“An analysis of the Export Performance of Bangladesh: A Study Based on the Export Processing Zones”

1. “An analysis of the Export Performance of
Bangladesh:
A Study Based on the Export Processing Zones”
Submitted By:
Samia Ibrahim- 1430006
Irin Akter-1430020
Salva Wahida-1410040
Bijoya Bhowmick-1410050
Asma Ul Husna Bushra-1410109
Submitted to:
Dr.Syed Manzur Quader
Date of Submission: 16th April, 2015

2. Letter of Transmittal
April 16th 2015
Dr. Manzur Kader
Assistant Professor
Chittagong Independent University
Subject: Submission of Term Paper on “An analysis of the Export Performance of Bangladesh:
A Study Based on the Export Processing Zones”
Dear Sir,
This is a great pleasure for me to submit my term paper on “An analysis of the Export
Performance of Bangladesh” as a requirement for our completion of MBA 510 course. This has
been a great source of learning and helped me a lot to achieve practical knowledge.
I have put my best effort in making this paper and tried to make this report informative, practical,
and relevant. I hope and believe that this report will satisfy your requirements and expectations.
However, I would like to express my sincere gratitude to you for your kind guidance,
cooperation and suggestions in preparing this paper which will definitely help me in future
endeavors. It would be my immense pleasure if you find this report informative.
I shall be happy to provide any further query and clarification regarding this report.
Yours Sincerely,
Samia Ibrahim

3. Acknowledgement
First of all I am grateful to Almighty ALLAH.
I would like to thank our honorable faculty member Dr. Manzur Quader for being so kind,
cooperative, and supportive the entire time. I am grateful to him for his valuable suggestions and
time that he has spent in guiding me. The past few months have been a wonderful experience for
me, full of challenges and satisfaction. This has obviously been a great source of learning for me.
Without his support it would not have been possible for me to complete our paper on time.

4. Executive Summary
The Export Processing Zones of Bangladesh has been playing a important role in the economy of
the Bangladesh. After the Establishment in the year 1983 the EPZs has contributed effectively in
attracting foreign investments and export performance. This study intends to explore the export
performance of Bangladesh and the impact of EPZs on the export sector. It attempts to examine
the performance of RMG export of Bangladesh. This study focuses on Total Investments in
EPZS, Total exports, Contribution in national export, Export diversification, Destination of the
products. The data’s were being collected from various official websites.

5. Table of Contents
1.0 Introduction............................................................................................................................... 1
1.1 Purpose of study:................................................................................................................... 2
2.0 Literature Review...................................................................................................................... 2
3.0 Research Methodology ............................................................................................................. 3
3.1 Research Design:................................................................................................................... 3
3.2 Data Sources: ........................................................................................................................ 4
3.3 Limitations ............................................................................................................................ 4
4.0 Findings and Analysis............................................................................................................... 4
4.1 Export processing zones of Bangladesh: .............................................................................. 4
4.2 Mode of Investments in EPZs:.............................................................................................. 5
4.3 RMG sector of Bangladesh:.................................................................................................. 6
4.4 Total Investment in EPZS:.................................................................................................... 7
4.5 Contribution of EPZs in National Export: ............................................................................ 8
4.6 Export Diversification......................................................................................................... 10
4.7 Export Earning By Different Sector: .................................................................................. 13
4.8 Major Exported Products:................................................................................................... 14
4.9 Cumulative Performance of Export Processing Zones:...................................................... 14
4.10 Total Export Earnings of EPZs ......................................................................................... 15

6. 4.11 Destination of the Products............................................................................................... 17
4.12 Contribution of RMG Sector in National Export:............................................................. 20
4.13 Value of Total Apparel Export: ........................................................................................ 22
4.14 Growth of Major exported Products of RMG sector: ....................................................... 23
4.15 Major Destinations of RMG Export ................................................................................. 25
5.0 Conclusion: ............................................................................................................................. 27
References .................................................................................................................................. 28

