Export Performance of Bangladesh RMG Sector

The entrepreneurs of the knit sector stepped forward with their expertise in the late 80's. With their earnest efforts they were able to export US$ 14.84 million in 1989-90. Out of this, US$ 12.22 million was exported to EU and US$ 2.02 million was exported to US. The trend continued in the knit sector because of the market access opportunities provided to the LDCs under the Generalized Systems of Preference (GSP) benefit.

This is the rejuvenated beginning of the epic story of Bangladeshi knitwear sector that in true sense has been possible due to massive industrialization in a sustainable way with effect on all probable human development aspects which is the encouraging part of the story.

The growth of knitwear sector is increasing at an increasing rate. The cumulative average growth rate of the sector is 20%. And it is continuously grabbing more portions in the export pie of Bangladesh. This is mainly attributed to the facilities provided under the EC GSP and ROO. The knitwear sector is heavily driven by the favorable policies and took the opportunity to develop a strong backward linkage for the sector.

The EU is the main export region of Bangladeshi Knitwear constituting 72.68% (US$ 4.71 billion) of total knitwear export followed by the USA (13.75%, i.e. US$ 891.61 million) in the year 2009-10. This is mainly attributed to the facilities provided under the EC GSP and favorable ROO. The knitwear sector is heavily driven by these favorable policies and took the opportunity to develop a strong backward linkage for the sector where the value addition is about 75%. The two-stage transformation requirement of ROO in 1999 boosted market penetration in the EU further; it contributed a growth of 101.19% since 2000-2001.