Recession hits garment sector: BGMEA

Staff Correspondent


Garment exporters have admitted that the global recession has started affecting their businesses as orders are falling and importers are puting pressure for more price cuts.
   They, however, said that the government frustrated them more as it so far had not taken any decision on a stimulating support which was essential to help maintain competitiveness in the export market.
   ‘Impact of recession in western market have already been sensed in the businesses of Bangladeshi garment manufacturers,’ the Bangladesh Garment Manufacturers and Exporters Association president Anwar-Ul-Alam Chowdhury Parvez said at a press conference on Wednesday.
   Parvez said his association office had counted the declines of orders, which was four to seven per cent in last December and January, compared to the corresponding months in the previous year.
   ‘The shipment of garments will definitely decline in the coming March and April’, said Parvez who, however, is optimistic that they can maintain competitiveness in global market if government provide timely supports.
   Parvez said the huge currency depreciations in India and Pakistan had helped the importers of those countries to increase competitiveness in the international market.
   Indian currency depreciated by around 25 per cent in the past two years, Pakistani currency by 30 per cent and Vietnamese currency by 8 per cent when Bangladesh currency exchange value remains almost unchanged.
   ‘With better infrastructures, less hassles in production and deliveries, counterparts of Bangladeshi suppliers are in better position for alluring buyers in fiercely competitive market hit by recession’, he said.
   The BGMEA president regretted that the garment exporters had urged the government to support them especially for absorbing the shock of stronger currency, but no decision was taken so far.
   ‘Please tell us straightforward whether or not we are getting any help (from the government) so that can make our own rescue plan,’ he said.

Source: The Daily New Age, 19 February 2009

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