Vietnam has surpassed Bangladesh as the second-largest apparel exporter to Canada in 2022, benefiting from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Bangladesh’s apparel exports to Canada reached $1.73 billion, a 35.2% increase compared to the previous year, while Vietnam’s exports rose by 46.35% to $1.75 billion. The CPTPP provided Vietnam with duty-free access to the Canadian market, leading to its increased market share. However, experts note that Bangladesh may face tougher competition in the future due to duty impositions after transitioning from a least developed country to a developing one in 2026. The Chinese apparel market share in Canada decreased to 30% in 2022. To address these challenges, experts recommend bilateral and regional arrangements with major trading partners to maintain Bangladesh’s market position.
Vietnam Overtakes BD as Second Largest Apparel Exporter to Canada
- Published On May 21, 2023
- 2:55 pm
Total Views: 0
Industry: RMG, RMG & Textile
Economic Tag: Export
Source for more details:
Related News
Bangladesh Raises Remittance and Export Dollar Rates
June 1, 2023
In a significant development, Bangladesh has raised the dollar rates for remittances and export proceeds. Expatriate Bangladeshis will now receive an additional Tk0.50 for remittances, while the dollar rate for export proceeds will be Tk1 higher. The new rates stand at Tk108.50 for remittances and Tk107 for export proceeds. Including the 20.5% government incentives, remitters will receive Tk111.25 per dollar.
DBL Group Struggles with Increased Gas Bills and Production Costs
May 31, 2023
DBL Group, a prominent textile and apparel exporter, is grappling with increased monthly gas bills, which have tripled from Tk 25 crore to Tk 75 crore due to recent energy price hikes. Despite the government's justification that liquefied natural gas (LNG) imports would boost gas pressure, factory owners claim they are yet to experience any benefits. The surge in gas expenses has raised DBL Group's production costs by up to 30%, while buyers refuse to accept price increases amidst the global economic crisis.
VAT Exemption to Promote Garment Manufacturing from Recycled Fibres
May 29, 2023
The Bangladesh government is exploring the possibility of exempting the 7.5% value-added tax (VAT) on textile waste collection by spinning mills to encourage garment manufacturing from recycled fibres. The move aligns with the global concept of circular fashion and aims to save foreign exchange spent on yarn and fabrics. Experts believe that the exemption will lead to substantial savings and boost the recycling industry as a backward linkage of the garment sector.
Bangladeshi Exporters Eye Russia Market Amidst Inter-Banking Resolution
May 27, 2023
Despite the ongoing Russia-Ukraine war and declining export earnings, Bangladeshi exporters, particularly in the ready-made garment (RMG) industry, are considering Russia as a potential market once again. The resolution of the crisis over inter-banking transactions has played a significant role in this shift. The Bangladesh Bank's decision to allow foreign trade in Yuan and the use of Chinese and other Russian allies' shipping lines have facilitated direct shipments of clothes to Russia.
Bangladesh’s Apparel Export to EU Grows 3.9% in Value
May 25, 2023
Bangladesh's apparel export to the European Union (EU) has demonstrated positive growth during the January-March period of 2023. The value-wise growth reached 3.9%, amounting to $5.6 billion compared to $5.4 billion in the same period of 2022. With a 24.07% share of the EU's total ready-made garment (RMG) import in terms of dollar value, Bangladesh remains the second-largest apparel import source for the EU, just behind China, which holds a 24.55% share.
Govt Restricts Cash Incentives for Textile and Apparel Exports
May 24, 2023
The government of Bangladesh is implementing changes to limit cash incentives for textile and apparel exports. The Bangladesh Bank will issue a new circular, removing freight costs, foreign currency commissions, and insurance costs from the cash incentives provided to these sectors. Currently, the cut, make, and trim (CMT) manufacturing sector receives cash incentives, where buyers handle pre- and post-production processes.
Related News
Bangladesh Raises Remittance and Export Dollar Rates
June 1, 2023
In a significant development, Bangladesh has raised the dollar rates for remittances and export proceeds. Expatriate Bangladeshis will now receive an additional Tk0.50 for remittances, while the dollar rate for export proceeds will be Tk1 higher. The new rates stand at Tk108.50 for remittances and Tk107 for export proceeds. Including the 20.5% government incentives, remitters will receive Tk111.25 per dollar.
DBL Group Struggles with Increased Gas Bills and Production Costs
May 31, 2023
DBL Group, a prominent textile and apparel exporter, is grappling with increased monthly gas bills, which have tripled from Tk 25 crore to Tk 75 crore due to recent energy price hikes. Despite the government's justification that liquefied natural gas (LNG) imports would boost gas pressure, factory owners claim they are yet to experience any benefits. The surge in gas expenses has raised DBL Group's production costs by up to 30%, while buyers refuse to accept price increases amidst the global economic crisis.
VAT Exemption to Promote Garment Manufacturing from Recycled Fibres
May 29, 2023
The Bangladesh government is exploring the possibility of exempting the 7.5% value-added tax (VAT) on textile waste collection by spinning mills to encourage garment manufacturing from recycled fibres. The move aligns with the global concept of circular fashion and aims to save foreign exchange spent on yarn and fabrics. Experts believe that the exemption will lead to substantial savings and boost the recycling industry as a backward linkage of the garment sector.
Bangladeshi Exporters Eye Russia Market Amidst Inter-Banking Resolution
May 27, 2023
Despite the ongoing Russia-Ukraine war and declining export earnings, Bangladeshi exporters, particularly in the ready-made garment (RMG) industry, are considering Russia as a potential market once again. The resolution of the crisis over inter-banking transactions has played a significant role in this shift. The Bangladesh Bank's decision to allow foreign trade in Yuan and the use of Chinese and other Russian allies' shipping lines have facilitated direct shipments of clothes to Russia.
Bangladesh’s Apparel Export to EU Grows 3.9% in Value
May 25, 2023
Bangladesh's apparel export to the European Union (EU) has demonstrated positive growth during the January-March period of 2023. The value-wise growth reached 3.9%, amounting to $5.6 billion compared to $5.4 billion in the same period of 2022. With a 24.07% share of the EU's total ready-made garment (RMG) import in terms of dollar value, Bangladesh remains the second-largest apparel import source for the EU, just behind China, which holds a 24.55% share.
Govt Restricts Cash Incentives for Textile and Apparel Exports
May 24, 2023
The government of Bangladesh is implementing changes to limit cash incentives for textile and apparel exports. The Bangladesh Bank will issue a new circular, removing freight costs, foreign currency commissions, and insurance costs from the cash incentives provided to these sectors. Currently, the cut, make, and trim (CMT) manufacturing sector receives cash incentives, where buyers handle pre- and post-production processes.