Ignoring the disruptions caused by the pandemic, Bangladesh needs to explore new markets and products. As per a Textile Today report, Bangladesh needs to diversify exports to new Asian destinations such as Japan, India and China. These countries have shown a greater resilience to COVD-19 disruptions and maintained their growth levels even during the pandemic.

Zero-duty benefits and strong consumer base spur exports

Till date, Bangladesh has exported garments worth over $1billion to Japan and India. Its exports to China, have also been growing owing to a strong demand for Bangladeshi-made garment items from Chinese people. These three countries have emerged as the main destinations for Bangladesh-made garment items owing their rising income levels and privileges they offer to Bangladesh as a Least Developed Country (LDC).

As an LDC, Bangladesh enjoys zero-duty benefit on its garment exports to all these three countries both for woven and knitwear items. Hence, it has been increasing exports to these countries significantly every year. It needs to continue focusing on emerging markets in the pandemic to maintain profitability. All these three markets have a strong consumer base. Japan’s garment retail market is worth $45billion while India’s market is estimated at $50billion. China’s domestic clothing retail market is expected to be worth $300 billion and Australia’s worth $40billion. Hence, Bangladesh has a great opportunity to increase its share in these markets during COVID-19 times.

Garment exports fall in FY 2019-20

In fiscal 2019-20, Bangladesh registered a 34.86 per cent fall in garment exports over fiscal 2019-20. Garment exports reached $329.96 million against $506.54 million in previous fiscal. Exports to China was $391.01 million and to India worth $0.42 billion, reveals Export Promotion Bureau (EPB) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) stats.

Though Bangladesh’s exports to India sustained even during the pandemic, growth momentum was slow. In FY 2019-20, Bangladesh’s exports to India declined 15.70 per cent while exports to Japan declined 11.80 per cent to $0.96 billion from $1.09 billion in fiscal 2018-19.

Another market that witnessed a decline in exports from Bangladesh is Australia. In the fiscal 2019-20, Bangladesh’s garment exports to Australia dropped 16.48 per cent to S$0.60 billion from $0.71 billion in the fiscal 2018-19. Garment exports to its three traditional markets also declined in the fiscal 2019-20. Exports to EU declined 18.87 per cent year-on-year to $17.14billion; US exports fell 16.09 per cent to $5.14 billion; and to Canada it fell 25.70 per cent to $0.87 billion.

Production expansion, key to boost exports

Besides emerging markets, Bangladesh needs to focus on product diversification. It needs to expand to manmade fiber garments which are in great demand globally. It also needs to focus on knitwear and produce them in bulk quantities. Personal Protective Equipment (PPE), isolation bed sheets, masks and towels’ are some other items Bangladesh needs to focus on.

Faruque Hassan, President, BGMEA, attributes the current growth in Bangladesh’s garment exports to US to reopening of stores and the US’ government stimulus to its citizens. Exports to Asian markets like Japan and China are also expected to rebound soon. However, exports to India may not rebound due to a spike in COVID-19 cases in the country.