leaders had asked Japan to relax rules-of-origin for knitwear items.

If Japan allows duty-free knitwear, it

will be a great opportunity for Bangladesh. In fact, Dhaka’s decision last year inspired exporters with a
cash incentive of 5.0 percent of each apparel shipped to Japan. Manufacturers need separate
production lines for the Japanese customers, as they never compromise on quality. On the other hand,
Japanese buyers can afford to pay for high quality.
Garment exports to Japan maintained roughly a 175 percent growth rate in between 2008-10,
according to the EPB. Even with the duty, Bangladesh registered a 231 percent rise in knitwear exports
to $60 million in the first 10 months of the past fiscal year; and earned $90 million from woven garment
exports — 121 percent growth over the same period a year earlier.
The Japanese textile and clothing investors are also coming to Bangladesh. Big entrepreneurs like
Maruhisa, Yokohama Tape TM Textiles etc. have decided to invest a significant amount of money here.
Three related companies — NI Teijin, CHORI and FVG — have opened liaison offices in Dhaka, and
two companies opened quality-control inspection centres (PQC and K2) to meet Japanese national
standards.
Meanwhile, a Bangladesh Garment Manufacturers and Exporters Association (BGMEA) delegation
visited some Latin American countries to assess, explore and prepare for current and future potential of
Bangladesh’s garment exports. During the visit, tremendous responses were received from importers
and buyers of those countries. Rough reckoning says Bangladesh can fetch US$400 million from
apparel exports to three Latin American countries in the next three years. These countries are Brazil,
Mexico and Chile.
The main obstacle to raising garment exports to Latin America is the absence of Bangladesh missions
in those countries. If government missions are opened in the countries, then it would be convenient for
Bangladesh exporters to catch market there,textile experts say.
Brazil’s readymade garment import amounted to $ 767.072 million last year, of which $303.631 million
knitwear and $463.441 million woven, while Bangladesh’s export to that country was $50.287 million ($
33.599 million knitwear and $16.688 million woven).
Mexico’s import totalled to $1,947.85 million last year, ($982.58 million knitwear and $965.27 million
woven), of which Bangladesh shared $114.01 million ($61.76 million knitwear and $52.25 million). Out
of Chile’s total RMG import to the tune of $ 1,074.83 million last year ($517.39 million knitwear and
$557.44 million woven) Bangladesh took a part of $7.47 million ($ 5.26 million knitwear and $2.21
million). The Mexican government has agreed to allow any Bangladesh businessman holding a US visa
to visit that country. Besides these countries, Bangladesh is eyeing opening new market for RMG
export to Russia, Turkey and Colombia.
RMG buying houses, both local and foreign, are now growing rapidly in Bangladesh, as the country has
become a lucrative place for RMG outsourcing on the appreciation of Chinese currency against the
greenback. As part of their business expansion, foreign buying houses are eying to set up more liaison
offices here. The buying houses including M&S, Adidas and Tesco have already published
advertisements in newspapers to recruit experienced merchandisers for such liaison offices to collect
RMG products at a competitive price from local garment units.
There is no denying that the country’s export witnessed a significant growth during the last two decades
due to growing competitive strength of the local exporters, mainly the RMG exporters, against their
rivals from countries like India, China, Vietnam and Pakistan. Among other factors, efforts of the private
entrepreneurs and the provision of cash incentive played a significant role in export growth. Cash
incentives offered by the government also helped to build up many backward linkage industries and
generated employment.
The garment industry has now emerged as a prime industrial sector in the country. More than five
million people are directly and indirectly employed in the sector. Also, the local apparel industry is
facing stiff competition in the world market. There is a need for developing forward linkage industries for
sustaining in the competitive markets. Overall situation in the garment sector is much better now. But
still, there should be more improvements in the social sector where workers’ living conditions are
conspicuously tagged.
Source: thefinancialexpress-bd.com
xports of Bangladesh’s readymade garment (RMG) products are gradually expanding to China, Japan and
Latin American countries in recent days. So far, the US and the EU were the main buyers of local apparel
items. RMG manufacturers tried hard to explore more export destinations with diversification of their products
and were able to find some prospective markets in Asia and Latin America.
China, the world’s largest apparel supplier, has become a major export destination for Bangladesh as Chinese
manufacturers are now reluctant to produce basic RMG items. The Chinese manufacturers have recently
shifted from basic readymade garment (RMG) items to high-end apparels. A significant number of garment
