Among this figure, the knitwear sector contributed $2.08 billion, posting a 1.32 per cent year-on-year growth. The EPB data shows that the apparel sector, which is the leading export segment for Bangladesh, failed to retain growth in March, but its earnings rose by 12.17 per cent to $35.25 billion in the first three quarters of FY23.ĭuring March, RMG industry earnings dropped by 1.04 per cent to $3.89 billion. “At end of this FY, the apparel sector’s contribution to total exports will be up to 86 per cent – 87 per cent.”
He added, “I think that in terms of value, Bangladesh – especially the RMG sector – will be able to retain a slow growth this FY, but in terms of volume, our exports will decrease. Non-RMG sectors are in a vulnerable situation as well, and they failed to retain growth.”
But it declined for two months in this FY. To make the “$50 billion by 2021” slogan a reality, the garment industry in Bangladesh will have to adopt another refrain since Rana Plaza: “Business as usual is not an option.“Despite the global economic crisis, our readymade garment (RMG) sector performed well. To stay on track toward this goal, Bangladesh can’t afford the unsustainability that political unrest, poor working conditions and inadequate infrastructure bring to the garment sector. Our assessment is that a valuation of $50bn by 2021 is achievable, but far from guaranteed. In order to accommodate an additional $25bn in RMG exports, the Bangladeshi government will need to make considerable infrastructure investments in the coming years. The more Bangladesh struggles to meet near-term growth projections because of instability, the less confidence we can have that the garment sector will meet its long term targets consistently.Īddressing weak infrastructure: In 2014, the World Economic Forum rated Bangladesh’s infrastructure 127th out of 144 countries evaluated. Partially as a result, fiscal year 2014-15 began on a low note, with garment exports achieving an annualized growth rate of just 3.2%. This year’s setback: Over the last three months, the World Bank estimated political unrest cost Bangladesh’s economy $2.2bn.To achieve 10.9% growth, Bangladesh will have to gain market share from competitors like China and India all while they seek to grow their own garment exports.
The Asia-Pacific apparel export market is expected to grow by 9% annually through 2017, while the global apparel industry is expected to grow by just 5.1% through 2018.
Over the past six years the garment industry has grown by an average of 13.9% annually – which makes $50bn by 2021 seem within reach. To make the $50bn target, Bangladesh will have to grow exports by 10.9% annually (assuming they can reach their projections this year). The NYU Stern Center for Business and Human Rights looked at recent export data and industry trends to assess whether the industry could double in the next six years. Today the Bangladeshi garment industry is worth $25bn. Bangladeshi government and industry leaders are determined, and international partners, including the US government, have pledged to support their ambition. In December, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Brand Forum Bangladesh held a summit to develop a “collaborative and coordinated approach” to achieving this goal. The garment manufacturing sector in Bangladesh has a new slogan: “$50 billion by 2021.” It’s an ambitious vision to reach $50bn in exports by 2021, the 50th anniversary of the Republic of Bangladesh.
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