7. 1
1.0 Introduction
Since Independence Bangladesh has made remarkable economic progress. After 1971 export
promotion became a major concern for Bangladesh because export is a tool which can boost up
the economic progress of a country. In order to make this tool work a number of steps have been
taken over the years to attract foreign direct investments and facilitate industrialization process
of Bangladesh. But adequate inflow of FDI was needed to promote exports. In order to provide
similar treatment to domestic and foreign investors the Foreign Private Investment Act (1980)
was enacted. In order to attract FDI it was required to develop infrastructure and other structural
reforms. Since the country wide development of infrastructure would be expensive and
implementation of economic and structural reforms would require time, establishment of EPZ’s
was viewed as an important strategic tool for expediting the process of industrialization in the
country (Mondal 2003).
In 1980 government enacted the BEPZA Act which later instituted the government organ
Bangladesh Export processing zone Authority and now responsible for creating and operating the
Export Processing Zones of Bangladesh. Since the establishment of EPZs Bangladesh has
achieved phenomenal export success through them. The Country started the EPZ program in
1983 with the creation of Chittagong EPZ. Encouraged by the tremendous success of Chittagong
EPZ government has established seven more zones.
These eight EPZs are now making a critical contribution to Bangladesh’s economic growth by
inviting investments in manufacturing, infrastructure and power supply sector. These EPZs have
been key to the rapid rise of exports over the last 20 years. Since the establishment of EPZ’s the
average growth of export has been 23% and by 2010 export has reached USD 2.9b by 2010.
The Effectiveness of EPZ’s are under threat because of lack of power supply, limited gas
connections, frequent hikes in power tariffs and higher operating costs etc. If these problems are
not tackled effectively then the growth of exports through EPZs will be hindered.

8. 2
1.1 Purpose of study:
In this paper we have outlined some objectives which mainly focus on the export performance of
Bangladesh
The objectives of the study are:
a. To analyze the export performance of Bangladesh Export Processing zones.
b. To analyze export diversification
c. To Analyze export performance of RMG sector of Bangladesh
2.0 Literature Review
An Export processing zone is a trade policy instrument which can be used to attract foreign
direct investment (FDI) to a host country. EPZ is a Special economic Zone where the
government provides facilities and incentives to attract foreign investors. EPZ can be defined as
“An industrial estate that specializes in manufacturing for export. It offers firms free trade
conditions and a liberal regulatory environment.” (World Bank, 1992: 7).
The aim of EPZs is to promote non-traditional manufacturing exports from the host country
because of increased multinational company inward investment. The investments should lead to
production, exports and employment from EPZs. There are also hoped to be important
demonstration effects, which should help to develop domestic industry’s international
competitiveness (Furby, 2005).
A backward linkage is one of the indirect effects from the EPZs. These will occur when EPZs
Companies buy inputs from companies in the host country (Furby, 2005). These effects help the
host country to produce their own raw materials, design their machinery and gain critical tactics
to achieve higher output. EPZs Company output can be sold on the domestic market (Tantri,
2011).
If the host country government allows the sale of EPZs company products on the domestic
markets, this can act as a forward linkage. The sale of EPZ production in the domestic market

9. 3
produces more competition which promotes efficiency. Local firms are forced to make higher
quality products and meet stricter delivery routines to be competitive with MNC (James, 2009).
The idea of EPZs developed from the older concepts of industrial parks and free trade areas that
appeared in the late 1950s and early 1960s (Madani, 1999). Export processing originally meant
that the zone sold its products on international markets but over the time host country
governments have softened the rules and regulations. So that now some proportion of EPZ
products are allowed to be sold in host country domestic market (ILO, 2008).
EPZs have been shown to be one of the vital instruments in developing a country’s economy
over the last few decades (OECD, 2007; ILO, 2011; UNCTAD, 2009; WEPZA, 2012; World
Bank, year).When Bangladesh experienced severe economic problems after independence, EPZs
played an important role in response to employment, exports and investment; particularly after
1990 (OECD, 2007, BEPZA, 2008-09).
EPZs are an important attraction for potential investors, who require that the host country have a
well-organized policy mechanism, with good incentives, such as tax-free status and strong
security (Kenkesu, 2003a). The infrastructures, training education and university, these each
element stimulate EPZs acts very smoothly and that brings EPZs success (Madani, 1999). EPZs
require good transport links, which includes easy access to roads, railways, air and seaports
(Tantri, 2011). Without proper road access, railway, air and seaport these zones cannot be
lucrative for foreign investors (Magnus, et al 2000).
3.0 Research Methodology
3.1 Research Design:
This research paper is a compilation of research works undertaken by various researchers. The
data used in this study are compiled from various sources which includes journals, previous
studies and websites. The data have been extracted, systemized, investigated and interpreted in
this paper with proper reasoning, clarification and explanation.

