Primark in particular, who previously had cancelled orders estimated in the region of USD 273 Million, have restored all such orders and have begun placing new orders on top of this. While it yet remains unclear what could be the cause of such a large differential in the two datasets, the case either way is that the worst situation for the sector may be over– with orders being deftly revived and demand perking up once more. Brands such as H&M, Primark and Walmart have been key in driving back the export earnings through the restoration of their previously cancelled orders. ĭespite being faced with this grim outlook, the sector has recently shown signs of recovery and may soon be coming back to its usual competitive best and thrusting forward economic growth.įIGURE : Discrepancy in RMG Export Data for August, 2020 / Source: NBR, BGMEA, EPB As of June 2020, only BDT 0.82 Billion (26%) of BDT 3.15 Billion worth of pending work orders to the sector had been recouped. However, the slowing of business activity that came with the virus and the string of order cancellations that followed, exacerbated the problem greatly. 5.71% downturn in RMG exports were recorded for July-January of FY 2019-2020–months before the lockdown was put into place.
Some percentage of this degrowth is attributed to factors besides the COVID-19 pandemic, such as an overvalued exchange rate, and inability to capitalize on the US-China Trade War sufficiently. The industry recorded a 14% decline in growth overall in the first ten months of FY19-20, which was the largest negative growth figure in the last 5 years. Given the fact that the US and UK are some of the prime export destinations of the Bangladesh RMG Sector, this became especially worrisome concurrently for the sector as well as the economy. RMG exports are highly dependent on these clients. The list of brands that canceled orders included, but were not limited to reputed Brands from the US and UK such as Debenhams, H&M, GAP, JCPenney, Primark, Arcadia Group, Peacock, Topshop, Dorothy Perkins, Miss Selfridge, and Transform Holdco LLC. Besides burgeoning infection rates across the country, slowing productivity and hindering capacity utilization in RMG factories, the sector was also hit with a multitude of canceled orders. The sector faced what could be described as a state of emergency in the wake of the coronavirus threat, as it brought with it a plethora of difficult challenges for Factory Owners and workers alike. Besides this, the sector constitutes approximately 84% of total National Exports. The industry holds a strong foothold internationally, reflected by its holding of 6.8% of the global apparel market as of 2019. However, the growth in RMG exports has slowed down during the recent months due to global economic challenges.Bangladesh’s Ready-Made Garments and Apparels, has been a consistently high-performing, export-led sector that has contributed immensely to the economy in terms of economic growth and employment generation. Woven and knitted apparel, clothing accessories and home textile exports together accounted for 86.84 per cent of Bangladesh’s total exports of $27.311 billion during July- December 2022.īangladesh had achieved an all-time high in terms of value of RMG exports in 2021-22, at $42.613 billion, registering an increase of 35.47 per cent compared to exports of $31.456 billion in fiscal 2020-21. Home textile exports (Chapter 63, excluding 630510) decreased by 16.02 per cent to $601.26 million during the period under review, compared to exports of $715.95 million during July- December 2021. Woven RMG exports grew at faster pace than knitwear.Įxports of woven apparel (Chapter 62) increased by 18.29 per cent to $10.337 billion during the period under review, compared to exports of $8.739 billion during July-December 2021, as per the data. Readymade garment (RMG) (Chapter 61 & 62) exports from Bangladesh increased by 15.56 per cent to $22.996 billion in the first six months of fiscal 2022-23 (July-June) compared to exports of $19.900 billion in July-December 2021, as per provisional data released by the Export Promotion Bureau (EPB).
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