Environment
By
Mr. M A Awal
Director of the Board
&
Chairman
Standing Committee on Textile, Specialized Textile & Backward Linkage
Industries of
The Federation of Bangladesh Chamber of Commerce & Industry (FBCCI)
&
Chairman
Bangladesh Textile Mills Association (BTMA)
Date: June 2, 2005
Place: Beijing
BANGLADESH
Where we are?
INTRODUCTION
Textile as a whole is a heterogeneous product
market where yarn, fabric, fashion, material design,
quality, colours, brands etc. create values.
Therefore, constant innovation and improvement
is a pre-requisite for increasing competitiveness.
My presentation will therefore, have two-phases
one, dealing with Primary Textile Sector (PTS)
having a brief on present status & potentials and
the second phase with present status of Export
Oriented Readymade Garments Units, in the post
MFA challenging environment.
INSTITUTIONAL FRAMEWORK
From the processing point of view Textile sector has the following
sectors:
sub-
Country
Total RMG
Import
RMG Import
from BD
% share of BD
EU
74150.00
3651.81
4.92
US
66400.00
1628.59
2.45
Canada
Japan
3700.00
19700.00
256.40
19.79
6.93
0.01
Hong Kong
1700.00
6.59
0.39
S.Korea
900.00
3.15
0.35
Others
32350.00
119.76
0.37
198900.00
5686.09
2.86
Total
Total Export
RMG Export
% of RMG to
total export
1995-96
3882.00
2547.13
65.61
1996-97
4418.28
3001.25
64.93
1997-98
5161.20
3781.94
73.28
1998-99
5312.86
4019.98
75.67
1999-00
5752.19
4352.39
75.66
2000-01
6467.30
4860.12
75.15
2001-02
5986.09
4583.80
76.57
2002-03
2003-04
2004-05 (Jul-
6548.44
7602.99
6097.12
4912.10
5686.08
4734.14
75.01
74.79
77.65
Mar)
Million Dozen
Total Export
541.99
100%
Woven
412.21
76.05%
Knit
129.78
23.95%
The share of woven RMG export has been declining as the growth of Knit RMG
export supported by local inputs had been much higher.
2003-04
Million Dozen
Total Export
2185.06
100%
Woven
1085.86
49.70%
Knit
1099.20
50.30%
In 2003-04 knit RMG export has surpassed the woven RMG export because knit
has competitive advantage due to availability of local inputs
MFA
( Protected Market )
G S P ( Preferential Market)
Bonded warehouse
Total Export
Earnings
U.S.A
1628.59
Share of
Woven
Products
85.46%
EU
3651.81
51.24%
48.76%
Canada
256.40
72.44%
27.56%
Overall to
all Markets
5686.09
62.22%
37.78%
(In MnUS$)
Share of
Knitted
Products
14.54%
TREND IN EU MARKET
In EU market Bangladesh enjoys GSP facilities.
The facilities have been further relaxed through
Everything But Arms (EBA) scheme.
There is no quota for Bangladesh in the E U
market.
Export Trend in EU
(Value in Mn. US $)
Export of
Knit an d
Wove n
Products
2000-01
2001-02
2002-03
2003-04
2418.00
2411.00
(- 0.3%)
2712.00
(+ 12.48%)
3651.79
(34.65% )
Export of TC to EU declined by 0.28% in 2001- 02 over 2000 01, but bounced back by 12.48% in 2002-03 over 2001-02, 34.65%
in 2003-04 over 2002-03
Total Export
in Million
US$
2003-04
Total FE
Retention in
Million US$
2003-04
% of
National
FE
Retention
2603
1953
25.70
3083
770
10.14%
Competitiveness Issues
Increase Productivity
Supply Chain Management
Design/Fashion/Market Development
Service Orientation
* No discrimination
* Working condition
* Working hours
* No forced labour
* Freedom of association
Pure CMT business will phase out, buyers will ask for
services (approach to customer satisfaction)
R
R
Capacity Building
Use electronic data interchange for :
R
So What to do?
Close Dialogue with Decision makers to :