Garment exporters getting increased orders from buyers

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Jasim Uddin Haroon
Bangladesh's garment manufactures are upbeat about the prospect of export this year as they are receiving increased orders from buyers.
They said buyers have been diverting order to Bangladesh after a large scale shutdown of factories in China.
The manufacturers said the orders for clothing might be 30 per cent higher this year over the export in 2007.
"We are really surprise at the orders. They (buyers) are coming here in large number to place orders," said Nazrul Islam Swapan, managing director of Nassa Group, the country's leading apparel maker said.
He said his company has received more than 30 per cent higher supply orders, especially for knit products, he added.
On the other hand, many leading manufacturers remain 'conservative' in outlook considering the state of world economy and development in Bangladesh's politics.
"My company is closely watching the country's political development and the world economic situation," Rashid Ahmed Hossaini, managing director of Nexus Group, a leading sweater manufacturer, told the FE.
Mr Hossaini said his company is already 50 per cent booked until August next. "Buyers are now pressing for more orders. But I am preferring to be 'conservative' for the time being," Hossaini, also a BGMEA director said.
Many clothing manufacturers think the worst global financial crisis since the 1930s might hurt Bangladesh's key garment industry as the leading buyers are pressing hard for reduction of prices.
Exporters said top buyers including Wall-mart, Tesco, Prominent and Mercury, which bought apparel worth US$1.0 billion last year, demanded upto 2.0 per cent discount in prices. Nassa Group managing director, who owns 39 garment units employing over 34,000 workers, said buyers always bargain for reduction of prices. They are getting still cheaper products here in comparison with India, Vietnam and Cambodia.
Bangladesh, which last year became the world's second largest apparel maker, prides itself of being the world's cheapest clothing manufacturer. Mr. Hossiani said local manufacturers are giving importance to the buyers' 'credit report' amid arrival of new buyers as the credit crunch in main markets, the United States, and the European Union, have suddenly changed all the equations.
"Earlier, we used to adopt short-cut formula like 'contract' in deals instead of letter of credit (LC). Now, we are taking details about the new buyers from respective embassies," he added.
BKMEA president Md Fazlul Hoque said buyers are coming mainly due to the shutdown of factories in China adding: "Buyers are now pleased about Bangladesh's quality."