Bangladesh lags behind competitors in RMG export to the US
Instead of expanding the volume of readymade garment exports to the US, Bangladesh is falling behind its competitors in this regard. Though the export of RMG products of all top five exporters to the US in the first eight months of the year decreased, the decrease for Bangladesh is larger.
This was revealed in the latest report of the Office of Textile and Apparel (OTEXA) of the US Department of Commerce.
It said the US traders imported apparel products worth USD 51.3 billion from various countries around the world in the first eight months this year. The amount is 4.11 per cent less than the corresponding time last year.
According to the OTEXA, Bangladeshi entrepreneurs exported RMG products worth $4.71 in the US markets in that time period which is 9.16 per cent less than the time last year. The amount of export was $7.29 billion between January and August last year.
Bangladesh is the third largest exporter with 9 per cent market share while the share of China is 21.18 per cent, the largest exporter of RMG products to the US. The country exported products worth $10.69 billion which is 2.98 per cent less than the time last year
Vietnam is the second largest exporter of RMG products to the US. The country is also gaining momentum fast in recuperating from the drop in exports. It exported products worth $9.56 billion from January to August this year. The amount was $9.66 in the previous year.
India and Indonesia are the fourth and fifth largest exporters of RMG products to the US. The exports of India to the country dropped by 1.47 per cent while the drop was 7.16 per cent from Indonesia.
Though the production and export of RMG products for three months was hampered due to the quota reform movement, student-people uprising, floods and labour unrest, the entrepreneurs remain hopeful of the US market due to the formation of the interim government with Nobel Laureate economist Dr. Muhammad Yunus at the helm.
President of the apex body of knitwear manufacturers, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Fazle Shamim Ehsan, told Prothom Alo, “The buying of essential goods not made in the US declined due to inflation. The foreign buyers are a bit worried over the ongoing unrest in the markets. But we will turn around if we can ensure some kind of good governance."
Responding to another question, Fazle Shamim Ehsan said, “We are hopeful about the US market.”
Given the positive global identity of the chief adviser of the interim government, Dr. Muhammad Yunus, he pointed out, “If we could take avail some tariff facilities from the US, our export volume will rise.”