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Faruque Hassan, president of the BGMEA, emphasized Bangladesh's performance in the global garment export market over the previous 15 years (2009–2023). Bangladesh's garment industry has made significant development in the worldwide market, as underlined by the letter titled 'Bangladesh RMG Expands worldwide Footprint', which was sent to all members, colleagues, friends, and well-wishers.
He stated in the letter, "We have always thought of market diversity as a crucial tactic to maintain growth. Our clothing items are mostly sent to the US and the EU, but over the last fifteen years, there has been a notable diversification of our exports to other parts of the world, which is extremely encouraging. Today, "Made in Bangladesh" clothing is exported to about 167 nations."
He declared, "As exports to other markets pick up steam, overdependence on the US and the EU is steadily waning. Our entire garment export revenue in 2009 was US$11.89 billion, of which 58.90% came from the EU, 26.70% from the US, and just 7.55% from non-traditional markets.
In 2023, the total value of apparel exports was US$ 47.38 billion. Of this, 60.63% came from the EU and UK, 17.46% from the US, and 18.72% from non-traditional markets. As a result, overall exports to blatantly non-traditional markets will for the first time exceed exports to the US, our single largest market, in 2023, he continued.
We have already begun to enjoy the benefits of the proactive actions and fervent efforts of the garment industry's entrepreneurs, he added, expressing gratitude for their successful exports to the worldwide market. Additionally, we appreciate that since FY 2009–10, exports to non-traditional markets have been consistently supported by policy.
Our exports to Japan have grown from $111 million in 2009 to $1.67 billion in 2023, making it one of the largest non-traditional markets, he said. 2023 saw a 26.53% increase in exports to Japan over 2022.
Australia saw a 38.15% year-over-year increase in apparel exports to $1.28 billion, New Zealand saw a 22.78% increase to $141.37 million, Brazil saw a 48% increase to $176 million, China saw an increase of 44.81 to $346.36 million, Turkey saw an increase of 44.29% to $356.66 million, Saudi Arabia saw an increase of 30.64% to $227.78 million, the UAE saw an increase of 12.72% to $350.23 million, Russia saw an increase of 13.13% to $478.79 million, Korea saw an increase of 15.83% to $587.15 million, and India saw an increase of 2.2% to $918 million. Exports are also rising to non-traditional countries including Mexico, South Africa, and Malaysia.
He declared, "BGMEA's unique initiative, Apparel Diplomacy, is a special market expansion strategy designed especially for the current board." He expressed his gratitude to GIZ for their assistance in identifying possible markets through a study, as well as for their crucial advise in launching industry-related projects and holding discussions with the government about market access.
According to him, since 2009, BGMEA has carried out a number of successful trade missions to important markets in South Africa, Russia, Australia, and Asia (China, Japan, Korea, and India), as well as Latin America (Brazil, Argentina, Mexico, Chile, Peru, and Colombia).
He made the point that different markets have different non-tariff obstacles to overcome, such as different requirements for quality and compliance; seasonal variations in markets in the Southern Hemisphere provide our sweater industry an advantage to use lean periods; and language is another significant barrier to entry in some markets. We have problems with currency and banking in certain markets. According to him, the BGMEA is collaborating with the government to take action in order to address these issues.
He noted that despite the difficulties facing the world economy, imports from our two largest markets—the United States and the European Union—are not steady. Therefore, a major issue facing our sector is being unduly concentrated in a small number of markets. The lack of a precise global supply chain forecast has made the situation more challenging. Therefore, we need to develop alternate strategies. We must take advantage of opportunities in emerging areas if we are to achieve our growth vision.
He concluded by expressing optimism that, even if the success of apparel exports overall has been impressive, "our victory is assured if we can further integrate our business models and invest more in diversification." Bangladesh is now prepared to, thanks to its standing, expertise, and sustainable vision
move forward, he remarked.
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