Global retailers placed more orders last quarter to Bangladeshi RMG makers compared with other countries as they find local manufacturers competitive following uninterrupted supplying during the period of coronavirus pandemic.
Giant retailers like Nike, Gucci, Addidas, Zara, Uniqlo, H&M, Cartier, Harmes, Dior, Coach and Anta all the global top retailer have placed 10 to 12 per cent more order this season, Roushan Ali, manager of a local buying houses told business mirror.
“ The present government dynamic move continue RMG production during corona virus pandemic when other competitors put shutter down help building robust confidence to local suppliers,” Ali added.
He said “ we are now capable to supply goods timely and efficiently within 10 to 15 per cent less cost than other competitors like India, Sri Lanka and China,”
Export of apparel production rose by 28.0 percent during the July-December period of FY2021-22 compared to the corresponding period of FY2020-21. It is also worth noting that growth of non-RMG export earnings was also an impressive 30.1 percent in this period, which was indeed higher than growth of earnings from the export of RMG.
Besides, apparel makers and textile millers are continuing expand their ventures following growing orders.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said local producers capacity are growing . “ We are hopeful that we will able earn from RMG export worth US& 7/8 billion a month from the current 3/4 billion,” Hassan added.
For the first time in the history of Bangladesh, the monthly export of garment items crossed $4 billion in December, helped by a surge in demand in keeping with the global recovery from the severe fallouts of Covid-19.
Meanwhile, following the rising order the spinning sector witnessed a major jump in investment last year as entrepreneurs set up 26 new mills to meet rising demand. Entrepreneurs pumped Tk 5,970 crore in the new manufacturing plants.
Mostafizur Rahman, CPD Executive Director said the robust growth of export earnings was primarily volume-driven, not price-driven. This was likely to have a number of implications including falling profit margins for the entrepreneurs.
Moreover, Commerce Minister Tipu Munshi has said there is an opportunity for Bangladesh to do better in the readymade garments (RMG) industry as foreign investors are ordering RMG products in Bangladesh instead of China and Vietnam for various reasons.
“Orders are being moved to Bangladesh from China as well as Vietnam. Many more opportunities are going to be created in the RMG sector. We want to utilise this opportunity,” said the minister while distributing CIP (Commercially Important Person) cards at Sonargaon Hotel in the capital on Thursday.
“We have retained the second position in RMG and set an export target of $80 billion in 2024. We can achieve the target with the help of traders. We will go for product diversification too,” he added.