Germany now top export destination of BD garments

FT ONLINE

Germany became the top export destination for local readymade garments (RMGs) in the just-concluded fiscal year (FY) 2017-18, Export Promotion Bureau (EPB) said.

The country fetched $5.57 billion from RMG exports to Germany-an 8.65 per cent growth compared to the corresponding period of FY '17.

According to the official data, it was $5.13 billion in the previous fiscal.

Previously, the United States was the biggest market for Bangladeshi apparel.

Exporters and experts attributed this achievement to the duty-free facility provided by Germany and other European nations.

Germany's strong economy has propelled higher garment imports from Bangladesh.

The overall exports to Germany, however, stood at $5.89 billion in last FY.

It was $5.47 billion in previous FY, according to the data.

On the other hand, the USA accounted for $5.35 billion of RMG exports which was 2.84 per cent higher than the previous FY's $5.20 billion.

The total earnings from the US market in the last FY reached $5.98 billion from $5.84 billion.

The United Kingdom (UK) was the third largest RMG market that imported $3.72 billion from Bangladesh in last FY.

It was 12.63 per cent higher than the last fiscal's $3.30 billion.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Siddiqur Rahman said Germany is the largest European hub of local garment items.

Bangladeshi garment items enjoy duty-free facility in the European Union (EU), he told the FE.

He, however, attributed the stable German economy for the rise in exports there.

MA Rahim, vice-chairman of DBL Group, said the demand for knitted items had risen in Germany in recent years.

Bangladesh-made apparel raked in $2.27 billion from Spain, marking a 21.24 per cent increase.

Meanwhile, the country exported garments worth $1.85 billion to France in last FY.

RMG exports rose by 7.82 per cent to $1.45 billion in Italy and 14.86 per cent to $935.37 million in the Netherlands in the same FY.

Exports to Canada witnessed a sluggish growth of 1.78 per cent at $963.14 million.

On the other hand, exports to India rose by 114.68 per cent to $278.67 million.

However, the shipments just maintained the same amount of $391.64 million in the Chinese market, the data revealed.