[🇧🇩] Bangladesh Export Industries

[Saif]

Exports to South Korea tripled in 5 years on duty benefits

Exports from Bangladesh to South Korea nearly tripled over the past five years thanks to duty-free benefits and a push by exporters to explore the world’s 13th largest economy and thereby diversify their export destinations.

www.thedailystar.net

Exports to South Korea tripled in 5 years on duty benefits​

Exports from Bangladesh to South Korea nearly tripled over the past five years thanks to duty-free benefits and a push by exporters to explore the world's 13th largest economy and thereby diversify their export destinations.

Annual exports to Korea had hovered between $200 million and $300 million in the five years up till fiscal year (FY) 2016-17. Exports started rising the following year, crossing the half-a-billion-dollar mark to reach a decade-high in FY22.

Then, in FY23, exports to the East Asian nation soared 18 percent year-on-year to $624 million.

The uptick in shipments continued in the first half of the current fiscal year, growing 7 percent year-on-year to more than $330 million, according to the Export Promotion Bureau (EPB).

The spike in exports to South Korea comes at a time when most shipments from Bangladesh remain concentrated on certain markets, namely Europe and North America.

Nine western markets, including the US, UK and Germany, account for nearly two-thirds of Bangladesh's apparel exports, which comprise around 85 percent of the country's annual export receipts.

Exports to markets termed as non-traditional have grown in recent years, reducing the share of exports to traditional markets, as per data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Since January, South Korea has been providing duty-free and quota-free entry to most products from Bangladesh, which acted as a major driver for increasing exports.

"We have been talking about cutting dependence on traditional markets and are working aggressively for this," said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

"So, it [the rise in exports to South Korea] is a reflection of that," he added.

Besides, the government's policy support in the form of a 4 percent cash incentive on exports to new markets encouraged manufacturers until December 31 last year.

However, the rate was reduced to 3 percent from January 1 this year.

Hatem informed that exports to Japan were growing as well.

Buyers from Japan and Korea are cutting their dependence on China as the country is gradually shifting away from garments due to rising wages in the industry, he said.

"Also, Bangladesh is getting preference from Korean buyers as a near shore country," Hatem added.

EPB data showed that apparel items accounted for 86 percent of total exports to South Korea recorded in FY23.

T-shirts, polos, and jackets are among the main items going to the East Asian country, according to Hatem, who also shipped knitwear to South Korea.

"We are working to boost exports to non-traditional markets. We have already been able to create a good position in the South Korean market," said BGMEA President Faruque Hassan.

"We have explored the market and assessed its demand. Besides, we are able to comply with the quality requirements of this market," he added.
Hassan also said he expects exports to South Korea to grow further in 2024.

Fazlul Hoque, managing director of Plummy Fashions Ltd, a knitwear exporter, said South Korea is a big market with significant potential.
"It [exports to Korea] can grow and we have to nurture the market," he added.

Mehdi Mahbub, an analyst on business development in South Korea, said exports to the East Asian nation were supposed to grow much earlier.
"We have not explored the market's potential," he said, adding that South Korean buyers preferred purchasing from Vietnam for various reasons.
"But now, Vietnam is becoming costly," Mahbub added.

He also said that other than woven and knitwear items, South Korea could be a good market for sportswear and outerwear.

"It is possible to increase our exports to the country to one billion dollars," he said, adding that keeping commitments is very important in South Korean culture and the country's people are very quality-conscious.​

 

[Saif]

Garment exports to rebound in May as global economy on the mend

Garment export from Bangladesh may witness a strong rebound from May as suppliers are receiving a lot of inquiries from international buyers as the global economy recovers from the severe fallout of the Covid-19 pandemic and the Russia-Ukraine war.

www.thedailystar.net

Garment exports to rebound in May as global economy on the mend​

Exporters credit rising orders, product and market diversification

Garment export from Bangladesh may witness a strong rebound from May as suppliers are receiving a lot of inquiries from international buyers as the global economy recovers from the severe fallout of the Covid-19 pandemic and the Russia-Ukraine war.

Signs of revival in garment shipments are already being seen in the export data of the current fiscal year.

In the July-January period of 2023-24, garment export grew 3.45 percent year-on-year to $28.36 billion, according to data from the Export Promotion Bureau (EPB).

Matthew Shay, president and CEO of the National Retail Federation (NRF), the largest retail trade association in the US, said in a statement last week that retailers were coming off a successful holiday season.

Sales growth is expected to be 3 percent to 4 percent, reflecting a more sustainable rate of growth than seen during the pandemic-hit years, he said.

He added that the growth reflected the fact that retailers were accommodating the expectations of consumers and demonstrated the underlying strength of the US economy.