factories that made
7) Removal basic
of export RMG products
problems etc. earlier faced closure in China recently. As such, Bangladesh and
According to Export Promotion Bureau (EPB), Bangladesh exported knitwear products to China worth $3.071
million in fiscal 2007-08 against $0.76 million in the previous fiscal year, posting a staggering 400 percent
growth.
xports Inof fiscal 2007-08 the
Bangladesh’s country exported
readymade garmentwoven (RMG)garments
products to areChina worthexpanding
gradually $6.691 million against
to China, Japan$6.323
million
and Latin American countries in recent days. So far, the US and the EU were the main buyers of local the
in fiscal 2006-07. The total export to China from Bangladesh amounted to $106.946 million against
import of around
apparel items.$3.0 RMGbillion in fiscal 2007-08.
manufacturers tried hard to explore more export destinations with diversification of
In 2007, Bangladesh exported cotton
their products and were able to find some prospective T-shirts, singlets andmarkets other vestsin Asia worth
and$0.79 Latin million
America. against $0.57 million
in 2006. China imported such kind of apparel items worth $976.890 million in 2007 and $926.330 million in
China, the world’s largest apparel supplier, has become a major export destination for Bangladesh as
2006 from the rest of the world. It clearly shows that China itself imports apparel items of a significant amount.
Chinese manufacturers are now reluctant to produce basic RMG items. The Chinese manufacturers
Aggressive marketing drive by Bangladesh can grab a chunk of such import of China, experts say.
have recently
Currently Bangladesh shifted from basic
enjoys readymadeon
duty concession garment
exports(RMG) of 757itemsproducts to high-end
to Chinese apparels.
marketAunder significant
Asia Pacific
Trade Agreement. Of the 757 products, 22 knitwear items and almost the same amount of woven itemsAs
number of garment factories that made basic RMG products earlier faced closure in China recently. are
such, in
included Bangladesh
the concession and other competing
category. countries
As a result, are now
the export ofexporting
knitwear and RMGwoven products to China.
products is getting a steady
riseAccording
to China. to Export Promotion Bureau (EPB), Bangladesh exported knitwear products to China worth
Bangladeshi
$3.071 million exporters
in fiscal are2007-08
also lookingagainst to the
$0.76Japanese
million inmarket as the hottest
the previous fiscal year, newposting
export destination.
a staggeringApparel
exports to Japangrowth.
400 percent startedIntofiscalpick 2007-08
up after the the Japanese
country exportedgovernment woven announced
garments the China+1
to China worth strategy
$6.691in 2008.
Japan is eager
million against to reduce
$6.323 its dependence
million on China,
in fiscal 2006-07. Thethetotal
largest supplier
export to China of apparel items globally.
from Bangladesh The China+1
amounted to
policy promote
$106.946 shifting
million production
against the import fromofChina around to other nations,
$3.0 billion such as
in fiscal Bangladesh. Being a member of the
2007-08.
least developed countries’ group, Bangladesh has
In 2007, Bangladesh exported cotton T-shirts, singlets and other vests worth duty-free access to Japan for$0.79
woven product
million (under
against the
$0.57
generalised
million in system
2006. China of preferences,
imported such or GSP).
kind of Knitwear
apparelfacesitemsaworth duty of 17 percent,
$976.890 millionas in Japan
2007clings
and to its aging
knitwear industry.
$926.330 million in 2006 from the rest of the world. It clearly shows that China itself imports apparel
Theitems
Japanese government
of a significant has recently
amount. Aggressive invited the Bangladesh
marketing Knitwear Manufacturers
drive by Bangladesh can grab a chunk and Exporters
of such
Association (BKMEA)
import of China, experts say. leaders to discuss about duty-free access for knitwear. Earlier, the association leaders
had asked Japan to relax rules-of-origin for knitwear items. If Japan allows duty-free knitwear, it will be a great
Currently Bangladesh enjoys duty concession on exports of 757 products to Chinese market under Asia
opportunity for Bangladesh. In fact, Dhaka’s decision last year inspired exporters with a cash incentive of 5.0
Pacific Trade Agreement. Of the 757 products, 22 knitwear items and almost the same amount of
percent of each apparel shipped to Japan. Manufacturers need separate production lines for the Japanese
woven items
customers, as theyare never
included in the concession
compromise on quality. category.
On the As other a result,
hand, the export of
Japanese knitwear
buyers can and
afford woven
to pay for
products
high quality. is getting a steady rise to China.
Bangladeshi
Garment exportsexporters
to Japanare also looking
maintained roughlyto the Japanese
a 175 percentmarket growthasrate theinhottest
between new2008-10,
export destination.
according to the
Apparel exports to Japan started to pick up after the Japanese
EPB. Even with the duty, Bangladesh registered a 231 percent rise in knitwear exports to $60 million government announced the China+1 in the first
