Country's apparel products are losing edge in the US market to its competitors namely Vietnam, Cambodia, India and Pakistan, as buyers cut back their orders over escalating political violence, safety and other compliance issues.
According to Export Promotion Bureau (EPB), apparel exports to the USA declined by about 5.18 per cent to $ 2.442 billion during the first half of current fiscal (2014-15) from the same period in last fiscal. The export growth to the USA market was 2.9 per cent in last fiscal (2013-14) and 10.31 per cent in the previous fiscal.
Although Bangladesh's export is experiencing a declining trend in the USA market, exports from competitive countries like Vietnam, Cambodia, India, Pakistan and Sri Lanka are increasing substantially. According to BGMEA sources, exports from Vietnam to the USA have increased by about 22.88 per cent, Cambodia 25.41 per cent, Pakistan 28.26 per cent and India by 11.58 per cent during the first 10 months (January-October) of last year.
"Vietnam has already emerged as the second largest RMG exporter to the USA market beating Bangladesh, said BGMEA Vice President Reaz Bin Mahmud adding that Cambodia occupied the third position in recent days while Bangladesh pushed back to the fourth position. Unless measures are taken immediately, Reaz apprehended, Bangladesh's position in the US market might aggravate further.
According to Mr Reaz, apparel exports to US market have been declining gradually over the last one year though it emerged as the second largest apparel exporter after China. Bangladesh's RMG export, that enjoyed 3.5 per cent growth in January, 2014, experienced a decline of about 7.72 per cent in September, 2014, 6.15 per cent in October and 15.55 per cent in November last.
Withdrawal of GSP facilities and delay in implementing various compliance issues accompanied by political unrest cast an adverse impact on the country's RMG industry, sources concerned said. The violent political programme in just one week (between January 14 and January 24) caused a loss of Tk 51.1 million to eleven garment factories, said BGMEA vice president. The losses include order cancellation, discount, air shipment charges, delayed shipment and excess transportation costs, he added.
BGMEA President Atiqul Islam informed the media on Sunday after a meeting with Bangladesh Textiles Mills Association (BTMA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) that buyers were concerned about the country's political situation and making queries continuously. Many of them, he said, are also thinking of shifting their orders to other competitive countries unless the situation is improved immediately.
Not only in the USA, country's exports to Canada and some EU countries like the Netherlands and Germany, the second largest export destination, have also declined substantially in the first half of the current fiscal over the same period in last fiscal.
Exports to the Canadian market marked a 14.60 per cent fall in the first half of current fiscal. During the period, around $ 425.88 million worth of goods were exported to Canada as against $ 498.71 million during the same period in last fiscal. RMG export earnings from the Netherlands and Germany also fell down by 7.27 per cent and 0.50 per cent respectively during the period.
After the crisis triggered by Rana Plaza collapse, the sector has turned back and has been fighting to restore its image in the international market. But the fresh political turmoil has been sending negative messages to the international buyers, said another entrepreneur who exports to the US market.
mzrbd@yahoo.com
