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Bangladesh hopes to 'export $1.0b RMG to China within a few years'
Financial Express :: Financial Newspaper of Bangladesh
Published : Tuesday, 11 December 2012
FE Report
Experts at a seminar Sunday said Bangladesh can contribute US$ 29.71 billion worth textiles and clothing in a $500 billion world merchandise trade by 2015 by taking care of its' infrastructure, image related problems, political stability, productivity and compliance issues.
They also said China alone has become a huge potential market for Bangladesh as it loses its' competitiveness in the global apparel export and shift to high-tech industries and is ready to import clothes for its' domestic consumers from Bangladesh at a lower price.
Bangladesh should more concentrate on product and diversification and entering the non-traditional markets as the import trend of those markets has been significant over the last three years while the US market has been shrinking. Also the Western buyers are looking for China plus one as their sourcing option which can be Bangladesh, they added.
Their observations came at the seminar on 'Opportunities and Challenges in the Changed Global Sourcing Scenario' organised by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a city hotel.
Foreign minister Dipu Moni was present as the chief guest with BGMEA president Shafiul Islam Mohiuddin in the chair.
Nazneen Ahmed, senior research fellow of Bangladesh Institute of Development Studies (BIDS) presented the keynote paper on the occasion.
In her presentation, Nazneen said over the three years Bangladesh RMG export to non-traditional markets has increased from 6.88 per cent to 12.10 per cent while the US market has shrinked from 29.91 per cent in 2008-'09 to 23.73 per cent in 2011-'12.
Bangladesh RMG export to China has recorded the highest 97.92 per cent in 2010-2012 followed by Korea 69.47 per cent, Japan 63.08, Australia 59.43, India 53.09, Russia 47.49, Brazil 35.02, Chile 30.91, Mexico 21.55, and South Africa 15.31 per cent.
She said Bangladesh will be able to export US$ 1.0 billion worth of RMG to China within a few years.
There will be demand of US$ 650 billion in the global clothing and apparel market by 2020 where there is a scope for Bangladesh to contribute $44.56 billion.
Referring to various changing aspects of Chinese economy and the huge population size Nazneen mentioned China as an untapped opportunity for Bangladesh at the same time Bangladesh as a lucrative destination for clothe sourcing for the Chinese consumers at a 10 to 15 per cent lower price due to duty-free access facility.
Nazneen recommended to contrite more on improving human resource development and productivity enhancement, power and infrastructure development, safety net for RMG workers, availability of finance at competitive cost, governments' policy stability and coherence to long-term growth, prudent economic diplomacy and industry and nation branding.
In her address Dipu Moni said "while we enjoy the success of our country developing footprint abroad we also welcome foreign firms coming to Bangladesh."
In 2011 China occupied 37.35 per cent of $ 410 worth global clothing clothing market while Bangladesh's share was only 4.8 per cent. Little shift of the supply chain can bring a huge trade prospect for Bangladesh.
Referring to the fire incident at Tazreen garments and the generosity of a HongKong-based firm, she said, without mentioning the name, a foreign firm which has yearly sales of $400 billion is seen nowhere near the scene of the wreckage.
"In 2010, we paid $652 million at a rate of 15.3 per cent to the US exchequer against our RMG export worth 4.27 billion….By another estimate, by exempting this tax the US can enable our RMG factory owners to pay a yearly bonus of Tk 25000 or $300 to our workers," she said.
She said there is speculations that the US will not give duty-free access. But Bangladesh has cope up and will be coping up in future with or without it. She emphasized on corporate social responsibility and compliance issues for satisfying the global buyers.
Brac University Professor Mamun Rashid said many foreign buyers want to see Bangladeshi management people in the RMG sector and think they will better manage the factories in their own language.
He said it's a journey of $42 billion by 2020 and to tap the opportunity that has been created for Bangladesh overall capacity, diversity, factory safety and productivity development need to be taken care off and entrepreneurship development with a global outlook needed.
Olaf Handlogten, country director of GIZ Dhaka, said there are negative factors regarding the image of Bangladesh in Europe and in other countries, specially about the capacity of Bangladesh and it is little known to many countries. There is also problems of some trade barriers which has to be overcome.
Hew emphasized on concerted efforts by government, policymakers donors, buyers and associations to tap the huge potential.
Debapriya Bhattachariya, distinguished fellow of Centre for Policy Dialogue said buyers buy a shirt at $4 and sell it at $44. "Who gets what? How much of this our workers get?" he asked.
Criticizing the buyers he said they are not ready to share the burden but always pressure for compliance which is kind of hypocrisy.
