What's new

'$95b RMG exports by 2030 possible, if MMF potential tapped'

Black_cats

ELITE MEMBER
Dec 31, 2010
8,804
-6
13,455

'$95b RMG exports by 2030 possible, if MMF potential tapped'​

Speakers opine at a workshop​


FE REPORT | Published: October 05, 2022 09:30:59 | Updated: October 05, 2022 18:18:44

'$95b RMG exports by 2030 possible, if MMF potential tapped'


Bangladesh could earn US$95 billion by 2030 from readymade garment (RMG) export, if the country can raise its manmade fibre (MMF)-based garment shipment along with the existing cotton-made items, according to a research paper.

Bangladesh would need to achieve 12 per cent and 20 per cent of the global MMF and cotton-based items' market share respectively for the said amount of export, it showed.

Bangladesh now captures less than 5.0 per cent and 16 per cent market share of the global MMF-based and cotton-based apparel goods respectively.

At present, almost half of the total global apparel exports are MMF products, while 42 per cent are cotton-based. In contrast, 72 per cent of Bangladesh's garment exports are cotton-based, while only 24 per cent are MMF.

In 2021, the global apparel market size was $440 billion, of which MMF-based apparel market was $222 billion or 51 per cent, and cotton-based was $190 billion or 42 per cent, it showed.

Research and Policy Integration for Development (RAPID) Chairman Dr M A Razzaque disclosed these statistics in his paper at a workshop - 'Man-Made Fibre for Moving up the Value Chain of RMG in the Context of LDC Graduation' - held in the city on Tuesday.

The workshop was jointly organised by Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Planning Minister M A Mannan was present as the chief guest at the workshop, chaired by ERD Secretary Sharifa Khan.

Ministry of Commerce Additional Secretary Noor Md Mahbubul Haq, and BGMEA President Faruque Hassan attended as special guests.

Director of BGMEA Asif Ashraf gave a presentation on 'Challenges in Production and Use of MMF in RMG and Expectations of the Private Sector'.

Executive Director of Bangladesh Bank (BB) Kazi Rafiqul Hassan, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem, and Bangladesh Textile Mills Association (BTMA) Director Syed Nurul Islam also spoke on the occasion.

The RAPID chairman said the MMF items' demand is rising globally due to uncertainty in cotton production and supply, price comparability, environmental concerns, and use of pesticides and huge quantity of water.

Global consumption of fibre is heavily tilted towards MMF, and moving towards MMF can lead to improved product prices.

Now, MMF items comprise around 30 per cent of Bangladesh's total fibre import. The country currently imports about 0.15 million tonnes of MMF, mainly from China.

So, Bangladesh needs to develop its MMF backward linkage capacity, and more investment in the domestic MMF sector is needed, he opined.

The paper, however, suggested maintaining the dominance in cotton apparel export, saying MMF apparels can further drive export growth.

Making maximum use of the LDC privileges for the remaining few years, it recommended additional cash incentive for MMF apparel export and creating fiscal space to attract foreign investment in MMF textile and apparel sector to make Bangladesh as a regional MMF supply hub.

As the country's RMG sector is becoming bigger, it would be subjected to increased scrutiny, and ensuring compliance and ESG factors would influence future export performance, it noted.

Speaking on the occasion, the planning minister said switching to MMF would help the country to bring about increased diversification in the RMG sector.

He also observed that such transformation would strengthen backward linkage of the local RMG industry.

The ERD secretary said Bangladesh would have to grab the potentials of MMF items while maintaining the current growth in cotton export to increase its global market share.

Calling for enhancing competitiveness of the RMG sector to prepare for the post-LDC graduation, the BGMEA president emphasised simplification of relevant business processes and improvement in logistics.

Speakers opined that increased use of MMF would enable the country's RMG industry to diversify its products and move up the value chain, as the sector prepares for the post-LDC graduation regime.

Special policy incentives are needed to attract more investment in MMF-based textile and garment industry and grab larger share in the global apparel market.

The country would lose all the LDC-specific international support measures (ISMs) - including preferential Rules of Origin (RoO) and Duty-Free and Quota-Free (DFQF) market access, soon after the graduation from the LDC category in 2026 - except the Everything But Arms (EBA) scheme of the EU GSP, which will end in 2029.

