The country's readymade garment exports to non-traditional markets recorded a slight negative growth during the first five months of the current fiscal year, despite strong double-digit growth in major destinations like the US, European Union and Canada.
The country earned $2.75 billion from non-traditional markets between July and November of FY'25, compared to $2.77 billion during the same period in the previous fiscal year, according to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Industry sources have identified key emerging markets-Australia, Brazil, Chile, China, India, Japan, South Korea, Mexico, Russia, South Africa, the UAE, Malaysia, Saudi Arabia, New Zealand, and Turkey- as major prospective markets beyond three traditional export destinations - the US, EU and Canada.
Exports to several of these markets, including Russia, China, the UAE, Malaysia, and New Zealand, experienced negative growth ranging from 5.14 per cent to 15.44 per cent during the period.
However, the earnings from the rest non-traditional ones, including Australia, Brazil, Chile, India, Japan, Korea, Mexico, South Africa, UAE and Saudi Arabia, recorded growth ranging between 3.69 per cent and 50.54 per cent during the July-November period
of 2024-25 fiscal year.
Earnings from India, Mexico, Turkey, South Africa and Brazil recorded double- digit growth, data showed.
Talking to the FE, Fazlee Shamim Ehsan, executive director of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said payment issue has become a concern with regards to exports to Russia due to the war which affects garment shipments.
He said China has now concentrated on its local market and is developing local brands, thereby reducing imports.
"Bangladesh should focus on that market immediately," he noted, adding that China's export growth to the US and the EU are also declining.
If any individual buyers, especially from the markets which are not much explored or known like New Zealand, face any difficulties, exports face setback, he noted.
He, however, said there is absence of sufficient measures to explore the non-traditional market as per expectation especially after the Covid pandemic.
According to a latest study, RMG exports to many non-traditional markets, especially India, Japan and China would face severe challenges due to high duty obligation to be applicable after the country's graduation from the least developed country status, industry insiders feared.
According to the Research and Policy Integration for Development (RAPID) study, Bangladeshi-made RMG would face as high as 20 per cent duty in India while the rate would be 9.0 per cent in Japan and 6.5 per cent in China and 5.0-6.0 per cent in Australia.
Mr Ehsan suggested bilateral agreement and special treaty with strong negotiation capacity to sustain the duty benefit in some of the major
non-traditional markets where
the duty-free facility would end
after graduation.
On the other hand, garment exports from the European Union reached $7.91 billion, marking 13.74 per cent growth during the first five months of FY'25, according to the data from the Export Promotion Bureau (EPB).
Bangladesh fetched $3.12 billion from garment exports to the US recording 17.44 per cent growth during the period while exports were 5.84 per cent higher to $ 1.79 billion in the UK.
Apparel shipment recorded 13.22 per cent growth in Canada to fetch $520.59 million, the data showed.
The overall garment exports during the July-November period stood at $ 16.11 billion which was $14.34 billion during the corresponding period of last fiscal year.
In fiscal 2023-24, the country earned $36.15 billion, according to the EPB's revised data.
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