5:38 pm, Thursday, 14 November 2024

Bangladesh’s apparel exports to UK fall by 23.6pc in Jan-Mar

In the first quarter (January-March) of 2024, Bangladesh experienced a significant decline of 23.61 per cent in apparel exports to the United Kingdom compared to the same period in 2023.

This decline is attributed to increased production costs, long lead times, and delays in shipment due to factors such as gas shortages and customs harassment.

Exporters said that despite government data indicating positive export growth, the reality reflected in statistics from importing countries paints a different picture.

Bangladesh, along with major apparel manufacturing nations like China and Vietnam, has faced negative export growth globally. However, other countries have started to narrow this gap, unlike Bangladesh, they said.

Exporters claimed that Bangladesh’s factories were operating at reduced capacity as buyers are shifting orders to countries like China and Vietnam to expedite delivery.

Many factories struggle to fulfill orders at offered prices due to rising utility costs and worker wages, further increasing production costs, they mentioned.

Bangladesh’s apparel exports to the UK the first quarter of 2024 fell to £616.39 million compared with those of £806.89 million in the same period of 2023, according to UK government trade statistics.

Although the government data showed positive export growth, the real picture reflected in the statistics provided by the importing countries, Bangladesh Knitwear Manufacturers and Exporters Association executive president Mohammad Hatem said on Saturday.

Long shipment time is one of the key reasons for decreasing exports as production is being delayed due to the shortage of gas, he said.

Hatem also identified harassment of customs as another important reason for the delay of export shipment.

HM Revenue and Customs data from the UK government revealed a notable decline in global clothing imports during January-March 2024, dropping by 20.76 per cent to £2.38 billion compared to £3 billion in the corresponding period of 2023.

Additionally, the UK’s imports of apparel from China saw a decrease of 14.37 per cent during the first three months of 2024, amounting to £601.51 million as opposed to £702.50 million in 2023.

Mohammad Hatem highlighted that major apparel manufacturing countries, such as Bangladesh, China, and Vietnam, experienced negative export growth globally, although most countries managed to narrow this gap except Bangladesh.

Bangladesh’s factories were operating at 60-70 per cent capacity as buyers shifted orders to China and Vietnam to expedite delivery, due to increased utility prices and workers’ wages raising the cost of production.

Moreover, the UK’s apparel imports from Turkey declined by 20.03 per cent to £215.87 million in January-March 2024 compared to £269.96 million in the previous year.

India’s apparel exports to the UK decreased by 29.10 per cent to £201.36 million, and imports from Pakistan fell by 18.53 per cent to £139.26 million during the same period.

Furthermore, the UK saw a decrease in apparel imports from Cambodia by 11.13 per cent to £126.93 million in the first quarter of 2024 compared to £128.38 million in the previous year.

Vietnam’s ready-made garment exports to the UK experienced a decline of 21.36 per cent to £92 million in January-March 2024 compared to £116.98 million in the same period of the previous year.

Bangladesh’s apparel exports to UK fall by 23.6pc in Jan-Mar

Update Time : 10:34:06 am, Sunday, 19 May 2024

In the first quarter (January-March) of 2024, Bangladesh experienced a significant decline of 23.61 per cent in apparel exports to the United Kingdom compared to the same period in 2023.

This decline is attributed to increased production costs, long lead times, and delays in shipment due to factors such as gas shortages and customs harassment.

Exporters said that despite government data indicating positive export growth, the reality reflected in statistics from importing countries paints a different picture.

Bangladesh, along with major apparel manufacturing nations like China and Vietnam, has faced negative export growth globally. However, other countries have started to narrow this gap, unlike Bangladesh, they said.

Exporters claimed that Bangladesh’s factories were operating at reduced capacity as buyers are shifting orders to countries like China and Vietnam to expedite delivery.

Many factories struggle to fulfill orders at offered prices due to rising utility costs and worker wages, further increasing production costs, they mentioned.

Bangladesh’s apparel exports to the UK the first quarter of 2024 fell to £616.39 million compared with those of £806.89 million in the same period of 2023, according to UK government trade statistics.

Although the government data showed positive export growth, the real picture reflected in the statistics provided by the importing countries, Bangladesh Knitwear Manufacturers and Exporters Association executive president Mohammad Hatem said on Saturday.

Long shipment time is one of the key reasons for decreasing exports as production is being delayed due to the shortage of gas, he said.

Hatem also identified harassment of customs as another important reason for the delay of export shipment.

HM Revenue and Customs data from the UK government revealed a notable decline in global clothing imports during January-March 2024, dropping by 20.76 per cent to £2.38 billion compared to £3 billion in the corresponding period of 2023.

Additionally, the UK’s imports of apparel from China saw a decrease of 14.37 per cent during the first three months of 2024, amounting to £601.51 million as opposed to £702.50 million in 2023.

Mohammad Hatem highlighted that major apparel manufacturing countries, such as Bangladesh, China, and Vietnam, experienced negative export growth globally, although most countries managed to narrow this gap except Bangladesh.

Bangladesh’s factories were operating at 60-70 per cent capacity as buyers shifted orders to China and Vietnam to expedite delivery, due to increased utility prices and workers’ wages raising the cost of production.

Moreover, the UK’s apparel imports from Turkey declined by 20.03 per cent to £215.87 million in January-March 2024 compared to £269.96 million in the previous year.

India’s apparel exports to the UK decreased by 29.10 per cent to £201.36 million, and imports from Pakistan fell by 18.53 per cent to £139.26 million during the same period.

Furthermore, the UK saw a decrease in apparel imports from Cambodia by 11.13 per cent to £126.93 million in the first quarter of 2024 compared to £128.38 million in the previous year.

Vietnam’s ready-made garment exports to the UK experienced a decline of 21.36 per cent to £92 million in January-March 2024 compared to £116.98 million in the same period of the previous year.