"Inquiries from international retailers and brands, especially from Europe and the US, are increasing. This indicates that export may revive to some extent, if not significantly," said Md Fazlul Hoque, managing director of Narayanganj-based Plummy Fashions Ltd.

"I am hopeful that exports will revive from May, but it may not be that significant."

Anwar-ul Alam Chowdhury, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), says inquiries from retailers and brands were low in September and October last year.

"As they are now increasing, it is expected that work orders will pick up around April or May and export will reach the previous levels as the economies of major export destinations like Europe and the US are rebounding from the global economic slowdown and historic inflationary pressures."

A major European buyer, asking not to be named, said although his company would not increase work orders significantly, there was no chance of reducing orders.

Shafiur Rahman, regional operations manager of G-Star, a Dutch designer clothing company, thinks the revival may start from June as per projections by international retailers and brands.

"2025 will be a good year for the garment business as the world economy is rebounding."

According to exporters, the shipment of garment items would increase in the coming months because inflation has fallen in the West and people are spending.

Moreover, buyers are sending a lot of inquiries to buy goods from Bangladesh, said BGMEA President Faruque Hassan.

Old inventories at stores have been reduced on the back of higher sales during the festival season in November and December like Christmas.
"Since the stock of clothing items has reduced, retailers and brands are placing a lot of work orders," Hassan added.

He said local manufacturers and suppliers have diversified in terms of both markets and products over the years and are now reaping the rewards of such initiatives.

"In many cases, local suppliers are getting premium prices from buyers as they produce high valued-added items."

Garment suppliers have also made improvements in terms of compliance, which, coupled with green initiatives, has brightened the image of the sector and the country.

"This increases buyers' confidence when sourcing garment items from Bangladesh," the BGMEA chief added.​

 

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[Saif]

Explore more export opportunities

A delegation of the Switzerland-Bangladesh Chamber of Commerce and Industry (SBCCI), led by its President Abdur Rashid, met Ahasanul Islam Titu, state minister for commerce, in a courtesy call at the commerce ministry in Dhaka on Sunday.

www.thedailystar.net

Explore more export opportunities​

State minister of commerce tells Switzerland-Bangladesh chamber leaders

Abdur Rashid, president of the Switzerland-Bangladesh Chamber of Commerce and Industry, greets Ahasanul Islam Titu, state minister for commerce, with a bouquet at the latter’s commerce ministry office in Dhaka on Sunday. Photo: Switzerland-Bangladesh Chamber of Commerce and Industry

A delegation of the Switzerland-Bangladesh Chamber of Commerce and Industry (SBCCI), led by its President Abdur Rashid, met Ahasanul Islam Titu, state minister for commerce, in a courtesy call at the commerce ministry in Dhaka on Sunday.

The state minister suggested the SBCCI explore more export opportunities to Switzerland, saying the ministry can play a pivotal role by providing all kinds of support, the chamber said in a press release.

Since Prime Minister Sheikh Hasina has labeled handicrafts as the "products of the year 2024", Titu emphasised how Bangladeshi businessmen could explore local and Swiss markets for artistic Bangladeshi handicrafts.

Bilateral trade between Bangladesh and Switzerland crossed the $1 billion mark, but Bangladesh has a huge trade deficit with Switzerland.

SBCCI President Rashid, who is also the country manager of SGS Bangladesh, said a cooperative partnership between the ministry of commerce and SBCCI was essential to overcoming obstacles and leveraging opportunities while conducting business with Switzerland.

Saad Omar Fahim, director of Clarichem and secretary general of SBCCI, provided insight into how Swiss businesses were driving innovation across various sectors in Bangladesh.

Among others, Saiful Islam, chairman and MD of Daffodil Trading House, Debabrata Roy Chowdhury, director of legal, regulatory, and corporate affairs, and company secretary at Nestle Bangladesh, Abul Hasnat, chief executive officer of Swiss Elegance, Sontosh Chandra Nath, chief executive officer of Alpha Vision, Md Rafiqul Islam, personal secretary of the state minister, and Mohammad Mohi Uddin Bhuiyan, coordinator of SBCCI, were also present.​

 

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[Bilal9]

Mirsarai Export Processing Zone (35000 Acres) update

 

[Bilal9]

HATIL is a prominent furniture manufacturer and global brand hailing from Bangladesh. Their commitment spans sustainable production and corporate social obligations. This truth becomes evident upon delving into HATIL's manufacturing procedures, which diligently address waste management, recycling, and the judicious employment of resources. Today we'll shed light on HATIL's journey toward securing Sustainability and fulfilling Corporate Social Responsibilities.

