Bangladesh’s exports to USA reach new milestone

Despite the intractable nature of Covid-19 pandemic worldwide plus the ramification of the ongoing conflict in Ukraine, Bangladesh’s export to the USA in the last fiscal reached $ 10 billion, posting a 49.38 per cent growth in the country’s largest export destination when compared year-on-year.

Export Promotion Bureau (EPB) data shows that Bangladesh earned $10.41 billion through exports to USA – which is 20 per cent of the total exports – in FY22, a significant increase from $6.97 billion posted in FY21.

This is indeed heartening news amidst a time when the European war is compelling many nations, including Bangladesh, to opt for a countrywide austerity drive.

While some of our South Asian neighbours are struggling to cope with raging inflation, stagnant economy plus a precipitous fall in foreign currency income, Bangladesh has tackled the fall-out from both Corona and the Ukraine war with marked resilience.

During the pandemic, many other nations, went for a complete shutdown resulting in countless orders coming to Bangladesh and the ten billion dollar mark is a testament to our capability to export products despite supply chain disruptions within a set time frame.

Of the export earnings to the land of the stars and stripes, over $9 billion came from RMG products, of which $5.89 billion from woven products and $3.12 billion from knitwear products. Bangladesh exported home textile goods worth $311 million, followed by caps worth $281 million. Leather and leather goods earned $422.85 million, of which $330.55 million came from leather footwear, $92 million from leather goods, and $267,902 from craft leather. Meanwhile, the non-leather footwear sector earned $353 million. Since the early 1970s, Bangladesh has been exporting shrimps followed by crabs and the country earned $44.81 million from fish and crustacean exports, followed by$17 million from combs and hairpins, $17.54 million from sleeping bags, $17 million from wood furniture and $14 million from optical, photographic, and cinematographic products.

The furniture sector is notable as it flourished in the last twenty years to reach world class quality. However, the industry was battered by the pandemic which several high end furniture shops were forced to shut down as people stopped buying non-essential items.

There is a risk that entrepreneurs who owned furniture business decided to either scale down or move to another trade altogether. If banks plus government provides some incentives and loans on easy conditions the sector won’t have to go into a slump.

It’s widely known that RMG dominate the export basket and while this has taken ‘Made in Bangladesh’ to wardrobes of millions across the world, there is a need to diversify because dependence on one item always has its downside.

It may come as a pleasant surprise but Bangladesh exported $32.5 million worth of wigs and human hair from the EPZs in the fiscal year (FY) 2019-20 and the amount was $. 57.13 million in the last fiscal year, according to Export Promotion Bureau (EPB) data.

With the global demand increasing day by day, some 150 factories in Dhaka, Nilphamari, Bagerhat, Pabna, Gazipur, Sherpur, Nagoan, Rajshahi and other districts are now producing wig products such as toupees, wefts, and hairpieces for clients from different corners of the world.

According to the International Society of Hair Restoration Surgery (ISHRS), the global hair wigs and extensions market is expected to reach $13.3 billion by 2026, growing at a compound annual growth rate of 13 per cent between 2021 and 2026.

The challenge for Bangladesh will be to retain orders, which came during the strict Covid-19 restrictions in other competing nations. To ensure uninterrupted operation of factories, the crucial point is the unhindered supply of power and gas. In recent times, there have been concerns about power supply, which can be addressed once the government prioritises hydropower deals with Nepal and Bhutan, and looking into solar and wind power possibilities.