Ref :Bhuiyannews.

com Bangladeshs exports

Posted on February 15, 2011 by Kauser BHUIYAN

Bangladeshs exports achieved a growth rate of 4.8% for the FY10 (year-to-year). The positive trend continued in the first two months of FY11 with a growth rate of 28.8%. Exports of readymade garments, the most important export item of the country, grew at 1.2% in FY10, which is the slowest growth rate since FY02, while the volume of manufactured goods increased by a rate of 5.2%. The global recession caused a drop in retail sales in Bangladeshs main export destinations (EU and USA). During the period May-July of FY10, exports of readymade garments to the US and Germany the two largest export markets declined by 4.1% and 7.9% respectively.

In addition to the slow recovery of most of the major export destinations for Bangladesh the labour unrest, shortage of power and natural gas supplies, poor transport and logistics systems and disruption at the Chittagong main port for an extended period of time have been a few domestic problems which contributed to this phenomena. Recently some leading Bangladeshi readymade garment and textiles manufacturers have started aggressive expansion of production capacities which showed a higher production volume than the volume could be exported. This access volume of readymade garments are expected to be cleared slowly but surely as increasing number of international buyers find suppliers in Bangladesh.

The total export volume for FY10 has been recorded at 11.68 bln Euro by the Export promotion Bureau of Bangladesh of which 10.51 bln Euro or 89.95% were exported to the top 20 countries and nine items made 91.31% of the total export.

Germany is the 2 largest export destination for Bangladesh. Parallel to the general
nd

pattern of Bangladeshi export items 95.19% of its total export to Germany was generated from the readymade garment sector. Worker wage www.dhakanews.info

Workers protecting and clashing to establish their rights are common scenery in Bangladeshi garments industry. Garments workers have been protesting for the increment of their salary for many years. But they never got their deserved or expected salary from the garments owners. Finally things are started to move. Government appointed a wage board for the increment of workers salary in January this year. But result comes in action yesterday. The board increased workers salary in a good margin. (Tk 3,000 minimum pay; highest raise 87pc; effective from Nov 1; mixed reaction among workers, owners, businesses

Expanding Its Global Reach One of the Bangladesh s main objectives is to lessen its dependence on the U.S. and EU markets, which currently import more than 80 percent of its apparel. Interestingly, officials at the EPB recently announced that the country s apparel shipments to the United States and the EU

either declined or grew only slightly in terms of value in FY 2009-10. However, apparel exports to new markets in that period grew significantly, such as to Turkey, where Bangladeshi exports increased 28 percent to $306 million; Japan, up 134 percent to $174 million; Australia, up 84 percent to $85 million; South Africa, up 5 percent to $48 million; China and Hong Kong, up 41 percent to $45 million; and Brazil, up 15 percent to $45 million. Other markets where Bangladeshi exports increased include Saudi Arabia, South Korea, India, New Zealand and Taiwan. We are pinning our hopes on at least 10 new markets, as growth in shipments to these countries is very high, said BGMEA President Abdul Salam Murshedy. Although exports to these new markets are much less than those made to our traditional markets, local exporters are quite upbeat about the new markets. BGMEA has been taking action to help Bangladesh expand its exports to these markets. In February, the organization held a seminar titled Market Access and Product Diversification, where lawmakers, political leaders and textile industry experts convened to discuss how the RMG sector can diversify its products and enter unexplored or under-explored potential markets. Speakers noted that if the country focuses on diversifying its products with quality and low production costs, then potential export destinations could include Japan, Australia, South Korea, Brazil, Chile, Mexico, Hong Kong, Taiwan, China, Singapore, Russia and the United Arab Emirates. They also emphasized that in order to help the RMG sector survive in the future, manufacturers should prioritize aspects such as availability of skilled workers; a healthy industrial atmosphere; timely delivery of export orders; desired quality; reduced lead time; low price; and sustainable compliance. A 12-member delegation from BGMEA recently visited Brazil, Chile and Mexico to educate the countries regarding Bangladesh s RMG industry and to encourage them to import Bangladeshi products. BGMEA has a goal of exporting US$500 million to the three countries in the next two years. BKMEA also is encouraging new markets to invest in Bangladesh s apparel industry. In 2009, the organization sent trade delegations to Japan and Hong Kong as well as to South Africa and Botswana to promote knitwear trade relationships. BKMEA President A.K.M. Salim Osman reports that so far, the organization s efforts with Japan have been successful, and many Japanese buyers and investors are considering Bangladesh as a sourcing destination. UNIQLO, Marubeni Corp. and Chori Ltd., among other Japanese companies, already have opened offices in Bangladesh and begun sourcing. According to recent press reports, Japan-based apparel manufacturer Onward Holdings plans to add Bangladesh as its third manufacturing base, following China and Vietnam. Various news agencies are reporting that Bangladeshi officials also are encouraging countries to promote trade with its textile industry. Deputy High Commissioner Ruhul Alam Siddique visited the Karachi (Pakistan) Chamber of Commerce and Industry (KCCI) to promote trade between Bangladesh and Pakistan, and reportedly stated that the countries could initiate joint ventures. KCCI President Abdul Majid Haji Mohammad said Pakistan could benefit from Bangladesh s preferential access to EU markets and garment expertise, and Bangladesh could benefit from Pakistan s spinning and weaving strengths. Khan traveled to Singapore, urging the import of more apparel products from Bangladesh and asked the government to encourage its entrepreneurs to invest in Bangladesh s textile industry. His message was favorably received by Singapore Minister for Trade and Industry Lim Hng Kiang.

2008 & 2009 International Textile Machinery Shipments To Bangladesh 2008 Short-staple spindles Long-staple spindles Open-end rotors False-twist spindles, double heater Shuttleless looms Rapier/projectile Air-jet Water-jet Shuttle looms Flat knitting machinery Hand knitting/semi-automatic Flatbed electronic Trimming Circular knitting machinery, large (>165mm) With jacquard electronics Woven finishing machinery Knit finishing machinery Source: Textile World 642,120 11,944 3,068 2,909 158 1 76,694 76,651 20 23 1,066 2 2 11 2009 107,520 2,880 240 8,411 8,182 137 92 42,971 42,880 91 844 9