The Export Import Crisis in Bangladesh

Topics: Government, Trade union, International trade Pages: 4 (722 words) Published: December 12, 2012
The Big Export Import crisis of Garments Sector in Bangladesh.

1. Global Recession;
2. Post MFA effect;
3. Competitors;
4. Exchange Rate;
5. Power Crisis;
6. Political Unrest;
7. Labor Dispute;
8. Lack of Infrastructural facilities;
9. Lack of professional management;
10. Interest Rate (High);
11. Import Policy;
12. Lack of Backward linkage industries;
13. Bureaucracy;
14. Lack of compliance;
15. Trade Union.

1. Global Recession:

Almost 100% of our RMG export is targeted to USA, European Union and other developed countries depressed demand will have negative implication for prospect of our RMG export growth. RMG export is not showing any trend in the recent months as it did in the same month last year. Knitwear export face worse marginal compared to woven garments. Many importers are now requesting for delayed shipment of order. There may be payment delay as well.

2. Post MFA effect :

Unit price of both woven and knit RMG declined in the post MFA period. Tendency of further decline of price in recent orders.

3. Global competition :

At the same time there is also some evidence of diversion of order from Bangladesh to other countries like Vietnam, Cambodia and West African countries.

4. Exchange Rate :

Since the crisis most of the major currencies in the world under floating regime depreciated against US Dollar due to act of financial market also due to expected decline of export to USA. But Bangladeshi Taka remained fairly stable with US dollar. As a result our export will turn to us competitive.

5. Lack of Backward linkage industries :

Most of the new materials of RMG sectors are import from outside the country. As a result our product price becomes higher than our competitors.

6. Power crisis :

Gas and electricity problem are the vital crisis in our RMG sector. Due to power crisis we can not utilize our...
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