Bangladesh export earnings from readymade garments grew 15.65 per cent in July to December of 2018. The sector is continuing its positive export trend, fuelled by value-added products, policy support and completion of 90 per cent of the factory remediation work set by Accord and Alliance. This is attracting buyers from the US and Europe.
From July to December 2018, knitwear exports rose by 13.92 per cent and woven garments exports rose by 17.48 per cent. The four months from October to January are the peak season for shipments of apparel. Future prospects are even brighter for garment shipments.
The tax at source in the export-oriented readymade garment sector was reduced to 0.25 per cent from the existing 0.6 per cent in a bid to enhance the competitive edge of the sector. With the latest reduction, the tax at source for exports in the sector has been reduced for the second time in the current fiscal year. Earlier, on September 5 this year, the tax at source for exports in the sector was reduced to 0.6 per cent from 1.0 per cent.
The US-China trade war has forced many US fashion companies to look for alternative supply sources beyond China, creating a big opportunity for Bangladeshi apparel exporters.