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Bangladeshi RMG exports to Japan on a high
Aug '10
Following the announcement of the China+1 policy by the Japanese government in 2008, a surge has been noticed in apparel exports from Bangladesh.

Japan is very much eager to trim down its reliance on China, the biggest source of apparel products, worldwide. The China+1 strategy advocates, relocating the production activities from China to other countries like Bangladesh.

As Bangladesh is a member of the least developed countries' group, and it has gained a duty-free access for its woven goods in the Japanese markets under the generalised system of preferences, or GSP.

As revealed by the Export Promotion Bureau statistics, excluding the last two months data,which still has not been culled, garment exports to Japan sustained an average growth rate of 175 percent during the period between 2008 and 2010.

However, as Japan adheres to its age old knitwear industry and the knitwear exports to Japan are subjected to a duty of 17 percent, despite which Bangladesh knitwear exports to Japan registered a rise of 231 percent and stood at $60 million in the initial 10 months of previous fiscal.

Also, the country, during the same period generated $90 million by exporting woven garments which is 121 percent above the figures registered for corresponding period last year.

Fibre2fashion News Desk - India

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