RMG orders worth $3.77m cancelled in December
Foreign buyers have cancelled orders worth $3.77 million so far this month, as garment manufacturers failed to make shipments on time due to repeated strikes and blockades.
A survey of 31 factories conducted by Bangladesh Garment Manufacturers and Exporters Association during December 1-26 found that 20 factories faced order cancellation.
During the period, 24 exporters spent $1.15 million on air shipment to meet the deadlines, according to the survey.
In addition, 20 factories saw price cuts worth $1.72 million as foreign buyers did not receive their products on time.
Shipment delays cost 28 exporters $7.83 million, while vandalism cost 13 factories $2.3 million during the blockades and strikes.
“Order cancellation is not a good sign,” said Shahidullah Azim, acting president of BGMEA.
Forty percent of the orders have either been cancelled or shifted to other countries, he said. “Once the buyers leave the country, they will never come back.”
“While we are losing competitiveness for the unhealthy politics, Pakistan is becoming a new threat for us, as the country received a GSP (generalised system of preferences) status for duty-free access of garment products from next year,” Azim said.
Speaking at a function on Wednesday, Reaz-Bin-Mahmood, vice president of BGMEA, had said orders have already started to shift from Bangladesh to other countries, especially Vietnam and India. “We are passing very tough times.”
The garment sector, which accounts for a bulk of the country's total exports, earned $1.77 billion in November, according to Export Promotion Bureau.
Of the amount, knitwear brought $877.61 million, while woven garments $889.35 million.