Bangladesh apparel exporters eyeing China as a major destination

Bangladesh garment makers have set their eyes on the Chinese market as part of their efforts to diversify export markets.

The ready-made garment (RMG) manufacturers told the FE Saturday that the Asian giant, which has concentrated more on high-tech industrialization, is gradually withdrawing from the manufacture of apparels that involves high cost.

The move has forced China to look for sources that can offer apparels for its domestic consumption at cheap and competitive prices and Bangladesh remains a potential source, they added.

China proves to be a lucrative destination for Bangladesh's garment as apparel exports to that country saw an extraordinary 179 per cent growth in the fiscal year (FY) 2010-11 over that of FY 2009-10, they said.

The RMG manufacturers and exporters said it is likely to take only five years to earn $ 4.0 to $5.0 billion from apparel export to China as Bangladesh RMG is now enjoying duty-free access to the market of the former.

Bangladesh exported apparel products, both knit and woven items, worth $ 52.81 million during the July-June of FY 2010-11 compared to $ 18.95 million of FY 2009-10.

The country's export to China was only $ 9.49 million in FY 2008-09.

Knitwear exports accounted for $ 26.21 million, $ 8.51 million and $ 5.37 million in FY 2010-11, FY 2009-10 and FY 2008-09 respectively when woven made shipment worth $ 26.60 million, $ 10.44 million and $ 4.11 million respectively.

"China is a good emerging market for our products thanks to the quality and competitive price we offer," Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told the FE.

As China is shifting to high-tech industrialisation, it is now gradually leaving manufacturing apparel, he said adding that at the same time its needs outsourcing of apparel for its domestic market at cheaper prices.

"Bangladesh has large potentials to grab the big market as it has the cheap labour force," he said adding that export is expected to double in the current fiscal year.

During July-October of the current FY, the country's shipment of knit products reached $ 16.55 million while of woven $ 17.67 million to China.

"Growth in Bangladesh's apparel exports to China has much potential to become sustainable as cost of garment production is lower here," Siddiqur Rahman, second vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said.

"The Chinese buyers are coming to source more from Bangladesh in recent times while Bangladeshi exporters are actively trying to explore new markets," he said.

"The Chinese market is a restricted one but it, of late, is being opened up to Bangladesh products. It would take some time to exploit the potentials fully," former BKMEA president Fazlul Hoque said.

"Export to this market is increasing significantly as our products are enjoying duty-free entry there," he explained.

He expressed the hope that it would not be impossible to earn $ 5.0 billion from the Chinese market by the next couple of years.