Export in big markets is increasing

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Bangladesh has turned quite well in ready made garment exports in large market like the United States. In the first four months of the current year (January-April), it increased to 13.91 percent, surpassing the growth of 6.65 percent in the garment exports in the market last year. $4.23 billion dollar in clothing was exported in this four month.

In the first four months of the year, the United States has imported $22.9 billion in clothing from different countries, which is 6 percent more than the same period last year.Vietnam, Bangladesh and India are getting the benefits of incremental clothing business in a large extent in President Donald Trump’s country. Exports of garments in these three country are increased to 12.88, 13.91 and 10.76 percent respectively. However, the increment in export was just 0.3 percent for the top garment exporter in the country, China.

After the collapse of Rana Plaza in 2013, Bangladesh's garment exports to the US market also collapsed. 10.68 percent of that year's growth was dropped to 2.29 percent in the next year. In 2015, 11.75 percent growth was achieved. In the next two years, the export decreased again.In the beginning of last year, the export reverted to positive trend. The scene began to change rapidly when the US and Chinese trade war started late that year. To avoid excess tariffs, many of the US brands and buyers have started pulling their purchase orders from China to other countries including Bangladesh. This year it continues to grow further.

Organization of owners of the readymade garment industry, BGMEA leaders have been saying for a long time about the huge potential for growth of export of garments in this market. In a press conference before the Eid, demandinga cash subsidy at 5 percent in all markets, including US, European Union, in the budget for the next fiscal year, they said that the garment sector will bounce back if the facility is provided for five years.

Asked, Vice-President of Bangladesh Exporters Association Mohammad Hatem told The ProthomAlo yesterday that there are a lot of purchase orders coming from the United States. However, theyare only getting the low price clothing order. But the orders of high-priced garments are going to another country. If the cash assistance is given, then the opportunity to get those orders will be created. This will increase the export earnings a lot.

The Office of Textile and Apparel (OTEXA), under the US Department of Commerce, recently showed the updated scenario ofexport of readymade garments from different countries to the US market. According to their information, Bangladesh has exported 720 million square meters of ready-made garments in the first four months of this year.In this case, the growth has been 8.45 percent. However, the growth is 13.91 percent in case of money. Due to the increment of export of garments in the United States, the market share of Bangladesh also increased. The market share was 6.52 percent in 2018. It increased to 6.61 percent at the end of four months of this year.

China exports maximum garments to the US market. Last year, the country exported $27.37 billion worth of clothing. Then the growth was 1.34 percent. China exported $7.24 billion dollar worth of clothing in four months from January to April this year, which is 0.3 percent more than the same period last year.Second largest exporter, Vietnam, exported $12.21 billion in clothing last year. Growth was 5.78 percent and their growth is 12.88 percent against the export of $4.23 billion in the first four months of this year.

Bangladesh has the third position in exports to the US market after Vietnam. Indonesian growth at the fourth position is 1.86 percent. Export income is $1.57 billion. India and Mexico are the fifth and sixth highest exporters in that market respectively. In the first four months of this year, India has exported $1.56 billion dollars in clothing, in which the growth is 10.73 percent. Mexico exported $1.04 billion dollars in clothing.However, their exports dropped by 3.64 percent.

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