Government urged to boost investments in RMG sector in Bangladesh
January 21, 2008
Readymade garment (RMG) sector is emerging as one of the most significant and fast growing industries in Bangladesh.
Huge investment opportunities are coming up as the export is soaring and domestic manufacturers and looking for capital for not only new projects but also for enhancing existing units.
Statistics show that, currently, there are prospects for setting up 148 spinning mills, each with 25,000 spindles and 295 weaving and 280 dyeing cum finishing facilities. These projects promise ample job vacancy and also elevate the economic scenario.
Experts say that this is an excellent time for investing in this sector as it will grow on a global scale and prove to be profitable.
However, banks and financial institutions are not investing as much as the industry hopes for.
Industry analysts are urging the Government to take the lead and support local enterprises. Special fund should be aggressively mobilized, by negotiating with international agencies like World Bank, the Asian Development Bank and International Finance Corporation (IFC).
LDCs duty-free access: New trade bill worries US textile bosses
January 14, 2008
US textile bosses are opposing passage of the new trade bill allowing duty free access of goods of least developed countries in their market fearing massive blow to their local industry, informed sources said.
“They fear that if the bill is passed, the US textile industry will be hard hit because the industry exports US12 billion a year in yarns and fabrics to western hemisphere countries. These countries will not be able to compete with Bangladesh and Cambodia,” a communiqué between Ministry of Commerce and the Bangladesh Embassy in US revealed.
A recent meeting of the officials of Bangladesh Embassy in US, American Manufacturing Trade Action Coalition and National Council of Textile Organisations revealed that the US lobbies are opposing the bill fearing that the shrinking US textile and apparel industry may even shrink faster if the bill is passed.
The African Countries find it difficult to compete with apparel ’superstar’ Bangladesh even with the tariff and quotas.
They fear to lose in competition, as cost of Bangladesh and Cambodian apparel is US$2.44 per square metre against the African cost of US$3.92.
As the African countries lack capacity and technologyical skill to compete with big players like Bangladesh and Cambodia the African lobbies are opposing the bill, too.
The American Manufacturing Trade Action Coalition and the National Council of Textile Organisations are concerned about the possible impact of expiry of quota on Chinese export to US on January 2009. In this challenging moment they do not want to face more competition allowing the duty free access of goods from LDCs.
Congressman Jim McDermott introduced “The New Partnership for Development Act of 2007″ bill in the US Senate on October 18.
The trade bill, if passed, will allow duty and quota free access of LDC products to the American market.
Bangladesh trade fair will begin in Jeddah of Saudi Arabia
January 10, 2008
A six-day single country Bangladesh trade fair will begin in Jeddah of Saudi Arabia on 30 June 2007. Saudi-Bangladesh Chamber of Commerce and Industry (SBCCI) with the assistance of the Ministry of Foreign Affairs will organize the fair, said a press release yesterday.
As many as 70 stalls will be set up at the fair to showcase products including readymade garments, food items, ceramics, handicrafts, pharmaceuticals, electronic appliances and jute and jute goods. Interested parties to take part in the fair have been requested to contact the SBCCI office in Purana Paltan, Dhaka.
Export fall in US market worries apparel industry
January 7, 2008
Apparel exports to the USA marked a decline in October, giving signs that Bangladesh is losing its market share to China and Vietnam, industry sources said.
The latest US data showed Bangladesh’s apparel shipments, in terms of volume, declined by 8.3 per cent in October 2007 over the same month in 2006 and 5.7 per cent over September 2007.
In October, 2007 Bangladeshi exporters shipped about 121 million square meter equivalent units of apparels, against 132 million units in the same month in 2006.
Shipments from China in terms of value increased by 30 per cent in October and Vietnam by more than 29 per cent while imports from across the world increased by nearly five per cent, the data showed.
Bangladesh Garment Manufacturers and Exporters Association president Anwar-Ul-Alam Chowdhury Parvez acknowledged the decline in exports to their single largest market.
Chinese and Vietnamese exporters are taking market shares away from Bangladeshis in the USA he observed.
The October fall in apparel exports to America reversed the official export figures showing a trend of recovery in apparel trade until September.
Boosted by an average 20 per cent annual growth for the last two years, apparel exporters saw a massive 24 per cent decline in sales in June 2007.
Businessmen then attributed the fall to erosion in buyers confidence stemmed from violent labors unrest in readymade garment industry in mid-2006 and prolonged political unrests towards the end of last year.
The BGMEA president said Chinese export growth continued despite an interim safeguard quota was in force for US market.
We are very much afraid of China after the expiry of safeguard quota he added.
The safeguard quota, which was imposed in mid-2005 and scheduled to expire on December 31 in 2008, caps Chinese annual shipments growth at 7.5 per cent.
Industry people say Chinese and Vietnamese exporters are faring well as they can offer flexible payment contracts other than age-old letter of credit system.
International trade expert Mustafizur Rehman said, The global apparel market is becoming restructured and fiercely competitive.
Apparel retailers are opting for direct sourcing, they are now looking for one-stop supply of required fabrics and design collections couple with easy and comfortable payment systems, he added.
Mustafiz, executive director of Center for Policy Dialogue, also observed that Bangladesh’s industry and the government would have to ensure flexible facilities to prevent foreign buyers from leaving Bangladesh.
Increasing competition and declining exports also indicate how urgently Bangladesh needs duty-free access to the USA, he said.
He stressed the need for strong persuasion to get the New Partnership and Development Act-2007 passed by US Congress in favour of Bangladesh and other LDCs.
BANGLADESH: US proposes domestic textile industry to join Congress
January 2, 2008
With an aim to devise some mechanism to extend the cap on Chinese apparel import in the country beyond 2009, the domestic textile industry has been proposed to join in lobby the Congress and administration by the US textile owners.
The proposal was made at a recent meeting of officials of Bangladesh Embassy in United States and the American Manufacturing Trade Action Coalition and the National Council of Textile Organizations in Washington.
US has imposed quota limit on Chinese clothing imports to the country in September 2008, as the US market for brassieres and synthetic fabric is being disrupted by surging Chinese imports. By imposition of the cap the giant China was allowed to export no more than 7.5 percent import of those products to the US market.
However, US is likely to lift the ban before January 2009. Least developed countries including ‘apparel superstar’ Bangladesh and Cambodia, whose textile sector grew on depending different factors, are also fearing a big blow once the cap is withdrawn by US from Chinese goods import.
The Bangladesh embassy officials sought cooperation of the US textile owners to help passage of the NPDA 2007 bill allowing the LDC goods free of duty. US lawmakers and manufacturers are of the opinion that China’s currency policies and government subsidies give its exporters an unfair advantage and have led to a huge US trade deficit with China. In 2004 China exported US$15 billion of textiles and apparel to the US and was on pace to surpass that by more than 60 per cent in 2005.