A $50 billion RMG export target by 2021 – set by the country’s apparel manufacturers – has drawn the attention of global machinery, fabrics, yarns and accessories producers of the clothing industry.
This was revealed to the Dhaka Tribune while talking to a number of producers displaying products at a four-day GARMENTEC Expo, Yarn and Fabrics Sourcing Fair and GAPEXPO 2016 that began yesterday in the city.
The fair paves the way for the display of RMG-related equipment.
“Since Bangladesh has set the export target, we want to double our export to the country as the production would increase manifold to reach the $50 billion export target,” SC Tandon, a representative of Damodar Industries, an Indian fancy yarn manufacturers, told the Dhaka Tribune.
About 20 big factories like Fakir Knitting are importing from the company.
“At present, our annual yarn export to Bangladesh is 500 tonnes, which will reach 2,000 tonnes in next 2-3 years.”
Bangladesh has quality products, plus a large number of skilled workforce, and it can overtake China and become the number one sourcing destination, Tandon said.
“Both exporters and importer can benefit as we are very close to one another and provide products at a reasonable price.”
“Our sales of machinery in Bangladesh have seen a 15%-20% rise as RMG manufacturers went on capacity expansion to meet the higher demands of products,” Abul Faiz Azad, managing director of Confidence Associates, an agent of RMG machinery, told the Dhaka Tribune.
“We are here with the value-added yarns for garments to promote the sector as Bangladesh will remain lucrative for RMG source for at least the next 10 years and its close competitors would not be able to compete,” Chinmay Sharma, manager (export) of Winsome Yarns Limited, told the Dhaka Tribune.
“Our yearly turnover is about $90 million, of which 45% comes from Bangladesh at present.”
The alternative of China in sourcing apparel products is Bangladesh as the buyers are not choosing Pakistan for its unsettled situation, he said.
“A good number of European Union premium buyers source products from Bangladesh, shifting their focus from China,” said Andy Liu, sales in charge of Zoje, a Sewing Machine producers, told the Dhaka Tribune.
The machinery export volume to Bangladesh is increasing while a big Bangladesh RMG manufacturer alone imported 3,500 pieces of machinery last year, said Andy.
“We have about 40 buyers in total.”
“I am agreed with the suppliers comment as we are installing new machines to increase production capacity while replacing the old ones,” BGMEA Vice-President Mahmud Hasan Khan Babu told the Dhaka Tribune.
The trend of inflow of work orders is higher than that of previous years as the buyers are satisfied with the ongoing safety progress, said Hasan.
“As per the current Utilisation Declaration, we have witnessed about 10% growth compared to that last year,” her added.
Source: Dhaka Tribune