The global energy demand and supply have been affected due to the COVID-19 pandemic and –more recently — the Russia-Ukraine war, which has impacted Bangladesh’s energy demand and supply too. For the last few months Bangladesh textile and apparel industry was suffering from power crisis where energy crisis was added in a way that makes the bad situation worse. The industry also has great problem regarding smooth logistic support.
However, Faruque Hassan, President, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today on 26 November updated that the power and energy situation in the country’s RMG sector has improved noticeably. Also, the logistic problem has resolved to a great extent.
“The power condition in the RMG sector has improved drastically. Though still we are suffering due to energy crisis, however, the government is working and we are hopeful that the energy crisis in this sector will go away soon,” said BGMEA President.
He said these while addressing in the post event press conference on “Made in Bangladesh Week-2022” at hotel in the capital marking the just concluded.
LNG imports from Brunei is going to begin early next year. Bangladesh wants to import a maximum of 1.5 million metric tons (MT) of LNG annually from Brunei to deal with the existing gas crisis situation in the country. For this reason, the Ministry of Electricity, Energy and Mineral Resources of Bangladesh is expecting a 10-15 year contract with the country.
On the other hand, the problem created earlier on the Dhaka-Chattogram route has already been resolved. Four scanners have already been installed at Hazrat Shahjalal International Airport (HSIA).
“Scanners have been installed at the port’s gates for smooth import and export. Chittagong port is ready to handle the pressure of more ships. Most of the time, those remain in idle, so we can say that there is now no problem at Dhaka Airport regarding export,” mentioned BGMEA Premier.
RMG work order rising
Readymade garment sector had experienced decreased export orders since July 2022 due to the global economic uncertainties caused by the Russia-Ukraine war. After four months of declining export orders, Bangladesh RMG sector started receiving increased orders from November.
“Bangladesh is a preferred destination of apparel sourcing among global buyers for its world-class workplace safety and environmental sustainability,” said Faruque Hassan.
BGMEA estimated that the global market share of the Bangladesh apparel industry increased to 8.0% in 2021 from 6.26% in 2020.
The Bangladesh RMG industry is expected to grab 12% of the global market by 2023. Apparel exporters have set a target to raise the annual export volume to $100 billion by 2030. If that target is achieved, Bangladesh’s share in the global apparel market will be 14%.
“We are working to achieve 14% market share in the global apparel trade,” said Faruque Hassan.
In the mega event we get some confirmed new orders. Also few new countries, including Iraq, have been committed with us to source their apparel items from Bangladesh,” he added.
Representatives and buyers of more than 550 global brands were invited at the Expo. Bangladeshi millers showcased their new product ranges, factory strengths and combined efforts to create a sustainable garments industry. Some 76 local and foreign ventures displayed their products and innovations through stalls.