Bangladesh’s readymade garment export is in negative growth now mainly due to losing its competiveness in the international market in prices. Exporters claim that an increased cost of doing business, not adjustable fuel costs and strong USD against BDT are leaving Bangladesh behind other Asian countries, who are at the same time enjoying a double digit growth.As per official statistics export growth of woven readymade products which account for the major per cent of RMG export in May dropped to negative (-0.33 per cent) and knitwear to 4.91 per cent.The woven sector’s growth is -10.21per cent less than the government set strategic target for July-May period of the current financial year and knitwear sector fell to -2.09 per cent of the target for the same period, Bangladesh Export Promotion Bureau (EPB) data shows.Exporters fear the situation may worsen in the coming months of the new financial year.The Centre for Policy Dialogue’s former executive director Dr Mustafizur Rahman said when Bangladesh’s export is declining at the same time exports of Vietnam and Cambodia are increasing in the US and the EU countries.He said to overcome the negative situation it is imperative for the government to reduce costs of doing business and at the same time rationalise fuel prices. He also suggested for technology based investments which will create new job opportunities and export for high value added products.Abdus Salam Murshedy, a former BGMEA president, said Bangladesh’s RMG sector is in a competitive edge and the export growth started declining from very beginning of the current financial year, but this is disappointing that the government despite feeling the need for supporting the sector with providing incentives, it did nothing rather it has raised different taxes.He said, “We can regain the earlier growth if some support in currency devaluations, oil prices adjustments and incentives are there for the exporters that they can compete with other countries in prices.”If the problems are addressed Bangladesh can achieve the target of exporting US$50 billion by 2021 from RMG sector. He said at the current negative growth it is far from achieving the target.Faruq Hassan the BGMEA Senior Vice President said as per their statistics the number of utility demands that the exporters take from the BGMEA have dropped which means in the coming months export will further decline.He said in the proposed budget for the financial year 2017-18 the government has raised corporate taxes on the garment companies. He said in the existing negative growth such tax, source tax and other duties will make local readymade garments more troubled.Abu Alam Chowdhury a former FBCCI vice president, said, “Export is declining for all kinds of products. We think this is the right time that the government takes necessary measures that will be helpful for the exporters to compete with others.”Abdul Qader Khan, President of Bangladesh Packaging and Garments Accessories Manufacturers and Exporters Association (BPGMEA), said 35 per cent corporate tax is still high for the exporting companies. He said to save export sector from the current fall it should be withdrawn and the garment sector should also be exempted from source tax for at least next two years.The BGMEA Vice President (Finance) Mohammed Nasir said, “We get 3 per cent incentive which is not enough. At this moment we are passing hard time as the growth is already negative.”He said to overcome from this situation the government must need to take some steps that will reduce cost of doing business and the exporters may not feel over burdened.”Alhaj Harunur Rashid, FBCCI Director, said, “We are still paying high interest on bank borrowing. If the bank rates are not lowered the existing multiple problems in export sector would be intensified.”
