News Report Vietnam’s RMG export to the US market almost doubled in the year 2015 superseding that of Bangladesh.

According to the US data, the apparel exports of Vietnam grew 14.05 per cent during the first 11 months of 2015. During the same period Bangladesh exports grew 11.41 per cent. Vietnam exported RMG worth $9.7 billion and Bangladesh RMG export was worth $5 billion only during the period under reference. Vietnam garment industries started its journey from the beginning of 90’s whereas Bangladesh RMG sector laid its foundation during the mid-70’s. Vietnam got market access to the US during the mid-90’s and Bangladesh got the same from the very beginning of its RMG journey. Bangladesh RMG sector will face most difficult time when the US led Trans Pacific Partnership (TPP) agreement will be in operation.

Under the deal Vietnam will enjoy duty-free export facilities to the US market and Bangladesh will have to pay 15 per cent duty for exporting RMG products to the US market. If the US administration restores suspended Generalized System of Preference (GSP) Bangladesh RMG sector will not be competitive with Vietnam because the GSP covers only 0.24 per cent of the total Bangladesh export to the US market. Vietnam, according to the BGMEA sources, has taken up massive expansion programme of its RMG sector.

It has set a target to attract $3 billion FDI in the RMG sector during the next two years to meet the growing demand of RMG products after the TPP comes in operation. On the other hand, investment in Bangladesh RMG sector is not at all satisfactory. Some investment around $200 million per year has taken place in the Export Processing Zones, which is quite insufficient to face global market challenge. In another development the European and North American retailer groups blacklisted a large number of Bangladesh RMG factories for poor progress of working condition improvement by the RMG owners.

After the collapse of Rana Plaza in 2013, the European retailers formed accord to look into the fire and building safety and North American retailer groups formed alliance to look into the workers safety issue in Bangladesh RMG sector. Both the Accord and Alliance inspected around 3500 RMG factories and found none of the factory up to the mark.

They suggested some remedial measures and urged the garment owners to implement the prescriptions as early as possible. During the last one and a half years RMG owners did a lot to change the environment, but still a good number of owners could not meet the standard prescribed by the Accord and the Alliance.

The Accord, according to source, has warned 120 RMG factories of losing business if they fail to meet the standard of safety within the next couple of months. The Alliance suspended business of 23 RMG factories because they could not meet the safety standard. The Alliance has also warned 12 more factories to face the similar situation, the source said.

The Newstoday

13/01/2016

Quote from: “http://www.newstoday.com.bd/index.php?option=details&news_id=2432473&date=2016-01-13”