Japan, S Korea can be Bangladesh’s next big apparel markets

Bangladeshi apparel exporters are looking to get a strong foothold in Japan and South Korea’s traditionally China-dominated markets with diversified quality goods at reasonable prices.

Fazlee Shamim Ehsan, vice president of Bangladesh Knitwear Manufacturers and Exporters Association, said Bangladesh has duty-free access to Japan. He said they need more exposure and meetings with stakeholders and governments of Japan and Korea.

“We can attract buyers through roadshows if the government arranges them,” Ehsan said.

Japan’s finance ministry data show the country imported $11.93 billion in apparel goods in the first half of 2021. A staggering 92.95 per cent of the imports were from the Asian region, and goods worth $6.33 billion came from China. In FY20-21, the imports were $24.72 billion, with the bulk ($22.96 billion) from Asia – $13.57 billion alone from China.

In the July-October period, Bangladesh exported $360 million in apparel goods to Japan – a 17.9 per cent growth.

In FY21, Bangladesh’s apparel export earnings from Japan was $945 million, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

On the other hand, South Korea imported around $18 billion in apparel goods, mostly from China in FY21.

From July to October this year, apparel export earnings from Korea was $117 million with a 10.11 per cent growth. In FY21, export earnings were $322 million, BGMEA data showed.

Of the apparel sector’s $31.46 billion export earnings in the last FY, $1.27 billion or 4 per cent came from Korea and Japan.

BGMEA President Faruque Hassan said they were focusing on boosting their presence in the Asian market. “Japan and Korea are our top priority. As part of our apparel diplomacy, we have already met ambassadors of both countries and expressed our interest. Now we need roadshows and business dialogues,” he said, hoping to arrange roadshows in Japan and Korea next year. Bangladesh currently enjoys duty-free access to Japan, and the government is trying to sign a preferential trade agreement or free trade area agreement with Korea.

Industry insiders say Bangladeshi exporters will need more research to diversify their products and branding. BGMEA Vice-President Shahidullah Azim noted that they were researching the markets.

“We will earn billions if we can create a strong presence in Japanese and Korean markets. We need the government’s support,” he said.

Commerce Minister Tipu Munshi said that Bangladesh was trying to boost export to non-traditional countries like Japan, Korea, Russia, the Gulf region and Brazil.

“We are trying to sign PTA and arrange roadshows. We will provide all kinds of support to boost our export,” he said.