According to the Export Promotion Bureau (EPB) data, earnings
from RMG exports in the three months of FY20 fell by 1.64% to
$8.05 billion from $8.19 billion in the same period of FY19.
Earnings from woven garments fell by 2.45% to $3.88 billion in
July-September of FY20 from $3.98 billion in the same period of
last fiscal year. On the other hand, knitwear export fell by
0.87% to $4.17 billion from $4.20 billion.
Ahsan H Mansur, Executive Director of the Policy Research
Institute of Bangladesh said, “It is not a good thing and the
government will have to rethink the domestic policy to achieve
required export earnings growth.”
He said although it was too early to make comments on a possible
global recession, it seemed the global economic slowdown might
hurt Bangladesh’s exports this year.
“We thought that the US-China trade war would help us grow our
exports but it could not give us more benefits,” Mansur said.
He said that the government should rethink the exchange rate as
an immediate reviving tool for export growth.
“The recent export order situation is not good. The overall
consumption of RMG products has decreased in the globe as
consumers are in fear of a possible economic recession due to
recent slowdown in the US economy, dismal economic performances
in the UK and Germany, lowest ever industrial production growth
in China, shrinkage of the economies of Argentina, South Africa
and Iran,” Mahmud Hasan Khan Babu, former Vice-President of the
Bangladesh Garment Manufacturers and Exporters Association said.
He said that global consumers had been decreasing their
purchase and going for more durable products, whereas
Bangladeshi manufacturers expanded their capacity without
any study on global consumption trends.
If the currency rate is not rearranged, Bangladesh will have
to face serious challenges in the export market up to the
end of 2020, Babu added.
Due to the unplanned expansion, our production is increasing
in quantity but we have failed to gain the price benefits,
he also said.
Though experts of Bangladesh textile and apparel industry
claiming that RMG export declined due to less consumption of
RMG products all over the world for US-China trade war,
Brexit issue, contraction of the economies of Argentina,
South Africa and Iran instilled recession fears in the
However, its major competitor Vietnam’s textile and apparel
export is increasing. Vietnam apparel export posted a 2.2%
growth to $3.37 billion in August.
Bangladesh was getting the short-term benefit due to the
US-China trade war, the benefit was very insignificant.
Mainly, the country needs to diversify its trade in a large
way for sustainability, some industry experts suggested.
Export earnings from leather and leather goods in
July-September of FY20 fell by 5.06% to $254.39 million from
$267.94 million in the same period of last fiscal year.
Export earnings from leather-footwear in the first quarter
decreased by 9.28% to $159.23 million while other leather
products fetched $64.47 million with a 25.28% growth in the
Earnings from the home textile export in July-September of
FY20 fell by 11.67% to $179.30 million from $203 million in
the same period of FY19.
Export earnings from agriculture products in the first
quarter of FY20 fell by 10.03% to $262.57 million from
$291.83 million in the same period of FY19.
The export of jute and jute goods increased by 1.84% to
$220.85 million from $216.87 million.
Export earnings from frozen and live fish decreased by 9.08%
to $125.20 million while the shrimp export fell by 11.49% to
$100.05 million in the first quarter of FY20.
Export earnings from engineering products in July-September
of FY20 grew by 23.37% to $93.02 million from $75.40 million
in the same period of last fiscal year, the EPB data showed