Environmentally Friendly Factory of Hatil: Sustainability & Social Responsibilities Of HATIL - Business Inspection BD

HATIL, a leading furniture manufacturer in Bangladesh and a global brand recognizes that being an industry leader goes beyond product sales. They prioritize sustainability and corporate social responsibility in addition to their offerings.

businessinspection.com.bd

 

[Bilal9]

Export earnings drop in April

A file photo shows containers being arranged with a crane at the Kamalapur Inland Container Depot in the capital Dhaka. Bangladesh's export earnings in April 2024 decreased slightly year-on-year compared with the same month of 2023 while the earnings in 10 months (July-April) of the current financial year 2023-24 grew by 3.93 per cent. | — New Age photo

Bangladesh's export earnings in April 2024 decreased slightly year-on-year compared with the same month of 2023 while the earnings in 10 months (July-April) of the current financial year 2023-24 grew by 3.93 per cent.

Exporters said that the shipment of apparel decreased in April due to various reasons, including Red Sea crisis, increasing cost of utilities and Eid-ul-Fitr holidays.

The country's export earnings in April declined by 0.99 per cent to $3.91 billion year-on-year compared with those of $3.95 billion in the same month of 2023, according to the Export Promotion Bureau data released on Thursday.

The EPB data showed that Bangladesh's export earnings in July-April of FY24 increased to $47.47 billion compared with those of $45.67 billion in the same period of FY23.

Export earnings from readymade garment in the 10 months of FY24 stood at $40.49 billion, which is 4.97 per cent higher than the earnings of $38.57 billion in FY23.

Export earnings from woven garments in July-April of FY24 failed to make any growth and the subsector fetched $17.61 billon which was same with the earnings in the same period of FY23.

Export earnings from knitwear in the 10 months of FY24, however, grew by 9.11 per cent to $22.88 billion compared with those of $20.96 billion in the same period of FY23.

The export growth of woven garments remained stagnant for past few months as the Red Sea crisis increased lead-time for Bangladesh by at least 15 days and buyers were shifting some orders to other manufact6uring countries, including China, Bangladesh Garment Manufacturers and Exporters association vice-president Abdullah Hil Rakib told New Age on Thursday.

He said that earnings growth from knitwear remained in positive territory as the subsector could manage lead-time due to using local raw materials.

Moreover, the increased cost of utilities increased production cost and many manufacturers failed to entertain some orders at the rate offered by the buyers, Rakib said.

He also said that in April production remained suspended in the factories more than one week due to the Eid holidays, which lowered shipment in the month.

The EPB data showed that export earnings from home textiles in July-April of FY24 fell by 25.32 per cent to $702.56 million compared with $940.8 million in the same period of FY23.

Earnings from leather and leather goods in the 10 months of FY24 fell by 13.32 per cent to $872.45 million compared with those of $1.00 billion in the corre sponding period of FY23.

Earnings from leather-footwear exports in July-April of FY24 declined by 25.80 per cent to $430.68 million compared with those of $580.40 million while the other leather products fetched $328.24 million with a 1.63-per cent growth in the period.

Export earnings from jute and jute goods in the 10 months of FY24 fell by 7.05 per cent to $716.44 million compared with those of $770.82 million in the same period of FY23.

Export earnings from agricultural products in the period, however, increased by 6.12 per cent to $774.49 million compared with those of $741.35 million.

Export earnings from frozen and live fish decreased by 13.34 per cent to $321.93 million and the earnings from shrimp exports fell by 20.48 per cent to $212.29 million in the 10 months of FY24.

Export earnings from engineering products in July-April of FY24 declined by 0.4 per cent to $436.35 million compared with those of $438.11 million in the same period of the previous financial year.

 

[Bilal9]

With friends like these - who needs enemies...

MSN

New Delhi: Citing severe congestion at Delhi airport because of which airlines have started charging three times the normal tariff, Indian garment exporters have asked the central government to stop allowing transshipment of Bangladeshi goods to third countries via Delhi.

The congestion at the Delhi airport is due to the Red Sea crisis, which has forced companies to use air routes for export of goods.

While New Delhi and Dhaka have, over the past two years, taken collaborative steps in terms of transit and transshipment of goods, India has also been pushing its domestic textile sector to achieve a $100 billion export target by 2030 and compete with other garment giants in Asia, such as Bangladesh, Vietnam and China.

Meanwhile, Bangladesh has grown into a garment powerhouse, manufacturing for major clothing brands like H&M, Zara, Tommy Hilfiger, Gap, Calvin Klein and Hugo Boss — giving stiff competition to their counterparts in India.

Apparel Export Promotion Council (AEPC), India's official body of apparel exporters, Thursday requested the Central Board Of Indirect Taxes and Customs (CBIC) to roll back its circular dated 7 February that allowed transshipment of Bangladesh export cargo to third countries through Delhi Air Cargo complex. Previously, these goods were allowed only through Kolkata airport.

