Al Amin :
Amid a growing number of BGMEA members, buying houses are witnessing an upsurge in demand as the appeal of Bangladesh apparel continues to soar.
According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 217 buyers and buying houses have registered with the apex body of the country’s apparel sector since 2018. Among these new registrants, 154 buyers and buying houses have enrolled in the last three years (2021-2023), as per BGMEA data.
Meanwhile, the Bangladesh Garment Buying House Association (BGBA) reports that approximately 850 out of its 1500 member buying houses are actively operating in the country. Additionally, BGBA data reveals that apparel shipment orders worth over $8 billion were facilitated through buying houses in the last fiscal year.
Entrepreneurs in the apparel sector note a positive shift in export growth following a sluggish quarter from October to December 2023. RMG export witnessed a 12.45% increase in January 2024 compared to January 2023. Knitwear export surged by 17.32%, while woven export rebounded with a 7.16% growth during the same period. January marked a historic milestone with the highest export turnover in a single month in the country’s history, nearing the $5 billion mark.
BGMEA President Faruque Hassan views this achievement as a significant milestone, signaling continued expansion and diversification of product and market base, as well as advancement in value addition.
He attributes this growth to the global economy’s recovery, record-level retail sales in major markets such as the USA and UK during the holiday seasons last year, and the easing of excess inventory burden at buyers’ end, anticipating a surge in new orders.
BGMEA President Faruque Hassan told The New Nation, “The global economy and trade is taking a turn toward recovery and retail sales in our major markets including in USA and UK reached record level during holiday seasons last year.
The burden of excess inventory at buyers end is now relaxed. So, new orders are expected to come.”
“The pressure on major economies caused by high inflation and interest rate is also getting back to normalcy. So, it is expected this year will be a year of come back in terms of trade and growth,” the BGMEA president added.
Kazi Iftequer Hossain, former president of the BGBA, emphasizes that foreign buyers of readymade garments are increasingly turning their attention to Bangladesh due to various global factors, including the US-China trade tensions and the conflict in Myanmar. He notes that buyers are drawn to Bangladesh amid rivalry with China and the ongoing ethnic conflict in Myanmar, where buyers are hesitant to venture.
Reflecting the export order trend, as indicated by the number of Utilization Declarations (UD) issued by the BGMEA, the sector experienced a 6.59% year-on-year order growth in the October-December period of FY2023-24.
During this period, BGMEA issued 6,771 UDs to apparel exporters, up from 6,352 issued in the same period of the previous fiscal year.
