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Bangladesh faces stiff competition in apparel exports

Sep 03, 2021

Bangladesh

Bangladesh will face severe competition in garment shipment to the European Union once the status will change from a least a developed country to developing.

According to Mustafizur Rahman, Distinguished Fellow, the Centre for Policy Dialogue (CPD), Bangladesh is going to lose a 12% duty benefit while on other hand Vietnam will enjoy zero duty benefit because of signing a FTA. He further said that this way Bangladesh is going to face a disadvantage of 22%-23% in duty to the EU.

Rahman also said that Vietnam is also going to enjoy duty benefits to markets like the US, Canada, and Australia because it is a member of the TPP agreement and has also signed the RCEP agreement. So, in short, if the government of Bangladesh doesn’t take needful actions to expand the business horizon, then Bangladesh’s garment sector will face a tough time in the coming 7 to 8 years. He further mentioned that the state is responsible for getting CEPA, FTAs, bringing massive reforms, and protecting labour rights for enjoying duty benefits.

As per Rehman Sobhan, chairman, CPD, the sudden reopening announcement after the latest lockdown was a miscommunication due to which a large number of workers rushed to their workplaces. They were sceptical of losing their jobs so they rushed to work despite the risks posed to their lives.

Source – The Daily Star

Image Source: Wikipedia

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https://indiantextilejournal.com/latest-textile-industry-news/bangladesh-apparel-exporters-to-demand-govt-stimulus