War Fear Halves Garments Export Orders

War fear in the Middle East has slowed down by almost half the export of the ready made garment ( RMG), the number one export earner of Bangladesh.

Chief of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Kutubuddin Ahmed told Xinhua Wednesday orders worth 10 billion taka (169.49 million US dollars) to 12 billion taka (203.38 million dollars) have become uncertain in the American and European Union markets due to the war threat.

Bangladesh has almost 40 percent of its market in the United States and almost 52 percent in the EU.

He said uncertainties will slow down export but there was little to be afraid as recent market access to Canada and Japan is expected to increase the overall ready made garment export of Bangladesh.

Bangladesh has been exporting almost 100 million dollars to Canadian market which is expected to increase to 500 million to 700 million dollars while Bangladesh RMG to Japan is also expected to rise.

"We in the BGMEA are trying to gain confidence of the Japanese buyers to enter their market," Ahmed said.

He said entry to Japanese market can really open up huge potentiality for RMG exports from Bangladesh since Japan does not require much value addition to enter its market. On the other hand, Canadian market requires 25 percent value addition.

He said there is possibility of gaining market access to Australia, which will be another boost for Bangladesh RMG.

"If all these expectations are fulfilled then we can look forward to an export of around 7 billion to 7.5 billion dollars," Ahmed said.

Bangladesh garment industry has employed 1.5 million people, most of whom are women. It earns 65 percent of the total export earnings of Bangladesh.