Dhaka, Sunday, 17 January 2021

Cambodia, Vietnam, Pakistan in better position than Bangladesh in garment export to US!

2021-01-05
Cambodia, Vietnam, Pakistan in better position than Bangladesh in garment export to US!

Apparel Correspondent: Garment imports in the US, the main apparel export market of Bangladesh, has been hit hard by the novel coronavirus pandemic.

According to the Office of Textiles and Apparel (OTEXA), garment imports in the US fell 25.56 percent in 10 months from January to October. Although the exports of other countries to the US have decreased at this time, Bangladesh has lagged behind the comprising with them.

In the first 10 months of 2019, the US bought clothes worth $7,249 crore, but now it has come down to $5,395 crore. The garment imports of the US have fallen at such a high rate mainly due to the pandemic as it has reduced overall demand.In the first 10 months of 2020, Bangladesh's garment exports to the US fell by 11.66 percent due to the pandemic.

The OTEXA’s data analysis shows that competitors like Cambodia, Vietnam and Pakistan are in better position than Bangladesh in the top 10 garment exporters to the US.

Of these, Vietnam's garment exports has declined by 8.14 percent and Pakistan's by 8.47 percent. However, despite the decline in garment exports to all other countries, Cambodia’s export has increased.

Its garment exports to the US has risen 3.65 percent.

However, the rate of decline in garment exports of other countries to the US is higher than Bangladesh.

The biggest drop came from China, at about 42.33 percent. Though, experts believe that the US-China trade war is one of the reasons behind the decline in garment imports from China.

Regarding the garment export, Mohammad Hatem, senior vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), an association of readymade garment exporters, said that apart from coronavirus, the US-China trade war has given Bangladesh some opportunity to export more garments to the US as it has made some reductions of import from China.

However, most of the benefits of US-China trade war has gone to Vietnam and Cambodia. Besides Pakistan and Myanmar have also got it. Because they have their own deep seaports which are ahead of us in lead time. China still holds the highest position in the list of the top 10 garment exporters to the US. The list is followed by Vietnam, Bangladesh, Indonesia, India, Mexico, Honduras, Cambodia, Pakistan and South Korea. Exports of 9 out of 10 countries have dropped compared to the same period of last year.

Besides China, Indonesia has lost 20.5 percent, India 27.25 percent, Mexico 32.47 percent, Honduras 35.54 percent and Korea 25.79 percent export earnings to the US. According to OTEXA, in the first 10 months of 2020, Bangladesh's garment exports to the US have dropped by $593.4 million, which is Tk 5,046 crore.

In 2019, Bangladesh's exports to the US stood at $508 crore 94 lakh, down from $449 crore 57 lakh in the same period of 2020.

Meanwhile, garment imports to the US have been on the rise since the first coronavirus lockdown last July, but the second wave of the outbreak has created uncertainty in garment exports again. As a result, Bangladeshi garment exports to the US are expected to decline. In this situation, the process of economic recovery of Bangladesh is going to be prolonged, economists said.

According to the review, the export earnings of Bangladesh's oven sector declined during July-October. Due to the negative growth in the US market, the sector's export earnings decreased by $390 million or 7.76 percent compared to the same period last year.

Along with the growth of 4.76 percent in knitwear, Bangladesh has maintained the growth with the exports of jute, jute products and home textiles. Besides its export earnings increased by about 1 percent over the same period last year.

Top