Roundup: Bangladesh eyes China's clothing market
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E-mail Xinhua, September 2, 2012
Roundup: Bangladesh eyes China's clothing market
By Naim-Ul-Karim
DHAKA, Sept. 2 (Xinhua) -- Bangladesh eyes big boom in its garment exports to China's about 300 billion U.S. dollars clothing market as the second largest world economy is rapidly progressing toward the high-tech industries rather than basic manufacturing items.
Bangladesh Garment Manufacturers and Exporters Association ( BGMEA), which expects to fetch more than a billion U.S. dollars in a few years from its exports of ready made garment (RMG) items to China, said on Sunday that China is now focusing on a strategic shift of production to other destinations.
The association said China is now focusing on such strategic shift as rise in wages and overall production cost is rapidly eroding its competitiveness in the apparel industry.
"I believe if we can keep our momentum and we can make a sincere move and properly use the market access opportunities, then our RMG export to China will cross a billion U.S. dollars in a few years," Shafiul Islam, president of BGMEA, told Xinhua in a press conference in which the head of a visiting Chinese delegation was present.
The 8-member delegation from China National Garment Association (CNGA), which visited 8 apparel factories during its three-day Dhaka visit concluded Sunday, said they are impressed to see good management, quality products and overall standards of Bangladesh factories.
"We had initial impression. They are excellent, extraordinary and out of our imagination," Feng Dehu, vice president of CNGA, said in the press conference.
"We're going to have a lot of activities in future," he said.
He further said, "We think there is a need for a strategic cooperation initially. And cooperation starts from today."
Regarding the BGMEA's expectation to fetch more than a billion U.S. dollars from garment exports to China in few years, he said, "Figures are too small. Though we can't tell now any amount but the export figures may be more ...."
"This is a good day (for us)," said Bangladesh's Commerce Minister Ghulam Muhammad Quader, who were present in the conference, adding "We've never thought that China, which was once considered as Bangladesh's competitor in global apparel market, will one day emerge as a destination for our garment products. We' re proud of China as its Asian fellow."
BGMEA president said they had made immense efforts in exploring new export markets as the present state of market concentration in Europe and America is not supportive to the sustained growth to this industry in the long run.
"More than 87 percent of our RMG exports are still concentrated in the North America and European Union region which is a high risk factor for the sustained growth of our industry," he said.
He further said, the unforeseen phenomena like global recession is also a major reason of market risk in this state of overwhelming market concentration. The government is highly concerned of this issue and they are ready to extend all-out support for any initiative pertain to this agenda, he added.
The minister, meanwhile, said, "I would like to assure you (the Chinese delegation) that the government is also very eager and give you all the support."
BGMEA president said bilateral trade between Bangladesh and China is largely one-sided. During the fiscal year 2010-11 (July 2010-June 2011), he said, "We (Bangladesh) imported 5.9 billion U. S. dollars worth of goods from China while its export was around 320 million U.S. dollars."
"We cant equalize these figures as China is the source of most of our industrial raw materials, but through the enhanced export of RMG we can push our export to a significant level."
China itself is a huge market for Bangladesh, he said, with 1.3 billion population. With the increased in per capita income and standard of living, the BGMEA president said the need for clothing is also growing. "So, meeting their domestic clothing needs is an untapped opportunity for us."
Despite being an export country, the BGMEA president said China in 2011 imported apparel products worth 3.57 billion U.S. dollars, which is 59 percent higher than the previous years.
While talking about the potential in China's domestic market, he said "I like to mention that China granted duty free market access for 60 percent products from LDCs and this covers a significant part of our exports to China. We thank the government of China for their consideration in extending this product coverage up to 95 percent by the year 2013."
Bangladesh's earnings from garment exports, which make up more than three fourths of the country's annual incomes since the beginning of this decade, stood at nearly 19.09 billion U.S. dollars in 2011-12 fiscal year. Enditem
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