Bangladesh is focusing more on apparel export as the target by 2021 is $50 Billion. But recent apparel export growth of Bangladesh is disappointing. Bangladesh’s overall export earnings in financial year ’17 were 1.68 per cent higher than they were a year ago. Export earnings from the apparel industry rose only by 0.20 per cent. Of the total amount, knitwear products earned three per cent more than in the same period a year ago. Woven products’ earnings fell 2.35 per cent compared to a year ago. June export earnings fell 15.27 per cent compared to the same period last year.
Among the reasons for the lackluster export growth are a fall in the average price of products, ongoing structural reforms in the apparel industry, an economic slowdown, a sluggish demand in export destinations, devaluation of the euro and appreciation of the currency against the dollar. Readymade garment manufacturers are working hard to face the challenges by introducing production engineering, technological upgrades etc.
Special incentives, including a five per cent cash incentive on the value of Freight on Board, may be offered for at least the next two years. To bring about sound export growth, one of the possible measures is a long-term policy support, including tax holiday for ten years, for new investors to attract investment.
To increase the export figure Bangladesh apparel industry should work on more value added products and go for readymade garment product diversification. Now Bangladesh apparel industry is in a shape of compliance and modernization. A lot of infrastructural development and happened and safety issue is rated as highest priority. It is hoped that in coming day the industry will play a magical role in increasing export figure is there is no unavoidable circumstances.