Apparel sector turning around with export orders
Published : Saturday, 16 April, 2022 at 12:00 AM Count : 536
The export order of readymade garments in Bangladesh is increasing. Small and large or sub-contract factories are busy day and night. Some factories are producing in two shifts under work pressure.
Meanwhile, China is dominating readymade garment exports. The status of a major exporting country has long been held by the country. China is also ahead of the second and third competitors by a large margin in terms of market share. Vietnam is the second largest exporter.
Bangladesh is facing tough challenge from Vietnam in garment exports competition. Bangladesh lost its status as the second largest exporter to Vietnam last year. However, the situation is now in favour of Bangladesh. Brands and buyers are now bringing export orders from these two countries to Bangladesh.
According to BGMEA sources, export orders in January increased by 63 per cent over the same month last year. The total amount is US$ 365crore. Export orders in the same month last year were $ 230crore. Since then, export orders have increased by 32 per cent in February. A total of $ 263crore export orders were received during the month. In February last year, the amount was $ 200crore. As February is a 28-day month, production and exports are at least two days less than other months. Due to this, the export orders are also a little less than other months. It takes at least three months to complete the production and final export after receiving the export order. In other words, the real picture of the export order of February can be found in the export report of next April.
The analysis of the trend shows that the country's export sector has started to turn around since April last year. Since then, exports have been increasing almost every month more than the previous month. Exports of ready-made garments surpassed a record $ 404crore in December. In January, it rose to $ 409crore. Exports in
February amounted to $ 351crore. In the first two weeks of March, exports rose by 52 per cent over the same period last year.
According to the National Board of Revenue (NBR), a total of $ 163crore worth of goods was exported in the first two weeks of March. During the same period of the last financial year, garments worth $101crore were exported.
Imranur Rahman, Managing Director of the Laila-style and Director the BGMEA said that they are receiving more export orders from US buyers than ever before. US buyers have turned away from China because of the country's hostile relations with China and its tariff war. Many buyers are removing export orders from China and bringing them to Bangladesh. Bangladesh's capacity building and the benefits of a compliant working environment have also been added. He hopes that export orders will increase in the future.
Azhar Khan, chairman of Mithila Textiles, said that China's productivity was declining as another reason for removing export orders from China to Bangladesh.
He said that China has decided to stop production three days a week as a measure to reduce carbon emissions. This has greatly reduced China's production capacity. China's red-marked factories have been shut down since the World Climate Conference. Hundreds of factories there are now closed. For this reason, brands and buyers have shifted their export orders from China to Bangladesh. Export orders to his factory have now doubled. Many export orders have had to be returned.
Shahidul Haque Mukul, Managing Director of Adam Apparels, said the reason for the removal of export orders from Vietnam was the reason why US buyers were avoiding China, which also applies to Vietnam. Because of its close proximity, most of the factories of Chinese entrepreneurs are in Vietnam. In addition, Vietnam has a capability limit. For these reasons, buyers are giving export orders from Vietnam to Bangladesh.
He said a brand directly asked him to open a factory in Vietnam. Some new buyers are also coming. They have previously worked with China and Vietnam. Some buyers had previously ordered exports to all three countries. Now those buyers are ordering double exports here.
According to the latest 2020 report of the World Trade Organization (WTO), China's share in the global apparel market is 31.6 per cent. In this case, Vietnam's share is 6.4 per cent while 6.3 per cent goes to Bangladesh.