Increase in exports to major markets boosts optimism in garment industry in Bangladesh

Exports to European Union countries increased by 23.83% and to Canada by 23.78%, according to an analysis of recent Export Promotion Bureau data by apparel exporter group BGMEA.

Apart from adding new buyers, orders for new value-added or expensive products have also increased, said Shahidullah Azim, vice president of the organization and general manager of Classic Fashion Concept.

“Bangladesh will be able to sustain growth if it can retain new buyers and orders for new products.”

A trade war between the United States and China has led buyers to turn to Bangladesh, he said. “On top of that, Vietnam and India imposed coronavirus lockdowns during this period, which led buyers to turn to Bangladesh. We need to hold on to those orders if we want to move forward further.

“Customers are also looking for diversity. We received orders for many expensive products, apart from shirts, pants, polo shirts and sweaters. »

Bangladesh exported $4.23 billion worth of garments to the United States during July-December 2021, $12 billion to the EU and $602.8 million to Canada.

Exports to non-conventional markets increased by 24.26%.

RMG’s exports rose 28% to $19.9 billion in the first half of the fiscal year as Bangladesh’s overall exports hit new highs in 2021 on the back of a lucrative holiday shopping season in the West, giving a new boost to the economy as it shakes up a pandemic-driven slowdown.

More than $4.9 billion in goods were shipped in December, a monthly record, propelling overall export earnings to $39.14 in 2021.

Ready-to-wear clothing contributed around $20 billion, or more than 80%, of total exports in the July-December period, when the holiday season in the West generally went well , except for some disruption towards the end due to fears of the spread of omicron, a highly contagious variant.

The pandemic has tripped up the export market in 2020, with Bangladesh’s export earnings amounting to $33.6 billion. But exports increased by 16.46% in 2021.

The spread of omicron has recently fueled fears of a collapse in demand, but Western countries have not imposed severe restrictions as the variant has proven to be less severe.

The World Bank, in a recent report, said economic growth prospects have improved in Bangladesh, supported by the return of demand for ready-made garments from abroad.

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