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Export earnings cross $16 billion in nine months

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May 10, 2010
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Export earnings cross $16 billion in nine months

New Age | Newspaper


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Special Correspondent

Exports grew by 40.31 percent in nine months of the current fiscal year, compared to the same period a year ago, the commerce ministry said on Wednesday.

A report of the Export Promotion Bureau shows the country exported goods worth $16,207 million during July-March of the current 2010-11 fiscal, up from $11,551 million in the same period of 2009-10.

The government data shows that in March alone, exports grew by 40.56 percent, compared to the same month of the previous year, to $2.14 billion.

Shipment of major items including knitwear, woven or cut and sew garments, jute and jute goods, home textiles, frozen food, shrimp and leather goods increased significantly during the July-March period.

The knitwear sector earned $6.6 billion, which is a 44.36 percent rise from the same period in the previous year while woven garment exports grew to $6 billion, up 37.76 percent compared to the same period last year.

‘As unit price of apparels and textiles remain high due to costlier yarns and fabrics, export earnings for apparels and textiles kept increasing in recent months, compared to that of the corresponding period of last year,’ said Faruque Hassan, vice president of the Bangladesh Garment Manufacturers and Exporters Association.

Readymade garments consist 80 percent of the entire export earnings while home textiles and other non-apparel textile products earned around 6 percent.

‘Export orders from foreign buyers still remain high to but due to infrastructure problem and shortage of skilled workers further growth potential will remain uncultivated,’ he said.

Jute and jute goods export rose to $837 million in July-March 2010-11, growing 44 percent year-on-year, home textile exports rose to $555 million, growing 98 percent, frozen foods to $471 million, up 57 percent and footwear export grew by 50 percent to $222 million.

Despite most major items showed significant rise in shipments, some items suffered negative growths in exports. Among such significant export items, export earning from terry towels declined by 7.39 percent to $94 million, bicycle 10.23 percent to $72 million and tea 56 percent to $2.31 million.

EPB had set an export target to earn $18.5 billion for the current fiscal year, which is 14.16 percent more than the actual earnings last year. But export sector insiders predict that earnings would be around $22 billion by the end of this fiscal.

During 2009-10, the total export earnings were $16.2 billion against a target of $17.6 billion but real earnings was 4.11 percent higher than the earnings of 2008-2009 fiscal year.
 
Last fiscal, the export earning was a little more than $18 billion. Considering the earning of the last nine months, it can be said that this year ithe same may reach $22 billion or more.
 
Last fiscal, the export earning was a little more than $18 billion. Considering the earning of the last nine months, it can be said that this year ithe same may reach $22 billion or more.

I am waiting for it to cross 30 billion next year and 40 billion the year after. 40 billion export will be huge. We need to get into G25 soon.
 
I am waiting for it to cross 30 billion next year and 40 billion the year after. 40 billion export will be huge. We need to get into G25 soon.

A great leap forward is not something that cannot be achieved. But, we need more power plants, among others, to make it happen. I personally like the present style of targeting export of a single item. Today, it is textile and many exportering countries are crumbling in front of us. The next can be either steel ships or medicine. Since ships need a strong steel production base and we still lack it, therefore, we can target the international drug market and see our competitors crumble one after another. Next target can be something else.
 
A great leap forward is not something that cannot be achieved. But, we need more power plants, among others, to make it happen. I personally like the present style of targeting export of a single item. Today, it is textile and many exportering countries are crumbling in front of us. The next can be either steel ships or medicine. Since ships need a strong steel production base and we still lack it, therefore, we can target the international drug market and see our competitors crumble one after another. Next target can be something else.

First of all this is good news. Congratulations to the Republic of Bangladesh on this achievement.

