Export income crosses target with big RMG push
The country’s export earnings surged 33.4% to $38.6 billion in the first nine months of the current fiscal year
Bangladesh's export earnings remained on a growth trajectory and registered a nearly 55% year-on-year jump this March amid the ongoing Russia-Ukraine war, riding mainly on increased apparel shipments to the European Union countries and the United States.
Data released by the Export Promotion Bureau (EPB) on Monday show the country's export earnings amounted to $4.76 billion last month, exceeding the $3.54 billion target set for the month. The country's export receipts were $3.07 billion in March last year.
Exporters said the ongoing war has unsettled a small part of the country's export markets, but continued global demand and the country's leveraging of anti-China sentiments, especially in the US market, helped them maintain this strong growth.
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As per the EPB data, apparel exports grew by 60.15% to $3.9 billion year-on-year this March. Of the receipts, over $2.05 billion came from knitwear shipments, while woven items fetched around $1.88 billion.
Entrepreneurs in the apparel sector mentioned that the $665-million Russian market is running dry as Russian banks are cut off from SWIFT – the main international payment system – but some buyers are trying to ship goods ordered for stores in Russia to other countries.
The US market still represents excellent potential for Bangladesh's exports, pointed out business leaders, adding the government may focus on the US market to cash in on the existing opportunities to replace China and Vietnam.
Meanwhile, the country's export earnings surged 33.4% year-on-year to $38.6 billion in the July-March period of the current fiscal 2021-22, while the receipts were $28.93 billion during the same period a year ago, according to the EPB.
Business leaders have told The Business Standard that the apparel sector earned over $4 billion in monthly export income in December and January this fiscal year, which normally remains in the vicinity of $3.5 billion. February earnings were over about $3.5 billion.
Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), has termed the growth in apparel exports as "very normal" as raw materials prices have increased by about 50%.
He also expressed hope that the sector will continue to post such positive growth till the end of this fiscal year.
The BKMEA leader mentioned that the Ukraine war has affected the global fuel prices, which has affected the local market as well.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), however, attributed the continued robust growth in exports to the collective efforts made by stakeholders.
He also mentioned that some buyers have withheld some orders made for the Russian market, while some others have shifted Russian orders to other destinations. Fashion brand LPP is one such brand that has already shipped some goods to Poland instead of Russia, he added.
Shams Mahmud, managing director of Shasha Denim Ltd, said that the country's apparel manufacturers are witnessing a rise in export orders is mainly attributable to the unique position that Bangladesh finds itself in.
"The prime minister's directives in Covid management coupled with initiatives undertaken by the BGMEA president in the past year are bearing fruits now.
"While RMG manufacturing hubs such as Ethiopia and Myanmar are faced with internal security problems, Bangladesh is giving buyers a stable environment. Also, lockdowns in Vietnam and China, coupled with financial turmoil in Sri Lanka, are pushing orders towards Bangladesh."
Besides, proactive measures led by the BGMEA president to promote green initiatives in the RMG sector and best practices are also attracting new buyers to Bangladesh, he added.
According to EPB data, two other major export sectors – agriculture, and leather and leather products – also logged high growth last month. Export earnings from the agriculture sector grew 28.29% to $105.26 million this March, while that from the leather and leather goods sector grew 41.24% growth to $111.82 million.
Besides, frozen food, pharmaceuticals, and plastic products also posted impressive export growth.
EPB data show that all sectors, except jute and jute goods, performed well in the first eight months of the current fiscal year. Jute and jute goods lost out, posting 3.51% negative growth in March.
