Declining export worries RMG factory owners

Current pace may deter $50b annual export target: BGMEA

Bangladeshi garments manufacturers may miss the target of reaching annual US$ 50-billion exports by 2021, if the current trend of declining sales in major markets continue. The warning was sounded by the incumbent president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Siddiqur Rahman, who blamed the falling Euro, Brexit, and the US presidential election, for instability in the ready-made garments (RMG) sector—the largest component of Bangladesh’s export basket. “We're losing our edge in the international market, which is increasingly becoming more competitive,” said the BGMEA president.
Volume of apparel exports to the US—the biggest market—declined by 9.11 per cent in the July–December period. RMG export to the UK has declined by 5.19 per cent, to Canada by 7.03 per cent, to Australia by 10.96 per cent, and to Brazil by 45.42 per cent.
Meanwhile, the production cost has increased by 17per cent. The average export growth rate of the RMG sector in the July–December period of the ongoing fiscal year is only 4.37per cent.
“This is way below the target growth rate of 12.25per cent which we need to achieve the RMG export target of US$ 50 billion by 2021.”
Rahman said that many buyers lost interest in Bangladesh after the Rana Plaza incident. However, he pointed out that thanks to positive outcomes of the Accord and Alliance inspections, many buyers have started considering Bangladesh again. "At last year's apparel summit, they promised to give us more work orders," he said. Pointing to the recent unrest in January at Ashulia—a major garment industry hub—the BGMEA leader said that due to 14–15 days of work abstention, factory owners have had to bear serious losses.
When asked to confirm whether 2,600 garment workers were sacked due to the unrest, the BGMEA president said: “Those workers were suspended. There is a difference between sacking and suspension. Also, to my knowledge, only around 1,500 workers were suspended and not 2,600.”
He added that eventually the suspended workers resigned because they did not want to stay under suspension. “They have been compensated as per the wage board. The biggest victims of the unrest were the owners, who lost Tk. 100 crore, a day, due to the strike.”
Criticising NBR chairman Nazibur Rahman’s recent remark that the owners of garment factories are stashing export earnings in foreign countries, Siddiqur Rahman said: “He (the NBR chairman) should not have generalised the sector.” “I urge the government to conduct proper investigation against companies involved in such activities. But, if a person in such an important position makes a generalised remark like this, it hurts the sector as a whole.”

Declining export worries RMG factory owners

Current pace may deter $50b annual export target: BGMEA

Bangladeshi garments manufacturers may miss the target of reaching annual US$ 50-billion exports by 2021, if the current trend of declining sales in major markets continue. The warning was sounded by the incumbent president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Siddiqur Rahman, who blamed the falling Euro, Brexit, and the US presidential election, for instability in the ready-made garments (RMG) sectorthe largest component of Bangladeshs export basket. Were losing our edge in the international market, which is increasingly becoming more competitive, said the BGMEA president. Volume of apparel exports to the USthe biggest marketdeclined by 9.11 per cent in the JulyDecember period. RMG export to the UK has declined by 5.19 per cent, to Canada by 7.03 per cent, to Australia by 10.96 per cent, and to Brazil by 45.42 per cent. Meanwhile, the production cost has increased by 17per cent. The average export growth rate of the RMG sector in the JulyDecember period of the ongoing fiscal year is only 4.37per cent. This is way below the target growth rate of 12.25per cent which we need to achieve the RMG export target of US$ 50 billion by 2021. Rahman said that many buyers lost interest in Bangladesh after the Rana Plaza incident. However, he pointed out that thanks to positive outcomes of the Accord and Alliance inspections, many buyers have started considering Bangladesh again. At last years apparel summit, they promised to give us more work orders, he said. Pointing to the recent unrest in January at Ashuliaa major garment industry hubthe BGMEA leader said that due to 1415 days of work abstention, factory owners have had to bear serious losses. When asked to confirm whether 2,600 garment workers were sacked due to the unrest, the BGMEA president said: Those workers were suspended. There is a difference between sacking and suspension. Also, to my knowledge, only around 1,500 workers were suspended and not 2,600. He added that eventually the suspended workers resigned because they did not want to stay under suspension. They have been compensated as per the wage board. The biggest victims of the unrest were the owners, who lost Tk. 100 crore, a day, due to the strike. Criticising NBR chairman Nazibur Rahmans recent remark that the owners of garment factories are stashing export earnings in foreign countries, Siddiqur Rahman said: He (the NBR chairman) should not have generalised the sector. I urge the government to conduct proper investigation against companies involved in such activities. But, if a person in such an important position makes a generalised remark like this, it hurts the sector as a whole.