BD apparel exports to US grow by 6.25pc in Q1

Bangladesh's ready-made garment (RMG) exports to the US increased by 6.25 per cent to $ 1.39 billion in the first quarter of 2015 compared to the corresponding period last year, the US Department of Commerce data showed.
But apparel exports to the US by Vietnam, one of the main competitors of Bangladesh, and India grew by 12.11 per cent and 9.36 per cent respectively during the same period.
Exporters blamed the tragic industrial accidents including the Rana Plaza building collapse and Tazreen fire as well as 2013 political turmoil for the downward trend in apparel exports to the US last year.
And due to political unrest in 2013, a large number of orders were shifted to Vietnam and India, they added.
Buyers are, however, coming back to Bangladesh after they regained confidence mainly due to ongoing safety measures taken by the garment industry, the exporters said.  
During the January-March period of the current calendar year, Vietnam's ready-made garment exports to the US market stood at $ 2.43 billion from $ 2.17 billion in the same period last year, according to the US Department of Commerce data.
India fetched $ 1.03 billion during the period which was $ 944 million during the same period last year.
China's exports to the US also increased by 4.93 per cent to $ 6.47 billion during the January-March period of 2015.
Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said, "Bangladesh is still competitive in terms of price, quality and timely shipment which attract the buyers to place more orders."
US buyers were a little bit worried and they were in a wait-and-watch situation mainly due to recent confrontational politics, Rana Plaza incident and compliance and safety issues.
"But because of safety initiatives, the industry is coming under a safe shape," said Abdus Salam Murshedy, Managing Director of Envoy Group.
Bangladesh's exports to the US market are increasing, but India and Vietnam are doing better compared to Bangladesh, he added.
Political instability and industrial incidents put a negative impact on exports, said Aslam Sunny, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Due to political turmoil, a good number of orders were shifted to India and Vietnam, he added.
Moreover, India and Vietnam are grabbing the orders shifted from China as they are more competitive than Bangladesh because Bangladeshi currency Taka is appreciating against US dollar while those of Vietnam and India are depreciating, making imports from Bangladesh costlier.
Bangladesh's apparel exports to the US market fell to $ 4.83 billion in 2014 from $ 4.94 billion in 2013.
Vietnam's exports to the US increased from $ 8.12 billion in 2013 to $ 9.26 billion in 2014. India exported apparel products worth $ 3.40 billion last year which was $ 3.21 billion in 2013, according to the data.
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