Growth in Bangladesh’s apparel export to the United States dropped below 1.0 per cent during the first eight months of the current calendar year over the corresponding period of 2015. According to sources in business circles, sluggish economic recovery in the country’s single-largest shipment destination-the US market-is largely to blame for the slowdown in the export growth. A growing competition by other exporters, particularly Vietnam, for the market share and denial of duty-free and quota-free access for Bangladeshi apparels are also seen as deterrents. Growth drops below 1.0pc. The country’s exports grew by 0.85 per cent to $3.71 billion while its one of the main competitors, Vietnam, posted a 3.04 per cent growth to $ 7.25 billion during January-August period of 2016. The trade scenario came clear from data of Office of Textiles and Apparel (OTEXA), a concern of the US Department of Commerce. Export earnings grew by 10.99 per cent in January and 8.52 per cent from January to February in 2016, the data revealed. Exports of the country’s non-apparel items, including shrimp and plastic products, also declined. The turnover amounted to $142.17 million during the January-August period, accounting for a negative 6.88 per cent growth. On the other hand, Chinese apparel exports also witnessed a negative growth of 7.73 per cent to $ 18.28 billion during the same period of this year. Meanwhile, the RMG exports of India slightly maintained the growth by 0.06 per cent to $ 2.61 billion while Cambodia’s declined by 14.76 per cent to $ 1.43 billion during the same period. Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue, said a downturn in the US demand for apparels might have slowed down the country’s import not only from Bangladesh but also from other countries. “As Vietnam’s growth is higher than that of Bangladesh, it might be that the former is taking more advantage from the China shift,” he said. Vietnam’s growth indicated US buyers strengthening their trade and investment relations with that country, he noted. The policy analyst, however, said Bangladesh is still in a good position in the context of overall US import situation. Faruque Hassan, senior vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said prices of apparels are not increasing because of sluggish global demand for apparel products. Orders from China are shifting to Vietnam as the latter has developed its strength in producing non-cotton items which also helped it in earning more, he noted. Md Hatem, managing director of MB Knit Fashion, said efficiency is higher in Vietnam compared to Bangladesh’s. Though India, Vietnam and Bangladesh produce almost all the same products, Vietnam produces some value-added products, he opined. Meanwhile, unrelenting efforts of the government for resumption of the country’s suspended GSP facility on the US market have failed so far, as the American authorities made it conditional to further improvements in workplace safety and labour rights situation in the export industry.
