The garment manufacturers in Bangladesh are a worried lot! After large-scale order cancellations by brands and retailers they are now faced with a new challenge – that of work orders.
As per media reports, new work orders from the global buyers in June are down by around 45 per cent.
New orders are coming in but the volume is 40-45 per cent less than that received in the same period last year, claimed the President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Dr. Rubana Huq who thinks despite some cancelled orders being reinstated (US $ 3.15 billion by some accounts), the readymade garment manufacturing sector of Bangladesh may have to incur losses to the tune of US $ 5 billion over all.
What is even more concerning, many buyers are allegedly demanding significant discounts from suppliers while many are asking for extended deferred payment terms – 180 to 220 days – despite initially agreeing to pay up within 90 days.
The BGMEA President also does not foresee a turnaround anytime soon as she thinks the coronavirus-induced slowdown would continue till the year end.
The retail market is yet to rebound, as such; garment exports in the next few months could fall by 30-40 per cent, expressed apprehension the BGMEA President.
