RMG sector leads export growth

July 25, 2018

The country’s export earnings from the United States (US) and European countries have registered a significant growth in the FY 2017–18 (July–June). This has marked a growth of around 8.76 per cent for apparel shipments. Export Promotion Bureau (EPB) data shows that exports to most European countries, such as the United Kingdom (UK), Spain, and Netherlands, have registered double-digit growth in the of FY 2017–18. The value of exports of readymade garments to Germany now stands at USD 5.58 billion as against USD 5.35 billion in export earnings from the US market. However, exports to China have dipped over this period. Mohammed Nasir, vice-president of the Bangladesh Garment Manufacturers’ and Exporters’ Association (BGMEA), explained the reason behind this growth. He said the remedial works of more than 95 per cent of factory buildings have been completed in keeping with the requirements set by Accord and Alliance, the platform of two western buyers. This has improved and ensured workplace safety, which has eventually earned the confidence of European buyers, he added. He also said that Bangladesh has pushed China to the second place in being the largest exporter of denim products to Europe. It now enjoys a 27 per cent market share in this sector, he added. Citing another reason, Nasir said: “Our currency have depreciated against the dollar. This could be another reason behind the continuous growth of exports to European countries. We’re now getting Generalized System of Preferences (GSP) facilities from European countries. This has been a major factor too. ”We’ve invested around USD 4 billion for ensuring workplace safety and occupational health,” he added.

Source: RMG BD