Country loses 4.5pc share in US apparel market in '09
Sunday, 21 March 2010
Jasim Uddin Haroon
Bangladesh has lost nearly 4.5 per cent share in the US apparel market in 2009 while our major rivals have attained positive growth during the period, industry people said Saturday.
They also said Bangladesh, which had better position in the US market earlier, is now facing a negative growth as the prices of the country's RMG products increased there despite global recession.
On the other hand, the competing countries including China, India, Vietnam and Cambodia decreased their prices to keep themselves competitive in the US market.
The USA is the largest single destination for Bangladesh as around 50 per cent of the RMG products are shipped to the world's biggest economy a year.
Prices for Bangladesh-made garment increased 2.32 per cent in 2009 while Cambodia decreased the same 6.59 per cent, China 12.44 per cent, India 4.68 per cent and Vietnam 12.42 per cent during the period.
Anwar Alam Chowdhry Parvez, former BGMEA president said: "The other countries have beaten Bangladesh as the government has failed to take timely decision to face the fallout of the global recession."
He also said the competing countries have offered lower prices to the US market as their respective governments had provided stimulus packages during the period.
Vietnam and Pakistan devalued their currencies nearly 30 per cent in 2009 while India devalued about 28 per cent apart from reduction in the rate of interest.
China, the largest apparel maker in the world, withdrew value added tax during the period to face the global economic meltdown.
Mr Parvez said if the government spends only $210 million, the local apparel makers will be able to offer 2-3 per cent less price to the importers.
Fazlul Hoque, BKMEA president, said Bangladesh remained competitive in the European market due to GSP facility there.
"We don't get any facility in the US market. For this, our position in the world's largest economy is decreasing. This is alarming."
The industry insiders said the country's rate of employment in the garment sector is being affected following the negative growth in the US market.
"We can employ at least 300,000 people a year if our growth remains steady in the US market," said Md Hoque.
The country's RMG export has dropped nearly 13.62 per cent on knit and 16.13 per cent on woven against the export target during July-January of the current fiscal year over the same period in the previous year.
Bangladesh has lost nearly 4.5 per cent share in the US apparel market in 2009 while our major rivals have attained positive growth during the period, industry people said Saturday.
They also said Bangladesh, which had better position in the US market earlier, is now facing a negative growth as the prices of the country's RMG products increased there despite global recession.
On the other hand, the competing countries including China, India, Vietnam and Cambodia decreased their prices to keep themselves competitive in the US market.
The USA is the largest single destination for Bangladesh as around 50 per cent of the RMG products are shipped to the world's biggest economy a year.
Prices for Bangladesh-made garment increased 2.32 per cent in 2009 while Cambodia decreased the same 6.59 per cent, China 12.44 per cent, India 4.68 per cent and Vietnam 12.42 per cent during the period.
Anwar Alam Chowdhry Parvez, former BGMEA president said: "The other countries have beaten Bangladesh as the government has failed to take timely decision to face the fallout of the global recession."
He also said the competing countries have offered lower prices to the US market as their respective governments had provided stimulus packages during the period.
Vietnam and Pakistan devalued their currencies nearly 30 per cent in 2009 while India devalued about 28 per cent apart from reduction in the rate of interest.
China, the largest apparel maker in the world, withdrew value added tax during the period to face the global economic meltdown.
Mr Parvez said if the government spends only $210 million, the local apparel makers will be able to offer 2-3 per cent less price to the importers.
Fazlul Hoque, BKMEA president, said Bangladesh remained competitive in the European market due to GSP facility there.
"We don't get any facility in the US market. For this, our position in the world's largest economy is decreasing. This is alarming."
The industry insiders said the country's rate of employment in the garment sector is being affected following the negative growth in the US market.
"We can employ at least 300,000 people a year if our growth remains steady in the US market," said Md Hoque.
The country's RMG export has dropped nearly 13.62 per cent on knit and 16.13 per cent on woven against the export target during July-January of the current fiscal year over the same period in the previous year.