10 strategy
months of in the
2008.past Japan
fiscalisyear;eager and to earned
reduce its $90dependence
million fromon China,
woven the largest
garment exports supplier
— 121 of percent
apparel growth
over the same
items globally. period
The aChina+1
year earlier. policy promote shifting production from China to other nations, such as
TheBangladesh.
Japanese textile Beingand clothingofinvestors
a member the leastare also coming
developed to Bangladesh.
countries’ group, Bangladesh Big entrepreneurshas duty-free like Maruhisa,
Yokohama
access to TapeJapanTMfor Textiles
wovenetc. have (under
product decidedthe to generalised
invest a significantsystemamount of moneyorhere.
of preferences, GSP). Three
Knitwearrelated
companies — NI Teijin, CHORI and FVG — have
faces a duty of 17 percent, as Japan clings to its aging knitwear industry. opened liaison offices in Dhaka, and two companies opened
quality-control
The Japanese inspection
government centres has(PQC recently andinvited
K2) to themeet Japanese Knitwear
Bangladesh national standards.
Manufacturers and Exporters
Meanwhile, a Bangladesh Garment Manufacturers
Association (BKMEA) leaders to discuss about duty-free access for knitwear. and Exporters Association (BGMEA)
Earlier, the delegation
association visited
some Latinhad
leaders American
asked countries
Japan to relax to assess, explore and
rules-of-origin prepare for
for knitwear current
items. and future
If Japan allowspotential
duty-freeofknitwear,
Bangladesh’s
it
garment exports. During the visit, tremendous responses were received
will be a great opportunity for Bangladesh. In fact, Dhaka’s decision last year inspired exporters with a from importers and buyers of those
countries. Rough reckoning
cash incentive of 5.0 percent saysofBangladesh
each apparel canshipped
fetch US$400
to Japan. million from apparel
Manufacturers need exports
separateto three Latin
American countries in the next three years. These countries are Brazil, Mexico and Chile.
production lines for the Japanese customers, as they never compromise on quality. On the other hand,
The main obstacle to raising garment exports to Latin America is the absence of Bangladesh missions in those
Japanese buyers can afford to pay for high quality.
countries. If government missions are opened in the countries, then it would be convenient for Bangladesh
Garment
exporters to exports
catch market to Japan maintained
there,textile roughly
experts say.a 175 percent growth rate in between 2008-10, according
to thereadymade
Brazil’s EPB. Evengarment with the importduty, Bangladesh
amounted toregistered $ 767.072 a million
231 percent rise of
last year, in knitwear
which $303.631 exportsmillion
to $60 knitwear
andmillion
$463.441 in themillion
first 10 months
woven, of the
while past fiscal year;
Bangladesh’s export andto earned
that country$90 million
was $50.287 from woven million garment
($ 33.599 exports
million
— 121and
knitwear percent
$16.688growthmillionoverwoven).
the same period a year earlier.
Mexico’s import totalled
The Japanese textile to and $1,947.85 million last
clothing investors areyear,
also($982.58
coming to million knitwearBig
Bangladesh. andentrepreneurs
$965.27 million likewoven), of
which Bangladesh
Maruhisa, YokohamasharedTape $114.01 million ($61.76
TM Textiles etc. havemillion
decided knitwear
to invest anda $52.25
significant million).
amount Outofofmoney
Chile’shere.total
RMG import
Three to the
related tune of $ 1,074.83
companies — NI Teijin, million
CHORI last and
yearFVG($517.39
— have million
opened knitwear
liaison and $557.44
offices millionand
in Dhaka, woven)
Bangladesh took a part of $7.47 million ($ 5.26 million knitwear
two companies opened quality-control inspection centres (PQC and K2) to meet Japanese national and $2.21 million). The Mexican government
hasstandards.
agreed to allow any Bangladesh businessman holding a US visa to visit that country. Besides these
countries,
Meanwhile, Bangladesh
a Bangladeshis eyeing opening
Garment new market for
Manufacturers andRMG exportAssociation
Exporters to Russia, Turkey (BGMEA) anddelegation
Colombia.
RMG buying
visited some houses, both local countries
Latin American and foreign, are nowexplore
to assess, growingand rapidly
preparein Bangladesh,
for current and as the country
future has of
potential
become a lucrative place for RMG outsourcing on the appreciation
Bangladesh’s garment exports. During the visit, tremendous responses were received from importers of Chinese currency against the greenback.
As and
part buyers
of their of business expansion,
those countries. Roughforeign buying houses
reckoning are eying to
says Bangladesh can setfetch
up moreUS$400 liaison offices
million fromhere. The
buying houses including M&S, Adidas and Tesco have already published advertisements in newspapers to
apparel exports to three Latin American countries in the next three years. These countries are Brazil,
recruit experienced merchandisers for such liaison offices to collect RMG products at a competitive price from
Mexico and Chile.
local garment units.
Theismain obstaclethat to raising garment exports to LatinaAmerica is the absence ofthe
