Of RMG exports

Accounting for about 40 percent of import volume in 2010, China has long dominated the American and US markets for ready-made apparel. However, a recent survey found that another much smaller competitor is rapidly on the rise to become the next hot-spot for ready-made garment sourcing. Many Western buyers cite declining profit margins and capacity constraints as a major reason for wanting to decrease apparel imports from China in the next five years; a whopping 89 percent believe Bangladesh to be the worlds next most profitable apparel sourcing venue, according to the survey conducted by McKinsey & Company. The biggest and most important industrial sector for Bangladesh, contributing upwards of 13 percent of the GDP and a whopping 75 percent of total exports. Bangladeshs export value is expected to grow by 7 to 9 percent annually, and is slated to double by the end of 2015. According to the report, half of all survey respondents remained positive about that countrys potential mainly as a consequence of the attractive price levels offered which are expected to remain competitive with expected efficiency increases planned by the sectors policy makers to offset wage costs. The survey, which collects the opinions of 28 chief operating officers from leading apparel companies in Europe and US have remained mainly optimistic about the challenges and opportunities facing the Bangladeshi textile industry, with half the respondents mentioning the sectors capacity as one of its biggest strengths. The statistics speak for themselves. Witnessing a 6.5 percent growth over last years export total, exports to the European and American markets alone went up to $6 billion during FY12 according to the Export Promotion Bureau of Bangladesh. With roughly 5,000 industrial units employing 3.6 million people out of a workforce of 74 million, Bangladeshs RGM exports; which totalled $19 billion during FY12, are expected to go from strength to strength and the country is expected to triple its market size by 2020. On a comparison, Pakistani exports have taken a nosedive in recent times as a result of sharp increase in unit prices and lack of demand that was concentrated within European countries such as France and Germany. The worsening debt crisis and low consumer confidence had meant that Pakistan had been faring particularly badly against neighbours like Bangladesh in the global garment market. As of now, Bangladesh enjoys duty-free access to markets like Russia and Malaysia and recently there has been much ado about Dhaka gaining further access into the American market without having to pay the 15.3 percent duty on its RMG that it currently pays. If and when this happens, the global trade in the apparel sector - which happens to be the highest value-added segment in the textile chain- is likely to become entirely one-sided with Bangladesh forecasted to become one of the biggest players in the world market.