RMG likely to fetch $30b in three years
DHAKA, Jan 24: After qualifying for EU GSP facilities and entering of some companies with big brand names in the market, Bangladesh’s RMG export is likely to reach US$ 30 billion in next three years. At the same time, ‘direct sourcing’ of a number of big importers created an opportunity for readymade garments (RMG) manufacturers to earn 20 per cent more on their products.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sources said world’s biggest RMG importer Inditex has opened a liaison office in Dhaka.
Hugo Boss and Addidas of Germany and Unocol of Japan also started functioning in Dhaka, along with surge of many small and medium scale importers and retail sellers.
Many importers now prefer Bangladesh to China, Vietnam, Sri Lanka, Turkey, Pakistan, Nepal and other countries as their destination for RMG import and they are interested to import items through direct sourcing. About 75 percent buyers have set up their offices in Bangladesh and others are rushing to open offices by one or two years, they said.
BGMEA president Abdus Salam Murshedi said the garment buyers are now gathering in Bangladesh due to global economic meltdown and huge hike of workers wages in China, Turkey and Vietnam.
At the same time, he said, the buyers are coming back from Pakistan and Nepal for political unrest and Sri Lanka cannot supply the order as per schedule.
“So, it appears to be a huge prospect for Bangladesh,” he said adding the quality of Bangladeshi goods, working environment, and relentless efforts of the manufacturers resulted in creating the confidence of the buyers.
Murshedi hoped that Bangladesh can up its RMG export to 30 billion in a couple of years and create 8/10 lakh jobs through proper use of opportunities.
According to the Export Promotion Bureau (EPB), Bangladesh earned around US$ 8 billion during first six months of this fiscal which is 41 percent more than the last year’s export. He said total RGM export will exceed US$ 17 billion at the end of this year against the target of US$ 14 billion.
Due to economic recession, Murshedi said, low priced commodities got popularity in European countries. Side by side, demand of high cost and quality products also have been increased.
To tap the huge opportunity, the BGMEA president said the port facilities should be improved and power and gas supply in the factories must be ensured. He also laid importance on better communication with Chittagong port and stable political situation for timely shipment as per orders of the buyers. President of Dhaka Chamber Asif Ibrahim said Bangladesh’s garment market has now expanded beyond Europe, America and Canada. South Africa, Latin America, Japan and Korea have opened up new horizon for Bangladesh. Even Bangladesh’s RMG is now being exported to India, Turkey and Sri Lanka, he said.
As Europe allowed Generalized System of Preference (GSP) facility for Bangladesh from January 1, 2011, the BGMEA leaders hoped it would help Bangladesh double its export to EU countries in 2/3 years from current US$ 7 billon.