Bangladesh Exports Soar As Orders Shift From China.DOW JONES...

Bangladesh Exports Soar As Orders Shift From China.

DOW JONES NEWSWIRES, 0616 GMT Wednesday 8 September 2010.

DHAKA, Bangladesh (AFP)--Bangladesh said Wednesday exports leapt more than 25 percent year on year in July, with manufacturers linking the jump to a shift in orders from China to the low-cost South Asian country.

In July, the first month of its financial year, Bangladesh shipped $1.82 billion of goods--the highest export figure in the country's 40-year history, the Export Promotion Bureau said.

This was due to a sharp rise in apparel exports as firms chose to buy from Bangladesh instead of China in a bid to keep costs down, Jalal Ahmed, the head of the EPB, said.

"Our textile exporters are receiving more orders from new markets which previously would source products in China," he said.

EPB figures showed shipments to new markets such as Turkey, Japan, South Africa and China grew 200%, although Western Europe and the United States still account for nearly 90% of Bangladesh's export market.

Apparel exports rose nearly 30% on-year, with overall shipments up 25.5%, Ahmed said, adding that exports of eco-friendly jute--known as hessian in Europe or burlap in the United States--have also surged.

The figures come as Beijing has been forced to increase minimum wages over the past few months following several protests and raising concerns in China that foreign firms may look elsewhere for cheaper labour.

Abdus Salam Murshedy, the head of the Bangladesh Garment Manufacturers and Exporters Association said despite the strong figures, a chronic utilities crisis and shoddy infrastructure was hindering export growth.

"We are ready to grab new opportunities as China becomes increasingly costly. These July export figures are good, but we can do far better," he said.

The government must improve power and gas supplies and find a way to make the country's main port in southern Chittagong town, more efficient, he added.

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