BANGLADESH’S garment export to the US fell in the 10 months up to October this year with higher shipments competing from countries such as China, India and Vietnam. The country’s has exported worth $4.35 billion apparel goods to the USA in the first ten months (January-October) of the year, which is 4.93 per cent lower than the value of exports during the corresponding period of the previous year. Local businesspeople blame the fall in the garment exports on the lack of infrastructure; which hampers quick delivery of goods to the retailers in the US. For international buyers, India has brought down apparel prices to the level of Bangladesh by offering stimulus packages for the garment sector although the labour cost in India is higher compared to Bangladesh. The government and apparel exporters should take special measures to retain its share of exports in global market.
News media reported that Indonesia, South Korea and China also experienced a fall in exports to the US market. On the other hand, India sent $6.36 billion worth of garments to the US, up 3.44 percent year-on-year basis. Vietnam’s exports rose 7.07 percent to $10.36 billion, Pakistan’s 1.74 percent to $2.31 billion and Mexico’s 7.64 percent to $3.99 billion. In the 10-month period, the overall export to the US from Bangladesh also fell, by 4.09 percent year-on-year to $4.87 billion. Considering the garment export growth to the US, Bangladesh now stands at sixth behind China, Vietnam, India, Pakistan, and Mexico whereas the country ranked third to fourth in 2016. However, imports from the US to Bangladesh have been rising in the recent months on the back of huge capital machinery imports for the garment sector.
American giants GAP and Walmart; the biggest buyers for Bangladesh, have recently shifted some orders to India because of quicker lead-times, which is also responsible for the fall in the garment exports to the US. Bangladesh’s garment makers import a huge amount of fabrics from India and have to spend a lot of time and go through a lot of hassles for the release of goods at Benapole Land Port, Chittagong Port, and Hazrat Shahjalal International Airport. As a result, the local garment makers can’t maintain the lead-time and ultimately lose the work orders from the retailers and brands. The country’s exporters are also struggling to maintain competitiveness due to higher tariffs on gas and electricity as well as structural problems.
Amidst downing trend and stiff global competition, the government should overcome the bottlenecks in processing of garment exports. The trend is alarming that demands special attention from all stakeholders to regain the lost position in the US market.