10. 4
3.2 Data Sources:
All the relevant data regarding the study were collected from the following sources:
 The Board of Investment (BOI)
 Bangladesh Export processing Zones Authority (BEPZA)
 The Ministry of Commerce (MOC) of Bangladesh
 Bangladesh Bureau of Statistics
 Bangladesh Export Statistics
 Bangladesh Export Promotion Bureau
3.3 Limitations
 Lack of time was a limitation.
 Limited availability and access to data was also a limitation.
 Personal barriers such as inability to understand certain terms created some problems.
4.0 Findings and Analysis
4.1 Export processing zones of Bangladesh:
EPZs are economic areas where various goods can be manufactured, imported and even
reshipped with reduced duties and minimal intervention by customs officials. EPZs were
established in Bangladesh after 1980 in order to attract foreign direct and capital investments.
Since then EPZs have played an important role in the economy by increasing investments,
exports and creating employment opportunities.
EPZs have now become an essential part of the country’s economy. Government has established
eight EPZs to attract potential investors. In 1983 the first EPZ of the country was established in
Chittagong. Later the success of this EPZ inspired government to set up the second one in Dhaka
in 1993 and by 2005 there were eight EPZs all together.

11. 5
Figure 1: EPZs of Bangladesh
Name of EPZ Year of establishment Location
Chittagong EPZ 1983 Halishohor,Chittagong
Dhaka EPZ 1993 Ashullia,Dhaka
Mongla EPZ 1999 Mongla,Bagerhat
Comilla EPZ 2000 Comilla Town
Ishwardi EPZ 2001 Pabna
Uttara EPZ 2001 Nilphamari
Adamjee EPZ 2006 Siddirgonj,Narayangonj
Kamaphuli EPZ 2006 Potenga, Chiitagong
Table 1: EPZs of Bangladesh
4.2 Mode of Investments in EPZs:
Depending on the source of investment Industries in the Bangladesh EPZ fall into three
categories:

12. 6
 Types A: 100% foreign investment, including investment made by the Bangladeshis
living in the abroad.
 Type B: Joint venture from the foreign investor and the Bangladeshi entrepreneur living
in the country.
 Type C: 100% investment made by the Bangladeshi entrepreneurs living in the country.
Figure 2: Type of Industries in EPZs
4.3 RMG sector of Bangladesh:
Bangladesh is the second largest exporter of readymade garment products trailing China
according to the McKinsey report (2011). In recent years RMG sector has emerged as the biggest
source of Country’s foreign currency. Since the establishment of RMG industry in 1970 the
growth of export level was steady but after 1990s it has experienced exponential growth and
grew by more than 15 percent per annum on an average. Now the RMG sector of Bangladesh
has become a top global exporter.
Today RMG has become the largest export industry of our country and the foreign exchange
earnings have been increasing at double-digit rates from year to year. It’s a multi- billion dollar
manufacturing industry and contributes 75% of total export.
Flexible labor market laws, availability of raw materials, price competitiveness are some of the
reasons behind the success of RMG sector. But poor infrastructure, political instability, poor
transportations system etc are slowing down the growth of this potential industry.
Type A
Type B
Type C

13. 7
4.4 Total Investment in EPZS:
Foreign Direct Investment has increased in the EPZs during the last few years despite worldwide
recession. The actual investment in EPZs grew by 41% according to official statistics. Till now
the total investment in EPZs are 3057.11 million.
Table 2: Total Investment
Source: Bangladesh Export Processing Zones
Year Investment (US$m) Year Investment (US$m)
1994-1995 35.93 2004-2005 118.52
1995-1996 30.58 2005-2006 112.89
1996-1997 53.90 2006-2007 152.37
1997-1998 68.83 2007-2008 302.19
1998-1999 71.61 2008-2009 148.03
1999-2000 34.98 2009-2010 221.99
2000-2001 48.41 2010-2011 313.23
2001-2002 55.61 2011-2012 339.26
2002-2003 102.63 2012-2013 328.53
2003-2004 115.04 2013-2014 402.58
Total 617.52 Total 2439.59

14. 8
Figure 3: Total Investment in EPZs
Figure 3 above shows the total investment of EPZs from 1994 to 2014. We can see an upward
trend in the investment volume over the years. The total investment in BEPZAs has grown very
fast after 1994. After 2000 the trend went sharply upward. Over the years, the EPZs have seen a
positive growth in investment. The rising investments are the result of increasing number of
export processing zones. BEPZA has been attracting more and more investors in the Individual
EPZs.
4.5 Contribution of EPZs in National Export:
In April- June 2012 Bangladesh total exports were $5669mn, of which BEPZs contributed
$921mn (Bangladesh Bank, 2012). According to BEPZA, in the total export earning of the
country, the share of EPZs increased from 16.51% in 2000-2001 to a spectacular rate of 17.37%
in 2013-14.
0
50
100
150
200
250
300
350
400
450

