Refayet Ullah Mirdha

Small and medium-sized garment factories in Bangladesh are finding it increasingly difficult to keep their heads above water amid the rising cost of production and a fall in work orders from international clothing retailers and brands.

Many garment makers in Bangladesh are not honouring their primary contracts for buying yarn from local spinners as work orders from abroad have decreased amid volatility in the global economy.

Countries, including Bangladesh, should open up and liberalise their economies as it has been proven with sufficient data that countries which have done so have grown economically.

It was thought that the shipment of garment items to Russia would come to a standstill because of the outbreak of the war with neighbouring Ukraine since February 24 in 2022.

Exporters in Bangladesh are unable to take the full benefit of the devaluation of the taka against the US dollar amid ongoing inflationary pressure and rising production costs, according to industry people.

The third terminal at the Hazrat Shahjalal International Airport (HSIA) will open a new horizon in handling and air shipment of goods as the new facility is expected to improve the capacity of the cargo village.

The strain on dollar stockpile intensified last month after remittance inflows crashed to a 41-month low and export receipts missed target.

It hit $4.31 billion in September

Latin America is turning into a major export destination for Bangladesh riding on higher apparel shipments at competitive prices as part of the country’s efforts to diversify.

Bangladesh might be the second-largest apparel supplier in the world, but its current installed capacity will not be adequate to meet demand if orders surge significantly as buyers shift away from countries such as China and Vietnam.

Cotton waste is turning into a new cash cow for Bangladesh as it is increasingly being sold abroad although local garment exporters are in favour of retaining and recycling it.

Bangladesh’s apparel shipments to the US declined 19.82 percent year-on-year in the January-July period this year in spite of a gradual improvement in retail sales.

The import of woven fabrics declined by 25.97 percent in the first seven months of this calendar year, compared to the same period last year, as garment makers have brought down their reliance on imported products because of an increase in local production.

Bangladesh may sign a memorandum of understanding (MoU) with Russia soon to import some food items as those were offered at competitive prices, said Senior Commerce Secretary Tapan Kanti Ghosh yesterday. 

Earnings from merchandise shipments in August increased slightly by 3.80 percent to $4.78 billion, mainly riding on apparel exports as all the other major sectors staged a poor performance last month.

Yarn prices have been increasing in the domestic market over the last two weeks as demand from garment exporters is rising amid a hike in work orders from international clothing retailers and brands thanks to easing inflation in the West.

A massive transformation is set to occur in the transportation of goods and passengers with the opening of the country's first elevated expressway in Dhaka. Economists and businesses have said that this mega-infrastructure project will significantly reduce both the time and cost of doing business.

Bangladesh’s garment exports to Canada may continue to enjoy duty-free trade benefits after the graduation of the country to a developing nation, said a top businessman.

Bangladesh’s garment export to the United Kingdom (UK) is expected to rise significantly as the British government will continue to offer duty-free benefits to developing nations even after they graduate from the least developed country (LDC) status.

Trade economists are being cautiously optimistic about the immediate benefits if Bangladesh is given membership of the BRICS bloc, which is a five-nation alliance comprising Brazil, Russia, India, China and South Africa.