Riding on RMG, $37b export goal set for 2016-17

[bluesky]

12:53 PM, July 14, 2016 / LAST MODIFIED: 02:20 PM, July 14, 2016
Riding on RMG, $37b export goal set for 2016-17

Star Online Report

Bangladesh government today set $37 billion export target for 2016-17 fiscal year – mainly riding on the apparel sector that accounts for the biggest revenue source.

The target set, following the mega Tk 3.4 trillion budget for this fiscal, is aimed at 8 percent increase from what was the export achievement made last fiscal year.

Commerce Minister Tofail Ahmed made the announcement at a press conference held at his ministry office around noon today.

Bulk of the target is set for the ready-made garment sector. The export target set for Bangladesh’s biggest export sector has been set at $30.3 billion – 8 percent more than it was in the last year.

Apparel owners are optimistic of the industry’s future in Bangladesh and aims $50 billion in garment exports by the end of 2021.

‘BREXIT, DHAKA ATTACK WON’T AFFECT EXPORTS’
Britain’s exit from the European Union and the latest terror attack in Dhaka will not affect the export business of Bangladesh, Commerce Minister Tofail commented.

“The United Kingdom is one of the closest business partners of Bangladesh. Over 200 UK companies work with Bangladesh. Dhaka will not allow any deterioration of relationship with UK.”

On the note of Dhaka attack, the minister said terrorism “is a global phenomenon and that the Gulshan attack is not different from the terrorist attacks carried out worldwide.”

“These problems will not have any negative impact on Bangladesh’s exports,” he said.

 

[TopCat]

June export was 3.5 billion dollar. I think our export will reach 40-42 billion dollar this year riding on higher commodity price.

 

[Homo Sapiens]

June export was 3.5 billion dollar. I think our export will reach 40-42 billion dollar this year riding on higher commodity price.

When did you became cat Iajdani? How many rats you have killed? Are you interested to be adopted by @BDforever?

 

[TopCat]

When did you became cat Iajdani? How many rats you have killed? Are you interested to be adopted by @BDforever?

After the Gulshan attack..

 

[Homo Sapiens]

After the Gulshan attack..

I understand your dilemma.It is very dangerous to be human now in Bangladesh.At least cats are not under the jihadi chapati.

 

[bluesky]

Dear Sir @idune, please expose Indian conspiracy in this news.

 

[Gandh brandi]

Dear Sir @idune, please expose Indian conspiracy in this news.

are aiya koibo china'r loge FTA korle bangladesh agei $50b export chharai jaito but indian boot licker terrorist SHW tar indian mster er kotha chinta koira FTA kortasena. >_<

 

[Bilal9]

are aiya koibo china'r loge FTA korle bangladesh agei $50b export chharai jaito but indian boot licker terrorist SHW tar indian mster er kotha chinta koira FTA kortasena. >_<

China'r logey FTA ekhono hoi naikka?

Eida ki hunlam?

Joldi koira falao - ar deri koira luv ki?

 

[mb444]

are aiya koibo china'r loge FTA korle bangladesh agei $50b export chharai jaito but indian boot licker terrorist SHW tar indian mster er kotha chinta koira FTA kortasena. >_<

FTA with China!!!! We already have something very similar.

China has a RMG sector of its own . We are trying to attract them into BD as China moves up more value added sectors.

There is not much BD can sell to China. We need to expand our export basket. Rmg sectors competitiveness vis a vis China is not that much but there is great hope that eventually China rmg will move to BD and BD will sell its products to China is bucketloads.

 

[Bilal9]

FTA with China!!!! We already have something very similar.

China has a RMG sector of its own . We are trying to attract them into BD as China moves up more value added sectors.

There is not much BD can sell to China. We need to expand our export basket. Rmg sectors competitiveness vis a vis China is not that much but there is great hope that eventually China rmg will move to BD and BD will sell its products to China is bucketloads.

The lower end Chinese RMG sector with lower value addition has already mostly moved to Bangladesh.

Such as plain white T-shirts, woven dress shirts and pique golf shirts of both genders. Also mid-grade plain 'commodity' items and jeans like Gap, Old Navy, Levis and Gloria Vanderbilt etc.

Higher end items like jackets, fashion-trendy and designer items are still made in China but that will be ending soon because China's skill gap and high wages will make them un-competitive with the West and China will transfer those higher value-addition industries to Bangladesh like many it already has.

