Bangladesh will lose a big share of its readymade garments market to its competitors if the current political unrest and violence continue after the January 5 parliamentary elections, sources said. International buyers are shifting to India, Vietnam, Cambodia and Pakistan cancelling new orders in Bangladesh, said Mohammmed Hatem, acting President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The current political confrontation is going to benefit Bangladesh’s competitors like India, Vietnam, Cambodia and Pakistan in the world readymade garment markets, sources said. Political unrest and civil war in the late 70s and 80s compelled international buyers to leave Sri Lanka and started putting export orders in Bangladesh. Now the two-month political unrest have hit the production of a good number of RMG units that work under subcontract. According to sources of Exporters Association of Bangladesh, exporters incurred Tk 4000 crore lossduring the last nine months as exporters had to carry goods through air route instead of sea route against the backdrop of political unrest, violence, hartals and blockades. Exporters are compelled to carry their goods through air route instead of sea to give delivery in time. According to exporters, air-freight for 1000 kgs of goods is 3000 US dollars compared to 100-150 US dollars by sea route. Sources said sea shipment cost of a shirt is 7-8 cent against 2/3 dollars air shipment cost. Former BGMEA President Anwarul Alam Parvez said export market largely depends on the country’s image and diplomatic relations. Bangladesh is facing image crisis as relations with US and EU countries are very shaky over January 5 parliament election. EU and US are giving negative impressions about Bangladesh to their importers. Even a good number of countries have warned their citizens against travelling to Bangladesh, said Parvez. He said representatives of big brand names are not visiting Bangladesh and are not putting fresh orders after February-March period. President of Exporters Association of Bangladesh Abdus Salam Murshedy said Bangladesh has earned a reputation in recent times through exporting quality goods in time to the US, EU and Canadian markets. But the ongoing political unrest has damaged the Bangladesh’s image abroad. According to BGMEA and BKMEA sources, some 30 production units have been closed in the last one and half months. Out of 30 production units 21 belong to BGMEA and 9 to BKMEA. Travel Planner Managing Director Salauddin was owner of 6 garment units. He has sold two units and invested the said money in tourism business. Becaon Managing Director Amal Pdder said he closed hit production unit on November 12 against the backdrop of political and labour unrest.
-With The News Today input
