BANGLADESH: Bangladeshi exports surges by 40.3 % in nine months ending March.

Bangladesh's exports of ready-made garments to Europe and the US, which make up nearly 70% of total overseas sales of the country, have been growing since last year with the global economic recovery. Garments exports surged by 41% to US$12.57 billion in the July-March period year-on-year.

Bangladesh's government officials said that the record high figures in March reflect that the country's lower wages have attracted Chinese manufacturers to move their production bases there. Orders are also growing from new markets such as Japan, South Africa, Canada, China, India, Australia and New Zealand, which shows that Bangladesh's cheap labor costs have helped the country join the global supply chain for low-end textiles and clothing.

Last year, Bangladesh nearly doubled the minimum monthly wage for millions of workers in the garment industry to 3,000 Taka (approximately US$42) but salaries are still low compared with other manufacturing bases such as China, India, Vietnam, Thailand and Cambodia.

Bangladesh makes garments for international brands such as JC Penney, Wal-Mart, HandM, Kohl's, Marks and Spencer and Carrefour. Esprit Holdings Ltd, Asia's third largest garment retailer by market value which has a strong presence in Europe, said in February that it would switch more sourcing emphasis to Bangladesh from southern China.