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Lead time , the span undertaken for delivering shipment , has been identified as the most critical challenge faced by the Bangladesh apparel business , a survey report has said .
The survey ‘ Trade Facilitations in RMG by Banks : Risks and
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Mitigation Techniques ’, done by Bangladesh Institute of Bank Management ( BIBM ) says that about 66 per cent of apparel exports could not be shipped to destination on time .
The workshop was organised by BIBM , in association
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with Bangladesh Garment Manufacturers and Exporters Association ( BGMEA ) and Bangladesh Knitwear Manufacturers and Exporters Association ( BKMEA ).
Dearth in knowledge regarding domestic and international regulations has been identified as the root cause behind the big lead time and late presentation of documents , the survey said . Also , the survey raised an alarm that late submission of documents – in 53 per cent of the cases – could be related to symptoms of money laundering .
Fazlee Shamim Ehsan , Second Vice President of BKMEA , acknowledged the country ’ s shortcoming in lead time delivery , blaming inefficient manpower – at
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ports , transportation and relevant sectors – for it . He said Bangladesh must reduce the lead time to stay competitive in business .
Shah Md . Ahsan Habib , Director of BIBM , presented the research paper at the workshop . He underlined that incidents of trade-based money laundering is a growing concern for policy makers and central banks throughout the globe , and added , “ It is affecting the RMG trade and service providing banks .”
Also , apparel manufacturers pointed out some key challenges faced by the bank for trade facilitation , namely lower usage of packing credit , inefficiency in accessing working capital , absence of tolerance in credit limit , absence of customised collateral system , etc .
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Denim exports from Bangladesh have been exceptionally positive over the last few years . Even the first half of 2019 was quite impressive for Bangladesh as far as the USA market is concerned .
According to the data released by OTEXA , Bangladesh exported denim apparels to USA worth US $ 245 million in January to June 2018 period this year . The country stood after China and Mexico in the denim exporters ’ tally .
Bangladesh posted surge in all four major categories : Skirts , Jackets , Mens & Boys ( MB ) jeans and Womens & Girls ( WG ) jeans of denim apparels .
Bangladesh is known for basic garment manufacturing but
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the rising automation trend in the country has enabled it to manufacture value-added garments too . As a result , WG jeans export from the country grew by 16.19 per cent and clocked US $ 104.17 million during H1 ’ 18 .
Interestingly , Mexico , which is one of the major denim apparel suppliers to USA , was far behind Bangladesh and could only earn US $ 44.07 million in WG jeans segment . This indicates the denim export was skewed towards MB jeans segment with 54.18 per cent contribution coming from it .
Bangladesh noted steep climb of 16.88 per cent and accommodated US $ 132.75 million , beating the top exporter China which could merely
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stand at US $ 98.97 million figure in its MB jeans exports to USA . On the other hand , denim skirts export was up by 17.49 per cent to clock US |
$ 3.72 million , while denim jackets export to USA from Bangladesh was worth US $ 7.56 million noting 32.66 per cent rise in H1 ’ 18 . |