Farzana Alam Piya
Woven Sector Needs a Boost Being the 2nd largest Readymade Garments exporting country in the world, only after China, Bangladesh is one of the fastest-growing economies of the world. The contribution of the textile and RMG industry to the overall GDP of the country and its impact on social wellbeing has changed the scenario of Bangladesh altogether. In 1983-84, the Export of RMG was 31.57 Million USD which was 3.89% of the Total Export of the country. But now the scenario is completely different. For the last 10 years, the RMG sector is contributing around 80% of the country’s total export. Despite the pandemic Covid-19 situation in 2020-21, the Export of RMG was 31.45 Billion USD which is 81.16% of the Total Export of the country. The tag “Made in Bangladesh” has already become a global brand.
Woven Sector Needs a Boost
Bangladesh’s Readymade Garments sector mainly exports Woven & knit Products. In previous years, the market share of woven products was higher than knit products. But with time, people all over the world are moving towards knit apparel, as knit apparels are more comfortable and can be used both at home & outside. As a result, day by day the global demand for woven products is decreasing and the global demand for knit products is increasing. In 2015-16, the market share of woven products was 52.46% which is now 46.08% (2020-21), decreased by 0.06%. On the other hand, in 2015-16, the market share of knit products was 47.54% which is now 53.92% (2020-21), increased by 0.06%.
Bangladesh mainly exports Trousers, T-Shirts & Knitted Shirts, Sweaters, Shirts & Blouses, Underwear, etc. Among these products, the market share of trousers is the highest (33.96%). Later comes T-Shirts & Knitted Shirts (23.01%), other products (17.95%), Sweaters (12.88%), Shirts & Blouses (6.51%) and Underwear (5.65%).
Export Destination Needs Diversification
Bangladesh has been exporting Readymade Garments to EU Countries, the USA, and Canada for many years and so these countries are known as Traditional RMG Market for the country. Among EU Countries there are Austria, Belgium, Bulgaria, Denmark, Finland, France, Germany, Greece, Italy, Ireland, Netherlands, Portugal, Romania, Spain, Sweden, U.K., Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Croatia where Bangladesh has been exporting Readymade Garments. Besides these countries, Bangladesh has started to export RMG to some other countries in recent times which is known as Non-Traditional Market or New Market. Among Non-Traditional Market, there are Australia, Brazil, Chile, China, India, Japan, Korea Rep., Mexico, Russia, South Africa, Turkey, etc.
Export Stats by Month?
Since 1990, the RMG sector has been a key contributor to the economy of Bangladesh. In 2018/19, total earnings from this sector were 34.13 Billion US$, which is the highest-earning of this sector till today. From 1990, Bangladesh’s RMG sector was developing smoothly until the pandemic Covid-19. From the beginning of 2020, the pandemic started to spread around the world, many countries went for lockdowns. As the result, the orders of RMG products started to get postponed or canceled and the earnings of the BD RMG fell. Therefore, the net earnings of this sector in 2019/20 was 27.95 Billion US$. Since June 2020, this sector started to move around with new orders, new market opportunities. Still, now this developing scenario is being continued and the country earned 31.46 Billion US$, in 2020/21, with a growth of 12.55%.
Though the earning of this sector in 2020/21 is around 2.7 Billion US$, less than the earning of this sector in 2018/19, it is expected that in 2021/22, this sector will get back to its regular stage.
The economy of Bangladesh remains highly dependent on the RMG industry for manufacturing, employment, foreign reserve, women empowerment, etc. This industry contributes 11.2% to the gross domestic product (GDP) of the country. Observing this sector for FY 2020/21, we can say that – after the pandemic, the scenario of this sector is developing where Bangladesh needs to pay more attention to ensuring the product quality, maintaining lead time, sustainability, cost management, new market opportunities, global trends & technologies. Also, the global demand for knit products is increasing day by day. Here Bangladesh should bring on more value edition, product diversification in knit products. Then we can reach our dream of being the largest RMG exporting country in the world and earning 50 Billion US$ from this sector.