markets for Bangladesh, highlighting further potential within these regions.
The ongoing global trade tensions are reshaping the landscape, presenting opportunities that Bangladesh could capitalize on, provided we possess the necessary productive capacity.
Concurrently, there should be a concerted focus on investments in backward linkages to support and enhance our RMG sector’s competitiveness and growth potential.