RMG industries still thwarted by gas crisis: BGMEA

The apparel industries have been thwarted by the gas supply disruption, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has said.

However, the electricity crisis has been resolved to a large extent, he said, adding that a number of factories are reportedly using diesel-fired generators less than usual.

The president revealed the information while responding to journalists’ queries at a press conference organised over the recently concluded “Made in Bangladesh Week” in Dhaka on Saturday.

“But we have to sustain the situation and make it better,” he added.

He also appreciated the government for its steps to import LNG from Brunei.

Responding to another question, he said that the number of inventories has increased but not at a satisfactory pace.

“The number of purchase orders totally depended on the ongoing Ukraine-Russia war. Once the global situation is normalized, our industry will also get more orders,” he added.

Regarding the outcome of the “Made in Bangladesh Week”, he said that a large flock of old and new brands visited the event and have placed orders and extended commitment to source garments from Bangladesh.

“We also discussed with the new buyers what type of products they want. In some cases, they also visited the factories and discussed their demands directly with the manufacturers,” he added.

Buyers who attended the expo will come back to Bangladesh with work orders, he expected.

He also said that the exhibition greatly attracted buyers from new destinations where their business communications aren’t as established as the US and Europe.

“Nearly 150 buyers joined the showcase from the Middle East, surprisingly, 43 of them are from Iraq. It is very positive for us as we always focus on new markets and new buyers. There were buyers from India and other countries, too,” he added.

He also said that PDS wishes to increase their sourcing from Bangladesh to $2 billion yearly, which is nearly $1 billion currently.

“Amid the ongoing global turbulent economic situation, we pledge to explore some new markets outside the US and the EU,” he said adding, “Since 2009, the share in the non-traditional market has been increasing significantly and currently they ship nearly 15% of total export to the new market.

Regarding the false clothes/waste, he said that currently there are some issues in managing waste and a portion of them are being exported.

“But we are working on recycling false clothes and in the near future, Bangladesh will be the hub of recycling. Then instead of export, we’ll import the wastes from other RMG manufacturing countries,” he added. 

He also wanted policy support from the government in the areas of customs clearances, and bond and tax procedures.

Responding to a question on GSP facilities in the US, he said that the GSP facilities were lifted in 2013 but export increased significantly to the destination.

BGMEA President also demonstrated the summary of events, summits, expos, awards, and tours which run concurrently during the Made in Bangladesh Week.

In his speech, Shahed Mahmud, country director of PDS Limited, said that it was a mega event.

He also suggested arranging such kinds of events regularly. Abdullah Al Maher, group CEO of Asortex Group also spoke at the press conference.