Bangladesh cashes in on China’s lost business

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The export of Chinese readymade garments to the market segments of the United States has significantly reduced as a result of trade war between your nations.

The China’s lost businesses were shifted to numerous Parts of asia like Bangladesh, Vietnam, India, Myanmar, and even in Pakistan.

The shifted business gave climb to Bangladesh’s export of readymade garments to the united states market by 9.83 per cent.

In 2019, China exported $24.88 billion to US market, which is $2.49 billion significantly less than that of 2018, meaning 9.10 % down. China covered up 2018 with 1.34 % hike in RMG export to the united states market, in line with the statistics provided by the Office of Textiles and Apparel (OTEXA) beneath the US Department of Commerce.

Despite the dwindling curve of export from China, the united states clients kept up their import. In 2019, the united states procured readymade garments of $83.82 billion from many countries around the world, meaning 1.16 % more than that of 2018, recommend the OTEXA statistics.

OTEX data also displays Vietnam gained most because of China’s lost RMG organization. Vietnam exported RMGs worthwhile $13.56 billion in 2019 with 11 % growth. Bangladesh is placed second in terms of RMG growth (9.83 per cent). It is the highest price in RMG export expansion inside the previous four years. Bangladesh exported $5.9319 billion in that year alone.

Following the Rana Plaza collapse, Bangladesh misplaced foreign buyers drastically and that slowed up the export expansion in 2016 and 2017. After 15 months of detrimental trends, the RMG market turned about in January 2018. It had been enough time when Donald Trump’s US and Xi Jinping’s China got tangled in a trade war.

Following trade tussle, Bangladesh started obtaining increasing number of business orders from the united states.

Bangladesh Knitwear Manufacturers & Exporters Association’s initial vice president Mohamamad Hatem said, “After the trade war, we'd got increasing business orders from the American clients. But, Vietnam, India, Turkey are fetching more advantages from the trade war. They have gained upper hand devaluing their funds against us dollars. We couldn’t do that. This is why we happen to be failing to benefit much from the trade battle as expected.”

Asked about the matter, Bangladesh Garment Manufacturers and Exporters Association’s ex - president Md Shahidullah Azim explained, “The customers from the united states are continuously collecting info on the business enterprise orders from all of us. But, the costs they are offering are much lower than that of our development cost. That’s why have to refuse many orders.”

“If we're able to devalue our taka against dollars, our RMG exports may well rise,” he added.

Despite the upswing in RMG export in the US market, the entire export of the garment items are falling.
According to the Export Promotion Bureau (EPB), in seven months of 2019-20 fiscal, Bangladesh exported readymade garments of $19.06 billion. That is 5.71 % significantly less than that of past fiscal year.

Last year, India exported $4.06 billion to the US with 6.80 % growth. Pakistan didn't fare so very well, exporting 1.43 billion in 2019 to the united states, which is 1.79 per cent less than that of 2018.

Luck smiled on Myanmar. Myanmar exported $40 million to the US in 2019 which is certainly 160 per cent greater than it did in 2018.
Source: https://en.prothomalo.com

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