Bangladesh’s garment exports will decline
The value of Bangladesh’s ready-made garment exports may decline in the fiscal year 2011-2012. The three major competitors in this industry, including mainland China, India, and Pakistan, have used price reduction strategies to regain ground. Therefore, Bangladesh’s export orders will gradually decrease in the coming year.
According to Shafiul Islam Mohiuddin, Chairman of the Bangladesh Garment Exporters Association: The issuance of fabric usage declaration certificates for the country’s garment manufacturers has slowed down, which means that the price reduction strategies of mainland China and India have begun to take effect. Therefore, Bangladesh’s garment exports There are already signs of losing competitiveness.
In addition, India will sign preferential tax rates and free trade agreements with Japan and the European Union respectively, so Bangladeshi exporters are even more worried.
In addition, the two major import regions of this product, the United States and Europe, have experienced a decline in retail sales of various consumer goods due to the global economic recession and the unresolved foreign debt crises of Greece, Spain, Portugal, and Ireland respectively. Japan, one of Asia’s major garment importers, was also affected by the earthquake that occurred recently, so its import volume dropped.
Three major local associations, the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitted Garment Manufacturers and Exporters Association, and the Bangladesh Textile Mills Association, stated at a press conference jointly held in June 2011: Ready-made garments Manufacturers are under tremendous economic pressure due to factors such as rising inflation and rising food and fuel prices. They blame the proposal in the new fiscal budget plan to increase the industry tax rate from 0.4% to 1.5%, which will have a negative impact on relevant industries. Dealing another blow. The presidents of various associations said that the governments of India and Pakistan have implemented plans to promote the garment industries in both countries. The Bangladeshi government should also implement relevant economic stimulus plans, 15% cash incentives, and tax exemptions to improve the competitiveness of the country’s garment industry.
The country’s Finance Minister stated after the press conference that the suggestions provided by the presidents of various associations will be included in the budget plan and will attach great importance to the request to reduce tax rates.
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