adv-06 adv-06

Almost 14% order drop from US creates concern among Bangladesh RMG Industry


img_3931Order decreasing from the United States are causing concern among Bangladesh RMG manufacturers. According to Fazlul Haque, Managing Director of Plummy Fashions Ltd, customers are accepting all types of work orders, although in smaller quantities. In the wake of a spike in coronavirus infections, he expects business to take some time to recover. Buyers may base their decisions on the outlook over the next 6-7 months, according to Haque. If the situation of Covid-19 doesn’t rapidly improve, exports of RMG may be down trend. While purchasers have not yet given such a massage, he added.

Global exports of clothing products into the USA fell by one-fourth in 2020 as more than any other part of the world was smashed by the coronavirus pandemic. In the first two months of 2021, after a slightly improved coronavirus situation, apparel exports to the United States increased slightly.

Bangladesh has gained too. However, due to a new spike in coronavirus infections, fear again spread through exports of clothing to the US market. According to OTEXA, US customers import $64.07 billion (6,407 crore) of clothing products in the year 2020. In the first two months of 2021, US imports of clothing fell by 13,85 percent to $ 10,91 billion. In the first two months of 2021 the export of Bangladeshi clothing to the United States dropped to 1 billion dollars (100 crore) of clothing equivalent to Tk 85 billion (8500 crore). After China and Vietnam, Bangladesh has become the third biggest exporter of clothing to the US market.

In January-February 2021, Vietnam’s exports to the US decreased by 12.9% to $2.09 billion. Over the corresponding period of 2020, Vietnam exported clothing worth 2.34 billion dollars (234 crore). The export of their clothes to the United States has also declined in India and Indonesia. In January and February 2021, India’s exports of clothing goods to the U.S. fell by 21.89% to 590 million dollars (59 crore).