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Bangladesh’s RMG exports up due to crises in neighbours

May 20, 2021
Bangladesh’s RMG exports up due to crises in neighbours

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 

Also Read:

https://indiantextilejournal.com/latest-textile-industry-news/bangladesh-s-garment-industry-awaits-safety-accord-renewals

https://indiantextilejournal.com/latest-textile-industry-news/bangladesh-apparel-export-to-usa-suffers-due-to-covid

 

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