"BD falls behind in bagging US garment work orders" 9 June 2024

Bangladesh is lagging far behind others in seizing US garment work orders shifting from China, which industry insiders attributed to a number of factors like inefficiency, long lead time and energy crisis.

...Bangladesh sustained double-digit negative growth, 14.44 per cent to US market, to fetch $2.30 billion during the period in question. The country's slump is evident in both the value and volume of exports.

During the January-April period of 2024, Bangladesh shipped 8.26 per cent fewer garments...

US import figures show Bangladesh's key ready-made garment competitors China and Vietnam outperformed Bangladesh while exporters list a number of domestic issues like long lead times, inconsistent energy supplies and an overall high cost of doing business for their loss of export share in the US market.

These same factors, they say, give Vietnam an advantage in the American market...

Talking to the FE, a number of exporters have opined that buyers are now expressing concern over energy security of the country, saying that labour and energy are one of major two strengths that helped the sector grow.

Asif Ashraf, managing director of Urmi Garments Ltd, said, "We can't grab the work orders of US buyers shifting from China mainly because of inefficiency, absence of aggressive marketing there and also energy crisis."

Buyers are now expressing concern over energy security as there is gas and electricity problems and factories can't use full of their production capacity, he noted...

...Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said buyers are now placing orders with shorter lead times due to various factors. This situation puts China and Vietnam, with their shorter lead times and more consistent energy supplies, in a more advantageous position.

Exporters are struggling to meet lead times for current work orders due to a severe gas crisis, he told The FE on Saturday.

He also said that meeting production timelines is difficult as they require 15-20 days to obtain fabric due to gas and electricity shortages.

Bangladesh also cannot receive all materials efficiently due to the lack of a deep-sea port, further delaying import and export activities.

The BKMEA leader said high production costs due to rising gas prices, recent wage hikes and anticipated electricity rate increases are eroding their competitiveness.

"In many cases, we can't receive the work orders as buyers offer prices below the production costs," he noted...