High priced RMG export orders pouring in
Tuesday, 9 November 2010
Our Correspondent
CHITTAGONG, Nov 8: Bangladesh has become a lucrative country for export of readymade garments (RMG) with new orders for quality items pouring in, exporters said.
"Orders for quite new RMG items like heavy jackets that was monopolized so long by China have started coming to Bangladesh following workers' growing unease and impatience with the sector there," said SM Abu Tayyab, former first vice president of BGMEA and currently director of CCCI.
Not only China but other RMG exporting countries such as Vietnam, Cambodia and Sri Lanka are experiencing declining labour force, which is shifting to other sectors from the RMG demanding wage hike and related issues, he told this correspondent in his office at Nasirabad Industrial Area in the city this afternoon.
He informed that an importer has recently cancelled order of some one hundred thousand pieces of high quality garment from China as the Chinese exporter failed to meet the export schedule in June last.
RMG of both knitwear and woven is expensive in Vietnam compared to Bangladesh while Cambodia is lagging behind in the competition with us due to recent labour unrest, he said adding that export orders for high priced RMG, supposed to go to Sri Lanka, are also coming to Bangladesh.
"Failure of China and other RMG exporters to comply with the importers' timeframe has created a unique opportunity for Bangladesh very recently. And if we can seize this opportunity it will bring a lot of prospect for the country's economy apart from generating more employment," he observed.
Mr Tayyab said that import growth of both knitwear and woven items from Bangladesh started a southward march from early 2009 but it is returning now as our competitive strength has grown and appeared time-tested in the comparative advantage theory of international economics.
"The government can utilise this advantage through extra incentives to the RMG exporters by way of lowering bank interest, depreciation of Bangladesh Taka against US Dollar, expediting the government's committed incentive and finally by creating an export-oriented environment in the country," he said.
CHITTAGONG, Nov 8: Bangladesh has become a lucrative country for export of readymade garments (RMG) with new orders for quality items pouring in, exporters said.
"Orders for quite new RMG items like heavy jackets that was monopolized so long by China have started coming to Bangladesh following workers' growing unease and impatience with the sector there," said SM Abu Tayyab, former first vice president of BGMEA and currently director of CCCI.
Not only China but other RMG exporting countries such as Vietnam, Cambodia and Sri Lanka are experiencing declining labour force, which is shifting to other sectors from the RMG demanding wage hike and related issues, he told this correspondent in his office at Nasirabad Industrial Area in the city this afternoon.
He informed that an importer has recently cancelled order of some one hundred thousand pieces of high quality garment from China as the Chinese exporter failed to meet the export schedule in June last.
RMG of both knitwear and woven is expensive in Vietnam compared to Bangladesh while Cambodia is lagging behind in the competition with us due to recent labour unrest, he said adding that export orders for high priced RMG, supposed to go to Sri Lanka, are also coming to Bangladesh.
"Failure of China and other RMG exporters to comply with the importers' timeframe has created a unique opportunity for Bangladesh very recently. And if we can seize this opportunity it will bring a lot of prospect for the country's economy apart from generating more employment," he observed.
Mr Tayyab said that import growth of both knitwear and woven items from Bangladesh started a southward march from early 2009 but it is returning now as our competitive strength has grown and appeared time-tested in the comparative advantage theory of international economics.
"The government can utilise this advantage through extra incentives to the RMG exporters by way of lowering bank interest, depreciation of Bangladesh Taka against US Dollar, expediting the government's committed incentive and finally by creating an export-oriented environment in the country," he said.