Home / Knowledge / News / Apparel/Garments / B'desh RMG exports to grow 15% in FY12 - Experts

B'desh RMG exports to grow 15% in FY12 - Experts

03
Jan '12
Bangladesh readymade garment (RMG) exports are likely to grow by around 15 percent in 2011-12 over last fiscal, according to experts.

As per the statistics released for the first five months of the current fiscal by the Export Promotion Bureau (EPB), Bangladesh's overall exports have grown by 18 percent year-on-year compared to a growth rate of 40 percent y-o-y observed last fiscal.

In July this year, exports from Bangladesh rose by 28.7 percent y-o-y, followed by a rise by 32.4 percent y-o-y in August. However, the growth rate declined to 2.29 percent y-o-y in September, 15.44 percent in October and 2.4 percent in November.

Speaking to fibre2fashion, Mr. Shubhashish Bose, Vice Chairman of EPB, said, “Bangladesh's export target for 2011-12 is US$ 26.5 billion, which is much more than last year. We have figures from July to November 2011 and our exports have been worth US$ 9 billion during the five-month period and we hope we will be able to achieve our targets by the end of the year.”

“Out of the total exports, the RMG sector constitutes about 78-80 percent,” he informs.

Analysing the figures, Prof. Mustafizur Rahman, Executive Director of Centre for Policy Dialogue (CPD), says, “Last year, the growth rate was 40 percent because the global demand was rising and 40 percent is an exceptionally high rate. But, one cannot expect the exports to grow at such a high rate every year. So, 18 percent growth rate on top of the 40 percent growth rate of last year is a remarkable growth.”

“For the garment sector, the prices of raw materials, i.e. cotton and yarn, have come down by 50-60 percent compared to last year. So, the price level and the cut and making charges being offered are somewhat lower this year. In light of these factors, the growth rate can be termed as significant,” he adds.

He further explains, “The profit margins have come down this year. And, because there has been a depressed demand in the markets of US and Europe, some shift is taking place from China to Bangladesh on offer of lower prices, which is benefiting the garment industry. Moreover, India has offered zero tariff access to all Bangladeshi items, which is also favouring our country's exports.”

Commenting about the likely growth in country's garment exports this fiscal, he says, “It is uncertain how the Eurozone crisis develops and whether it will degenerate in recession. As of now, I foresee a double digit growth rate with the overall growth at around 14-15 percent this fiscal.”

Expressing similar views, Mr. Bose says, “In garments, Bangladesh mainly exports basic apparels that are not high value products but are needed by people all the time. So, even if there is recession in Europe or the US, people have to buy these apparels because it is a basic necessity for all. So, our apparel sector will not be very much affected and we can look forward to a double digit growth to achieve the export target.”

Fibre2fashion News Desk - India


Must ReadView All

Foreign brands competing with local clothing companies in Vietnam

Apparel/Garments | On 17th May 2021

Foreign brands competing with local clothing companies in Vietnam

International brands are giving tough competition to the local...

Pic: Casimiro PT / Shutterstock.com

E-commerce | On 17th May 2021

London-based global fashion platform Lyst raises £60mn

Lyst, a London-based global fashion aggregator that operates an...

Pic: Shutterstock

Textiles | On 17th May 2021

Prime Content| China cotton index may remain stable in coming months: TexPro

The China cotton is expected to remain above 16,000 RMB per ton or...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

One thing is certain, online sales will go up

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

Textile Industry, Head honchos

Textile Industry
Head honchos

Wearables have very limited reach

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

David Guiho,

David Guiho

Headquartered in Apt, South of France, Delta Plus designs, manufactures...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search