However the suggested plan as above will not work (and for too long also). Bangladesh will be better off working to increase both production and exports in more than one sector simultaneously. One reason for that is the fact that all raw materials are not sourced internally. For instance the raw staple fibre used in the textile industry is not sourced internally, so that is an area of weakness, can that be eliminated? If not, then it will remain an area of vulnerability. Then again the real reason for growth of the textile industry in BD is the low cost of manpower. Thirty-five years ago; Mexico, Thailand, Malaysia and even Taiwan were in textiles where Bangladesh is now. Then the standard and cost of living in those countries rose, so salaries had to rise. That is where the labour cost component of the manufacturing costs went up so as to become unviable. So the textile business shifted first to countries like India and later to Sri Lanka and Bangladesh. If labour costs rise in Bangladesh (which is bound to happen), the business will itch to shift some-where else. Even Mongolia and Botswana. That is the nature of international business. Raw material cost control has more benefits in the longer term than labour cost control, which gets more difficult over time.

In pharmaceuticals, India got work initially as production contracts (job-work). But that would have fizzled out over time. When India started its own R & D in pharmaceuticals and created generic drug molecules which came out of the very expensive royalty regime only then that it was able to pull the rug from beneath the feet of the industry in the west. Pure contract manufacture runs out of steam gradually, backward integration of technology and processes will last much longer.

In international business, the targets are ever moving, one has to simultaneously take them on; with the risk of variable success (of course).
 
First of all this is good news. Congratulations to the Republic of Bangladesh on this achievement.

However the suggested plan as above will not work (and for too long also). Bangladesh will be better off working to increase both production and exports in more than one sector simultaneously. One reason for that is the fact that all raw materials are not sourced internally. For instance the raw staple fibre used in the textile industry is not sourced internally, so that is an area of weakness, can that be eliminated? If not, then it will remain an area of vulnerability. Then again the real reason for growth of the textile industry in BD is the low cost of manpower. Thirty-five years ago; Mexico, Thailand, Malaysia and even Taiwan were in textiles where Bangladesh is now. Then the standard and cost of living in those countries rose, so salaries had to rise. That is where the labour cost component of the manufacturing costs went up so as to become unviable. So the textile business shifted first to countries like India and later to Sri Lanka and Bangladesh. If labour costs rise in Bangladesh (which is bound to happen), the business will itch to shift some-where else. Even Mongolia and Botswana. That is the nature of international business. Raw material cost control has more benefits in the longer term than labour cost control, which gets more difficult over time.

In pharmaceuticals, India got work initially as production contracts (job-work). But that would have fizzled out over time. When India started its own R & D in pharmaceuticals and created generic drug molecules which came out of the very expensive royalty regime only then that it was able to pull the rug from beneath the feet of the industry in the west. Pure contract manufacture runs out of steam gradually, backward integration of technology and processes will last much longer.

In international business, the targets are ever moving, one has to simultaneously take them on; with the risk of variable success (of course).

All of what you say is correct, diversification, is needed for our economy. garments will keep growing for the next decade or two, but we need to expand the light industrial component (similar to what is happening in thailand and other asean nations), shipp building is a area we have advantages both historical and recent (a lot of bangladeshis have worked in the korean and italian ship building industry), pharma as has been stated and also service industries like BPO/banking and IT. So there is a lot of scope for growth, the liberalisation in india in the 90s spured this and now this is starting here.
 
hurray well done Bangladesh

extremely glad to hear that

You are becoming industrialized state sooner than I was expecting

Well done once again
 
Alhumdulillah! How much we spend on import every year?

BD imports more than it exports. I do not have the import data, but, generally the imports include raw materials, industrial machineries, foods and fuel. This kind of export-import deficit is very typical for a developing country. The trade gap is filled up from the remittance BD receives from its nationals who work abroad.
 
We have to expand our tourism sector if we want to diversify our economy. Tourism industry has a huge potential in bangladesh. Places such as paharpur or Sonargaon easily draw in tourists. In my opinion, we must develop our tourism sector if we want our economy to fare much better.
 
congragulation's to bangladesh,i think both bangldesh and india should have mutual trade which will help both the nation's grow economically.
 

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