RMG sector shines in export earnings

The country's RMG sector is showing a positive trend in export earnings thanks to value added products, government policy support and completion of 90 per cent of the factory remediation work set by Accord and Alliance,

According to the Export Promotion Bureau (EPB), export earnings in the RMG sector maintained a steady growth of 14.51 per cent from July to January in FY2018-19. The earnings amounted to USD 20.21 billion during this period.

Explaining the reason behind the growth in the RMG sector, Bangladesh Garment Manufacturers' and Exporters' Association (BGMEA) president Siddiqur Rahman told The Independent: “The four months from October to January will be the peak season for apparel shipments. So, the future prospect is even brighter for such shipments. Now, we can produce any quantity of garments as we have expanded our operations over the years.”

The government announced a 5 per cent cash incentive to non-traditional markets back in 2010. The incentive, which is now 4 per cent, helps boost the two-digit export growth rate, the BGMEA president said.    

Earlier, apparel-makers did not want to go to those markets because of the difficulties involved and the time spent to enter a new market. But owing to the duty-free access and cash incentives, owners of RMG unit have started exploring new destinations and markets.     

“China, the world’s largest apparel supplier, has started importing products from us because the Chinese government has allowed duty-free access to over 5,000 Bangladeshi products, thereby enhancing the export growth of our apparel sector,” said Siddiqur.

"Around 40–50 crore people in China belong to the high-middle income group,” he added.

The inspection of Accord and Alliance has helped remediate the factories and prompted factory owners to emphasise workplace safety. This has eventually improved the country’s image in front of foreign buyers, said Siddiqur.

Eighty green garments factories, now in operation, are completely certified by the Leadership in Energy and Environment Design (LEED), while 300 more are in the process of getting the certification. Among the top 10 green garment factories in the world, first seven are located in Bangladesh, said the BGMEA president.      

However, the Chattogram port needs to perform better to boost exports, he noted.

“We've invested around USD 4 billion for ensuring workplace safety and occupational health,” he added.

 Exports fetched USA 3.68 billion in January, up by 7.95 per cent on the year-on-year basis, according to the EPB.

For the July–January period of FY2018-19, the export of agricultural products like tea, vegetables and tobacco registered a growth of 61.03 per cent and fetched USD 579.61 million.

EPB officials said the export of leather and leather products fell significantly, with the sector registering a negative growth rate of 11.71 per cent.

 

RMG sector shines in export earnings

The countrys RMG sector is showing a positive trend in export earnings thanks to value added products, government policy support and completion of 90 per cent of the factory remediation work set by Accord and Alliance, According to the Export Promotion Bureau (EPB), export earnings in the RMG sector maintained a steady growth of 14.51 per cent from July to January in FY2018-19. The earnings amounted to USD 20.21 billion during this period. Explaining the reason behind the growth in the RMG sector, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Siddiqur Rahman told The Independent: The four months from October to January will be the peak season for apparel shipments. So, the future prospect is even brighter for such shipments. Now, we can produce any quantity of garments as we have expanded our operations over the years. The government announced a 5 per cent cash incentive to non-traditional markets back in 2010. The incentive, which is now 4 per cent, helps boost the two-digit export growth rate, the BGMEA president said. Earlier, apparel-makers did not want to go to those markets because of the difficulties involved and the time spent to enter a new market. But owing to the duty-free access and cash incentives, owners of RMG unit have started exploring new destinations and markets. China, the worlds largest apparel supplier, has started importing products from us because the Chinese government has allowed duty-free access to over 5,000 Bangladeshi products, thereby enhancing the export growth of our apparel sector, said Siddiqur. Around 4050 crore people in China belong to the high-middle income group, he added. The inspection of Accord and Alliance has helped remediate the factories and prompted factory owners to emphasise workplace safety. This has eventually improved the countrys image in front of foreign buyers, said Siddiqur. Eighty green garments factories, now in operation, are completely certified by the Leadership in Energy and Environment Design (LEED), while 300 more are in the process of getting the certification. Among the top 10 green garment factories in the world, first seven are located in Bangladesh, said the BGMEA president. However, the Chattogram port needs to perform better to boost exports, he noted. Weve invested around USD 4 billion for ensuring workplace safety and occupational health, he added. Exports fetched USA 3.68 billion in January, up by 7.95 per cent on the year-on-year basis, according to the EPB. For the JulyJanuary period of FY2018-19, the export of agricultural products like tea, vegetables and tobacco registered a growth of 61.03 per cent and fetched USD 579.61 million. EPB officials said the export of leather and leather products fell significantly, with the sector registering a negative growth rate of 11.71 per cent.