Belying all speculations about negative impacts of the textile quota elimination, Bangladesh earned approximately 8.58 billion US dollars in fiscal 2004-05 from garments exports, nearly 1 billion dollars more than that of the previous fiscal.

The International Monetary Fund (IMF) had warned Bangladesh of losing a quarter of its exports and a huge number of jobs in 2005 due to MA (Multi-Fibre Agreement) quota elimination on Jan.1, 2005.

But the fears and predictions have proved wrong. The textiles and apparel sector has performed beyond expectation. The export target was set at 8.56 billion dollars, which was considered ambitious as there had been fears that export would plummet in the changed global situation after the quota phase-out.

Textile experts attribute the recovery to the fact that Bangladesh has become well-known in the global apparel market as a reliable source of cheap garments. Unit cost of apparel in Bangladesh is the cheapest in the South Asian region. Its labor force is also 'skilled' for the low-end products, which comprise the bulk of its exports.

According to the local daily Facial Express on Sunday, the country's apparel manufacturers injected a fresh investment of nearly 20 billion taka (about 310 million US dollars) in the clothing sector last year. Exporters said though the price offered by the buyers registered a fall in recent months, the flow of orders increased, especially after the quota phase-out.

The government has taken up a 40-million dollars contingency plan to meet the challenges posed by the phasing out of the MA. The country set an eight-point action program, including the search for new opportunities in the developed markets, displaced workers' rehabilitation, capacity enhancement for small enterprises and technological capacity development of SMEs (small and medium-sized enterprises).

Meanwhile, the report of the local daily also proposed to set up a separate apparel board for the RMG (ready-made garment) industry, which garments factory owners have been pressing for to free the industry from the time wasting bureaucratic shackles and make it more dynamic. This has become more necessary as the day-to- day operation of the industry needs to get prompt service from the government at every phase, from policy making to implementation.

If the government and the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) take proper care of this sector and implement the suggested measures for the purpose, experts expect the country will be able to attain the status of a major exporter to the extent of 25 billion dollars in the next 20 years, the report said.

In order to expand the market share and survive in the upcoming free global competition in the international market, product diversification appears to be an indispensable strategy, the report said.

The more stretched the product lines and ranges, the better is the competitive edge. Technical experts should be brought in from abroad in this connection, it suggested.

Source: Xinhua