2014 sees export growth but falls short of target

Bangladesh's export earnings for 2014 saw a mix of both positive growth and unattained targets with Export Promotion Bureau, Bangladesh (EPB) and Exporters Association of Bangladesh (EAB) expecting better outcomes though government policy support and market diversification.

EPB statistics say though the $12,070.08 million earned in the July-November period is an increase of 0.92 percent compared to that of last year, it fell short of the target by 5.23 percent.

However, November's $2,417.43 million surpassed the strategic goal by 5.53 percent.

Eight items -- woven garments, knitwear, home textiles, shrimp, agricultural products, jute and jute goods, leather and leather goods, footwear and engineering products -- claimed 95.61 percent of the overall exports for the year's 11 months. It brought in $11,540.78 million.

Expecting the growth trend to prevail, EPB Vice Chairman Shubhashish Bose told the news agency that buyers were providing more work orders which would help attain 2015's target of $33,200 million.

He enumerated steps to boost market and product diversification, including trade delegations being sent abroad, exporters taking part in international expositions, introduction of new products and plans to open five to six commercial wings in Bangladesh missions, including those in Singapore, Kunming and Istanbul.

EAB President Abdus Salam Murshedy found the negative growth of some months this year unusual.

He focused on the readymade garment (RMG) sector, saying that the countrywide political unrest in 2013, the Rana Plaza building collapse and fires at Standard Group and Tazreen Fashions had an impact on work orders, in turn affecting export growth to some extent.

“I think the country's RMG industry is passing through consolidation and there is nothing to be worried now about the export target or growth,” added the former president of Bangladesh Garment Manufacturers and Exporters Association.

He said to ensure safety compliance and other related issues, international buyers were working with the RMG industry owners through “accords” and “alliances”.

Murshedy said the upcoming days for the export-oriented sector, especially RMG, would be challenging as the international competitors were now in a comfortable position.

Besides, due to the rise in cost in safety measures, utility bills and transportation, the competitive edge of the major-export earning RMG sector is gradually decreasing for which there is a need for more policy support, he said.

He said the RMG sector was likely to witness higher growths likely from 2016 when the ongoing various initiatives in the RMG sectors would be implemented.

The RMG industry insiders also hope a boost in export earnings in coming months although that from the US and Canadian markets during 2014's first five months declined by 6.10 and 16 percent respectively.