Exports to Japan, Korea up 34%

Bangladesh fetched $974 million in export earnings from the Japanese and Korean markets in the first five months of FY23, posting a 34.34 per cent growth year-on-year, amid the global economic crisis, the Export Promotion Bureau (EPB) data shows.

These countries’ share in total export earnings during this period was 4.43 per cent, up from 3.66 per cent between July and November in FY22. The lion’s share of the earnings came from apparels.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan told The Business Post Japan and Korea are among the emerging markets for them.

“We are focusing on making these markets, including others in Asia, as big as the European Union and the US in terms of earnings. We hope to earn $2 billion from Japan and $1 billion from Korea at the end of this fiscal year.”

The EPB data shows the country earned $728 million from the Japanese market in the first five months of FY23, posting a 36.99 per cent growth year-on-year. Of this, $597.83 million came from clothes.

On the other hand, export earnings from Korea rose by 27.56 per cent to $246 million between July and November of FY23 year-on-year. The garment sector contributed $198.56 million to the figure.

RMG makers focusing on Asia Apparel manufacturers were hesitant about receiving Japanese orders in the past as they were worried that they might not be able to ensure quality.

Japanese buyers were also confused about whether Bangladeshi manufacturers could meet the standards, insiders said.

But thanks to automation, a skilled labour force, and better research and development in the clothing sector, both parties’ confidence has increased now, which is also the case in the Korean market.

Besides, better marketing and promotion in Japanese and Korean markets in the recent time helped increase exports, manufacturers said.

Urmi Group Managing Director Asif Ashraf said they have been doing business with Japanese buyers since 2012 and earnings from that market have gradually increased.

“Now we are enjoying duty-free access in the Japanese market and also ensuring product quality, which is helping us achieve tremendous growth.”

“Ensuring quality and meeting shipment deadlines are the most important factors for doing business with them,” he added.

TAD Group Managing Director Md Ashikur Rahman Tuhin said there is huge untapped potential in the Japanese and Korean markets.

“A few years back, Japanese buyers thought we could not ensure product quality. But they now have a positive impression of us. When Japan increased business with us, Korea followed suit. Many Japanese and Korean buyers have set up regional offices here.”

Fatullah Apparels Chief Executive Officer Fazlee Shamim Ehsan said manufacturers always focus on the Europe and US markets.

“But thanks to low orders from these markets during the ongoing crisis, we have started marketing our products in Japan and Korea.”

Southeast Sweaters Managing Director Mahbubur Rahman Lucky said, “Though I am getting huge orders from Western markets, I am also looking for Japanese and Korean buyers to avoid any future crisis.”