Strong return for woven garment export

An astonishing rebound in the export of woven garments after a year and a half helped lift the freight of goods from Bangladesh in the just-ended year, backed by rising demand and an influx of increased orders.

With the improvement of the Covid-19 scenario around the world, which prompted people to return to work and participate in official events, the woven shipment began to recover from August after going through more than 10 percent of negative growth months after months for 18 months.

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In August, woven exporters made $1.15 billion, registering 4.48 percent year-over-year.

December’s revenue was even better, with record-breaking Bangladesh bringing in $1.86 billion, the highest in one month and up 48.17 percent year-on-year, according to data from the Export Promotion Bureau yesterday.

Furthermore, woven shipments grew to $8.74 billion in the second half of 2021, an increase of 24.50 percent over the same period last year.

Desh Garments, the country’s oldest apparel manufacturer, which primarily ships woven shirts, had nearly 75 per cent of its business non-existent as of June last year since the start of Covid-19 in 2020 as international retailers and brands did not place orders. Sufficient with low demand.

The shipment began to gradually recover from June as economies around the world reopened. At the end of 2021, the company’s export receipts from shipping woven shirts had grown by 60 percent.

“The prospects for 2022 are bright as buyers place orders with local manufacturers in greater numbers,” said Vidya Amrit Khan, deputy managing director of Dish Garment.

Shahidullah Azim, managing director of Classic Fashion, which makes woven shirts and pants, says global retailers and brands are putting in a lot of work orders on textiles.

However, since local weavers can only supply 40 percent of the raw materials for woven garments, manufacturers have to rely on Chinese suppliers for the rest of the fabrics.

“Any disruption in the Chinese supply chain could severely affect the shipment of garments in Bangladesh. So, local garment manufacturers need to enhance their capabilities in the textile sector.”

Khan is somewhat concerned about the spread of the new alternative to Covid-19, Omicron, in its main export destinations in Europe and the United States, the two main overseas markets in Bangladesh.

Nor is it satisfied with European and American buyers who are demanding cuts, citing the fallout from Covid-19.

Farooq Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, hopes the current pace of exports will continue.

“Work orders have not been canceled or suspended due to Omicron yet, but it remains a matter of concern to us as European and US buyers, retailers and brands may close their outlets if the situation worsens.”

Another challenge is the abnormally high freight charges, which have increased by as much as 500 percent.

“If the freight rate does not go down, the profit margin of the garment manufacturers will drop even more,” Hassan said.

The prices of raw materials such as yarn increased in 2021, which affected the shipment of ready-made garments.

Hassan warned that “the high prices of raw materials and the unusual shipping cost may harm the shipment of ready-made garments in 2022 as well.”

Knitwear exports maintained a growth of more than 15 per cent during the height of Covid-19 as people were confined to homes in many countries due to stay-at-home orders.

Fadl Hawk, managing director of Plummy Fashions Ltd, one of the world’s greenest apparel factories that primarily produces knitwear, saw 30 percent growth in 2021 compared to 2020 as international retailers and brands placed more orders for work in his factory. .

“I expect growth to continue in 2022 as I receive more job orders from buyers,” he said.

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