Bangladesh’s RMG exports up due to crises in neighbours
Myanmar’s political instability, lockdown in Cambodia and a the COVID-19 situation in India has prompted international retailers and brands to divert work orders to Bangladesh. Export earnings hit $3.13 billion in April.
Dhaka, Bangladesh
Political
instability in Myanmar, lockdown in Cambodia and a grave COVID-19 situation in
India has prompted international retailers and brands to divert work orders to
Bangladesh. The country is being preferred as a safer option in the current
scenario for international retailers and brands to produce goods at cheaper
rates and keep the global supply chain running unaffected.
Bangladesh is
currently witnessing a calm situation due to its political stability and the
receding second wave of COVID-19 achieved due to nationwide partial transport
lockdown.
With the relaxed
lockdowns in the West and the reopening of the US and European economies, there
has been scope for a slow recovery in garment shipments over the last few
months.
The indication
of the shift in export work orders became apparent from the export earnings
between July 2020 and April 2021. Receipts from merchandise exports rose 12.59%
to $3.07 billion. Export earnings hit $3.13 billion in April. The period saw an
increase in garment shipments by 6.24% y-o-y to $26 billion. Export of knitwear
items posted a 15.34% growth at $13.99 billion, while export of woven shipment
fell 2.71% to $12 billion.
Earnings from
leather and leather goods shipment were up 8.56% y-o-y and stood at $760.92
million between July and April.
While the
diversions happened, international buyers registered it as a temporary measure
till things fall in place in the other countries. India, Myanmar and Cambodia are major sourcing hubs for textile,
garments, apparels, fast fashion, leather goods and footwear. They are an
important link in the supply chains of well-known Western brands.
Source – The Daily Star
Image Source: Pixabay
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