The readymade garment sector of the country has started overcoming the crisis created by the rogue virus pandemic as around 80 percent of the cancelled and suspended orders have been restored and fresh orders are also pouring in, insiders said.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders said that the previously placed orders which were cancelled or suspended along with fresh ones are coming with certain conditions from the buyers.
Confirming the matter, BGMEA president Rubana Huq told media, More than 80 percent of the cancelled and suspended work orders have returned to the sector. But in terms of payment buyers are asking for time, in some cases, for one year. However, buyers are putting orders with long lead time, that is, they will receive their orders next year. Anyway, at least we are coming out of the cancellation of the purchase orders.
It was learned that as the coronavirus pandemic has started diminishing globally, different industries have started to reopen in compliance with the hygiene rules. The countries across the world have been trying to mobilize trade and commerce. Closed air communication has begun to reopen. Bangladesh's export market is gradually becoming normal in Europe and American countries. As a result, most of the orders that were initially suspended and canceled due to the effect of the lethal virus are restoring.
BGMEA senior vice president Faisal Samad told the Bangladesh Post, “Besides existing orders, we are getting orders on new products too. Even it's too little but we are having export orders of personal protective gears. There is no denying that new products will open up new possibilities. It is a good sign.”
According to the National Board of Revenue (NBR), despite a steady decline in exports in June compared to the previous year, the negative growth rate was lower than before, at 11.43 percent, which was 85.25 percent in April.
It is to be noted that two major US retailers – Gap Inc, and Levi Strauss and Co have announced to support their suppliers at the beginning of this month. Besides, the country's DBL Group which exports to several international brands including H&M, Walmart, G-Star, Zara, Puma informed that expect a few buyers those who had cancelled orders are now placing order again.
As a single brand company, Swedish buyer H&M buys the most garments from Bangladesh. It is learned that the company has not canceled any order and has not delayed the payment of any seller's dues. Of the more than 5,000 H&M retail stores worldwide, 90 percent are currently open. About 250 Bangladeshi exporters export about US$ 3 billion a year to the brand. Now the buyers are placing orders to these companies for next summer.