Wednesday, 27 Jun 2012
Extreme close up view of suits on a hanging rail. ©Adam Gault / Photographers Choice / Getty Images.
Textile and Garments Sector Opportunities in Bangladesh
The hundred percent export-oriented RMG industry has experienced phenomenal growth during the last 15 years. Within a very short period of time, it has attained great importance in terms of its contribution to GDP, foreign exchange earnings and employment and also as a vehicle of social changes.
The Ready Made Garments (RMG) sector is a major foreign exchange revenue generator for Bangladesh contributing 77% to the country’s net exports during 2009-2010. Garment exports, totalling $12.3 billion in FY09 and remittances from overseas Bangladeshis totalling $9.7 billion in FY09 accounted for almost 25% of GDP.
The Government of Bangladesh has set 26.36 billion dollar export target for the fiscal year 2011-2012. This target is 15% more than the actual exports for which a comprehensive policy support by the Government is required.
Bangladesh Textile & RMG industry comprises 155,557 units, with 148,000 handlooms units, 3,284 mechanised primary textile units, 5150 export-oriented readymade garments manufacturing units, and 273 garments washing-dyeing units. Around 95% of the industry is concentrated on 77 clusters in 9 different geographical locations (districts) under two administrative divisions, Dhaka & Chittagong.
At the end of fiscal year 2011, total export of Bangladeshi garments was US$22.92 billion, a 43% increase over previous year.
EU has simplified the GSP rules of origin from 1st January 2011. Norway and Switzerland has also adopted the revised rule of EU from 1st April and 1st of May 2011. Bangladesh also received trade preferences by India, China, South Korea and Malaysia.
Two major destination markets for Bangladesh garment exports have been the US and the EU.
In Bangladesh, business opportunities are available in the following areas:
Supply of textile testing instrumentation
Test materials for textile testing procedures
Supply of lab equipments
Supply of dye and chemicals
Supply of air compressor, boiler & generators
Supply of second hand/recondition textile machineries
Getting into the market
British companies wishing to develop their business in the Bangladesh market are advised to undertake as much market research and planning as possible in the UK. UKTI’s team in Bangladesh with its wide local knowledge and experience can provide a range of services to British-based companies wishing to grow their business in global markets.
This can include:
Provision of market information
Validated lists of agents / distributors / Partners
Key market players or potential customers in the Bangladesh market
Establishment of interest of such contacts in working with you
Arranging appointments and accompanying during the meetings
Organise seminars or other events for you to meet contacts and promote your company in the Bangladesh market
Introducing your company to the local Press & Media
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team.
13th Textech Bangladesh 2012 International Expo
Date: 11-14 July, 2012
The 9th Dhaka International Textile & Garment Machinery Exhibition 2013
Date: 31 January – 3 February, 2013