The shipment of readymade garment (RMG) from Bangladesh have been continuing to beat their strategic targets for the past four months due mainly to a shift of work orders from China as well as high-cost raw material.
The apparel exports earned $3.94 billion with a 12.31% year-on-year growth in February against the target of $3.88 billion, according to data published by the Export Promotion Bureau (EPB).
Both knitwear and woven garments witnessed export growth of 16.94% and 7.45% to $2.09 billion and $12.84 billion, respectively, beating their targets.
The overall garment industry saw exports higher than their targets in six of eight months in the ongoing fiscal year (FY23). Apart from the four months in a row, starting in November, the exports saw such an achievement in July and August.
Businesspeople said RMG exports grew mainly because of the shipment of high-value apparel products, orders for which were shifted from China.
Speaking to the media, Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that it is good that the growth of the RMG export is positive.
However, the growth in apparel shipment was based on value as raw materials prices were high, it was not as quantity growth, he added.
He also said that a number of big factories are doing really well but the majority of exporters are running their units at 60%-70% capacity.
BGMEA President Faruque Hassan told the media that it is a very good sign that the export value is increasing but quantity remains sluggish. However, Bangladesh has increased its production capacity over the past couple of years.
He also said that they are currently trying to bring orders from new markets as the major buyers from the USA and European markets have been going slow over the last few months due to the global economic slowdown. They are investing to diversify products and focus on their focus on high demand for man-made fibre items.