15. 9
Table 3: BEPZA’s contribution towards total national Export
Source: Bangladesh Bureau of Statistics
The EPZs have exported goods worth of US$ 33287 million up to June, 2014 and it was US$
18271 million till June 2010. During the last 4 years the export volume increased to about US$
15160 million.
Year Total export of Bangladesh
(m US$)
Total export of EPZ (m
US$)
% of BEPZA
contribution (m US$)
2000-01 6467 1068 16.51
2001-02 5986 1077 18.00
2002-03 6548 1200 18.33
2003-04 7603 1354 17.80
2004-05 8654 1548 17.88
2004-05 10587 1836 17.34
2006-07 12178 2069 17.00
2007-08 14113 2430 17.22
2008-09 15800 2722 17.23
2009-10 16200 2823 17.42
2010-11 21456 3697 17.23
2011-12 27475 3728 17.25
2012-13 31524 3798 17.30
2013-14 33587 3937 17.37

16. 10
Figure: 4: BEPZA’s contribution towards total national Export
The Figure 3 shows that with the increase of export the contribution of EPZs to the total national
export is increasing every year. The export Performance of the EPZs is much more impressive
than that of the country as a whole because it shows that the annual rate of growth of export
earnings of the EPZs has been more than six times higher than the total national export earnings
of Bangladesh.
4.6 Export Diversification
Initially the export base was set on primary commodities like raw jute, tea, fish, agricultural
products etc. because the economy of Bangladesh is mostly agro-based. Before the establishment
of RMG sector, Jute and Jute products dominated the export sector by making up to 70 % of
exports in early 80’s. But with the constant development of economy the focus has now shifted
on the manufacturing commodities.
0
5000
10000
15000
20000
25000
30000
35000
40000
Total Export of
Bangladesh (US$m)
Total Export of EPZs
(US$m)

17. 11
The diversification of the country’s export started with the development of RMG sector. 90% of
EPZs exports are now represented by the RMG and textile cluster. Other than these at present
Bangladesh is exporting 27 manufactured commodity products to almost 200 countries.
During 2007-08, Out of the total export earnings of US dollar 22934.23 million the share of
primary commodities stood at US dollar 1395.93 million and the manufactured products at US
dollar 21538.3 million.
Product Names 1982-
1983
1987-
1988
1992-
1993
1997-
1998
2002-
2003
2007-
2008
Agricultural
Products
.713 3.865 7.016 14.528 19.094 39.137
Raw Jute 133.841 96.933 109.813 80.534 74.326 107.767
Tea 9.688 45.270 46.757 38.953 41.143 47.467
Frozen Food 3.061 19.448 72.054 139.651 165.340 293.836
Crude Fertilizer .201 .391 .399 .066 1.623 .072
Animal Casings .011 .118 .191 .117 .092 .154
Others .678 1.686 3.090 2.465 7.502 4.597
Total 148.193 177.711 239.32 276.908 309.12 493.03
Table 4: Export Volume of Primary Commodities (US$m)
Source: Bangladesh Export Statistics
Product Names 1982-83 1987-88 1992-193 1997-98 2002-03 2007-08
Leather 16.182 45.378 58.456 147.170 147.906 190.260
RMG 31.57 433.921 1240.48 2843.327 3598.205 4912.09
Jute Goods 179.257 249.006 319.692 302.415 292.370 281.425
Chemical Products 1.06 3.231 11.680 26.527 55.005 74.176
Petroleum by
Products
5.95 11.656 30.833 11.975 36.806 10.927

18. 12
Handicrafts .039 1.761 2.479 3.756 5.431 5.995
Paper & Allied
Products
3.054 8.668 4.682 11.873 2.631 .042
Engineering
Products
- .161 2.492 2.809 17.512 19.643
Others .024 6.274 1.037 2.620 25.300 159.967
Total 237.136 760.056 1671.83 3352.47 4181.17 5654.525
Table 5: Export Volume of Manufactured Commodities (US$m)
Source: Bangladesh Export Statistics
Figure 5: Export Growth of Primary & Manufacturing Commodities
In figure 5 we can see a significant shift from the primary commodity centric export to
manufacture centric. Compared to the manufactured commodities the growth rate of Primary
commodities declined although the absolute quantity of export increased over the years. The rate
of growth was much lower than the manufactured products. This happened due to dominance of
148.193
177.711
239.32 276.908 309.12 493.03237.136
760.056
1671.83
3352.47
4181.17
5654.525
0
1000
2000
3000
4000
5000
6000
7000
1982-83 1987-88 1992-93 1997-98 2002-03 2007-08
Manufactured
Primary

