Several global apparel retailers have recently canceled trips to Bangladesh as political standoff continues, which analysts say could result in shift of orders to other competitors.
Over the last two months, representatives from retailers such as GAP, American Eagle, Pinkie, Okidi and Promote suspended scheduled visits, industry insiders said.
The visit suspension has created fear among local manufacturers of taking away orders from Bangladesh and shifting to competitors like Vietnam, according to them.
“It is a chilling message for the industry and the economy as well,” said Anwarul Alam Chowdhury, former president of Bangladesh Garments Manufacturers and Exporters Association.
The $24bn industry, which accounts for more than 80% of the country’s total export earnings and globally the second largest exporters after China, is the mainstay of the Bangladesh economy.
Cheaper cutting and manufacturing cost in Bangladesh RMG sector is the main attraction for the reputed clothing brands across the world.
Former FICCI president Ershad Ahmad said a delegation from GAP was scheduled to come to Bangladesh on January 5.
They had to canceled the tour as the validity of VISA expired in the long wait for the political calmness in Bangladesh.
Like GAP, some other leading buyers have postponed their trips, according to Ershad.
“They are scared and cancellation of trips may create scope for choosing another country for sourcing,” he said.
Bangladesh is now facing a vicious political strife, as BNP-led 20-party alliance enforced countrywide non-stop transport blockade along with shutdowns to press home its demand of national election under a caretaker government system.
But the longest ever programme has almost paralysed the country.
The bout of fresh political strife was triggered as the government had not allowed the opposition alliance to hold rally on one year completion of January 5 controversial election.
The longest stretch of shutdown has ever been seen by the country.
Vietnam is Bangladesh’s strong rival in ready-made garment exports. It is likely to overtake Bangladesh in the global apparel export market share in next 10 years once the Trans Pacific Partnership (TPP) takes shape, according to a study of Standard Chartered Bank.
On this basis, Vietnam would beat Bangladesh to become the second-biggest apparel supplier after China when its apparel exports swells to US$115bn, it said.
