Message from Marlon Lezama, Program Manager, SouthAsia Enterprise Development Facility (SEDF)

The SouthAsia Enterprise Development Facility (SEDF), a facility established and managed by the International Finance Corporation (IFC), World Bank Group, in collaboration with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) is pleased to sponsor the first Bangladesh Knitwear Sourcing Trade Show in the USA as part of its Post MFA Program of technical assistance for Bangladesh knitwear sector. The trade show will provide an excellent opportunity for knitwear manufacturers to exhibit their high-value products to buyers in the USA.

The growth of the Bangladesh knitwear sector over the last 15 years has been phenomenal. The cumulative average growth rate of the sector is 27%. The epic story of the knitwear sector has been the massive industrialization in a sustainable way affecting all aspects of human development. The core strength of this knitwear sector is its backward linkage with a 75% value addition within the country. This became possible due to integrated growth of spinning factories in line with the growth of the country's stitching capacity. As a result shorter lead times were achieved - a bonus for buyers. In the post-MFA world, lead time has emerged as a crucial determinant of competitiveness.

The Ready-Made Garment (RMG) sector is the mainstay of Bangladesh's economy. Trade is thus vital to Bangladesh's economic growth prospects. As global RMG competition rises, the Bangladesh knitwear sector is making every effort to expand and to embrace this competition. Three-quarters of all 2003/04 exports -- $5.7 billion of a total $7.6 billion – came from sales of knitwear and woven goods, and 96 percent of all RMG products were exported to the USA and the EU. Although the RMG sector contributes 5% to the country's GDP, it is the largest source of industrial jobs. Along with accessory industries it provides direct employment for over 2 million workers, mostly women. Additionally, eight million more Bangladeshis rely indirectly for their livelihood on the RMG industry. RMG not only accounts for 40% of industrial employment, but has also become the main source of foreign exchange earnings needed to finance vital imports of capital goods and essential inputs while serving, as well, as an important training ground for a growing number of new entrepreneurs, several of whom are participating in this event.

The Bangladeshi Knitwear Sector's potential in producing high value garments has been widely recognized, particularly in Europe. This trade show will provide a valuable and long overdue platform in the US for buyer-seller networking opportunities and an occasion for buyers and importers in the USA to view a complete range of quality knitwear products made in Bangladesh.

The goal of the Bangladesh Knitwear Sourcing Trade Show is to increase export sales of Bangladeshi knitwear products to the USA. This trade show will also assist Bangladeshi knitwear manufacturers to develop new market contacts and enter into other collaborative arrangements with knitwear buyers and importers in the USA.

Launched in 2002, SouthAsia Enterprise Development Facility is based in Dhaka, Bangladesh and focuses on the constraints faced by small and medium enterprises (SMEs) in Bangladesh, Bhutan, Nepal and North East India. SEDF's objective is to reduce poverty through SME development. SEDF is delighted to be associated with this initiative.

 

Message from Md. Fazlul Hoque, President, BKMEA

BKMEA, in association with the SouthAsia Enterprise Development Facility (SEDF), is going to arrange the Bangladesh Knitwear Show in New York from November 14 to 16, 2005.

This is the first of its kind in the history of Bangladesh RMS sector when Knitwear showcasing their product in US sail. Total 45 companies will take part in the show. This will be the unique opportunity for the Bangladeshi companies to identify the US market and for the US buyers to discover the quality knitwear of Bangladesh.

Before the quota phase out, many people said Bangladeshi Knitwear would be affected badly. But the entrepreneurs proved the forecast wrong. In the first six months after post-MFA the export of Knitwear has increased 25.58 % compared to the same period in 2004. Relentless pursuance to quality & design, enhancement of social compliance standard commitment to the buyers, shorter lead time etc. makes it possible to have the positive result. According to a study (Tuesday, May 17, 2005) of the women's wear daily, Bangladesh is one of the top 3 gainer after the Post-MFA.

Thanks to adequate backward linkage, available efficient & cheap labour, hard working entrepreneurs, effective management and favourable government policies; all these boosted Bangladeshi Knitwear to flourish tremendously. Knitwear has emerged as the country's second largest export earning sector. With the current growth (Average 27%), Knitwear will be the largest export sector within June 2006. Last year Bangladeshi knitwear export amounted US$ 2819.47 million where total RMG export was US$ 6417.67 million.

Though Bangladeshi Knitwear is increasing its share in the world market, share in US market is not significant which is about 3%. So there is enough scope to explore this market and the Bangladesh Knitwear Sourcing Trade Show will bridge the gap between Bangladeshi Knitwear manufacturers & importers to come closer and plant the long-term relationship which will benefit both counter parts.

I appreciate SEDF and extend my thanks to them to cooperate with us in jointly organizing this show. I wish every success of the show.