Garment exports to newer markets rise sevenfold in a decade

[Homo Sapiens]

12:00 AM, April 19, 2019 / LAST MODIFIED: 12:06 AM, April 19, 2019
NON-TRADITIONAL MARKETS
Garment exports rise sevenfold in a decade
https://www.thedailystar.net/business/news/garment-exports-rise-sevenfold-decade-1731793
BGMEA says; Fashionology Summit on May 2

Star Business Report

Garment exports to new destinations grew sevenfold to $5 billion in the last one decade buoyed by market diversification drives and the government's stimulus package set aside for exploring opportunities in emerging markets, exporters said.

The country's garment shipment to the emerging markets was $700 million in 2009, according to Faruque Hassan, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Except for three traditional markets, namely the US, the EU and Canada, all other markets are considered as the emerging or new export destinations for Bangladesh.

India, China, Russia, Japan, South Africa, Turkey and Brazil are among the major non-traditional markets for the garment sector.

Exporters started exploring the new destinations as part of market diversification efforts in 2009. In the same year, the government introduced a stimulus package to help exporters weather the fallouts from the global financial crisis.


Currently, the government gives 4 percent export incentive against garment shipments to new destinations.

“We are on the right track. We need to do more. However, we need to get proper prices from buyers,” Hassan said at a press conference at Sonargaon hotel in Dhaka.

Bangladesh Apparel Exchange (BAE) organis

 

[fallstuff]

All hail the power of undies !!

 

[Bilal9]

Ah - ha ha ha

You are absolutely right, undies (especially the expensive types) are a major new thrust for 2018.....but jokes aside, we seriously need to diversify.

 

[Arthur]

Ah - ha ha ha

You are absolutely right, undies (especially the expensive types) are a major new thrust for 2018.....but jokes aside, we seriously need to diversify.

Export Diversity and Economic complexity won't happen in just few years. All this concern about diversification & and complexity only came to light in last couple of years. Before that we were all oblivious to this matter. Now a days whenever this issue comes up I fell like people woke up from a sleep and realised it's already 10 AM. LOL.

Anyway I think complete diversification will take a decade more at least. 2030 is my minimum timeline. My only prayer is not to fall in the middle income trap by then.

 

[Bilal9]

Export Diversity and Economic complexity won't happen in just few years. All this concern about diversification & and complexity only came to light in last couple of years. Before that we were all oblivious to this matter. Now a days whenever this issue comes up I fell like people woke up from a sleep and realised it's already 10 AM. LOL.

Anyway I think complete diversification will take a decade more at least. 2030 is my minimum timeline. My only prayer is not to fall in the middle income trap by then.

Although dated - this is a good read on diversification efforts in Bangladesh,

https://www.theigc.org/wp-content/uploads/2014/05/Zaidi-Sattar-Presentation.pdf

And this one is of more recent vintage,

http://www.pri-bd.org/economy/why-trade-policy-is-inhibiting-export-diversification/

 

[Arthur]

Although dated - this is a good read on diversification efforts in Bangladesh,

https://www.theigc.org/wp-content/uploads/2014/05/Zaidi-Sattar-Presentation.pdf

And this one is of more recent vintage,

http://www.pri-bd.org/economy/why-trade-policy-is-inhibiting-export-diversification/

Thanks bro these were good read. Our planners are always late to the game. It was in 2013-14 (after rana plaza) when RMG was really struggling, it's only then they took it seriously. Nothing better than a good kick in the nuts.

On another note we need serious reforms in other export oriented sectors to ensure compliance just like we did with RMG. Without that all these talk about diversification will be that, Just talk.

 

[UKBengali]

Thanks bro these were good read. Our planners are always late to the game. It was in 2013-14 (after rana plaza) when RMG was really struggling, it's only then they took it seriously. Nothing better than a good kick in the nuts.

On another note we need serious reforms in other export oriented sectors to ensure compliance just like we did with RMG. Without that all these talk about diversification will be that, Just talk.

There is hope as Walton has started TV exports to Germany.

 

[Bilal9]

There is hope as Walton has started TV exports to Germany.

