Bangladesh - RMG Exports To US Witness Negative Growth Last Fiscal
Dated- 06 Aug , 2012 - Bangladesh
Ready-made garment (RGM) export earnings from the USA, the largest export destination for Bangladeshi garments, witnessed a negative growth in the last financial year (2011-12), although the sector achieved 0.85 per cent growth during the previous fiscal (2010-11), said an official data.
According to Export Promotion Bureau (EPB), Bangladesh's apparel exports to the US market in the just ended fiscal year was $4.553 billion, which was $ 4.63 billion during the same period of the fiscal 2010-11, declining by $10 billion.
"Currently the economic condition is not better in the USA. So, the demand for RMG items has been falling in that country," Executive Director of Centre for Policy Dialogue (CPD) Prof. Mustafizur Rahman told the FE on Saturday.
He advised the government to make the diplomatic missions of Bangladesh abroad more active to boost the country's exports.
Prof. Rahman hoped that the RMG export order would be increased very soon, which would contribute to tackling the rescission in Bangladesh.
Exports to US are not expanding though it is one of the largest markets for the RMG. It is an alarming sign for Bangladesh, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shafiul Islam Mohiuddin told the FE.
He said global economic recession and high rate of unemployment are also responsible for slowing down of exports.
The BGMEA chief expressed his concern that the export could decline further in near future, if the recession could not be addressed properly.
"Now it is very hard to increase RMG export to the US market, but we are trying our best to consolidate our position," Managing Director of Giant Group Faruque Hassan told the FE.
He said 25 per cent of the total RMG exports go to the US market. In the last few months Vietnam has grabbed the US market to a great extent, but Bangladesh failed to do so.