Logo of Phnom Penh Post newspaper Phnom Penh Post - Rising global inflation to erode apparel demand, Bangladesh lobby warns

Rising global inflation to erode apparel demand, Bangladesh lobby warns

Content image - Phnom Penh Post
Bangladesh’s strategy should not be to look at the current growth in garment exports but on how it can enhance competitiveness, says the president of the Bangladesh Garment Manufacturers and Exporters Association. THE DAILY STAR

Rising global inflation to erode apparel demand, Bangladesh lobby warns

Bangladeshi apparel manufacturers on May 14 expressed concerns over an alarming rise in global inflation, citing that increasing prices may affect the purchasing power of end-consumers in export destinations and cause demand for garment items to fall.

The Russia-Ukraine conflict has led to an increase in food and oil prices while the risk of an economic recession is also increasing in several countries, including those in Europe, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan.

Entrepreneurs are struggling with rising production costs and supply chain challenges, he told a press conference organised by the BGMEA at The Westin Dhaka in the Bangladeshi capital marking the upcoming 37th IAF World Fashion Convention.

The challenges include a crisis of raw materials, rise in fuel oil, gas and electricity prices and an abnormal increase in container and ship rentals, he added.

In this context, Bangladesh’s strategy should not be to look at the current growth in garment exports but on how it can create new ones to further enhance competitiveness, he added.

He believes the model followed by the industry in the last four decades would make it difficult to achieve desired growth.

Reducing lead time should be cost effective and investment in unique backward linkage sectors has to be increased, he said.

More attention needs to be paid on product and market diversification, technology upgradation and skill development and services, he said.

Tariff and tax rates should be kept constant for a period of five years to help investors and traders adopt and implement plans, said the BGMEA president.

The BGMEA is working on creating new markets in several countries outside Europe, such as in South Korea, India and China, Faruque said.

THE DAILY STAR (BANGLADESH)/ASIA NEWS NETWORK

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Angkor photo rules clarified

    The Apsara National Authority (ANA) denied that it had banned the use of camera tripods in the Angkor Archaeological Park, explaining that the confusion stemmed from a long-standing rule which required commercial photographers and videographers to apply for permission to film. The explanation followed a

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At