China does not subsidise the manufacturing of RMG (and low cost electrical items and shoes) in China anymore. It used to and that's why China's cost to manufacture were so low.

 

[bluesky]

The lower end Chinese RMG sector with lower value addition has already mostly moved to Bangladesh.

Such as plain white T-shirts, woven dress shirts and pique golf shirts of both genders. Also mid-grade plain 'commodity' items and jeans like Gap, Old Navy, Levis and Gloria Vanderbilt etc.

Higher end items like jackets, fashion-trendy and designer items are still made in China but that will be ending soon because China's skill gap and high wages will make them un-competitive with the West and China will transfer those higher value-addition industries to Bangladesh like many it already has.

China does not subsidise the manufacturing of RMG (and low cost electrical items and shoes) in China anymore. It used to and that's why China's cost to manufacture were so low.

I have two questions to ask:
1) Will Chinese RMG companies receive western orders in China and will send these specifications to their branches in BD?
2) Or the branch in BD itself will receive the orders with design specifications from the western buyers directly?

To me the 2nd option seems better and if the fabric itself is supplied from BD sources it will create a very big business for BD textile/RMG sector. We will far ahead of Vietnam and India.

 

[TopCat]

I have two questions to ask:
1) Will Chinese RMG companies receive western orders in China and will send these specifications to their branches in BD?
2) Or the branch in BD itself will receive the orders with design specifications from the western buyers directly?

To me the 2nd option seems better and if the fabric itself is supplied from BD sources it will create a very big business for BD textile/RMG sector. We will far ahead of Vietnam and India.

Most of the Chinese orders route through Hong Kong. Those Hong Kong sourcing companies actually makes the call where they going to manufacture the items from, China/Vietnam or Bangladesh.

 

[bluesky]

Most of the Chinese orders route through Hong Kong. Those Hong Kong sourcing companies actually makes the call where they going to manufacture the items from, China/Vietnam or Bangladesh.

Vietnam may become our strong competitor in RMG. In Japan, I can see many garment items in departmental stores or other outlets are made in Vietnam. Shipment cost here is cheaper from Vietnam than it is from BD. However, Japan is not the only market, although, I must add that China alone exports $20 billion worth of RMG goods to Japan.

One important point is Vietnam has backward link with Chinese cotton, which is a little harder than Indian and west Asian cotton. BD imports cotton from India, Pakistan and Uzbekistan, who produce softer cotton. Because of closer proximity than India, China will remain the major source of cotton for Vietnam. This will remain a big advantage for BD in the quality conscious world market.

 

[TopCat]

Vietnam may become our strong competitor in RMG. In Japan, I can see many garment items in departmental stores or other outlets are made in Vietnam. Shipment cost here is cheaper from Vietnam than it is from BD. However, Japan is not the only market, although, I must add that China alone exports $20 billion worth of RMG goods to Japan.

One important point is Vietnam has backward link with Chinese cotton, which is a little harder than Indian and west Asian cotton. BD imports cotton from India, Pakistan and Uzbekistan, who produce softer cotton. Because of closer proximity than India, China will remain the major source of cotton for Vietnam. This will remain a big advantage for BD in the quality conscious world market.

In the long run Vietnam wont be able to sustain the competition due to huge FDI involvement in RMG sector. Vietnam could not reap 100% of the benefit and could not accumulate domestic capital for further investment on their own. Eventually cost of making items in Vientnam will increase way faster than Bangldesh.
Vietnam already ran out of steam and their growth rate came down to 5%'s from their top 10%'s

 

[extra terrestrial]

‘BREXIT, DHAKA ATTACK WON’T AFFECT EXPORTS’
Britain’s exit from the European Union and the latest terror attack in Dhaka will not affect the export business of Bangladesh, Commerce Minister Tofail commented.

“The United Kingdom is one of the closest business partners of Bangladesh. Over 200 UK companies work with Bangladesh. Dhaka will not allow any deterioration of relationship with UK.”

On the note of Dhaka attack, the minister said terrorism “is a global phenomenon and that the Gulshan attack is not different from the terrorist attacks carried out worldwide.”

“These problems will not have any negative impact on Bangladesh’s exports,” he said.

Well, these issues won't affect the garments export but other promising sectors like pharmaceuticals, shipbuilding will suffer significantly, as it was the case with the GSP suspension. This will hurt the much needed diversification of our exports...