RMG orders being diverted to India, Vietnam: BGMEA

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FE Report The Bangladesh Apparel and Textile Exposition (Batexpo) -- 2013 will kick off in the city on October 10 aiming at drawing a larger number of foreign buyers despite recent overseas campaign against weaknesses in the sector. "A total of 55 buyers have already confirmed their participation while 23 of them are coming for the first time. So, we are expecting a good response of visitors and spot orders," President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) M Atiqul Islam said at a press conference in the city Sunday. The BGMEA organised the news conference to brief about the Batexpo-2013. Its office-bearers and former president Abdus Salam Murshedy, among others, were also present. Prime Minister Sheikh Hasina is expected to inaugurate the three-day mega event at the Pan Pacific Sonargaon Hotel while opposition leader in the parliament Begum Khaleda Zia will attend the closing ceremony on October 12 at the same venue. Highlighting the Batexpo and terming political instability and safety issues as the main concern, the BGMEA president said they are inviting the buyers with the message that things are fine here. "The entire world knows that changes are happening in Bangladesh. This is a very important message." The BGMEA has decided to arrange the event a month earlier than usual time to avert election-time tension as global buyers are concerned over looming political instability in the election year, he added. "We all are working in a coordinated way including the government, buyers and garment stakeholders to ensure safety in factories," he said mentioning diverse compliance activities. If we work unitedly, we can overcome all the challenges in the coming days though it might take time, he expressed his hope. "We are expecting a good feedback compared to that of last Batexpo that received spot orders worth $ 60.25 million while stocklot spot orders were $ 1.42 million," he said. The press conference was also informed that apparel makers are concerned over the slower export growth in the last couple of months. The BGMEA president said orders are being diverted to India and Vietnam. Atiqul Islam said the export growth that they had seen in July significantly came down in August (5.5 percent). "We won't be able to see the expected growth. It'll get slower further." Buyers understand only business and profit and they will switch over to places that offer better opportunities, he said. The BGMEA president also said there is a big challenge ahead following massive devaluation of Indian rupee against dollar. "As per the latest data, there was 27.91 per cent devaluation of rupee while our currency saw appreciation by 9.41 per cent. So, this is a big advantage for India," he further said. Seeking the government attention to this matter, Mr Islam called for an intervention in fixing rate of dollar. Describing the apparel industry as a backbone of the national economy, he said it has potentials to establish Bangladesh as an economic power of the world. He sought support from all. The domestic and international buyers and manufacturers will display their products in 80 stalls, organisers said. The BGMEA also has decided not to hold the expo in a colourful manner showing respect to the Rana Plaza victims. The main objective of the Batexpo is to provide unique opportunity to the overseas buyers and sourcing agents of readymade garments to choose their business partners from Bangladesh, they added. Meanwhile, there will be three seminars on 'Reinventing the RMG Sector: Emphasizing Social Accountability and Security', 'Taking the RMG Sector Forward: the Role of Media in Sustainable Development' and 'Eco Friendly and Compliant Factory - A pre-Condition for Future Business'-- to be held on October 7, 8 and 10 respectively.