Bangladesh garment manufacturers increase orders from the US

Sino US trade frictions are continuing and many are on the verge of death. However, with more orders from U.S. retailers, Bangladesh's garment industry is becoming the ldquo of the trade war; the rdquo of the fisherman's beneficiaries; but the situation in jute and leather products industries has not improved.



A recent report by the Financial Times said that although China remains by far the world's largest exporter of manufactured goods, over the past decade, some factory owners have begun to shift production to other developing countries, such as Bangladesh, Cambodia and Vietnam. The aim is to seek lower wages and hedge the political and economic risks of relying on a country.



Local clothing manufacturers in Bangladesh admit that they have received more work orders from the United States. Facts have proved that this view is correct.



Take Viyellatex group as an example, this is a Bangladesh clothing dealer mainly exporting to European countries.



David Hasanat, chairman and general manager of Viyellatex Group, said that three American buyers who stopped business in Bangladesh two years ago were now preparing to place large orders, but he did not disclose the identity of the retailer.



Hasanat said the three buyers were not their only customers, and as Chinese clothing prices soared due to tariffs, many American clothing retailers are now queuing up to place orders. He added that trade war is the necessary driving force to transfer buyers to Bangladesh. Now, three out of every 10 buyers Hasanat meets come from the United States. After six months of development, the number of American buyers of Viyellatex Group has increased by 25% year on year.



Hasanat said that if the Trump administration eventually abolished the North American Free Trade Agreement, that number would increase further. Earlier, many Chinese apparel companies set up factories in Mexico to enjoy the tariff privileges granted by the North American Free Trade Agreement. But now, Chinese investors are moving factories out of Mexico amid fears of revoking the North American Free Trade Agreement.



Bangladesh is also benefiting from a 10% drop in cotton prices after China imposed high tariffs on natural fibers imported from the United States. It is reported that China imports $1 billion white fiber from the United States every year.



Similarly, AK Azad, general manager of Ha-Meem Group, a Bangladeshi clothing manufacturer, expects orders from American retailers to increase. Of the $550 million worth of the company's products, 90% are sold to the US.



Under the Sino-US trade war, although Vietnam has benefited greatly from it, Bangladesh does have room to increase revenue, especially for the garment industry.



AK Azad added: “ but first, we need to improve our production capacity. ”



Siddiqur Rahman, chairman of Bangladesh's Association of Garment Manufacturers and Exporters, said that the “ kickbacks ” brought about by the trade war might not be immediately apparent. He said: “ however, the current order situation is indeed better than last year. ”



Last year, the value of global apparel business also showed a downward trend in China's apparel industry. Although China is still the largest apparel supplier in the world, its market share dropped from 36% to 34.9%.



According to World Trade Organization (WTO) data, Bangladesh's total export value is US$29 billion, and its share has increased from 6.4% to 6.5%.



However, other industries have yet to show benefits. Enamul Haque Patware, former chairman of the Jute Goods Exporters & Association in Bangladesh, said jute products had not benefited from the trade war. Manufacturers and exporters also indicated that orders for leather and leather products in Bangladesh have not yet seen a surge.