RMG and its journey of resilience

The fiscal year 2022-2023 stood as a testament to the unyielding spirit and commitment to sustainability of the Bangladeshi garment industry. We faced unimaginable challenges - from the global dynamic shifts that reshaped trade landscapes, to the relentless grip of inflation and the slowdown in the global economy. Yet, amidst these hardships, we, the BGMEA family, stood tall, not only weathering the storm but emerging stronger and setting ourselves apart through our dedication to sustainability.

We not only weathered the storm but emerged stronger, setting new milestones in export. According to the statistics, RMG exports touched a new milestone of about US$ 47 billion registering a growth of 10.27% year-on-year. Out of the total RMG export, knitwear saw 10.87% year-on-year growth, with an export turnover of US$ 25.73 billion. Woven garment exports reached US$ 21.25 billion with 9.56% growth. This fiscal year remains a landmark for us since December 2022 set the record of the highest export in a single month, which is US$ 4.67 billion. Such a performance has brought the share of RMG in the overall export of Bangladesh to 84.58% in FY 2022-23, from 81.82% in FY 2021-22. If we add all textile and related articles to RMG (including home-textile, headgear, specialized textiles including silk and wool, and textile waste), then the year-end export turnover reaches US$ 49.24 billion, accounting for 88.35% of our national export earnings. I am sending the data in the attachment for your reference.

This is undoubtedly a significant accomplishment as we are passing through a turbulent time when global trade is shrinking. I congratulate you, my fellow entrepreneurs, for such an accomplishment. This remarkable feat would not have been possible without the unwavering resilience of yours. We are humbled to facilitate and support this journey from BGMEA, and we pay our deepest gratitude to the Government of Bangladesh, for the unparalleled support which has led us to secure this position.

Let me put in record that during the fiscal year 2022-23, Bangladesh's total exports reached US$ 55.56 billion with 6.67% year-over-year growth, which was the highest-ever export earnings in the history of Bangladesh. Well, the growth in total exports fell short of the growth of RMG exports, meaning that while RMG exports grew by 10.27% in this fiscal, the non-RMG and non-textile exports declined by 8.62%. This is certainly not a healthy sign for the economy and we always have been supporting and promoting sector diversification; this contrast in growth in favor of RMG is a testament to your dynamism and determination.

This momentum in exports did not come by chance. You dared to break new ground, venturing into untapped markets, and investing in backward linkage industries, securing our supply chains and propelling us towards self-sufficiency. We witnessed a qualitative shift in our product portfolio, moving beyond basic garments to higher-end products like non-cotton, outerwear, activewear, and suits. This diversification showcases our evolving capabilities and commitment to meeting the changing demands of the global market. These factors, combined with our resilience, adaptability, and innovative spirit, set us apart from our competitors. Through these, we provide a sense of confidence and resilience to our customers and our stance on adaptability and flexibility to changes.

The wheels of our achievements don't just stop there. Bangladesh boasts the highest number of USGBC Certified LEED Green factories in the world, two of which hold the number one and number two positions globally. We embraced due diligence and started our journey to champion circular economy principles. To facilitate this transformation BGMEA has set up the Responsible Business Hub and a dedicated Circular Fashion Unit to provide information and advisory services. We established our very own Center for Innovation, Efficiency, and OSH (CIEOSH) at BGMEA, to support the industry with knowledge, skills, and technical know-how to face future challenges and enhance its competitiveness. The success of these facilities at BGMEA greatly relies on your active involvement, support, and guidance.

While we celebrate the industry's progress and accomplishments, we are not complacent about the export growth. The global economy and retail forecasts remain under a heavy cloud. As we await the silver lining, strategic and long-term initiatives will keep us ahead and on the right course. Let us face the challenges ahead with the same spirit that has always defined the Bangladesh RMG Industry. Let us work together, innovate, and adapt, leveraging our strengths and collective wisdom to reach even greater heights.

Author: Faruque Hassan; The president-elect of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).