19. 13
the nontraditional commodities against the traditional commodities. This structural shift in the
export sector is the result of the faster growth in the RMG sector of the country
4.7 Export Earning By Different Sector:
EPZ enterprises derives highest dividend in terms of their investment. During 2009-2010 fiscal,
average export performance of enterprises stands around 1.84 times of their actual investment.
PRODUCT UNIT
INVESTMENT
(US$ m)
EXPORT
US$
GARMENTS 58 343.461 1016.64
TEXTILE 28 305.245 476.18
TERRY TOWEL 16 39.886 57.83
KNIT & OTHER TEXTILE 25 124.268 213.41
GARMENTS ACCS. 32 142.008 201.65
CAPS 6 42.421 112.42
TENT 5 23.869 59.67
ELEC & ELECTRONICS 16 54.359 52.18
FOOTWARE & LEATHER 12 57.830 54.94
PLASTIC GOODS 14 22.052 15.88
PAPER PRODUCT 2 0.837 0.94
ROPE 2 6.134 5.64
MISCELLANEOUS 23 36.524 12.78
Gr. Total 264 1262.16 2322.63
Table 6: Export Earning by Different Sector
Source: Board of Investment, Bangladesh
EPZ’s enterprises produce different products. The overall production has a huge impact on
economy of the country. Each & every sector contributes in the national income by bringing a
large amount of foreign currency in Bangladesh.

20. 14
4.8 Major Exported Products:
Currently Bangladesh’s major export items are garment products, leather, jute and jute related
products, frozen foods, chemical etc. In 2010-11 the export performance of the country raised to
US$ 22 million. The contribution of major exportable commodities in export is shown below:
Figure 6: Bangladesh Export by Major Products (2010-11)
Source: Export Promotion Bureau, Bangladesh
4.9 Cumulative Performance of Export Processing Zones:
The following table reveals that the total numbers of industries in EPZs rose up to 497, among
them 329 are currently operating their business and 168 are under implementation. Half of these
are located in CEPZ and DEPZ. The cumulative investment in EPZs is USD 2117.69 and export
is USD 25434.89.
46.53
28.25
5.13
3.24
2.78
1.59
1.05
0.21
11.22
Woven Garments
Knitwear
Frozen Food
Jute Products
Leather
Chemical Products
Raw Jute
Tea
Other

21. 15
Export Processing
Zones
Industries
Investment
(US$ in m.)
Export
(US$ in m.)
In
operation
(no.)
Under
Implementation
(no)
Chittagong EPZ 161 15 858.48 13178.79
Dhaka EPZ 98 6 785.93 10969.99
Comilla EPZ 20 23 136.57 563.95
Mongla EPZ 8 8 5.14 74.52
Uttara EPZ 6 1 16.73 9.08
Ishwardi EPZ 7 19 49.89 41.35
Adamjee EPZ 15 36 129.68 353.25
Karnaphuli EPZ 14 60 135.29 243.96
Total 329 168 2117.69 25434.89
Table-7: Zone-wise performance (up to June 2011)
Source: BEPZA
The collective investment in CEPZ and DEPZ is US$ 1644.41 million while the total investment
of all the eight EPZS is US$ 2117.69 million. This reflects that investors are more interested in
CEPZ & DEPZ because of greater facilities and infrastructure.
4.10 Total Export Earnings of EPZs
During the past 24 years, the total export of the EPZs has amounted to US$18,914.74m. The
following table shows the export receipts by the EPZ enterprises since 1988-89.

22. 16
Year Export (US$ in m.) Year Export (US$ in m.)
1988-89 16 2000-01 883
1989-90 34 2001-02 867
1990-91 48 2002-03 929
1991-92 68 2003-04 1027
1992-93 110 2004-05 1180
1993-94 103 2005-06 1362
1994-95 205 2006-07 1516
1995-96 278 2007-08 1732
1996-97 370 2008-09 1900
1997-98 539 2009-10 2150
1998-99 606 2010-11 2801
1999-00 725 2011-12 3426
Total 3102 Total 19773
Table 8: Year Wise Cumulative Export
Source: Bangladesh Export Processing Zone Authority
The export earnings were worth US$ 19773 million in last 12 years and per year it was
increasing. But this Figure was only US$ 3102 million in previous 12 years.

