Wed 12 Oct 2005
Despite all the fear, Bangladesh is doing well in the RMG sector..
Bangladesh’s apparel exports were far from declining in the first quarter of the post-quota regime, although confronted with strong competition from China and India. Bangladesh managed to maintain its comparative advantage despite a growing tension on prices. Orders are on the rise and manufacturers are exploring new strategic alliances
October 12th, 2005 at 1:36 pm
According to a recent Wall Street Journal article (”Asian Textile Makers Adapt to End of Global Quota’s”) top Asian garments makers are enjoying double digit growth. More specifically, in the first 5 months of 2005 Bangladesh’s exports to the US were up 25% over last year.
Reasons cited included importers desire to diversify supplier base, and exports identification of niche products that China (biggest beneficiary of the post quota era)has not mastered.
October 13th, 2005 at 8:30 am
BBC News - Globalisation ‘gains’ in textiles
Severe damage predicted to hit several Asian nations after textile quotas ended at the start of the year has failed to materialise, a report says.
The International Labour Organization (ILO) argues that - as foreseen - China and India are among the big winners.
But Bangladesh, which had been expected to be among the worst affected countries, saw exports rise in February and March 2005 after a fall in January.
But Europe and the US have lost jobs, and Africa has been hit hardest of all.
The report precedes a conference convened by the ILO in Geneva to discuss the future of the textile industry in the wake of the end of the Multi Fibre Agreement.
That agreement - which limited textile imports to rich countries - ended in January, leading to a free-for-all among developing countries.
The industry employs more than 40 million people worldwide, with revenues reaching $350bn (£200.1bn; 291.3bn euros).
Mixed picture
The UN organization’s report - Promoting Fair Globalization in Textiles and Clothing in a Post-MFA Environment - describes what it calls a “more complex (picture) than had been expected”.
Among its findings is an indication that the initial boom for India and China slowed after the first three months of the year.
China “is in the process of outgrowing its comparative advantage for the most labour-intensive manufacturing industries … and evolving towards higher value-added industries”, the ILO said.
It noted that sanctions by Europe and the US against Chinese imports could be having an effect.
As for Bangladesh - which had been a recipient of preferential treatment under the MFA - a $57m fall in exports in January was followed by a $157m rise in February and another slight gain in March.
October 13th, 2005 at 10:45 am
[...] @ 11:44 EDT South Asia Bangladesh Global Roundups For a while, the Bangladesh apparel sector seemed to be under threat, but it might sur [...]
October 22nd, 2005 at 9:41 am
Hi,
I need info on the RMG sector. It’s for a report I’m doing for my university coursework, where I have to relate the RMG sector’s growth to international trade theories ( absolute advantage, comparative advantage, Porter’s diamond etc.).
Any idea where I can get the info?
IBA student
January 4th, 2006 at 9:27 am
Here is a follow up article. Looks like as of the end of the 3rd qtr., Bangladesh is still putting up a good export performance.
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DHAKA (Reuters) - Bangladesh’s exports of denim garments to the United States in the first nine months of 2005 surged from a year earlier after global textile quotas were dropped at the start of that year, officials said on Wednesday.
They said exports of denim apparel, including trousers and jackets, were 144 percent higher in value and 134 percent bigger in volume in the January-to-September period compared with a year earlier.
Exporters shipped about 561,000 dozen denim trousers to the United States in that period, against 240,000 dozen a year earlier. Earnings reached $44 million from a year-earlier $18 million.
The officials from the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) said they were quoting data from the U.S. Department of Commerce.
“We are enjoying an export boom in the U.S. market in the quota-free era that has opened up a whole new world of trade to us,” said Anisul Haque, a member of the BGMEA board and a former president of the group.
The United States is Bangladesh’s single biggest export market, where it has a 1.95 percent share of the denim market.
Readymade garments, Bangladesh’s biggest export, fetched $6.42 billion in the fiscal year to the end of June 2005.
March 27th, 2006 at 10:00 pm
I am intersted to know status of 2006. Is bangladesh still doing well in garments?
July 23rd, 2006 at 6:45 am
Hi, it was interesting to read your replies, its nice to see so much optimism. Of course, there’s a lot you can base your optimism on. My dissertation on the post MFA implications on trade and employment in bangladesh RMG is currently underway. I was wondering if you could comment on some of the factors that have kept the industry’s exports from diminishing. And also, how does China fit into this picture? Do you foresee a downfall for the sector in bangladesh in the long run as imminent? Your insights will be most valued.
Much Obliged .