Wednesday, 1 February, 2023

RMG sector posts record growth in EU market

RMG sector posts record growth in EU market

As a result of the government's timely action and the working environment in Bangladeshi factories, the country's garment sector has achieved a 43.21 percent growth on the European market, the highest growth the sector has ever achieved in Europe.

Bangladesh exported $17.56 billion worth of garments to Europe from January to September, posting a robust growth of 43.21 percent year-on-year, according to Eurostat, the statistical office of the European Union.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the increasing demand for products and sustainable practices of local factories attracted European buyers.

"Bangladesh performed well in Europe, which is good news for us. Buyers are choosing to buy from us because of the sustainable practices and the work environment in our factories," Mohiuddin Rubel, a director of BGMEA, told the Daily Sun.

The BGMEA leader stated that Bangladesh will take on the global economic challenges by producing quality garment products to meet the demand in export markets.

With a growth rate of 41.08 percent, Cambodia ranked second, followed by Indonesia with a growth rate of 33.46 percent, and Pakistan with a growth rate of 30.76 percent.

The EU imported 25.85 percent more products from India during this period, while China exported 25.19 percent more.

During the first nine months of 2022, European countries imported $22.59 billion worth of clothing from China, with a growth rate of 25.19 percent year-on-year.

Being the third largest apparel import source, Turkey's apparel exports to the EU reached $9.19 billion during the period with a 14.86 percent year-on-year growth.

During the period, Bangladesh remained the second largest supplier of RMG goods to Europe with a 22.56 percent share. China held the top spot with a 29.04 percent share. China was ahead in terms of value by $5.03 billion.

In response to questions about the growth in EU markets, Policy Research Institute (PRI) executive director Ahsan H Mansur argued that RMG performance cannot be measured through a specific market or for a specific period.

                "We should look into the recent performance, especially the third quarter. EPB (Export Promotion Bureau) has data. The industry should wait one more quarter to find out the real situation in the garment industry," Dr Mansur said. 

Bangladesh exported $42.61 billion in RMG products in fiscal year 2021-22, accounting for 81.82 percent of its total export earnings of $52.08 billion.

The apparel industry generated $31.45 billion in revenue during the challenging period of FY 2020-21, contributing 81.16 percent of total exports of $38.75 billion.