BGMEA sees negative growth in apparel export for next few months11 September 2022
Staff Reporter :
The entrepreneurs of the country's readymade garment manufacturers apprehended that the apparel export growth would be negative for next three months as shipment orders reduced by at least 30 per cent.
They, however, hoped that the global apparel market share would exceed 10 per cent by 2025 and export earnings will $100 billion by 2030.
"Shipment orders declined 20 to30 per cent in last two months due to ongoing inflation and recession in the USA and the EU markets, our major export destinations. It may reduce further in coming days." said Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The BGMEA chief said, "The retailers of different markets are struggling to adopt with the increased inflation. Retail sales of many brands have dropped. These have increased unsold stocks of the retailers. Considering the situation, the apparel export growth may remain negative in next two or three months."
Faruque was speaking at a press conference at the BGMEA Bhaban in the city to highlight the details of the 'Made in Bangladesh Week' which is scheduled to be held in next November in Dhaka.
He, however, urged the factory owners not to reduce prices for importers following a slight drop in cotton prices in the global market.
Emphasizing on political stability to maintain and sustain growth of the country's RMG sector, he said, "We are hopeful that, with cooperation from all sides, things (before and during the general polls) will remain stable and will not lead into any conflict."
The BGMEA president also hoped that the share of Bangladesh in the global apparel market would exceed 10 per cent by 2025 from the existing 6.3 per cent
"Asian markets such as India and Japan will be the major export destinations for Bangladesh as it looks to earn $100 billion from the sales of apparel items in the global markets by 2030," he said.
"Supply-chain is very important in the 'First Fashion' era. All tasks from production to delivery need to be completed in a minimum possible time. So, simplified the export-import procedure is necessary to accelerate the export," he."Specially, customs, bond and port related procedures should be user-friendly and easier. If these have done, we will be able take opportunities from the First Fashion," he added.
He further said, "The global fuel crisis has impacted the local apparel industry. Production cost has increased due to the gas and power crisis. So, I request to ensure uninterrupted supply of gas and electricity in a special measure for the export-oriented industries."
Side-by-side, source tax should be reduced to 0.5 per cent from the existing 1 per cent, he demanded.
When asked about India allowing transit for Bangladeshi shipments, he said, "This will play a positive role in increasing Bangladesh's exports."
BGMEA Vice-Presidents Shahidullah Azim, Khandaker Rafiqul Islam, Directors Barrister Shehrin Salam Oishi, Faysal Samad, Nila Hossen Ara and Bangladesh Apparel Exchange CEO Mustafizur Rahman, among others, were present.