Knitwear exporters to explore Japanese market

Knitwear makers are exploring new markets, including Japan, owing to a sharp decline in export orders in recent months, especially due to debt crisis in some of the EU countries.

During July-October of the current fiscal year, knitwear export growth slowed down to 17 per cent from about 38 per cent during the corresponding period a year ago. In fiscal year 2010-11, Bangladesh earned $18 billion from garment exports, registering a significant 42 per cent year-on-year growth.

However, 85 per cent of these shipments were only to two markets – the EU and the US. Thus, the domestic exporters are highly dependent on these two nations and any economic downturn in these nations is bound to have a negative impact in terms of decrease in orders.

In order to decrease their dependence on the EU and the US markets, Bangladesh knitwear manufacturers have already visited Russia, and are planning to visit Japan in January.

The country exported knitwear items worth $ 53 million to Japan during July-October, compared to $ 94 million of exports in fiscal 2010-11.

Confirming about their visit to Japan, Md Hatem, vice-president, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “We are going to Japan on January 23 to participate in a three-day fair scheduled to be held there on January 25-27.

We will be participating in the exhibition under the Bangladesh pavilion. Probably, our commerce minister will also be accompanying us along with the 100-member delegation from the knitwear sector.”

Informing about the purpose of the visit, he said, “We are going there to explore the Japanese market in a broader way. Japan is going to become a ‘China Plus One’ country. So, the knitwear sector is planning to expand its business to that region.”
Providing statistics, he went on, “Since 15 years, Japan has been importing $ 24 billion worth of textile and garment products from the world market. Out of this, 87 per cent imports are from China while from Bangladesh it is only 0.6 per cent. This year, our exports are going up and we wish to increase our share in the Japanese market.”

Revealing about BKMEA’s efforts towards diversification of its export market, he stated, “In October this year, a BKMEA delegation had visited Russia to explore the market and to increase our exports there from 3.7 per cent.

Apart from these, we are looking forward to explore the markets in South Africa and Latin America. In future, we are planning to target India and China also, as we think these will be big markets for us.”

Source: The Independent

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World Bank to provide $29mn for creating jobs in EPZs

DHAKA: The World Bank will provide US$ 29 million for creating jobs in the country’s Export Processing Zones (EPZs) for 11,000 poor women of Monga-prone areas.

The government on Sunday signed a US$29 million financing agreement with the World Bank for the Northern Areas Reduction of Poverty Initiative (NARI) project, said a World Bank press release.

It said the project will help the vulnerable women overcome the difficulties of migration and get a chance to successfully adapt to a new life.

The credit from the International Development Association (IDA), the World Bank’s concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent.

NARI project would facilitate successful migration of around 11,000 poor women from five northern Monga-prone districts – Gailbandha, Kurigram, Lalmonirhat, Nilphamari, and Rangpur.

These women would receive technical and life-skills training, transitional housing, counseling and job placement services. Migration of poor women from the impoverished northwestern districts to formal employment in the garment sector is substantially lower than that of poor women from other parts of the country.

“The NARI project is the first World Bank-financed operation in South Asia with a specific focus on the empowerment of vulnerable women through employment in a formal sector,” said World Bank Country Director Ellen Goldstein.

“It has the potentials of fundamentally changing the lives of thousands of poor rural women, and possibly many more once the pilot is scaled up to other parts of Bangladesh and other sectors, if successful.”

The project will also undertake awareness raising activities in the pilot districts. The candidates, to be selected through a screening process, will be helped find employment in Dhaka, Karnaphuli, and Ishwardi Export Processing Zones (EPZ). Training centers and dormitory for transitional housing will be constructed in these EPZs.

The training centers will accommodate 300 trainees at a time. The dormitories attached to the training centre will accommodate 600 women for a transitional period of six months. The graduates will also get assistance for finding permanent housing.

The project directly contributes to the government’s pro-poor growth vision said ERD secretary Iqbal Mahmood.

Source : The Independent Online, Sunday, 04 December 2011

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Apparel makers plan to set up production base in Bangladesh

After failing to convince the government against allowing duty-free imports from Bangladesh, textile manufacturers are looking to set up a base in that country. The government recently allowed duty-free imports of 48 textile items.

“Currently, many manufacturers and retailers are exploring the opportunity and are now studying the market there,” said Rahul Mehta, president of The Clothing Manufacturers Association of India. Labour in Bangladesh is also cheaper, compared to India. This will help manufacturers cut their cost of production.

Retailers like Creative Group are looking at setting up a base in Bangladesh, Mehta said. Globus, Reliance, Arvind Mills and Madura Fashions & Lifestyles are also looking at doing the same, according to sources familiar with the matter.

Textile manufacturers had initially pleaded with the government to refrain from allowing duty-free imports, as it would result in imports of $2.5 billion a year, in addition to a loss of 1.25 million jobs.

The apparel industry is the largest employment generator with six million people employed. Bangladesh is a cheaper destination to manufacture apparel and other textile products as the cost of production is around 20 per cent lower compared to India.

Exports from Bangladesh are higher compared to India. India has been losing out to Bangladesh since 2009. Bangladesh exports grew at 16 per cent in 2010-11, while India's exports grew at four per cent.

“Manufacturers will not cut their production in India, but, will set up a base to manufacture basic textile items in Bangladesh. India is good at producing value added textile products,” said the director of the Apparel Export Promotion Council.

Source: Business Standard, September 27, 2011

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