The country’s ready-made garment (RMG) sector is witnessing a notable shift with a substantial growth in export earnings from non-traditional markets.
According to the latest data available from the Export Promotion Bureau, export earnings from non-traditional markets rose by 6.47 percent to $818 crore during the period from July 2023 to May 2024, compared to $768.9 crore during the same period last year. These markets now account for 18.67 percent of total export earnings.
RMG sector’s export earnings increased by 2.86 percent, reaching $4385.60 crore in the first 11 months of the current financial year, up from $4263.30 crore in the previous year.
Among non-traditional markets, Japan emerged as the highest revenue contributor, with export earnings of $148.46 billion, marking a 1.83 percent increase from the previous year’s $145.79 crore.
RMG exports to Australia grew by 11.76 percent, reaching $118.54 crore, up from $106 crore last year. Despite the ongoing Russia-Ukraine war, exports to Russia saw a remarkable 15.50 percent increase, totaling $46.23 crore compared to $40 crore previously.
China, the country’s largest trading partner, also demonstrated robust growth with a 23.23 percent increase in garment exports, amounting to $31.57 crore from $25.02 crore earlier. Exports to Korea rose by 14.34 percent, generating $57.28 crore in the last 11 months, up from $50 crore the previous year. Saudi Arabia showed the highest growth rate among non-traditional markets, with a 58.28 percent increase in exports, reaching $27.03 crore compared to $17.02 crore last year.
Despite positive trends in new destinations, the RMG sector faced challenges in traditional markets. Exports to European Union countries, which account for 49.37 percent of total garment export earnings, fell by 2 percent.
However, exports to the United Kingdom increased by 12.34 percent, generating $516 crore, up from $459 crore last year.
Exports to India decreased by 23.11 percent, with earnings dropping to $73 crore from $95 crore last year. Similarly, exports to the United States declined by 3.43 percent, totalling $746.84 crore compared to $773.38 crore previously.
Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said they cannot tap the potential of Indian market. “We urge the government to remove non-tariff barriers to facilitate our exports. Capturing even a small share would be a considerable achievement.”
Executive Director of Policy Research Institute Ahsan H. Mansoor said the growth in new markets is promising but insufficient. “We need to explore new markets as our share in traditional markets declines. The government and exporters must adopt new strategies for expanding into new markets.”