Since Bangladesh could make maximum utilisation of the DFQF facilities, the loss of such facilities after graduation may create some challenges for local exports, particularly for the RMG, as the sector alone contributes around 83 per cent of the country's total export.

munni_fe@yahoo.com
 

bluesky

ELITE MEMBER
Jun 14, 2016
15,033
0
16,338
Country
Bangladesh
Location
Japan
Once exports reach over $90 billion, and internal tax collection volume rises gradually, the fear of becoming another SL or becoming like another Latin American country will be reduced.

However, the immediate economic situation must be tackled by borrowing the IMF or WB money.
 

BananaRepublicUK

FULL MEMBER
May 13, 2022
1,326
0
1,014
Country
United Kingdom
Location
United Kingdom
Once exports reach over $90 billion, and internal tax collection volume rises gradually, the fear of becoming another SL or becoming like another Latin American country will be reduced.

However, the immediate economic situation must be tackled by borrowing the IMF or WB money.

@UKBengali looks like you have finally converted mistri bhai ๐Ÿคฃ๐Ÿคฃ

At this rate he will be a BAL member in no time.

He is very flaky. Perfect BAL fodder.

Once exports reach over $90 billion, and internal tax collection volume rises gradually, the fear of becoming another SL or becoming like another Latin American country will be reduced.

However, the immediate economic situation must be tackled by borrowing the IMF or WB money.

@UKBengali looks like you have finally converted mistri bhai ๐Ÿคฃ๐Ÿคฃ

At this rate he will be a BAL member in no time.

He is very flaky. Perfect BAL fodder.
 

Abu Shaleh Rumi

FULL MEMBER
Nov 18, 2018
1,842
0
2,307
Country
Bangladesh
Location
Bangladesh
Yah focus on RMGs only and nothing else. RMG will make us a developed country, thats why nobody talks about other industries. Not just our 3rd class government, our crony capitalists are low IQ too!

BTW, our RMG sector is import dependant. Except labor everything else is imported...
 

UKBengali

ELITE MEMBER
May 29, 2011
19,716
7
24,412
Country
Bangladesh
Location
United Kingdom
@UKBengali looks like you have finally converted mistri bhai ๐Ÿคฃ๐Ÿคฃ

At this rate he will be a BAL member in no time.

He is very flaky. Perfect BAL fodder.



@UKBengali looks like you have finally converted mistri bhai ๐Ÿคฃ๐Ÿคฃ

At this rate he will be a BAL member in no time.

He is very flaky. Perfect BAL fodder.


We should go easy on these guys.

They are mainly mathematically illiterate and emotional beings.

They sometimes post interesting articles but forget any quality analysis from the majority of the posters in the BD sub-section. It is simply beyond their innate abilities.
 

SoulSpokesman

SENIOR MEMBER
Dec 1, 2016
2,402
-15
2,102
Country
India
Location
India
@Abu Shaleh Rumi

Except labor everything else is imported...

You see but you don't observe. The most important thing is indigenous- labour. It is the income to the labour- wages and salaries- which will create a generation of Bangladeshis with higher skills and aspirations than their parents which will carry it upwards.

Regards
 

Destranator

SENIOR MEMBER
Jul 20, 2018
3,314
-2
6,034
Country
Bangladesh
Location
Bangladesh
@Abu Shaleh Rumi

Except labor everything else is imported...

You see but you don't observe. The most important thing is indigenous- labour. It is the income to the labour- wages and salaries- which will create a generation of Bangladeshis with higher skills and aspirations than their parents which will carry it upwards.

Regards
Why do you never use the "quote" function when replying to a post?
 

bluesky

ELITE MEMBER
Jun 14, 2016
15,033
0
16,338
Country
Bangladesh
Location
Japan
We should go easy on these guys.

They are mainly mathematically illiterate and emotional beings.

They sometimes post interesting articles but forget any quality analysis from the majority of the posters in the BD sub-section. It is simply beyond their innate abilities.
Who says this above? Are not you the most intelligent BD guy who wants us to believe Dhaka Metrorail will run 100 kph?

I wonder how a person can have such a shallow mind. It is because you have never left your Haor village and seen metrorail/ tube operations in cities like London.

Please learn a thing or two from others.
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom