The country’s Ready-Made Garment (RMG), which was badly hit by the outbreak of the pandemic in March and April, made a positive turn in export during May-June. Industry insiders said they stressed the importance of diversifying products, export of goods at a high rate, to overcome the losses and demanded facilitation for importing machinery and equipment to protect the sector and boost the export.
Bangladesh Garment Manufacturers and Exporters Association’s (BGMEA) former president Siddiqur Rahman said, “Simple tariff processing and incentives for the import of equipment can help the country’s RMG sector to make a turnaround. China occupied 35 per cent of the global export, if we can grab at least two percent of it, our entrepreneurs won’t have to look back”.
According to the National Board of Revenue (NBR), despite a steady decline in exports in June compared to the previous year, the negative growth rate was lower than before, at 11.43 percent that was 85.25 percent in April. According to BGMEA, the export of ready-made garments (knit and woven) in June this year was US$ 212.50 crore. However, BGMEA leaders are now emphasizing on strengthening commercial diplomacy as the Chinese government has offered zero tariff facility to 97% of the products imported from Bangladesh.
BGMEA’s former president Shahidullah Azim said, “Lead time to export in China is almost half the time necessary to export goods to the United States and Europe. Apart from that, China has recently liberalized trade with Bangladesh. China has given a duty-free facility on 97 percent of the products imported from this country. If this opportunity is maximised, the garment sector will turn around quickly.”
Industrial economist Dr Khondaker Golam Moazzem opined, “The situation is now improving. Christmas shopping will be a big religious occasion for shopaholics in Europe and America which could yield something good for the country's garment sector.”
RMG sector should capitalize on such big opportunities that will, in turn, help the sector to use its highest capacity and tackle the economic downturn, he added.