" It's unlikely the circular will be reversed because it could be seen not only as protectionist measure but also contrary to providing reciprocal trade facilitation as agreed by the leaders of the two countries in the 2022 joint statement," Mustafizur Rahman, a Distinguished Fellow at the Centre for Policy Dialogue (CPD), a Dhaka-based think tank, told ThePrint.

(Edited by Richa Mishra)

 

[Saif]

https://thefinancialexpress.com.bd/views/export-trends-and-dynamics-in-bd

Export trends and dynamics in BD
MOHAMMAD ABDUR RAZZAQUE, BARUN KUMAR DEY AND RABIUL ISLAM RABI
Published :
May 28, 2024 21:52
Updated :
May 29, 2024 21:50

Despite the success in garments exports, the overall export size in Bangladesh remains modest and is characterized by a staggering concentration. Among the Least Developed Countries (LDCs), Bangladesh is often regarded as an example of export-led growth and development. Over the past two decades, merchandise exports in Bangladesh grew from just $6.5 billion in 2003 to $55.0 billion in 2023. This was mainly spearheaded by the apparel sector, which grew during the same period from just less than $5 billion to $47 billion.

However, when compared to countries outside the LDC group, export volume (both including and excluding services) in Bangladesh appears modest. Most Southeast Asian countries have demonstrated stronger export performance. Considering Bangladesh's large population of 170 million, its current merchandise export volume of $55 billion is relatively small compared to other nations with similar population sizes. For instance, Viet Nam, with a population of 91 million, boasts a comparable export volume of over $360 billion; Indonesia, with 218 million people, exports $240 billion; and Thailand, with a population of 72 million, earns around $323 billion from exports. In addition, Southeast Asian countries with smaller population sizes like Malaysia and Singapore have equally achieved remarkable success as exporting nations.

Since the emergence of RMG in Bangladesh's export sector in the 1980s, its relative importance has consistently increased, resulting in a reduction of the share of erstwhile traditional exports (such as raw jute and jute goods, tea, leather, frozen fish) from over three-quarters to approximately 10 per cent.

To read the rest of the news, please click on the link above.​

 

[Bilal9]

Three Chinese car companies (electric bus, truck and car mfrs., Lithium battery mfrs. as well as heavy construction equipment mfrs.) have started to look for JV partners in Bangladesh. Akij, Energypac and some other local conglomerates are in talks with them.

 

[Bilal9]

Buyers want to shift production of Technical Textiles and Apparel from China to Bangladesh

April 29, 2024

TechTextile & TexProcess 2024, the international trade fair for technical textiles and textile processing , kicks off on April 23 in Frankfurt , Germany . The exhibition ended on April 26 . The representatives of the foreign buyers who gathered at the stalls of the participating companies in Bangladesh said that they want to bring the production of technical or technical clothes from China to Bangladesh, albeit slowly . Because the cost of production in China is increasing.

Teams Manufacturing Company , Akiz Jute Mills , Smee Apparels , M & A Sourcing Bangladesh and Nexgen Apparel participated in the four-day exhibition as co-exhibitors of Export Promotion Bureau ( EPB ) .

On the third day of the exhibition on April 25 , representatives of clothing marketing organizations in Europe including Turkey and the United Kingdom came to the Bangladesh Pavilion . The stakeholders in stalls in Bangladesh Pavilion said that Bangladesh 's steps in the production of technical textiles and clothing are at an early stage but interest and technical capability implementation are both developing rapidly.

Bugrahan Turgut, sales and marketing officer of Navistanbul Textile and Promotion , who came to the exhibition , told Merchant News , "Until now , we produce all products in Turkey and China . In China we manufacture workwear , uniforms , fashion products and promotional textiles . We want to start production in Bangladesh . "

Among the products displayed by Bangladeshi companies at the exhibition were coats apparel , professional and protective clothing , active wear , jute yarn , jute bags and other products , men's and ladies' long and short pants , workwear / uniform , oven and knitwear and lingerie .

China is currently the best producer of technical garments . Next is Vietnam .

A basic t - shirt made for $ 1.50 or $ 2 makes a profit of 2-3 cents at the end of the day . But if one can make technical clothes , there is more than 10 percent profit . During the three days of this exhibition , discussions were held with more than thirty buyers about existing and upcoming products and purchase orders .

Garment exporters said that the main materials for making rain & waterproof clothing and fireproof clothing are fabrics or fabrics produced with special technology. Bangladesh's capacity to produce such textiles and clothing is currently negligible but has high interest from buyers and factory owners.

The concerned industrialists want to increase this capacity gradually . For this purpose, they are also participating in international exhibitions on technical technical textiles and textile processing .