Bangladesh’s RMG export potential to EU $60b by 2030

[Black_cats]

Bangladesh’s RMG export potential to EU $60b by 2030

RMG​

TBS Report
11 September, 2023, 10:50 pm
Last modified: 11 September, 2023, 10:55 pm

In FY23, Bangladesh's exports to the world market were more than $55 billion, where RMG's share was $47 billion and non-RMG’s share was $8.5 billion.​

Photo: Rajib Dhar

Photo: Rajib Dhar

Bangladesh has the potential to increase its export earnings to $22.5 billion from major non-RMG products to the European Union by enhancing its supply-side capacity, suggests a study.

Additionally, earnings from ready-made garment exports could rise up to $60 billion to the EU market through the diversification of garment items, according to the study of the Research and Policy Integration for Development Bangladesh (RAPID).

While presenting the findings at a programme titled "Exploring Export Diversification Opportunities in the European Union" at a city hotel on Monday, RAPID Chairman MA Razzaque said, "Bangladesh has a golden opportunity in the EU market if the country successfully diversifies its export baskets."

In FY23, Bangladesh's exports to the world market were more than $55 billion, where RMG's share was $47 billion and non-RMG's share was $8.5 billion.

These estimations are based on the current supply-side capacity, demand conditions, and market access.

Currently, Bangladesh exports more than 400 types of products to around 200 countries.

The estimations indicate that the top 45 major products have the potential to range from $8.5 billion to $22.5 billion in the EU market.

Razzaque emphasised diversification within the RMG, adding, "Bangladesh's share in cotton fibre garments in the EU is 34.7%, while China's share is only 14.9%."

On the other hand, China's share of non-cotton garment items in the EU is 41.2%, while Bangladesh's is only 12.2%.

So, here, Bangladesh has the potential to explore more markets in the EU if the country can diversify the products within the garment items, he added.

In the report, Razzaque said Bangladesh's apparel exports to the EU are projected to rise to $46 billion to $60 billion by 2030.

Sourcing diversification away from China may help Bangladesh's RMG export growth, he added.

Moving towards manmade fibre can be greatly facilitated by extended EU preferences beyond LDC graduation, he said.

Non-apparel products with high export potential include footwear, leather goods, home textiles, and fish and shrimp.

The EU market, with its vast consumer base and historical trade ties with Bangladesh, can act as a catalyst, he added.

Senior Commerce Secretary Tapan Kanti Ghosh, EU Ambassador to Bangladesh Charles Whitely, and RAPID Executive Director Abu Eusuf also spoke at the programme.

Bangladesh’s RMG export potential to EU $60b by 2030

In FY23, Bangladesh's exports to the world market were more than $55 billion, where RMG's share was $47 billion and non-RMG’s share was $8.5 billion.

www.tbsnews.net

 

[@blue Ocean]

All our politicians love to talk futuristic stories about garment.?They also think a country needs only a few meters of garment products to develop itself.

No minister ever says of industrial development. Can someone tell which country ever developed without achieving growth in industrial products?

Even a small Switzerland produces world renowned watches. In 1860s Japan was 200 years behind Europe. But since then after hard works it’s industrial products excel European ones.

Here, our illiterate Ministers talk only about low value garment.

 

[saif]

Building heavy industry requires massive investments, technological infrastructures, engineers and time. On the other hand, apparel industry can be built with small investment and relatively short period of time. Make quick money from Garments then invest it in creating engineers. One day you will have strong industrial base.

 

[@blue Ocean]

Building heavy industry requires massive investments, technological infrastructures, engineers and time. On the other hand, apparel industry can be built with small investment and relatively short period of time. Make quick money from Garments then invest it in creating engineers. One day you will have strong industrial base.

BD has been earning quick money for the last 40 years by producing low value garment.

How many more centuries does BD needs to produce Sewing Machines or needles? Another million years? China did in less than a decade.

 

[GreatHanWarrior]

BD has been earning quick money for the last 40 years by producing low value garment.

How many more centuries does BD needs to produce Sewing Machines or needles? Another million years? China did in less than a decade.

Brother. I just think you're too harsh on Bangladesh...

Even little Australia cannot make sewing machines. Why do you have to request that Bangladesh can make sewing machines?

@jhungary Even little Australia can make sewing machines?

 

[@blue Ocean]

Brother. I just think you're too harsh on Bangladesh...

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View attachment 952889View attachment 952890

Even little Australia cannot make sewing machines. Why do you have to request that Bangladesh can make sewing machines?

@jhungary Even little Australia can make sewing machines?

Australia is not a technology hub. It’s exports are raw materials and agriculture products including meat to China, Japan and ME. They do not have to go after all technology products like Japan or Europe.

BD is different. It is a poor agriculture country with a huge population. Young people leave the country to get jobs and support families.

This is a vicious cycle that has been reversed in Japan, Korea and China through rapid industrialization. It was Japanese sewing machines like Juki that China started its garment industry with.

But, then China moved to the industrial production of sewing machines and needles. How about BD? It is stuck in the past. It is unable to move forward and set up industries where small things are produced.

This is what I really do not understand. I hope foreign leading companies would invest in BD and produce technology things that it imports fondly and shout BD is a fast developing country.

 

[GreatHanWarrior]

Australia is not a technology hub. It’s exports are raw materials and agriculture products including meat to China, Japan and ME. They do not have to go after all technology products like Japan or Europe.

