11 November 2008, Dhaka - Bangladesh's knitwear sector secured at least 12 per cent higher export orders in October this year over the corresponding period in 2007, according to a report in The Financial Express.
This was revealed by an analysis conducted by the research unit of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The unit analysed the UD (utilisation declaration) issued by the BKMEA to reach the conclusion."We issued UD 12 per cent higher in October over the same period in 2007, which indicates a turnaround in our sector after bad days in September," Md Fazlul Hoque, president of the BKMEA told The Financial Express.
Knitwear exporters experienced a negative growth by 10 per cent in September this year compared to the same period in 2007, the analysis said. The BKMEA chief said they got orders as usual from traditional buyers adding: "We received the usual orders from European countries, but there was a decline in orders from the US market during October."
Fazlul who heads the association of over 1300 knit factories, said Bangladesh will get increased orders from other new buyers shortly. Bangladesh generally manufactures T-shirt, Polo Shirt, pullovers, cardigan and other woollen products.
Zaid Bakht, Director, research of Bangladesh Institute of Development Studies (BIDS) told The Financial Express that the analysis reflected the true picture of the apparel sector as we expected.
He said: "Buyers are procuring from Bangladesh due mainly to GSP facilities in the European nations, so there is unlikely to be any adverse impact on the RMG."
"Buyers have to pay 12 per cent duty if they procure apparel products from India or other countries whereas Bangladeshi products have preferential treatment in European nations," Bakht added.
He also said American buyers might reduce orders to some extent due to the slowdown in their economy.
Md Hasan Mahmud, Managing Director of Bay Cotton Excell Limited, told The Financial Express that he has adequate orders for export of knit products until May next year. "My company experienced the worst period in September, now we are in good position, but I think there is a need for further marketing to compensate for the loss due to the negative growth in September," he added.
Bangladesh's knitwear factories exported US$ 5.532 billion in fiscal year 2007-08 against the target of $ 5.47 billion.