And you know what that means- they have to comply with TUV, DIN and ISO standards for electronics hazardous materials use/disposal, radiation, use of labor to assemble the TV, etc. etc. ad infinitum. Not very many South Asian countries exporting home-use electronics to Germany that I know of.

 

[UKBengali]

And you know what that means- they have to comply with TUV, DIN and ISO standards for electronics hazardous materials use/disposal, radiation, use of labor to assemble the TV, etc. etc. ad infinitum. Not very many South Asian countries exporting home-use electronics to Germany that I know of.

Would not be surprised if BD was the first country in S Asia that has managed to start exports to Germany.

Also do not forget the strict quality standards that Germany imposes.

 

[Bilal9]

Would not be surprised if BD was the first country in S Asia that has managed to start exports to Germany.

Also do not forget the strict quality standards that Germany imposes.

Exactly. Lot of ifs and buts had to be overcome I'm sure....but it is a good start. Let it continue. In the sticky development thread you can see that I posted a video about Ananda Shipyards exporting a 5500 DWT size MPC ship to Germany, which was built from the get-go to DNV-GL specs, which means meeting the standards for materials, fabrication and testing of metallic and non-metallic items.

Meeting these standards is rather tough. Only a few yards in South Asia that can comply.

 

[Arthur]

Germany has a strict environment & compliance law.

What Germans hates the most is unwanted waste. Oh boy, waste disposal used to give me nightmares when I first moved here. I used to check & recheck my trashbags three times before disposing them off

Also does Walton has their own operating system for Tv? Germany 's Intellectual property law is notorious. Any non compliance of the law would result in an hefty fine. That might even reach millions of Euros.

 

[Bilal9]

Germany has a strict environment & compliance law.

What Germans hates the most is unwanted waste. Oh boy, waste disposal used to give me nightmares when I first moved here. I used to check & recheck my trashbags three times before disposing them off

Also does Walton has their own operating system for Tv? Germany 's Intellectual property law is notorious. Any non compliance of the law would result in an hefty fine. That might even reach millions of Euros.

I am sure they looked at it.

By the way Germans are the only people who wash and clean their recyclables (like different types of plastics) before putting it out curbside for disposal.

Every garments factory in Bangladesh exporting to Germany had to comply with their law of treating wastewater for chemicals (effluent discharge), it was a humongous compliance undertaking.

 

[Arthur]

I am sure they looked at it.

By the way Germans are the only people who wash and clean their recyclables (like different types of plastics) before putting it out curbside for disposal.

Every garments factory in Bangladesh exporting to Germany had to comply with their law of treating wastewater for chemicals (effluent discharge), it was a humongous compliance undertaking.

1. Germans taking care of their trash is no joke bro!

2. A good reason our leather sector is still struggling. Waste water treatment is still a far fetched idea to most of our tanaries. EU and other western countries won't even touch anything made by them with a ten feet pole.

Leather manufacturing Companies who ensures environment & llabour compliance are doing pretty well in export market. i.e Apex etc.

Major thrust sector should be non- leather and synthetic footwear. Wooldland recently shifted some of it's production to BD. Hope more companies will follow suit.

 

[Bilal9]

A good reason our leather sector is still struggling. Waste water treatment is still a far fetched idea to most of our tanneries. EU and other western countries won't even touch anything made by them with a ten feet pole.

Well the huge Savar Leather Industrial Park will be coming on line (partially online already) which has a shared Central Effluent Treatment Plant (CETP) shared by about fifteen tanneries in that complex. The tanneries from Hazaribagh, Rayer Bazaar have moved there. More private leather complexes are already there but more will be set up in other riverbank areas.

Once every tannery is relocated there, Savar promises to be huge leather processing hub by the looks of it. This is from two years ago, can't find recent shots.

Major thrust sector should be non- leather and synthetic footwear.

In most SEZ's especially the Chittagong area ones (Patenga I, II and Karnafuli as well as Korean EPZ) they mostly produce non-leather and synthetic sports shoes. The factories are extremely large. Non-leather footwear was being produced since the early nineties.