BD is different. It is a poor agriculture country with a huge population. Young people leave the country to get jobs and support families.

This is a vicious cycle that has been reversed in Japan, Korea and China through rapid industrialization. It was Japanese sewing machines like Jujo that China started its garment industry.

But, then China moved to the industrial production of sewing machines and needles. How about BD? It is stuck in the past. It is unable to move forward and set up industries where small things are produced.

This is what I really do not understand. I hope foreign leading companies would invest in BD and produce technology things that it imports fondly and shout BD is a fast developing country.

If Bangladesh does not want to build a complete industrial chain. It doesn't need to make sewing machines.

If Bangladesh wants to build a complete industrial chain. This includes too many aspects. There is no point in just making sewing machines.

Just like I said. You are too harsh on Bangladesh.

btw. Around 1938. Japan obtained sewing machine manufacturing technology from the Chinese Butterfly Company.

Complete industrial chain. Just Japan?

 

[@blue Ocean]

If Bangladesh does not want to build a complete industrial chain. It doesn't need to make sewing machines.

If Bangladesh wants to build a complete industrial chain. This includes too many aspects. There is no point in just making sewing machines.

Just like I said. You are too harsh on Bangladesh.

btw. Around 1938. Japan obtained sewing machine manufacturing technology from the Chinese Butterfly Company.

Complete industrial chain. Just Japan?

Every industry start from somewhere. A country’’s industrial plants bought from abroad initiated the process.

The next phase is done by the locals, but not the total thing. It imports those they cannot produce themselves. Not that easy but the process must start somewhere.

Our mechanical engineers must try to produce mechanical goods one after another. The remainder they procure from abroad. In BD every engineer goes to a govt job.

They get salary but are not trained to design and produce machines. Private design offices are needed for all disciplines. BD has none.

Please do not argue with me because I am unable to write here everything that I know. Not easy but can be done by taking a few years.

Japanese God did not send technologies through the roofs of their houses. China same. BD must do its own and seek help from others when facing difficulties.

Technology is not a gift of roses from an industrially developed country. It must be studied and acquired by a country’s own people through perseverance.

 

[GreatHanWarrior]

Every industry start from somewhere. A country’’s industrial plants bought from abroad initiated the process.

The next phase is done by the locals, but not the total thing. It imports those they cannot produce themselves. Not that easy but the process must start somewhere.

Our mechanical engineers must try to produce mechanical goods one after another. The remainder they procure from abroad. In BD every engineer goes to a govt job.

They get salary but are not trained to design and produce machines. Private design offices are needed for all disciplines. BD has none.

Please do not argue with me because I am unable to write here everything that I know. Not easy but can be done by taking a few years.

Japanese God did not send technologies through the roofs of their houses. China same. BD must do its own and seek help from others when facing difficulties.

Technology is not a gift of roses from an industrially developed country. It must be studied and acquired by a country’s own people through perseverance.

I can see your dissatisfaction with Bangladesh's industrial policy.

I think many Bangladeshis share your thoughts.

Building an industrial chain requires continuous accumulation and investment. but this process is very long. It may take decades or even 100 years.

OK，Good luck to Bangladesh.

 

[IndianLite]

I can see your dissatisfaction with Bangladesh's industrial policy.

I think many Bangladeshis share your thoughts.

Building an industrial chain requires continuous accumulation and investment. but this process is very long. It may take decades or even 100 years.

OK，Good luck to Bangladesh.

I think Bangladesh should be making basic home appliances from scratch.

Toys with microchips and motors is another.

And selling them in Africa, South America and Eastern Europe and USA

And should be at least assembling sewing machines!!!

 

[GreatHanWarrior]

I think Bangladesh should be making basic home appliances from scratch.

Toys with microchips and motors is another.

And selling them in Africa, South America and Eastern Europe and USA

And should be at least assembling sewing machines!!!

don't be too harsh. have some patience. bro

 

[saif]

don't be too harsh. have some patience. bro

Every year Bangladesh textile mill owners import $4 billion worth of textile machineries from abroad. I think this is a big enough market for foreign investors to open up their own textile machinery factories in Bangladesh. Would Chinese investors open up factories in Bangladesh?

 

[GreatHanWarrior]

Every year Bangladesh textile mill owners import $4 billion worth of textile machineries from abroad. I think this is a big enough market for foreign investors to open up their own textile machinery factories in Bangladesh. Would Chinese investors open up factories in Bangladesh?

currently. I only saw China building electronics and clothing factories in Bangladesh. Didn't see China manufacturing sewing machines in Bangladesh.

 

[saif]

currently. I only saw China building electronics and clothing factories in Bangladesh. Didn't see China manufacturing sewing machines in Bangladesh.

Chinese investors can get first mover advantage if they open up textile machinery factories in Bangladesh now. China can think of relocating some of its heavy industries in Bangladesh because we offer cheapest labour in South Asia and also we offer great utility services for foreign investors.

 

[GreatHanWarrior]

Chinese investors can get first mover advantage if they open up textile machinery factories in Bangladesh now. China can think of relocating some of its heavy industries in Bangladesh because we offer cheapest labour in South Asia and also we offer great utility services for foreign investors.

well. I am looking forward to manufacturing sewing machines in Bangladesh.