Bangladesh Garment Export Market In Sharp Decline

Garments in Bangladesh

The export growth rate, especially knitted garments, has declined sharply in the just ended fiscal year (2011-12).

With the decline in export orders, Bangladesh's clothing exports have experienced a marked decline, triggered by the continued downturn in the European Union and the United States. The United States and the European Union are the main destinations for Bangladesh's clothing and garment exports, the exporter said.

According to the latest statistics released by Bangladesh Export Promotion Bureau, the export growth of knitted and woven garments decreased by 46% and 26% compared to the same period last year.

In the 2011-12 fiscal year, the export of knitted products in Bangladesh amounted to US $9 billion 486 million, with a target of US $10 billion 800 million.

The actual export volume is 1 billion 314 million US dollars lower than the target, about 12.16%.

The growth rate of 46.25% in the same fiscal year was only 0.05%.

Officials attributed this to the global economic crisis. The economic crisis hit the developed countries, including the major markets in Bangladesh, the United States and the European Union. Meanwhile, the labour unrest in the clothing and garment sector has also become a major reason.

The exporter said that the purchase orders for knitting and weaving departments declined.

If this trend continues, it will be a bad result for the clothing and clothing sector.

Industry insiders say that the number of workers currently working in garment and garment units has been cut by 50%.

Abdel Salam musti, President of the Bangladesh Exporters Association, said: "EU countries, such as France, Italy, the United Kingdom, Greece, Spain, Germany and Luxemburg, have experienced economic recession, and there is no sign of immediate recovery.

The feedback from the United States is not very good either.

Consumers in recession hit countries are only buying basic items to avoid stress.

As a result, Bangladesh clothing and garment factories received fewer orders, and the operating rate was lower than capacity.

Mushati also believes that high bank interest rates, energy and electricity crises, rising production costs and other reasons have contributed to this bleak achievement.

To overcome this situation and maintain export growth, mussuti suggested that the government should solve these problems immediately and introduce some new incentives to increase the competitive advantage of export projects.