Category: General
Country: Bangladesh
Region: Asia
Export orders are reviving again here in Bangladesh and no order was shifted or cancelled from the latest spell of student movement.
Textile Today Analysis
11th August, 2024 7:24 AM
Although the garment and textile industries will face a short term challenges but in the long term the industry will have a very good positive impact from the change of the government, according to some young industrial entrepreneurs.
Since the political stability has been rewriting gradually the international retailers and brands are also coming up with new plans in a bigger way for Bangladesh.
A total of 48 young entrepreneurs in the garment and textile sectors expressed solidarity to the latest spell of student movement as they think the movement can bring a lot of change in the economy, industry, business and investment.
In the statement they wrote that as members of the next generation textile and apparel business community of Bangladesh issued a statement showing solidarity with the ongoing 9 points demand by the people of Bangladesh.
As members of the business community we cannot stand silent and watch the sad loss of innocent lives and people’s demand go unheard.
“We reiterate our concerns for all citizens of this country. As proud members of an independent nation, we believe that all individuals should be able to exercise their rights peacefully. We extend our deepest sympathies to those affected by recent events and want to see the perpetrators brought to justice through fair investigation,” they said in the statement.
Yunus' global reputation: a boon for Bangladesh's garment industry
The 48 young entrepreneurs also welcomed the new interim government as formation of the new government with some renowned personalities will also enhance the image of the country.
For instance, Chief of the interim government Nobel Laureate in Peace Professor Dr. Muhammad Yunus is a globally renowned figure because of his outstanding personality and achievements.
Bangladesh can utilize his name and fame to earn the global support for utilizing in business, international trade and commerce.
Even Bangladesh can reclaim the revival of the Generalized System of Preferences (GSP) which was suspended in June 2013 citing the poor labor rights and poor workplace safer by the then Obama Administration.
Because, Yunus has a warm relationship with the US government and Bangladesh should utilize his positive image for reinstatement of the GSP status to the US markets.
The buyers have already been contacting with the local suppliers querying for placing of new work orders as the regime in Bangladesh has changed and the political stability is gradually restoring.
This is a very good and positive sign and the garment and textile industry will enjoy the positive impact for a long time, said Shams Mahmud, Managing Director, Shasha Denims Ltd. Shams Mahmud also expressed solidarity in the latest spell of student movement among 48 young entrepreneurs.
Young garment entrepreneurs upbeat about business as Yunus takes charge
Figure 1: Shams Mahmud, Managing Director, Shasha Denims Ltd.
Shams Mahmud also said regarding the international retailers and brands and international communities always raise question about the bad image of the country because of poor human rights and poor freedom of voice.
However, with the current changeover of the politics in Bangladesh it is expected that the image of the country and image of the sector will be brightened a lot to the international arenas.
Especially the European Union (EU), the largest export destination of the country, raises the question about human rights in Bangladesh, and now it is expected that EU will come here with new big business plan as the human rights may improve here by the Yunus administration.
“The graduation of the country to a developing nation from the group of the Least Developed Countries (LDCs) also needs to rethink as there are some data mismatches in export earnings,” he said.
“If the country does not graduate now it is not a problem as the exporters may enjoy the LDC trade benefit for more years to come,” he also added.
Similarly, the revival of the GSP to the US markets is very important now as the Yunus administration has a warm relationship with the America and he is a very well know figure worldwide.
“The RMG industry will grow in future,” he said adding “Bangladesh is already a global champion in green garment industries which will also help to grow business globally.”
The international retailers and brands have already said they will continue their full cooperation for Bangladesh in purchasing the apparels from here.
“The World Bank, International Monetary Fund and other international agencies and bodies will also extend their cooperation and supports for Bangladesh because of good face value of Yunus,” he said.
Al Shahriar Ahmed, Managing Director of Adzi Trims Ltd was another signatory in the solidarity statement of the student movement.
Figure 2: Al Shahriar Ahmed, Managing Director of Adzi Trims Ltd.
“The garment sector became suffer for a short term but in the long term the sector is benefitted a lot because of new interim government,” Al Shahriar Ahmed said.
He said he held talks with the buyers after the changeover of the government and they have already confirmed that they will continue placing the work orders in bulk as the regime has changed and it is expected that the stability will continue.
“It is expected that the RMG will revive a lot due to regime change, he said adding that major neighboring countries like India, Pakistan and China have already recognized the current government which is also a very positive sign.”
“We from the business community want a stability in business and we are expecting that it will continue,” he added.
“The crisis of US dollar will also end now as the export will grow, remittance will come in formal channels and foreign investment will also grow a lot because of the new government in power,” Al Shahriar Ahmed said.
Md. Fazlee Shamim Ehsan, Vice President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Managing Director, Fatullah Apparels Ltd.also expressed solidarity among 48 young entrepreneurs.
Figure 3: Md. Fazlee Shamim Ehsan, Vice President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Managing Director, Fatullah Apparels Ltd.
“Foreign retailers and brands are very happy with the takeover of state power by Yunus. It is expected that the GSP extension for Bangladesh to the EU will take place without any major and stringent condition as Yunus is a very famous and very well accepted personality to the leaders and people of Europe,” said Ehsan.
"I don't foresee any damage to the reputation of the garment industry because incidents like these can occur in any country. In fact, this could present an opportunity for Bangladesh, given that the previous political situation hindered our ability to communicate effectively with our destination countries and their agents. This transition might allow us to strengthen those connections," said H M Mustafiz, Managing Director, Cute Dress.
Figure 4: H M Mustafiz, Managing Director, Cute Dress.
“Good governance is more important than a stable government as the good governance reduces corruption and brighten the image of a nation which is important for the growth of business. For instance, after the Second World War there was no stable government in Japan for a long time, but good governance was there. As a result, Japan continued to progress even today,” Fazlee Shamim Ehsan said.
Export orders are reviving again here in Bangladesh and in fact no order was shifted or cancelled from the latest spell of student movement as it was not for a long time, he said.
But many exporters may face discount and expensive air shipment because of delay in shipment of goods, he added.
He said full normalcy should be restored soon in the country for the greater interest of the sector as business is getting stronger here.
Industry insiders are upbeat about the change in Bangladesh as the business can get good. Because July, August and September are the peak season for both shipment of goods for next Christmas and for booking work orders for next summer and spring.
Since the normalcy has been restoring it is expected that the business will also grow a lot in the country as Yunus has a very bright image across the country.
With the oath of Yunus the reputation of the country gets back and buyers will not think for alternative destinations.
They said they will continue production for a long time to cover the losses that they made because of student movement for the last time.
Courtesy: Textiletoday.com.bd
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