Low
price offers from foreign buyers, devaluation of the Euro and rise in
production costs make our RMG exports bleak, compared to the 58.17% rise from the
last fiscal year of 2014-15. The volume posted was at 1.57 bn units exported earning
a total of US $25.49 bn, a 4% rise. Knitwear and woven products scaled up 3.13%
and 5% respectively. Improvement in productivity and technology is required to
meet the devaluation in the EU and possible monopsony of buyers worldwide.
Upholding
safety standards, the Executive Director of Alliance for Bangladesh Workers
safety stated six factories have completed full remediation work to meet the
highest international standards. The trudging process is occurring with sluggish
imports and equipment availability domestically. The Alliance have provided US
$50m to ensure ease of credit access to the process through banks. The remediation
process, is uninspiring with 154 with low, 251 semi-moderate and 133 moderate
(upto 60%) remediation out of 528
inspected.
It
is no surprise that due to political turmoil, Bangladesh’s exports fell
significantly in 2014. Nowadys, however, with The largest buyer US registered
US $3.19 bn, a 8.51% rise. This came as political steadiness and safety
assurance was brought about recently, although we are still behind the growth
of our US competitors Sri lanka (16%), Vietnam (15%) and India (9.6%).
Bangladesh’s
RMG has shown tremendous potential throughout the years. They attract buyers
like no other sector. Although with significant challenges, it still remains a profitable
investment sector for businesses in the country.
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