23. 17
Figure 7: Total Export of BEPZ’s
Figure 6 above shows the total export of EPZs from 1988 to 2012. We can see an upward trend
in the export volume over the years. The export expanded because the success of the individual
EPZs export Encourage the government to increase the number of BEPZs. These two factors
expanded the total export. When there was only one EPZ the rate of increase in export was very
slow, with the establishment of more and more EPZS the volume rose sharply.
4.11 Destination of the Products
Bangladesh has achieved tremendous success in export sector by exporting goods all over the
world. This is the result of higher quality and lower price of the products. It seems that
Bangladesh has been doubling its exports every six years and expanding its destinations.
The following table represents the regional export market share of Bangladesh
0
500
1000
1500
2000
2500
3000
3500
4000
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12

24. 18
Destinations Market Share
European Union 52.3%
American Region 33.3%
Asian Region 8.8%
Middle East 2.5%
African Region 0.6%
Oceania Region 0.3%
East European Region 0.3%
Other 1.8%
Table 9: Regional Export Market Share
Source: Bangladesh Export Processing Zone Authority
Bangladesh is dependent of export earnings from EU and USA. The EU and North America have
been important markets for Bangladesh and it is likely to remain so for many years to come.
Europe, Asia and America are very necessary for Bangladesh. Because Europe and America
together hold over 85 percent of the country's exports market share, Asia holds about 8 percent
of the share. The market share of rest of the world is only 5.5 percent.
Australia, Norway, Japan, Canada, France, Italy, UK, Germany, Spain has also become billion
dollar export destinations of Bangladesh.
Bangladesh is now exporting to almost 200 countries. The following table will give you an idea
of Country-Wise export of commodities from Bangladesh.

25. 19
Countries Froze
n
Food
Agri. Chemical
Products
Leather Raw
Jute
Jute
Goods
Knitwea
r
Woven
Garme
nts
Others 2012-2013
Afghanistan 3268 84 4 217 3573
Albania 914 92 3 1009
Algeria 133 4697 887 348 108 6173
Andora 18 0 18
Angola 2423 639 156 3218
Anguilla 9 0 9
Argentina 718 1175 3320 1555 6768
Armenia 305 10 0 315
Australia 475 1316 4 95 684 3343 2959 1324 2753 12953
Austria 1197 423 459 58 2926 2306 7809 15120
Azerbaijan 35 60 34 129
Bahamas 28 28
Bahrain 361 3166 26 507 303 30 4393
Belarus 537 6 3083 339 11 8 3984
Belgium 795 1781 478 2452 3171 2486 4263 15426
Belize 103 334 42 560 1039
Benin 138 6 603 113 108 968
Bhutan 2 944 215 223 433 1817
Bolivia 52 40 289 381
Bosnia 76 223 299
Brazil 973 16 1096 1421 1153 565 7442 12666
Brunei 87 204 26 20 1 35 373
Bulgaria 278 7255 298 641 921 204 363 9960
Burkino
Faso
45 18 43 106
Burundi 21 277 298
Cambodia 9 1371 453 278 9 67 1545 3732
Cameroon 28 2 1738 1 1769
Canada 1 2413 7 1 4 213 3 2642
China 4 66 3 19 3 59 23 177
Denmark 3 149 2 154
France 7 37 1 7 334 5 391
Germany 4 6 1 1 28 893 27 960
USA 4 6 1 6 21 1024 33 1095
UK 15 1 1 10 514 12 553
Table 10: Country-Wise export of commodities by broad description from Bangladesh
during the period July-June, 2012-2013 (Value in ‘000’US$)