Bangladesh missionsdue to
There no denying the country’s export witnessed significant growth during last two decades
in those
growing countries.strength
competitive If government of the localmissions are opened
exporters, mainlyinthe theRMGcountries,
exporters,then against
it wouldtheir be convenient
rivals fromfor
theBrazil’s
provision readymade garmentplayed
of cash incentive import aamounted
significanttorole$ 767.072 million
in export lastCash
growth. year, incentives
of which $303.631
offered by million
the
Dhaka,
knitwear Feb
and 05 (bdnews24.com)
$463.441 million woven, — The
while visiting
Bangladesh’s chief executive
export
government also helped to build up many backward linkage industries and generated employment.to that of Walmart,
country was the
$50.287 world's
million ($
Thelargest
garment
33.599 retail chain,
industry
million hashas
knitwear andsuggested
now assetting
emergedmillion
$16.688 a prime up
woven). of a comprehensive
industrial industrial
sector in the country. More thanzonefive formillion
the
apparel
people
Mexico’s sector
are directly
import and in Bangladesh
indirectly
totalled for
employed
to $1,947.85 convenience
in the
million lastsector. of buyers and
Also, the million
year, ($982.58 to attract
local apparel
knitwear greater
industry foreign
is facing
and $965.27 stiff
million
investment.
competition
woven), of inwhich
the world market. There
Bangladesh sharedis$114.01
a need million
for developing
($61.76 forward linkage industries
million knitwear and $52.25 formillion).
sustaining Out in
of the
competitive
Chile’s totalmarkets. Overalltosituation
RMG import the tuneinofthe garment million
$ 1,074.83 sector last
is much
year better
($517.39 now. But still,
million thereand
knitwear should be more
$557.44
C. Douglas
improvements McMillon,
in the social President
sector and
where CEO
workers’ of Walmart
living International,
conditions are made
conspicuously
million woven) Bangladesh took a part of $7.47 million ($ 5.26 million knitwear and $2.21 million). The the
tagged. suggestion
during
Source:
Mexican a government
meeting with has leaders
thefinancialexpress-bd.com agreed toofallow
readymade garment
any Bangladesh industry atholding
businessman Radisson a USHotel
visa toinvisit
Dhakathat
on Friday morning, BGMEA president Abdus Salam Murshedy told
country. Besides these countries, Bangladesh is eyeing opening new market for RMG export to Russia, bdnews24.com following
the
Turkey one-hour talks.
and Colombia.
RMG buying houses, both local and foreign, are now growing rapidly in Bangladesh, as the country has
"He
become told aus that they
lucrative placeconsider
for RMG Bangladesh
outsourcing on anthe important
appreciation source of apparels.
of Chinese currencyThey againstwant
the to
buy more products
greenback. As part of from here. For
their business that he suggested
expansion, foreign buying setting
houses upareof eying
a combined
to set upindustrial
more liaison
zone with adequate gas and power supply for the sector,"
offices here. The buying houses including M&S, Adidas and Tesco have already published Murshedy said.
advertisements in newspapers to recruit experienced merchandisers for such liaison offices to collect
"Such an industrial
RMG products zone willprice
at a competitive helpfrom
raiselocal
foreign
garment investment
units. apart from ensuring convenience
of the is
There buyers,"
no denying he that
said, thequoting
country’sthe Walmart
export witnessedchiefa executive as saying.
significant growth during the last two decades
due to growing competitive strength of the local exporters, mainly the RMG exporters, against their
Walmart buys over a billion dollars worth of readymade garments from Bangladesh
rivals from countries like India, China, Vietnam and Pakistan. Among other factors, efforts of the private
annually.
entrepreneurs and the provision of cash incentive played a significant role in export growth. Cash
incentives offered by the government also helped to build up many backward linkage industries and
Asked whether they had any discussion on a recent Buyers Forum request to prime
generated employment.
minister Sheikh Hasina for raising wages of RMG workers, the BGMEA chief said: "Douglas
The garment industry has now emerged as a prime industrial sector in the country. More than five
didn't raise the issue. But we've told him that we're reviewing the wages that were raised
million people are directly and indirectly employed in the sector. Also, the local apparel industry is
in 2006 and 2009."
facing stiff competition in the world market. There is a need for developing forward linkage industries for
sustaining in the competitive markets. Overalltosituation
reviewinwages.
the garment sector is much betterassistance
now. But
He said McMillon appreciated the move Walmart also pledged
still, there should be more improvements in the social
to BGMEA for offering education to workers' children, Murshedy said. sector where workers’ living conditions are
conspicuously tagged.
Source:
The thefinancialexpress-bd.com
Buyers Forum, a group of 11 leading apparel importers, wrote to the prime minister
recently requesting a raise in minimum wages of the RGM workers.

