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.



  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Brawl marrs football final as Indonesian take gold in seven goal thriller

    The Indonesian men's U22 men national football team were crowned champions of the 32nd SEA Games in Cambodia, defeating Thailand 5-2 in extra time on May 16 at Olympic National Stadium in Phnom Penh. The match was marred by an ugly incident that occured in the 91

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Candlelight Party disqualified from July general election

    The National Election Committee (NEC) has disqualified the Candlelight Party (CP) from contesting the upcoming general election, citing a lack of valid documentation. NEC spokesman Khorn Keomono said the CP failed to fulfil one of the three main requirements: including original documentation proving their registration

  • Thong Khon calls for orderly SEA Games closing ceremony

    Thong Khon, Minister of Tourism and permanent vice-president of the Cambodia SEA Games Organising Committee (CAMSOC), calls on all people who have received tickets to the May 17 closing ceremony of the biennial multi-sports extravaganza at the Morodok Techo National Stadium to ensure that the event

  • 1.4 billion dollar Phnom Penh-Bavet expressway due in four years

    The Government, through the Ministry of Public Works and Transport, has officially signed a public-private partnership agreement with a private company for the construction of a Phnom Penh-Bavet Expressway project that will connect the capital to Svay Rieng province. The budget for the project is