Apparel Online Bangladesh Magazine December Issue 2018 | Page 16

COVER STORY – CHALLENGES FOR 2019 THE LATEST NEWS HAVE YOUR SAY For the latest news on apparel and textile, make sure that you visit https://apparelresources.com/top-news/ Write to Apparel Resources, B-32, South Extension-1, New Delhi (110049), India or email: [email protected] UNCERTAINTIES THAT MAY IMPACT THE INDUSTRY… • In this issue, Apparel Online dwells on some of the latest developments that may pose serious challenges to the garment sector in near future. Shrugging off the setback of 2017 during which the country recorded export growth of just 0.20 per cent (the lowest in record in the last one-and-a-half decades with experts blaming average price fall of products, ongoing structural reforms, economic slowdown and sluggish demand in export destinations, etc., as the reason behind the debacle), export earnings from the apparel sector – the economic lifeline of the country and its highest foreign currency earner – ended on a high in the last financial year to continue the good show going forward in 2018. However, 2019 could pose serious challenges considering the uncertainties... B angladesh’s apparel exports, ending fiscal 2017-18, crossed the US $ 30 billion target, registering an impressive growth of 8.76 per cent on a year-on-year basis, which is very much in line with the export target of US $ 50 billion by 2021. If knitwear exports fetched a total of US $ 15.18 billion (making a progress of 10.4 per cent on a year-on-year basis), woven exports fetched US $ 15.42 billion, which is a growth of 7.18 per cent. Combined together, apparel exports occupied over 83 per cent of Bangladesh’s total exports. Apparel exports to USA (January to August 2018), which had faltered earlier to give the coveted top export destination to Germany, was regained during this period with the country marking surge on both values and volumes by 3.83 per cent and 4.51 per cent, respectively. Even exports in traditional stronghold of Europe and US remained encouraging, and Bangladesh managed to make 16 Apparel Online Bangladesh | December 2018 | www.apparelresources.com In 2013, the minimum wage of the country was fixed at Taka 5,300 (US $ 69) per month, which was an increase from Taka 3,000 (US $ 37), adopted in 2010 and now it is Taka 8,000 (US $ 96). a significant impact in many non- traditional destinations also, including India, which in particular was more than encouraging. Bangladesh’s exports to India showed a gain of 168 per cent for a consecutive month in October 2018. However as the year comes to an end, several issues have cropped up that have made the industry worried about its prospects in 2019. To start with is the upcoming general elections slated to be held later this month. Considered to be pro-industry, the Sheikh Hasina- led Government has been a great ally of the country’s flourishing garment industry and any change to her Government’s policies, be it in the form of inviting more FDIs, improving infrastructure and power generation, promoting the country’s export potential globally and above all being able to maintain a steady economic growth while keeping law and order situation under control, have been supportive for the country’s apparel industry. However, a regime change if any, will put brakes on the glorious run that the industry has had so far. Added to this uncertainty is the poll- related violence, signs of which have already manifested with opposition party cadres clashing with the law enforcers on streets of Nayapaltan in Dhaka, bringing back fears of 2014 general elections.