RMG export may rebound this year

Al Amin :
Bangladesh’s apparel export will be stronger in 2023, despite facing some challenges and less global demand, economists and entrepreneurs say.
They said, the sales in the European countries and USA are gradually gaining pace, which once declined because of by the Russia-Ukraine war, and falling prices of petroleum products in the global markets.
Besides, the inflationary pressure in the developed countries is likely to come down gradually, leaving more money in the pockets of the consumers and it will enable them to start spending behind the purchase of clothing items, they said.
They further said that the old stockpiles of clothing of global retailers and brands have been sold as the Christmas sales were upbeat and it may prompt them to start coming up with new work orders.
However, the country’s RMG sector is likely to face around five per cent year-on-year negative growth in December as the apparel exports were worth $3.27 billion in 28 days of the outgoing month, which was $3.44 billion in the same period of last year, according to a data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
BGMEA Vice-President Md Shahidullah Azim said, “The negative growth may continue till the end of March 2023. Hopefully, the apparel export will get back in positive trend from April.”
He, however, mentioned some challenges for the sector including political unrest in the country and the ongoing war between Russia and Ukraine.
If we are able to face the challenges properly, Bangladesh’s position will be more consolidated in next year, Azim said.
BGMEA Director Mohiuddin Rubel said, “Our sector’s key opportunities lie in product, fiber, market diversification and excellence in value addition. We need to build capacity in backward and forward linkage industries.”
“At the same time, strong priority should be given on innovation, technological up-gradation, design, skill development and overall business capability in days to come to cope with the changing situation,” he added.
Dr Abdur Razzaque, Chairman of the country’s private think-tank RAPID, told The New Nation, “Country’s export-oriented industries are likely to be stronger in next year, despite there are some challenges.”
“Exchange rate management will be easier as demand for US dollar will come down by June next year. Overall inflationary pressure will also be reduced by that time,” he said.
“The challenges are the impact of the ongoing war between Russia and Ukraine war and the local political unrest are likely to remain throughout the year. Besides, the erosion of the country’s foreign currency reserves will not go easily,” Dr Razzaque said.
Md Akhter Hossain Apurbo, Director of Wisdom Attires Ltd, said, “The next three months (January-to March) is very crucial time for the apparel industry as the sector have already missed the Christmas and the new year sales.”
“But the positive sign is many productions are switching from China and demand for Bangladeshi made apparels is increasing in non-traditional market,” Apurba, also Vice-President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said.
But uncertainty still prevails as many issues have not been resolved yet, which may have an impact on global trade, he said.