Faruque Hassan

-President, BGMEA

Market diversification has always been a critical growth strategy for our RMG industry. While the US and EU remain our primary destinations, it is incredibly encouraging to see significant progress in diversifying exports to other regions over the past decade and a half. “Made in Bangladesh” clothes are now retailed in around 167 countries, a testament to our global reach.

I am writing to share a detailed perspective on the remarkable performance of our RMG exports in non-traditional markets over the past 15 years (2009-2023).

Looking at our export market composition, we see a gradual decrease in overdependence on the EU and USA as exports to other markets gain momentum. In 2009, our total RMG exports amounted to US$ 11.89 billion, of which the EU held a 58.90% share, the USA 28.70%, and non-traditional markets a mere 7.55%. By 2014, total RMG exports grew to US$ 24.58 billion, with the EU share climbing to 61.06%, the USA’s share declining to 20.37%, and non-traditional markets witnessing a significant jump to 14.79%. In 2019, exports reached US$ 33.07 billion, with the EU share slightly increasing to 61.75%, the USA’s share declining to 18.20%, and non-traditional markets reaching 16.67%. In 2023, RMG exports totaled US$ 47.38 billion, with the combined share of EU and UK at 60.63%, the USA’s share slightly up at 17.46%, and non-traditional markets securing a noteworthy 18.72%. Crucially, 2023 marks the first time our aggregated exports to non-traditional markets have exceeded exports to our single largest market, the USA.

This achievement owes much to the vision and proactive efforts of our entrepreneurs, evident in our thriving exports across the globe. I must also express our sincere gratitude for the continued policy support for exports to non-traditional markets since FY2009-10.

Among the major non-traditional markets, exports to Japan have soared from US$ 111 million in 2009 to US$ 1.67 billion in 2023, with a 26.53% growth compared to 2022. Japan’s relaxation of rules of origin for its GSP scheme from 3-stage to 2-stage in 2011, and subsequently to one-stage transformation in 2014, significantly boosted our export competitiveness there.

Similar impressive growth trajectories can be observed in other key non-traditional markets:

-Australia: 38.15% year-on-year growth, reaching US$ 1.28 billion.

-New Zealand: 22.78% growth, reaching US$ 141.37 million.

-Brazil: 48% growth, reaching US$ 176 million.

-China: 44.81% growth, reaching US$ 346.36 million.

-Turkey: 44.29% growth, reaching US$ 356.66 million.

-Saudi Arabia: 30.64% growth, reaching US$ 227.78 million.

-U.A.E.: 12.72% growth, reaching US$ 350.23 million.

-Russia: 13.13% growth, reaching US$ 478.79 million.

-Korea: 15.83% growth, reaching US$ 587.15 million.

-India: 2.20% growth, reaching US$ 918 million.

Exports to other non-traditional markets such as Malaysia, South Africa, and Mexico are also on the rise.

Apparel Diplomacy has been a cornerstone of BGMEA’s strategy, particularly for the current board. We began exploring new and potential markets in 2008, thanks to GIZ’s support in identifying potential markets through a study. This served as a valuable guide for planning our campaign initiatives and engaging with the government for market access dialogues. Since 2009, we have successfully conducted trade missions in major markets across the world.