RMG makers eye on non-traditional markets to increase export

Staff Reporter :
Amid the ongoing tension over labour issues with the United States and European Union (EU), Bangladeshi apparel producers are now eying on non-traditional markets to continue their export growth.

They think that the non-traditional markets, including Asian markets, could be the alternative of the western destinations amid the slowed economic activities caused by the Russia-Ukraine war.

Increasing apparel exports to the markets, especially in the Middle-East, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is working aggressively, the sector insiders said.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The New Nation, “We have already taken various measures to increase apparel export to the non-traditional markets by reducing dependency on the US and EU. BGMEA, BKMEA and BTMA are working to resolve the existing obstacles.”

“Among the initiatives, we have already requested the government to introduce a direct shipping line to the Middle-Eastern countries to reduce transport cost and impose a ban on exports of counterfeit goods with a view to increasing the image of Bangladeshi goods in the markets,” Hatem said.

Besides, we are also providing training for the young generation to overcome linguistic problems, he added.

The non-traditional markets including middle-eastern countries, India, Japan, South Koria, China and Australia are given priority by the apparel makers and they have increased visits to the destinations to explore export potentials, Hatem added.

According to the Export Promotion Bureau (EPB) data, apparel exports declined by over 9 per cent in July-October period of the current fiscal year compared to the corresponding time of the last year.

The US is the largest export market of Bangladesh as a single country and around 20 per cent of the total export earnings come from the destination.

In the first five months of the current fiscal year, Bangladeshi products worth $3.64 billion have been exported to the US market, which was more than $4 billion in the same period of last fiscal year and $3.86 billion in FY’22.

Apparel exporters, however, said that there are no relations with the decline in exports in the US market with recent tensions over labour issues.

“The exports will pick up again, if the situation improves. However, as an alternative to the United States, we are trying to increase exports to non-traditional markets.

Success has also been found in this regard. Exports to non-traditional markets are growing at a higher rate than conventional markets,” said BGMEA President Faruque Hassan.

Fazle Ehsan Shamim, Vice-President of the BKMEA, said, “Apparel exports worth $1 billion to India, Japan and Australia have already crossed and it will be possible to pass $4 to $5 billion in the destinations in near future.”

We also have a huge opportunity to grab China and South Korean markets, if we can overcome linguistic problems, he added.