Bangladesh to export $1b RMG to Japan in 2 years

Hiroshi OkadaRefayet Ullah Mirdha

Trends show that Bangladesh will be able to export apparel items worth about $1.0 billion to Japan in the next two years, said a Japanese business tycoon, now in Dhaka in connection with the biggest knitwear exposition held every year.

Hiroshi Okada, president of Japan Textile Products Quality and Technology Centre (QTEC), said Japanese lab testing and quality inspection companies are visiting Bangladesh to survey investment potential, as there is a strong presence of Japanese apparel buyers.

The QTEC will start operations in Dhaka from February 1, Okada said in an interview on the sidelines of the 5th knitexpo at Dhaka Sheraton Hotel.

Okada said at present, at least 20 Japanese companies are in Dhaka to procure Bangladesh made apparels. But lab test and quality inspection is important to Japanese buyers, as Japanese customers are highly quality-conscious, he said.

After conducting a market study, he said, it now takes a lot of time to complete lab tests and inspect quality for the Japanese market, as Japanese buyers test all apparels pieces, instead of following a sampling method.

Local manufacturers have to send fabrics to Hong Kong or other important destinations to test results, as there are no such facilities in Bangladesh to meet Japanese quality standards, Okada said.

"We will start operations with an investment of half a million US dollars in Bangladesh as lab tests do not need large investments at first. But we will employ a significant number of trained employees here," he said.

QTEC, which has been testing garment, leather and jute goods worldwide over the last 64 years, will work in joint collaboration with the local Pacific Quality Control Centre Ltd.

At present, QTEC has operations in Japan, China, Korea and the fourth will be in Bangladesh, he said, adding that QTEC earned $38 million in 2008 in testing fees alone.

He said Japan is the latest avenue for Bangladeshi exports as a large number of Japanese customers are coming to Bangladesh after the Japanese government announced the China+1 Campaign.

Last year, Japanese entrepreneurs were advised to invest in other countries as well.

As a result, Japanese started relocating their factories in different countries, including Bangladesh. A strong presence of Japanese buyers was seen at the just concluded knitexpo, where more than 60 Japanese buyers and investors took part.

Leading Japanese socks maker Okamoto is also coming to set up a modern factory in Bangladesh.

BKMEA President Fazlul Hoque said the largest Japanese retail chain Uniqlo invested $70million in Bangladesh and they target purchase of apparel items in large huge volumes.

"Since Japanese customers are quality-conscious, setting up of such test labs and quality inspection companies will play a vital role in increasing exports to Japan," Hoque said.

reefat@thedailystar.net