According to the “Quarterly Garment Review” report recently released by the Bangladesh Bank, approximately 73% of Bangladesh’s garment exports are still limited to 9 countries despite taking different measures to diversify the market.
In the fourth quarter of 2021/22, about US$8.2 billion of the US$11 billion in ready-made garment exports came from the United States, Germany, the United Kingdom, Spain, France, Italy, the Netherlands, 9 countries including Canada and Belgium.
In the same period in the past five years, the above-mentioned nine countries accounted for an average of 75% of the total garment exports. Among them, the United States, Germany, and the United Kingdom account for nearly half of exports.
SANEM pointed out that Bangladesh’s export products and markets are still too concentrated. Fortunately, exports to India have continued to grow recently. China provides 98% of Bangladeshi products with duty-free import preferences, which also provides Bangladeshi low-cost products create an opportunity. Raihan, an economics professor at Dakar University, said that the current duty-free entry of ready-made garments into the EU and US markets cannot actually reflect the competitiveness of Bangladeshi products. The vice president of the Garment Manufacturers and Exporters Association said that although the association has promoted it to Latin American countries such as Argentina, Brazil, Mexico, and Chile, it has not achieved results due to insufficient demand and high tariffs.
Similarly, the country cannot compete with China, the largest exporter of ready-made garments, in the markets of Central Asia, the Middle East, and Africa. At present, Bangladesh plans to strengthen the development of emerging Asian markets such as Japan, South Korea, China, and India with better prices.
The Garment Association is expected to hold clothing exhibitions in Japan and South Korea in October this year, and will also participate in a trade show in Dubai to develop the Middle East market.
