Untapped potential of Bangladeshs export market
The authorities should undertake initiatives to participate product specific and expos which will help identify potential buyers
Md. Sajib Hossain and Rashedul Kabir
Bangladesh, currently, is in a tremendous need for increasing the export volume in accelerating economic growth, overcoming challenges after graduating to a middle-income country, and also achieving Sustainable Development Goals by 2030. Apparel (84 per cent); Footwear (2.21 per cent); Home textiles (1.48 per cent); Fish shellfish (1.38 per cent); Other textile products (1.2 per cent); Skins, leather products thereof (1.03per cent)are the major exporting goods of Bangladesh, accounting for around91.3 per cent of the countrys total export share that indicates that the countrys export is concentrated in a few sectors. However, the value of those major exported goods was stood at around US$ 33.48 billion in the FY 2017-18(Calculation based on Bangladesh Export Promotion Bureau database (EPB), 2018.
Bangladeshs has additional export potential in the global import market. And realizing these additional exports will significantly help increase the export volume of the country.
According to theExport Potential Assessment (EPA) methodology developed by International Trade Centre (ITC), Geneva, Bangladeshsmajor export goods such as Apparel; Fish shellfish; Footwear; Other textile products; Home textiles; and Skins, leather products thereof etc. have a room to realize or grasp additional export that is equivalent to US$17400mn, 610.5mn,555.2mn, 364.7mn, 335.9mn, and 184.6 mn respectively, and in combined, the export value is to the tune of around US$19.45 billion or equivalent to Tk. 159,497 core(Data retrieved on October 31,2018).
It is to be noted that Export Potential Assessment (EPA) has shown the untapped export (e.g. the difference between potential and actual export in value terms) by taking into account of the variables such as export and import values (20122016), ad-valorem tariffs (as of December 2017), price elasticities, distances, GDP growth projections (20162021), population projections (20162021), land endowment by climate type and GDP (current US$) and population data (20122016).
Bangladesh, currently, exports 1770 products (at HS 8 digit level) in 201 countries across the globe, as of the fiscal year 2017-18(source: EPB database).
However, according to EPA, major potential export markets to realize additional or untapped export values for Bangladeshs all potential exporting products including USA (US$ 2.4bn), Germany (US$ 2.4bn), China(US$ 1.3bn), France (US$ 1.2bn),UK (US$ 1.1bn), Spain (US$ 1.1 bn), Netherlands(US$ 1 bn), Italy (US$ 0.85bn), Belgium(US$ 0.67bn), and Canada(US$ 0.45bn) (Data retrieved on October 31, 2018).
And in these Markets, in total, there is room to realize an additional amount of around US$ 12.47 billion equivalent to Tk. 102,254 crore exports which is also accounting for around 64 per cent untapped export share of the major goods.
Finally, in order to realize the untapped or additional export potential, there is an urgency to consider the following issues:
Undertaking initiatives to participate in , and arrange goods or product specific frequent exhibition and expo in the home and abroad markets so that potential buyers are identified;
Bangladeshi existing diplomatic missions in abroad also need to take initiative to open display centers in the major or other potential markets for showcasing the Bangladesh export goods as part of strong advertising and promotion activities;
Exporters should direct their best possible efforts to create their goods or products Own brand and to open their goods or products outlets in the potential export markets, while the Government should facilitate them in this case.
Md. Sajib Hossain and Rashedul Kabir, Senior Assistant Secretary, (RD) cell, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). [email protected]; [email protected]
