Bangladesh’s exports rise in November, imports decline

Bangladesh’s merchandise exports grew 15.63% year-on-year in November, driven largely by an increase in shipments of ready-made garments, according to data from the Export Promotion Bureau (EPB).

According to EPB data released today, the country’s export earnings reached $4.12 billion in November, representing a $556 million increase compared to $3.56 billion in the same month last year.

Garment exports fetched $3.30 billion in November, recording a 16.25% increase compared to $2.84 billion in the same month last year. 

Besides, exports of frozen and live fish rose by over 15% in November, agricultural products by nearly 16%, pharmaceuticals by over 52%, plastic products by 32.57%, home textiles by nearly 21%, and jute and jute goods by nearly 6%.

Md Anwar Hossain, vice chairman of the EPB, said November’s exports grew due to backlog clearance, and holiday demand related to Christmas, Black Friday and Thanksgiving. 

He noted a 1% export growth to developed markets and 2% to developing markets.

Despite the positive figures, November’s overall export growth was lower than October’s, which had seen nearly a 21% year-on-year increase, EPB data revealed. Bangladesh exported goods worth over $4.13 billion in October. 

Glass and glassware exports decreased by 65% in November, compared to the same period last year. Besides, vegetable exports dropped by 62%, and leather by 22%.

Shams Mahmud, managing director of Shasha Denim, told The Business Standard that growth happened through riding on the growth of some top exporters, as their strong financial footing allows them to perform well. 

“However, small factories are struggling, lacking the financial resilience to absorb shocks.” 

Small businesses often lack assets to provide as collateral for securing additional loans, he said. “Currently, banks are exercising excessive caution when issuing loans, further complicating the situation for these smaller businesses.”

Mahmud added that while the apparel sector has improved after recent unrest, factories in Ashulia are still struggling to secure direct orders, with buyers hesitant due to lingering concerns. 

“Therefore, these factories rely heavily on subcontracting,” he said.

Meanwhile, container handling for export goods at Chattogram Port increased in November, showing a rising trend, while handling of imported goods saw a decline, according to data from the Chittagong Port Authority (CPA).

The port processed 70,396 TEUs (twenty-foot equivalent units) of export goods in November, up from 66,932 TEUs in October – a rise of 3,464 TEUs or 4.94%.

In contrast, imported goods dropped to 1.13 lakh TEUs in November from 1.20 lakh TEUs in October, marking a decline of 6,745 TEUs or 5.94%.

The garment industry faces challenges due to reliance on imported raw materials, said Ruhul Amin Sikder, citing the dollar crisis, LC complications and banking issues. 

Rakibul Alam Chowdhury, a former vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said political instability has shifted orders to competitors, reducing raw material imports. 

“The contrasting trends in export and import container handling reflect the broader challenges facing Bangladesh’s economy, particularly in its largest export sector, the RMG industry,” he added.