Export growth of woven declines
Monday, 29 December 2008
Jasim Uddin Haroon
The country's apparel sector, especially woven sub-sector, suffered to some extent in November this year as there were fewer imports of fabrics than export orders due to the ongoing financial crisis. Such fabric imports are carried out as per utilisation declarations (UDs), issued by the BGMEA.
Data showed that the issuance of UDs in November this year was 2631 against 2455 in 2007, according to a nominal 7.0 per cent growth.
MA Salam, acting president of BGMEA (Bangladesh Garment Manufacturers and Exporters Association) told the FE Saturday that this is a single digit growth over the same period of 2007.
"I don't consider it as a growth as we saw a double digit growth in the previous period," MA Salam said.
MA Salam said the global financial turmoil in clothing importing countries is the main reason behind the export fall.
He feared a similar halted growth for December period.
MA Salam, however, said that the industry is now waiting for orders to be negotiated in January-February next when retail stores will reopen after the Christmas and year-end sales.
"The flow of new orders will determine whether our sector remains safe against the global financial turmoil," he added.
But, the export order rose by around 38 per cent in November this against the same period in 2007.
Bangladesh exports garments worth over US$ 10 billion a year to US, Europe and other nations.
The country's over 400 RMG units have been contributing to around 76 per cent of export earnings to the national exchequer each year.
The woven sub-sector fetched US$ 1.525 billion during first quarter (July-September) this fiscal, registering a 36.67 per growth.
While knit sub sector fetched worth $1.831 billion during the same period over the same period in 2007 recording a whopping 52.05 per cent growth.
The country's apparel sector, especially woven sub-sector, suffered to some extent in November this year as there were fewer imports of fabrics than export orders due to the ongoing financial crisis. Such fabric imports are carried out as per utilisation declarations (UDs), issued by the BGMEA.
Data showed that the issuance of UDs in November this year was 2631 against 2455 in 2007, according to a nominal 7.0 per cent growth.
MA Salam, acting president of BGMEA (Bangladesh Garment Manufacturers and Exporters Association) told the FE Saturday that this is a single digit growth over the same period of 2007.
"I don't consider it as a growth as we saw a double digit growth in the previous period," MA Salam said.
MA Salam said the global financial turmoil in clothing importing countries is the main reason behind the export fall.
He feared a similar halted growth for December period.
MA Salam, however, said that the industry is now waiting for orders to be negotiated in January-February next when retail stores will reopen after the Christmas and year-end sales.
"The flow of new orders will determine whether our sector remains safe against the global financial turmoil," he added.
But, the export order rose by around 38 per cent in November this against the same period in 2007.
Bangladesh exports garments worth over US$ 10 billion a year to US, Europe and other nations.
The country's over 400 RMG units have been contributing to around 76 per cent of export earnings to the national exchequer each year.
The woven sub-sector fetched US$ 1.525 billion during first quarter (July-September) this fiscal, registering a 36.67 per growth.
While knit sub sector fetched worth $1.831 billion during the same period over the same period in 2007 recording a whopping 52.05 per cent growth.