Bangladesh's garments sector growth is decreasing

The Daily Star has a rather worrying report. It informs that:

The RMG sector, which accounts for more than 75 percent of Bangladesh's export earnings, fell behind the export target of the EPB (Export Promotion Bureau) for the first time in history, notching a negative growth of 6.03 percent in knitwear products and barely edging past with 0.16 percent rise in woven items during the last fiscal year. (Stat: The Daily Star)

The reason behind is that major buyers are cutting order citing many reasons and piling up orders for India, Vietnam and other Asian countries.

The leading garment exporter sees the sale loss to major retailers in the US and the Bangladeshi government's failure to protect garment industries and investment as two main reasons for the slump in business.

Market watchers meanwhile predict that worse is to come next year when the EU's 7.5 percent export growth restriction on China goes by December-end.

One experienced exporter said that Bangladesh garment would grow more strongly if the business climate was improved and the fears of RMG buyers dispelled.

“The buyers appreciate the anti-corruption drive, stable political situation and improvement in areas like the port, electricity and customs. But they are also concerned about where does the country go? Where does it end"

Readymade garment (RMG) entrepreneurs has sought soft loan facilities from the government to provide regular wages and bonuses for their workers in the current what they said dull season (reports the Daily Star):

The BGMEA president attributed the dull season for the sector to short winter in Europe and US and shaky consuming practice for high oil prices.