Export earnings in July increased by 8.55 per cent, totalling USD 3.88 billion, compared to the same month in the previous fiscal year, thanks to higher shipments of apparel products that registered a growth of 9.7 per cent in the first month (July) of FY 2019-20.

According to the Export Promotion Bureau (EPB), shipments of key readymade garments, comprising knitwear and woven items, amounted to USD 3.31 billion in July, up by 9.7 per cent from the same period in FY 2018-19.

Experts and exporters have mentioned factors responsible for this growth -- machinery upgrade, order improvement, manufacture of high-value products, and development of infrastructure, exporting items to non-traditional markets and gaining buyers' confidence."      

“We have also invested around USD 4 billion in workplace safety and occupational health hazards. Depreciation of our currency against all other foreign currencies has also helped businesspersons, especially those associated with export business, to earn more money,” Faruque Hassan,

former senior vice-president of the Bangladesh Garment Manufacturers and Exporters' Association (BGMEA) told The Independent.

Mentioning another reason, Faruque Hassan, also managing director of Giant Apparels Ltd, said a total of 90 Bangladeshi RMG factories have received Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council (USGBC), and such modernisation of the industry has boosted foreign buyers' confidence.

Woven products earned USD 1.63 billion in July, marking a 9.51 per cent rise from the same period in the previous fiscal year. The knitwear industry earned around USD 1.67 billion during the same time, up by 9.89 per cent from the same period last year.

According to the EPB, for the first month (July) of FY 2019-20, export of agricultural commodities, such as tea, vegetables, and tobacco, registered a negative growth of 25.43 per cent and fetched USD 77.19 million.

EPB officials said the export of leather and leather products has bounced back, with the sector registering a positive growth rate of 16.39 per cent.

EPB data shows that the growth rate of jute and jute goods exports increased drastically and reached 0.83 per cent. This sector earned USD 74.88 million in the FY 2019-20 (July).

Industry experts said exporting innovative jute products, like shopping bags, jute promotional bags, canvas tote bags and home decor products to countries like Germany and Austria has pushed up the growth rate of this sector.

EPB data shows that the growth of furniture exports increased drastically and reached 9.68 per cent. This sector earned USD 5.10 million in the FY 2019-20 (July).

Selim H Rahman, president of the Bangladesh Furniture Industries Owners’ Association (BFIOA) and also the owner of Hatil Complex, told The Independent that Bangladesh has started penetrating and exporting their products to new markets, such as India, which is eventually helping the increase in export earnings.

Hatil has been exporting furniture to different places of India for the past two years. “We are currently exporting our products to West Bengal

and Punjab in India. From May, we are going to open showrooms in Kashmir, Patna and Srinagar among other places,” he added.

Published On : 21-08-2019

Source : The Independent BD