Apparel exports to new markets on the rise

Garment exports to non-traditional markets rose 3.77 percent year-on-year to $2.56 billion in the July-January period of the current fiscal year thanks to preferential trade benefit and fiscal incentive. Apparel shipments fetched $2.47 billion in the same period last fiscal year, according to data from the Export Promotion Bureau.

In 2008, garment exports to the emerging markets stood at only $800 million. Since then it started climbing and rose five times to $3.90 billion in 2015-16. Bangladesh considers all countries as non-traditional markets except for its key destinations such as the European Union, the US, and Canada. India, China, Russia, Japan, South Africa, Turkey, Brazil, Chile, Mexico, South Korea, Malaysia, Australia, and New Zealand are among the major non-traditional markets for the garment sector.

Shipments to the emerging markets are rising on the back of zero-duty benefit granted to Bangladesh, opening of retail stores by global brands, market diversification by local exporters, and the government’s fiscal incentives. Bangladesh receives the zero-duty benefit to markets such as Japan, India, and China. As a result, shipments to the markets are rising at a faster rate.Riding on the relaxed rules of origin, garment export to Japan grew 1.94 percent to $445.99 million in July-January and is expected to cross $1-billion mark at the end of the year. “Japan is a very promising market for us. Japan is the second largest export destination after the EU for our company,” said Balaram Roy Chowdhury, general manager of Narayanganj-based Metro Knitting & Dyeing Mills Ltd.