Bangladesh rmg competencies in global market is diminishing gas 78 facebook

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The global export of garments decreased by 6.8 percent in the year 2015 and reached to 442.35 billion USD after a great year 2014. After that in 2016, the market was almost stable producing 442.12 billion USD. In 2014, global apparel export was the highest ever at 474.68 billion USD. ITC (International Trace Corporation) data from World Trade Organization (WTO) shows the picture of slowdown (see table 1).

Though Bangladesh’s share in the global export has continued gas after eating fruit to increase in recent times, the country is facing tough challenges mainly from internal forces. However global slowdown in apparel business is also a reason. A recent release from Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has informed that continuous price loss of RMG products in UK, USA and European Union (EU) in the context of Brexit referendum, US election and price gas mask tattoo falling of Euro have impacted RMG’s growth of Bangladesh.

Recent reports of Export Promotion Bureau (EPB) Bangladesh shows Bangladesh RMG is not being able to achieve export targets which could be a setback in reaching the 2021 goal of the country to reach 50 billion export. EPB shows Bangladesh exported 28.6 billion USD in 2016 though ITC data shows Bangladesh electricity around the world exported 33.45 billion USD in 2016 (table 1). However, latest information from EPB shows that the country is still maintaining a growth in RMG export but the growth rate is going down significantly. In first ten months of the financial year 2016-17, the country exported 23.14 billion USD which is only 2.26 percent higher than the export of the same period of the previous year. It is most likely that the country will miss the target of current fiscal year. In the first ten months of the FY, export quantity was 6.06 percent short of the target.

BGMEA has blamed various reasons including energy crisis, increased cost of doing business as the reasons behind why they could not do more shipment. BGMEA reported production cost increased by 18 percent in last one year. And that’s why BGMEA warns that they are losing their capability in global competition and the dream to attain first position in exporting RMG product in the world is gradually becoming gloomy. Figure 1: Export trend of major apparel exporters in the world gas evolution reaction. Export in USD thousands in the year 2102, 2013, 2014, 2015 and 2016 (Source ITC-WTO).

Being the highest employing manufacturing sector, the Ready Made Garment (RMG) industry is very important for Bangladesh’s economy. If the sector declines, the whole economy will turn down. The journey of RMG sector has started in 1980s and since then this sector has progressed a lot that it does not need to look back anymore. Recently an unstable situation is prevailing throughout gas and supply locations the global economy and for this reason, Bangladesh’s RMG industry is facing several adverse circumstances. Figure 2: Current situation of Bangladesh’s RMG industry as explained by BGMEA.

However, latest data from ITC shows that Bangladesh is successfully capitalizing on the decline of Chinese apparel export. Table 1 and figure 1 show that Chinese global export of apparel is going down significantly from 2014 gas utility bill and Bangladesh’s export is increasing at the same time. Among other competing countries Vietnam is progressing strongly.

The global market trend shows that price of apparel is going down and so the value in export. In the contrary, cost of production is increasing significantly. This has raised a survival issue even for the second largest exporter, Bangladesh. The orders China is now r gas constant kj leaving are not even viable for Bangladesh. So, Bangladesh’s competence does not seem to be that market. And, so BGMEA reports that many new entrepreneurs as well as old entrepreneurs are facing trouble to continue their businesses.

According to the research of Pennsylvania University and Colorado University, the garments product price of Bangladesh has declined to 40 percent in last 15 years. For the lack of capability of Chittagong port, RMG exporters face many difficulties in maintaining lead-time and sometimes they are forced to do airfreight by paying extra charges. It takes two week in clearing of the goods in the port and for this reason already many buyers have moved gas key bolt carrier their order in the rival countries like India, Vietnam, Ethiopia and Myanmar.

As per EPB, RMG export in US, the largest market of Bangladesh’s RMG product, declined by 6.80 percent and in UK, the third largest market, it declined by 5.91 percent in the July-April period. Bangladesh’s RMG millers are trying to enter in new markets like Japan, Australia, New Zealand etc., but result is not that satisfactory over there as well. In the first ten months of running FY, the growth rate in new market is only 1.21 percent, whereas the growth rate was 15 to 20 percent in previous years.

BGMEA informs that Bangladesh currency is in strong position than that of the rival countries, which is not good for RMG export. Over the last five years, depreciation of the currency against dollar was 32 percent in India, 102 percent in Turkey and 15 percent in Pakistan, whereas electricity and magnetism ppt currency of Bangladesh has been strong by 3.58 percent. Recently Policy for Research Institute (PRI) has informed that last b games unblocked 10 years until 2015-2016 FY, the value of taka has increased 34 percent against dollar and this is working like one kind of tax in export sector.

The RMG factory owners are investing a huge amount of money for factory remediation over the last few years, especially after the Rana Plaza incident. A small and medium size factory has to spend average 5 crore taka and in some particular cases the cost reached about 20 crore taka for implementing remediation plant which is pressuring the millers extremely. BGMEA has informed that already 1200 factories have i gas shares been closed for several reasons including gas-electricity crisis and high bank interest. In addition, for the pressure of Accord and Alliance to remediate factory, many industrial units have been closed fully or partially, which has become a great threat for the sector.

BGMEA urged by saying, “If we observe the rival countries policy for developing the textile and RMG sector then we will find that they are giving various policy support and preparatory activities to make the sector electricity water analogy stronger.” To give an example, Vietnam is doing well than Bangladesh. The annual average export growth rate (CAGR) is 14.68 percent in Vietnam. In 2010, the export earning of Vietnam was 10.83 billion dollar, which reached to 21.50 billion dollar in 2016. On the other hand, one of our main rival country India has declared a target of RMG exporting to 400 crore USD and for this reason government of the country has announced 6 thousand crore Rupee cash incentive package.

To become middle-income country by 2021, Bangladesh needs 8 percent GDP growth rate and this is not possible by neglecting the RMG sector. Therefore, the government should take care of the labor-intensive sector more as it could be stable and attain 50 billion USD by 2021, an export target announced by the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and the government. Recently BGMEA President Md. Siddiqur Rahman urged to the gas and bloating after miscarriage government, civil society and labor leaders to help the sector mentioning the disastrous condition of RMG industry. “The industry, which has created employment of 4.4 million people, is in danger. To save the industry we cordially want your help,” he said.