GULSHAN ATTACK AFTERMATH
RMG sector fears $2.5b losses
Buying house assoc seeks confidenc building steps
The Bangladesh Garment Buying House Association (BGBA) yesterday said the readymade garments (RMG) sector could incur losses of at least $2.50 billion this fiscal year as many international buyers have postponed their visits to the country following the recent militant attack in the capital that claimed 23 lives, including those of 17 foreigners.
The BGBA urged the government to take comprehensive steps after achieving a consensus with all political parties and business leaders in order to overcome the present crisis in the RMG sector.
If the government comes forward after taking all political parties and business-related people on board, the present crisis in the RMG sector would be resolved, BGBA president Kazi Iftekhar Hossain said at a press briefing, held at the Dhaka Reporters Unity (DRU).
In a written statement, Hossain observed that seven Italian nationals, who were killed in the Gulshan attack, had been engaged in the countrys RMG business. There has been an adverse impact on the RMG sector following the dreadful incident at Gulshan. A famous company, HM, is thinking of reducing its business in the country, and some international buying houses have conveyed their concern following the incident, Hossain said.
We are deeply concerned about the future of our business as the RMG business is a time-bound business. If we are not able to take orders from the international buyers by August, then the RMG sector may lose at least 10 per cent of its total business, equal to USD 2.50 billion, Hossain warned.
In response to a query, he said that though the buyers are yet to show any intention to shift or cut export orders from Bangladesh following the terrorist attack at Gulshan on July 1 that killed 17 foreigners, including apparel buyers, they have expressed their worries over the situation and wanted to know more about the measures that have been taken to ensure the security of foreign buyers.
Former BGBA president Qayum Reza Chowdhury said they were trying to continue their business despite the adverse situation prevailing across the world. Some international buyers offered to hold meetings with me in a third country, such as in Bangkok, Hong Kong or Dubai, as they were not interested in coming to our country at this time, he disclosed.
Chowdhury urged the foreign ministry to provide a note verbale on behalf of RMG business buyers to ensure they get their visas easily so that the international buyers and the countrys businessmen can hold meetings in third countries to ensure smooth business in the RMG sector.
He said a number of foreign buyers of Bangladeshi garments, in addition to officials of Japanese giant Uniqlo, have cancelled their scheduled business meetings in Bangladesh and have asked exporters to fly to a third country to negotiate orders following the Gulshan attack.
He also said some buyers from Europe and the US, who often visit Bangladesh, have requested them to arrange visas to visit their countries for business meetings. They are not unwilling to place orders in our factories, but feel scared to visit Bangladesh because of the Gulshan attack, he added.