26. 20
4.12 Contribution of RMG Sector in National Export:
The contribution of RMG sector in Bangladesh’s total export can hardly be ignored. The
following table reveals the total export of RMG from the initial stage till 2014 and its
contribution to the total national export.
YEAR
EXPORT OF
RMG
(IN MILLION
US$)
TOTAL EXPORT
OF BANGLADESH
(IN MILLION US$)
% OF RMG’S TO
TOTAL EXPORT
1983-84 31.57 811.00 3.89
1984-85 116.2 934.43 12.44
1985-86 131.48 819.21 16.05
1986-87 298.67 1076.61 27.74
1987-88 433.92 1231.2 35.24
1988-89 471.09 1291.56 36.47
1989-90 624.16 1923.70 32.45
1990-91 866.82 1717.55 50.47
1991-92 1182.57 1993.90 59.31
1992-93 1445.02 2382.89 60.64
1993-94 1555.79 2533.90 61.40
1994-95 2228.35 3472.56 64.17
1995-96 2547.13 3882.42 65.61
1996-97 3001.25 4418.28 67.93
1997-98 3781.94 5161.20 73.28
1998-99 4019.98 5312.86 75.67
1999-00 4349.41 5752.20 75.61
2000-01 4859.83 6467.30 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01

27. 21
2003-04 5686.09 7602.99 74.79
2004-05 6417.67 8654.52 74.15
2005-06 7900.80 10526.16 75.06
2006-07 9211.23 12177.86 75.64
2007-08 10699.80 14110.80 75.83
2008-09 12347.77 15565.19 79.33
2009-10 12496.72 16204.65 77.12
2010-11 17914.46 22924.38 78.15
2011-12 19089.69 24287.66 78.60
2012-13 21515.73 27027.36 79.61
2013-14 24491.88 30186.62 81.13
Table 11: Comparative Statement On Export Of Rmg And Total Export Of
Bangladesh
Data Source Export Promotion Bureau Compiled by BGMEA
The following graph can give clear view of growth in RMG export for the last 31 years.
Figure 8: Comparative Statement on Export of RMG and Total Export of Bangladesh
0
5000
10000
15000
20000
25000
30000
35000
198…
198…
198…
198…
198…
198…
198…
199…
199…
199…
199…
199…
199…
199…
199…
199…
199…
200…
200…
200…
200…
200…
200…
200…
200…
200…
200…
201…
201…
201…
201…
Export Of RMG(in Million US$)
Total Export Of Bangladesh(in
Million US$)

28. 22
The RMG sector enjoys a continuous growth from the beginning of the industry but the initial
level was tough. From this chart we can see that RMG export is the main contributor in the
country’s total export because both have increased almost at the same pace. It can be viewed that
in the total export earning of the country, the share of RMG increased from 3.89 percent in 1983-
1984 to a spectacular rate of 81.13 percent in 2013-14.
4.13 Value of Total Apparel Export:
The export oriented RMG industry of Bangladesh has witnessed remarkable growth after 1990.
Year Export (US$ in m.) Year Export (US$ in m.)
1992-1993 1445.02 2003-2004 5686.09
1993-1994 1555.79 2004-2005 6417.67
1994-1995 2228.35 2005-2006 7900.80
1995-1996 2547.13 2006-2007 9211.23
1996-1997 3001.25 2007-2008 10699.80
1997-1998 3781.94 2008-2009 12347.77
1998-1999 4019.98 2009-2010 12496.72
1999-2000 4349.41 2010-2011 17914.46
2000-2001 4859.83 2011-2012 19089.69
2001-2002 4583.75 2012-2013 21515.73
2002-2003 4912.09 2013-2014 24491.88
Total 41309.95 Total 147771.84
Table 12: Value of Total Apparel Export
Source: Bangladesh Export Promotion Bureau
The table shows that the export earnings of RMG sector were increasing per year. From 1992 to
2003 the export earnings were worth US$ 41309 million. After 2003 it experienced a rapid
growth and the total earnings till 2014 were 147771.84.

29. 23
Figure 9: Value of Total Apparel Export
Figure 8 above shows the total export of RMG from 1992 to 2013. We can see an upward trend
in the export earnings over the years. The export rate has grown very fast after 2000. After 2005
the trend went sharply upward. Over the years, the RMG sector has seen a positive growth in
export earnings. The rising trend is the result of increasing number of export processing zones.
4.14 Growth of Major exported Products of RMG sector:
Bangladesh manufactures and exports two major kinds of garment products. They are woven
garment and knit garment in the form of shirts, trousers, t- shirts, sweater, jacket etc. The
following table represents the total export of Woven and Knit Products since 1992 to 2014.
0
5000
10000
15000
20000
25000
1992-1993
1993-1994
1994-1995
1995-1996
1996-1997
1997-1998
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013

