Apparel export to US market has seen a 2.12% fall in January-September period compared to the corresponding period last year while its nearest competitors India and Vietnam have posted significant gain.
As per the latest data by the US Department of Commerce’s Office of Textile and Apparel (OTEXA), in January-September period of 2014 Bangladesh’s apparel export to the US market plummeted to $3.78 billion which was $3.86 billion last year.
Bangladesh’s close competitors India’s export, on the other hand, rose by 5.64% (from $2.5 billion to $2.64 billion), Vietnam’s by 15.63% (from $6.05 billion to $6.9 billion), China’s by 0.26% (from $22.36 billion to $22.4 billion) while South Korea’s by 3.64% (from $171 million to $177 million).
Pakistan has also seen a 1.19% decline ($1.12 billion to 1.10 billion) in its apparel export to the US market..
After the Rana Plaza building collapse which killed 1,135 workers and injured over 2,500 Bangladesh’s apparel export to the US market has seen a downtrend.
On June 27 last year, the US government suspended Generalised System of Preferences (GSP) for Bangladesh because of concerns over labour rights and workers’ safety after hundreds of apparel workers died in the deadliest Rana Plaza building collapse.
“Buyers from the US market has shifted orders from Bangladesh to Vietnam, which caused downswing in Bangladesh export to US, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice-President Shahidullah Azim, said adding that Disney World had shifted its order worth $500 million from Bangladesh to Vietnam.
Buyers have to change their attitude toward Bangladesh as we are in satisfactory level over safety issues and as per the buyers demands safety standard had improved.
Inspection conducted by the Alliance platform of North American buyers had found less than 2% factories risky, said Azim.
Azim also said government to government (G2G) relation has to be improved to overcome the situation as the nature of problems are political to some extent.
He also said there is no lacking from our side and we are on the edge of becoming a compliant sector across the world.
“Production cost has risen significantly due to hike in wage, rise in gas and electricity tariff and compliance issues but the prices of the products have not gone up.
Rana Plaza building collapse, Tazreen Fashion fire and political unrest acted as catalyst for export downtrend,” said Abdus Salam Murshedy, president of Bangladesh Exporters Association (EAB) told the Dhaka Tribune.
“Businessmen shifted orders from Bangladesh to India and other competitors due to increase in cost, political unrest and safety issues, said a factory owner.
On the other hand, India is gradually grabbing its share in apparel exports to the US, he observed.
Mirza Azizul Islam, former adviser to a caretaker government stressed the need for pointing out the problem whether it is arisen from the supply side or demand side.
“After I have talked to the global lender I came to know that the problem lies with the supply side and there is no problem with the demand in the US market.”
Production may have been hampered due to inspection by the buyers leading to closure of many factories. He also attributed political unrest to poor production.
