Exports on course to record
Exports are homing in on the target of $33.5 billion for this fiscal year after May's receipts took the tally to a touching distance.
Bangladesh received $3.03 billion from exports in May, up 6.69 percent year-on-year, according to data from the Export Promotion Bureau.
May's exports take earnings in the first 11 months of fiscal 2015-16 to $30.67 billion. The government has set a doable target of $2.83 billion for June. Full-year receipts of $33.5 billion would be a record for Bangladesh.
Garment, which typically accounts for 80 percent of the country's export earnings, led the charge, bringing home $2.45 billion last month, up 9.35 percent year-on-year.
“The future trend for garment exports from Bangladesh is good,” said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association.
Bangladesh's garment exports are looking up for two reasons: the country is receiving the work orders that are being shifted in bulk from China and are producing value-added items, he said.
The international retailers have been placing work orders in Bangladesh due to the higher costs of production in China, the largest garment exporter in the world.
“China is no more a favourite destination for international garment retailers. They are shifting work orders to other destinations and preferably to Bangladesh.”
The garment makers in Bangladesh have been producing value-added items as the prices of basic garment items declined 40 percent over the last 15 years.
As a result, the receipts from apparel shipments are on the rise, he said.
“We have the potential to grab more market share. However, we need to increase productivity to be more competitive in the global apparel market,” Rahman added.
Apart from apparel items, exports of leather and leather goods increased 0.69 percent year-on-year to $1.02 billion during the July-May period.
Export earnings from leather, leather and leather goods and footwear crossed the $1 billion-mark for the third consecutive year.
Jute and jute goods exports are seeing a revival on the back of new demand of natural fibres worldwide and for a return of business-friendly environment in some Middle Eastern countries, industry insiders said.
During the period, jute and jute goods fetched $822.77 million, up 3.59 percent year-on-year.
Exports of terry towels increased 16.07 percent to $44.21 million, headgears or caps 126.38 percent to $131.19 million and engineering products 16.25 percent to $484.34 million.
Furniture exports increased 18.76 percent to $43.36 million and pharmaceuticals products 11.0 percent to $74.40 million. Bangladesh earned $31.2 billion in exports last fiscal year.