Tk 84,000cr RMG export orders in June-July this year
Published : Tuesday, 3 August, 2021 at 12:00 AM Count : 399
The Readymade garment (RMG) sector has received export orders worth US$ 10 billion in June and July this year. In order to honour the orders, the government was persuaded to reopen the garment factories in the country amid the strict lockdown.
According to BGMEA sources, in June and July this year, the country received orders for ready-made garment exports worth of about $10 billion, which is around Tk 84,000 crore in local currency. Along with the regular buyers, some new buyers from the European Union countries and the United States have also placed orders.
As per the conditions the finished goods have to be shipped between August and September this year.
Bangladesh Garments Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said, "We had no choice but to open factories and resume production. As a result, we were forced to approach the government. We are grateful to the government for sincerely realizing overall reality and its decision to reopen export- oriented garment factories to save the economy. This will alleviate the financial crisis of entrepreneurs, workers and employees. The economy will also be active."
Meanwhile, the closure of garment factories in the country due to coronavirus lockdown has created fears among buyers over maintaining the delivery schedule. This is because according to the production capacity, most of the active factories have bookings up to March-April next year. More export orders remain in the pipeline. But buyers were apprehensive as the factories were closed.
Sources said that on behalf of the buyers, it was said that if the shipment of goods was as per schedule there would be no manipulation under any circumstances. If there is any such concern, let them (buyers) know in advance so that they can move to another country within the time of this order.
BGMEA sources said that apart from that, for the first time, the export orders of European and American buyers in India and Myanmar have been shifted to Bangladesh. A large number of orders already transferred from China have also arrived.
As a result, the pressure to maintain the schedule of the orders has become a challenge to the entrepreneurs. Due to the pressure, they had no choice but to restart the factory and continue production.
According to sources many buyers cancelled their orders in different countries.
However, the huge amount of export order received by Bangladesh will not only help in overcoming the crisis in the readymade garment sector and export targets, but will also help in overcoming the country's recessionary economy.
That's why they didn't want to miss out on this huge export orders.
The owners of the garment industry said the decision to reopen the closed garment factories in the country was taken to save the export order.
Mohammad Hatem, first vice-president of BKMEA, an association of knitwear owners, said that even though the factory was opened on Sunday, the attendance of workers on the first day was very low. The attendance of workers was 50 per cent in the morning and increased to 60 per cent in the afternoon.
He said, "The factory has been opened to save $10 billion export order." During the first 19 days of July, the factory exported $2.23 billion. This is 33.56 per cent more than the same period last year.
If this trend had continued, it would have been possible to export $3.5 billion in July alone. But it did not happen as the factory was closed for the last eight days.
As the days go by, with the increase in the number of export orders the demand for shipments is also increasing. At the current rate of export orders, if the average is at least three and a half billion dollars, entrepreneurs still have more than $10 billion in export orders.
"It was urgent to open the factory. It is open, we are satisfied with that. However, there is no obligation for the presence of 100 per cent workers until the lockdown is relaxed. The workers have to come to the workplace at their convenient time," said Mohammad Hatem.
On Saturday, according to BGMEA and BKMEA, two associations of readymade garment industry owners, the highest demand for readymade garments from international buyers was in the third quarter of the year.
That is in July-August and September. Because at this time there is pressure to supply late summer purchases. In addition, about 100 per cent of the world's demand for winter clothing can be obtained from these three months of production, shipping and supply.
According to the concerned, Bangladesh is second in the world in the production and supply of readymade garments. This year, however, Vietnam climbed to the second position. Bangladesh has always been a significant supplier of the international order of RMG.