[🇧🇩] Bangladesh Export Industries

[Bilal9]

Eyelashes made in Saidpur headed for China​

 

[Bilal9]

Exports hit an all-time high at $5.72b in January​

Exports grew 11.45% compared to the same period of last Fiscal Year 2023​

Bangladesh's merchandise export earnings reached $5.72 billion in January, highest in a single month so far, bringing another good news on the external sector in the first week of this month after monthly remittance hit seven-month peak.

Apparel export receipts increased by 12.45% to $4.97 billion in January, putting total exports to $33.26 billion in the first seven months of the current fiscal year. The amount is 2.52% more compared to a year-ago period, according to figures released by the Export Promotion Bureau (EPB) on Sunday.

The previous record for the highest single-month export receipts was $5.37 billion in December 2022.

Inward remittance surged 7.69% year-on-year to $2.10 billion in January, Bangladesh Bank data said on Thursday.

Exporters say shipments have reached new heights as western economies are stabilising. Most of these countries are not increasing their interest rates and are expecting a decline in inflation.

As usual, the readymade garment led the export growth, with knitwear posting a more robust growth than woven apparels in the July-January period of the current fiscal year.

Sectors such as leather and leather products, jute and jute goods, agriculture, footwear, and cotton products showed positive growth.

However, home textiles, engineering products, and frozen and live fish faced year-on-year negative growth.

During the period, the RMG export witnessed a 3.45% year-over-year growth to $28.36 billion. Of the amount, knitwear exports were $16.17 billion with 8.15% growth, and woven garments earned $12.18 billion with 2.20% growth.

Fazlee Shamim Ehsan, vice president of the Bangladesh Knitwear Manufacturers and Exporters Association, told TBS that there were additional shipments in January that were originally scheduled to be shipped in December. This delay was due to the Christmas holidays in some western countries.

Ehsan mentioned that they are currently exporting for the summer.

He also highlighted that countries belonging to the Organisation for Economic Co-operation and Development (OECD) are expected to witness a decline in inflation to 3.2%, along with a projected GDP growth of 1.2% in 2024.

These factors are anticipated to contribute to the growth of Bangladesh's exports in the coming days.

Despite all the positive indicators, exporters fear they may lose their competitiveness in the coming days as the government has withdrawn cash incentives on most apparel items and slashed them for remaining items.

Dutch fashion brand G-Star Raw Regional Operations Manager Shafiur Rahman said this year summer sales have already started in March due to fluctuations in temperature in western countries.

He said those retailers who were experiencing negative growth last year will try to return to business, adding that the US economy will enjoy money circulation ahead of their national election there, which will also help boost business.

Shafiur hoped that the apparel exporters would get better orders in the second half of this year, which will be for the spring and summer of 2025.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TBS last week, "Most western buyers are enjoying very good sales since last November as their economies are going to be stable after a slowdown."

"Apparel stores enjoyed good sales during some festive events across the western world, especially Black Friday, Christmas Day, Boxing Day, and Cyber Monday," he said, adding the stores also cleared their previous inventory during the festivals.

"As a consequence of their sales growth in January, our export was better," said the BGMEA president.

Referring to the drop in inflation in Europe and the US, he said, "Brands are expected to boost their apparel sourcing from Bangladesh, having successfully cleared their inventory over the past year. Some buyers are already in talks with our exporters to increase orders."

He mentioned that when exporters are expecting a surge in apparel orders from global buyers starting in the second quarter of this year, the withdrawal of cash incentives will affect the businesses.

BGMEA Senior Vice President SM Mannan Kochi said Bangladesh's apparel exports to the US and the EU have been struggling for the last couple of months, but new markets are doing well.

However, the government's sudden decision to cut incentives for three major new markets will affect growth, he added.

He also mentioned that on Sunday, they had a meeting with the finance minister over the cash incentives. "We have requested the minister to restore the cash incentives for apparel, as about 70% of items went out of the benefits, which will make it difficult for factory owners to survive," he said.

 

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Air rates soar as Bangladesh garment exporters switch from ocean​

By Bangladesh Correspondent 08/02/2024

Airfreight rates in Bangladesh almost doubled over the past month, thanks to a significant rise in volumes and a capacity crunch.

Stakeholders said with the market from Dhaka now reliant on belly capacity Bangladesh-Europe rates are hitting $3.50 per kg, up from $2 in December, with exporters being charged $4.50/kg to the US, up from $3 in December.

Freight forwarders have attributed the rising demand to the end of season, pressure on transit points linked to the Chinese New Year holiday and the Red Sea crisis causing shipping delays of at least two weeks.

Data shows that in December, some 10,410 tonnes of cargo was airlifted through Dhaka Airport, which increased to 14,451 tonnes in January. Most of these shipments were destined for the US, Europe, Turkey and Egypt.

Dhaka-based garment maker Tusuka that opted to airlift some 386,000 garments to the US and EU in January in order to hit markets on time.

Nasir Ahmed Khan, director of the Bangladesh Freight Forwarders Association, told The Loadstar that due to the extended ocean transit times, buyers were preferring to get season-end goods out as quickly as possible.

“The rise in demand has also pushed freight rates from Dhaka to elsewhere,” he added.

Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association, said buyers now needed to wait an additional two to three weeks to get their products in hand, as ships needed to travel an extra 3,500 km to avoid the Red Sea.

“Thus, many exporters are forced to send cargo by air to meet deadlines,” he added.

 

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Export witnessed growth in January by 11.45 %​

BTJ Desk Report
05/02/2024

In January 2024, Bangladesh recorded $5.76 billion in exports, marking an 11.45% year-on-year growth, as reported by the Export Promotion Bureau (EPB). The surge follows a negative trend in previous months. The ready-made garment (RMG) sector, the leading export earner, contributed $4.97 billion, showing a 12.45% increase from the prior fiscal year.

For the first seven months of FY2023-24, total exports reached $33.26 billion, with a 2.52% YoY growth. RMG exports during this period totaled $28.36 billion, growing by 3.45%. Knitwear exports amounted to $16.17 billion, while woven items reached $12.18 billion, showing positive and negative growth rates compared to FY2022-23.

Conversely, major sectors such as home textiles, leather goods, and engineering products experienced negative growth during the July-January period of FY24. However, agricultural exports increased by 4.44%, while jute and jute goods, along with engineering products, saw declines in export earnings.

 

[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.​