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China-The next export destination for Bangladesh

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Exports in Bangladesh

The increasing garment export to China explains that it becomes the biggest destination for Bangladesh. China is the global leader for apparel business and is obvious to turn into a major export destination for the Bangladesh. The reason for so is the massive population with a growing section of middle-income households.

Bangladesh’s garment export to China increased 14.77 percent year-on-year to $391.59 million in fiscal 2016-17. This is considered as a sign of new opportunities by the exporters. During the 2008-2009 global recessions, global trade experienced a significant slump but Bangladesh’s export got a boost for increased shipments to China.

Garment export to China (USD in million) Source: EPB

According to the director of a leading garment exporting company, Ananta Group, Asif Zahir,“Garment export from my group has been maintaining 10 percent growth every year to China. China is a new destination for us.” The company exports garment products, mainly of denim and trousers, worth US $15 million last year for retailers like H&M, GAP and Zara who is his main buyers from Chinese markets.

In fiscal 2016-17, to China, overall Bangladesh export also increased by 17.49 percent to the US $949.41 million from the US $808.14 million in the 2015-16 fiscal, according to data from Bangladesh Export Promotion Bureau. Very soon China would become the second Asian market after Japan for Bangladeshi exports to cross the US $1 billion marks.

Anwar-ul-Alam Chowdhury Parvez, a former president of Bangladesh Garment Manufacturers and Exporters Association said that; “The Chinese market would grow automatically as they have already shifted from producing basic items. We should maintain a warm relationship with China for higher export.”

As for now about 80% of the Chinese garment products are produced locally and for local consumption. In such situations, producers like Bangladesh can earn more benefits by focusing on the Asian economic boss.