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The year 2022 saw the economy recover and rise again. We showed our fortitude and turned around in spite of all the difficulties brought on by the largest crisis of the century, Covid-19.
Due to the advanced economies’ looming recession and the fact that our economy hasn’t yet fully recovered from the pandemic crisis, we are faced with a new dilemma. Due to the current geopolitical situation, on one hand, the cost of commodities, such as fuel oil and food raw materials, is increasing; however, on the other hand, in 2022, the global inflation rate reached a record high of 8.8%, up from 4.7% in 2021.
As a result, the demand and purchasing power of products in the international market is declining.
All these are affecting the retail sales market as well as disrupting the global supply chain.
Even though there are challenges, there are also countless opportunities. The fact that RMG exports are consistently growing is a good sign. Our RMG export in the last fiscal year (2022) was $42.61 billion.
As a result, we have reached a new milestone in the history of RMG manufacturing by surpassing the $40 billion mark after 40 years of operation.
Bangladesh exported garment products worth $41.04 billion in the calendar year 2022 (January–November), up 29.20% from $31.73 billion during the same period in 2021.
According to the EPB data, as of December 25, Bangladesh exported apparel items worth $2.80 billion in the first 25 days of the month.
If this trend continues, by the end of 2022, we might export clothing valued at $44 billion, with a growth rate of roughly 30% to 31%.
Apart from the major markets EU and USA, our export share in non-traditional markets doubled from 6.87% in FY09 to 14.96% in FY22.
Among the major non-traditional markets, Japan, India and South Korea’s growth were the most significant.
Bangladesh has reclaimed its position as the second-largest garment exporter in the world, with a 6.37% share of the worldwide market, according to the WTO’s report published in 2021.
For the USA and EU, Bangladesh has already surpassed all other denim-sourcing nations.
We currently compete closely with China, the world’s largest exporter of apparel.
As we celebrate 50 years of independence and surpass 50 billion dollars in exports this year, 2022 will also stand out for us. At the same time, Bangladesh’s infrastructure will thrive, as the Padma Bridge opens up new possibilities and a few other major projects are nearing completion. This represents a big achievement for us.
Our list of milestones for the RMG industry in 2022 has been expanded as “Apparel Diplomacy” is one of the top priorities on which we have been focusing.
During this year, we have realigned our vision with ESG priorities and the Sustainable Development Goal 2030. We have the highest number of Leed green RMG factories certified by USGBC.
Currently, the number of Leed Green factories is 183 of which 60 are platinum.
We are not only confined to sustainability but BGMEA has established the “Centre for Innovation, Efficiency and OSH” at its own premise.
Through this centre, we will focus on newer avenues of enhancing our sustainability vision and competitiveness through efficiency improvement and cost optimization.
One of the biggest successes in 2022 was “Made in Bangladesh Week”.
Going forward, not only in 2023 but also in the next decade, we have to keep and continue all of these transformations.
The main opportunities for this sector include achieving quality in goods, fiber, market diversification, and value addition. We must increase our capability in the backward and forward linkage sectors.
The development of design and skill sets, technology advancement, and general business competencies must all be prioritized at the same time.
We must step up our efforts toward green transformation and open it up to all levels of factories, especially small and medium-sized ones.
A virtual marketplace can help SMEs expand internationally too.
The author is a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the additional managing director of Denim Expert Ltd
(DT)