McMillon, who arrived in Dhaka on Thursday evening on a short, unannounced visit, was
scheduled to meet the prime minister on Friday before he left the country, said Murshedy.

BUYERS CODE

The BGMEA chief said his association also requested the Walmart chief to lead efforts to
formulate a unified code of conduct for buyers for the RMG manufacturers, as factories face
great troubles to comply with buyer-specific conditions.

McMillon agreed with their view on a unified code.

The industry leaders also requested Walmart chief to consider the issuance of scanning
certificates from Bangladesh. He assured the BGMEA leaders of considering the matter.

The BGMEA chief has said 30 percent of Bangladesh's garments exports to the US went to
Walmart. The US is the single largest importer of Bangladeshi garments.

Famous for its low prices helped by an innovative inventory management system, Walmart
says it "serves customers and members more than 200 million times per week" at more
than 8,424 retail units under 53 different banners in 15 countries.

With last year's sales at $401 billion, Walmart employs more than 2.1 million associates
worldwide, according to the company.

The US-based company operates in Mexico as Walmex, owns the giant Asda in the UK, and
runs Seiyu in Japan. In countries such as Argentina, Brazil, Canada and Puerto Rico, the
 retail Bangladesh
haka, chain called (BBN)-
Best Price
Theincountry's
India. apparel makers got
spot orders worth US$ 65 million during the 21st Bangladesh
Apparel and Textile Exposition (BATEXPO) that concluded on
Saturday in Dhaka.

BGMEA president Abdus Salam Murshedy disclosed this at a

press conference held at its office in the city on Sunday.

"Our spot orders for clothing export grew nearly 55 percent

during the three-day long fair. It was $42 million in the last
year's fair," the BGMEA chief told reporters.

He also said apparel makers received export orders for

clothing worth $63.50 million and worth $1.5 million for stock
lots.

Mr Murshedy said local garment manufacturers are also

negotiating for more $8.0 million export orders.

As many as 14,990 buyers and spectators visited the

BATEXPO-2010 fair venue at the Bangabandhu International
conference Centre in the capital. The number of visitors was
11,900 during the last year's fair.

Buyers and representatives from the USA, the United

Kingdom, Canada, Mexico, Germany, Switzerland, Spain,
Russia, Poland, the Netherlands, Turkey, Sweden, Italy,
France, Hong Kong, India, Greece, Thailand, Singapore,
Portugal, South Korea, Uruguay and United Arab Emirates
visited the fair, the BGMEA officials confirmed.

Bangladesh's garment makers exported apparel worth

$12.496 billion during 2009-10 fiscal year.
BBN/AD/SSR-29Nov10-1:04 am (BST)