Exporters diverting orders to Bangladesh from India and Myanmar
23 June 2021: Bangladesh Garment Industry is being benefitted with exported order due to Political Crisis in Myanamr and Covid-19 Crises in India which is prompting international retailers and brands to divert orders. Bangladesh is now witnessing a relatively calm situation in Covid-19 than many other countries in the region like India where there is lockdown in many states.
Mass protests have been taking place across Myanmar since the military seized control on February 1.
Indication of work orders shifting from the neighbouring countries has become apparent in export earnings of Bangladesh between July and April of the current fiscal year
Receipts from merchandise exports rebounded in March, rising 12.59% year-on-year to $3.07 billion. This was also mainly on the back of relaxed lockdowns in the West, leading to a slow recovery in garment shipments over the preceding few months.
Export earnings rose six times year-on-year to hit $3.13 billion in April this year, thanks to the rebound of apparel shipment after the reopening of the US and European economies.
In the 10 months to April this fiscal year, garment shipment increased by 6.24% year-on-year to $26 billion, showing resilience against the Covid-19 pandemic.
Some work orders had been shifted to other countries because of a lockdown in the Southeast Asian nation. But it was a temporary measure as Cambodia was also a major sourcing hub \.
Myanmar has become an important link in the supply chains of well-known Western brands in the luggage, fast fashion and footwear industries.
Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association, also acknowledged that some work orders were shifting from Myanmar. However, Myanmar’s total garment export volume was too little when compared with that of Bangladesh, he said.
“The shift has had little impact on Bangladesh’s garment sector,” he said, adding that the placement of work orders in India had slowed a bit due to Covid-19.
