Al Amin :
The entrepreneurs of readymade garment industry apprehended that the apparel exports to European countries may decline further in months to come.
They said so far the import figure of the EU indicates a good position of Bangladesh’s apparel to the markets. But due to the recent geopolitical tension, retailers are struggling to adapt to an increasingly inflationary global market, they said.
Besides, the retail sales of many European brands have declined significantly which increased their inventory stock, they added.
“Considering all these factors, our export to EU market might be shown declining trend in the coming months,” Md Mohiuddin Rubel, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The New Nation on Sunday.
The European statistics organization ‘EUROSTAT’ published the latest apparel import statistics of EU for the period of January-May of 2022.
As per the statistics, EU’s imports from Bangladesh increased by 44.95 per cent to $9.58 billion during the mentioned period while their global apparel import grew by 24.37 per cent.
The EU’s clothing import from China reached $10.19 billion with 20.67 per cent year-over-year growth.
Other countries having significant growths were Cambodia 32.68 per cent, Pakistan 29.28 per cent, Indonesia 25.36 per cent, Vietnam 22.34 per cent, and Morocco 20.05 per cent.
Although, the import figure showed that the Bangladesh is a good position, but recent drop in apparel sales in the markers is making worry the country’s exporters.
Around 30 per cent orders of clothing products have already decreased in the European markets due to the economic turmoil, the BGMEA sources said.
Besides, many buyers are either withholding orders or delaying shipment, which is worrying the RMG exporters severely. “RMG exporters may face difficulties due to current inflation rate,” said Fazle Shamim Ehsan, Vice-President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
He, however, said that the situation is likely to be improved within two-three months.
“The European countries may reach a consensus over fuel oil during this time, which will help to cool down the current state of recession. On the other hand, many orders may shift at Bangladesh from China due to current pace of the US-China cold war,” Ehsan said.
These two factors will help to increase apparel shipment in coming months, he hoped.
Mohammad Hatem, Executive President of the BKMEA said, “The recession has already started in Europe. This has resulted in a 30 percent reduction in orders for apparel products next quarter.”
“Two challenges have to be faced in overcoming the situation. One of them is quick resolution of gas crisis, while another is stabilization of dollar market. In order to maintain exports, the dollar buying-selling difference should be kept between Tk 1 to Tk 1.5 maximum,” he said.