30. 24
Year WOVEN KNIT TOTAL
1992-1993 1240.48 204.54 1445.02
1993-1994 1291.65 264.14 1555.79
1994-1995 1835.09 393.26 2228.35
1995-1996 1948.81 598.32 2547.13
1996-1997 2237.95 763.30 3001.25
1997-1998 2844.43 937.51 3781.94
1998-1999 2984.96 1035.02 4019.98
1999-2000 3081.19 1268.22 4349.41
2000-2001 3364.32 1495.51 4859.83
2001-2002 3124.82 1458.93 4583.75
2002-2003 3258.27 1653.82 4912.09
2003-2004 3538.07 2148.02 5686.09
2004-2005 3598.20 2819.47 6417.67
2005-2006 4083.82 3816.98 7900.80
2006-2007 4657.63 4553.60 9211.23
2007-2008 5167.28 5532.52 10699.80
2008-2009 5918.51 6429.26 12347.77
2009-2010 6013.43 6483.29 12496.72
2010-2011 8432.40 9482.06 17914.46
2011-2012 9603.34 9486.35 19089.69
2012-2013 11039.85 10475.88 21515.73
2013-2014 12442.07 12049.81 24491.88
Table 13: Growth of Major Export Products
Source: Bangladesh Export Promotion Bureau

31. 25
Figure 10: Growth of Major Export Products
The share of the knit garment products in the export sector has been increasing since 1990s but
Woven garment products have always dominated the export earnings of Bangladesh. In 2011 -
2012 the knit garment exceeded woven garment by a very short margin. But the trend again
reverted in 2012-2013.
4.15 Major Destinations of RMG Export
Bangladesh Currently exports products worth of nearly 5 billion US$ per year to 200 countries.
Woven garments are exported to 132 countries and Knit garments and Knit garments are
exported to 148 countries. The major buyer countries include USA, Canada, UK, France,
Netherlands, Spain and Belgium. In the US market Bangladesh has secured the position of 6th
largest supplier.
0
2000
4000
6000
8000
10000
12000
14000
1992-…
1993-…
1994-…
1995-…
1996-…
1997-…
1998-…
1999-…
2000-…
2001-…
2002-…
2003-…
2004-…
2005-…
2006-…
2007-…
2008-…
2009-…
2010-…
2011-…
2012-…
2013-…
Woven
Knit

32. 26
Country 2009-10 2010-11 2011-2012 2012-2013 2013-2014
Germany 1282.77 2022.05 2039.97 2168.13 2573.70
UK 725.74 990.98 1103.30 1259.84 1335.25
USA 891.61 1119.04 1013.95 1130.90 1197.85
France 692.00 999.71 855.18 892.45 964.27
Spain 384.55 595.92 660.73 702.90 856.28
Italy 379.04 525.17 571.46 554.94 731.91
Canada 283.86 432.92 401.82 461.97 445.10
Netherland 528.57 591.07 325.28 246.77 385.48
Belgium 155.79 299.74 320.46 317.19 440.63
Denmark 178.24 256.32 318.72 375.62 450.71
Table 14: Country Wise Export of RMG products
Source: Export Promotion Bureau, Bangladesh, Complied by Research & Development
Cell
Wal-Mart, Target, GAP, Levi’s, K-Mart, Zara, Mark and Spencer, Tesco, Carrefour are some of
the Major buyers of our RMG products.
Regions Market Share
EU 49.77
USA 33.67
Others 16.57
Table 15: Regional Export Market Share
Source: Export Promotion Bureau
European countries and USA are the biggest buyers of Bangladesh. They together hold 83.44
percent of RMG export market share while other countries have only 16.57 percent of the total
market share.

33. 27
5.0 Conclusion:
Bangladesh has become a favorite destination for foreign investors because of various reasons.
Bangladesh has developed its economy by registering constant economic growth, infratracture
development and technological progress.
EPZs have played a vital role in the development of the country. The EPZs of Bangladesh offer a
sound investment environment for investors. Bangladesh is committed to attract foreign investors
and this is why the government is trying to give more and more facilities and incentives in the
economic zones. The government is also planning to create new zones in the coming year to
serve the interests of the foreign investors and increase the export earnings of the country.
Bangladesh has shown a positive growth in exports despite the global financial crisis. The EPZs
have helped the country to achieve positive recovery during the credit crisis in Euro Zone which
is the main export destination.
Issues like poor infrastructure, shortage of power supply, political instability are some of the
obstacles that are creating problems for Bangladesh export industry. But still the overall export
performance of EPZs is satisfactory.
Bangladesh has got huge potential in respect of natural resources, skilled manpower and
investment friendly atmosphere. Government and local investors should come forward to find
new markets in order to expand the export industry.

34. 28
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