Financial Express :: Financial Newspaper of Bangladesh
Published : Tuesday, 11 December 2012
FE Report
Experts at a seminar Sunday said Bangladesh can contribute US$ 29.71 billion worth textiles and clothing in a $500 billion world merchandise trade by 2015 by taking care of its' infrastructure, image related problems, political stability, productivity and compliance issues.
They also said China alone has become a huge potential market for Bangladesh as it loses its' competitiveness in the global apparel export and shift to high-tech industries and is ready to import clothes for its' domestic consumers from Bangladesh at a lower price.
Bangladesh should more concentrate on product and diversification and entering the non-traditional markets as the import trend of those markets has been significant over the last three years while the US market has been shrinking. Also the Western buyers are looking for China plus one as their sourcing option which can be Bangladesh, they added.
Their observations came at the seminar on 'Opportunities and Challenges in the Changed Global Sourcing Scenario' organised by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a city hotel.
Foreign minister Dipu Moni was present as the chief guest with BGMEA president Shafiul Islam Mohiuddin in the chair.
Nazneen Ahmed, senior research fellow of Bangladesh Institute of Development Studies (BIDS) presented the keynote paper on the occasion.
In her presentation, Nazneen said over the three years Bangladesh RMG export to non-traditional markets has increased from 6.88 per cent to 12.10 per cent while the US market has shrinked from 29.91 per cent in 2008-'09 to 23.73 per cent in 2011-'12.
Bangladesh RMG export to China has recorded the highest 97.92 per cent in 2010-2012 followed by Korea 69.47 per cent, Japan 63.08, Australia 59.43, India 53.09, Russia 47.49, Brazil 35.02, Chile 30.91, Mexico 21.55, and South Africa 15.31 per cent.
She said Bangladesh will be able to export US$ 1.0 billion worth of RMG to China within a few years.
There will be demand of US$ 650 billion in the global clothing and apparel market by 2020 where there is a scope for Bangladesh to contribute $44.56 billion.
Referring to various changing aspects of Chinese economy and the huge population size Nazneen mentioned China as an untapped opportunity for Bangladesh at the same time Bangladesh as a lucrative destination for clothe sourcing for the Chinese consumers at a 10 to 15 per cent lower price due to duty-free access facility.
Nazneen recommended to contrite more on improving human resource development and productivity enhancement, power and infrastructure development, safety net for RMG workers, availability of finance at competitive cost, governments' policy stability and coherence to long-term growth, prudent economic diplomacy and industry and nation branding.
In her address Dipu Moni said "while we enjoy the success of our country developing footprint abroad we also welcome foreign firms coming to Bangladesh."
In 2011 China occupied 37.35 per cent of $ 410 worth global clothing clothing market while Bangladesh's share was only 4.8 per cent. Little shift of the supply chain can bring a huge trade prospect for Bangladesh.
Referring to the fire incident at Tazreen garments and the generosity of a HongKong-based firm, she said, without mentioning the name, a foreign firm which has yearly sales of $400 billion is seen nowhere near the scene of the wreckage.
"In 2010, we paid $652 million at a rate of 15.3 per cent to the US exchequer against our RMG export worth 4.27 billion….By another estimate, by exempting this tax the US can enable our RMG factory owners to pay a yearly bonus of Tk 25000 or $300 to our workers," she said.
She said there is speculations that the US will not give duty-free access. But Bangladesh has cope up and will be coping up in future with or without it. She emphasized on corporate social responsibility and compliance issues for satisfying the global buyers.
Brac University Professor Mamun Rashid said many foreign buyers want to see Bangladeshi management people in the RMG sector and think they will better manage the factories in their own language.
He said it's a journey of $42 billion by 2020 and to tap the opportunity that has been created for Bangladesh overall capacity, diversity, factory safety and productivity development need to be taken care off and entrepreneurship development with a global outlook needed.
Olaf Handlogten, country director of GIZ Dhaka, said there are negative factors regarding the image of Bangladesh in Europe and in other countries, specially about the capacity of Bangladesh and it is little known to many countries. There is also problems of some trade barriers which has to be overcome.
Hew emphasized on concerted efforts by government, policymakers donors, buyers and associations to tap the huge potential.
Debapriya Bhattachariya, distinguished fellow of Centre for Policy Dialogue said buyers buy a shirt at $4 and sell it at $44. "Who gets what? How much of this our workers get?" he asked.
Criticizing the buyers he said they are not ready to share the burden but always pressure for compliance which is kind of hypocrisy.
