Bangladesh witnessed 51% leap in apparel exports in August 2020

rmg_mumitmBangladesh has reported an increase of around 51 percent in clothing exports in the first 19 days of this month compared with the same year-on-year, according to data from Bangladesh Customs on the daily exports compiled by BGMEA. From 1-19 August 2018, Bangladesh exported $2.048 million in apparel for the corresponding 2019 period , up from $1.359 million in apparel exported.

The growth was related by experts and clothing entrepreneurs to the recovery of most of canceled orders and to zero intervention in shipments during the Eid holidays. The Managing Director, Classic Group, Md Shahidullah Azim, says about 75-80 percent of orders canceled returned to plants. In the period March-May, BGMEA declared a cancelation and withdrawal of exportation orders valued at $3.18 billion. The RMG sector saw the lowest exports ever to be made of 375 million dollars in April. Exports of apparel decreased to 17.95 billion dollars at the end of fiscal year 2019-20 from 34.13 billion dollars in the previous fiscal year.

Currently, most textile manufacturers are concentrating on redeeming and fulfilling their backlogs. The markets of the European Union are also reviving, despite a second danger of COVID-19, says Arshad Jamal Dipu, president of the Tusuka Company, adding that shopping in Europe and online sales are also increasing.

According to the government of the United States the buying power remains unchanged due to certain rewards programs implemented. Western economies will slowly turn around with new directives, says the Policy Research Institute’s executive director Ahsan H Mansur. Buyers have put new orders and, he estimates, the outcome will be seen in two months.

On the other hand, due to the prevailing rivalry between Washington and Beijing, China is also switching to high-priced apparel due to wage growth in labor from China to Vietnam and Bangladesh. If Bangladesh can capture between one and two percent of China ‘s share through the divert to the region, it will be a major jump for the clothing industry, Mansur adds.