×
2 675
Fashion Jobs
JOHN LEWIS
Loss Prevention Partner
Permanent · CHELMSFORD
BOOHOO GROUP
Senior Commercial Finance Analyst
Permanent · MANCHESTER
BOOHOOMAN
Senior Marketing Manager
Permanent · MANCHESTER
BOOHOO
Paid Search Manager
Permanent · MANCHESTER
DEBENHAMS
Marketplace Business Development Manager
Permanent · LONDON
DEBENHAMS
Marketplace Account Manager
Permanent · LONDON
DEBENHAMS
Marketplace Business Development Assistant
Permanent · LONDON
REISS
Buying Admin Assistant - Graduate Opportunity
Permanent · LONDON
HOMESENSE
Loss Prevention Officer - Full Time Tkmaxx/Homsesense Basingstoke
Permanent · Basingstoke
VIVIENNE WESTWOOD
Warehouse Operative
Permanent ·
VIVIENNE WESTWOOD
Legal Counsel
Permanent · LONDON
VIVIENNE WESTWOOD
Buying Admin Assistant
Permanent · LONDON
ESTEE LAUDER
Tom Ford - Assistant Business Manager - Selfridges, London - 37.5 Hours - Full Time, Permanent
Permanent · London
ESTEE LAUDER
The Estee Lauder Companies - Learning And Development Assistant Manager
Permanent · London
VF INTERNATIONAL
dc Training Specialist
Permanent · COALVILLE
VF INTERNATIONAL
Warehouse Area Manager
Permanent · COALVILLE
VF INTERNATIONAL
dc Team Leader
Permanent · COALVILLE
HEAD OFFICE
Head Chef Food Production – Victoria Head Office
Permanent · LONDON
BOOHOO
Usa SEO Assistant - Boohoo
Permanent · MANCHESTER
DOROTHY PERKINS
Paid Search Assistant
Permanent · LONDON
JOHN LEWIS
Loss Prevention Partner
Permanent · LIVERPOOL
BOOHOO GROUP
Warehouse Shift Manager - Twilight Shift
Permanent · WELLINGBOROUGH
Ads
By
Reuters API
Published
Mar 31, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Garment exporter Bangladesh faces $6 billion hit as world retailers cancel orders

By
Reuters API
Published
Mar 31, 2020

Bangladesh, the second-largest apparel producer after China, is set to lose roughly $6 billion (4.83 billion pounds) in export revenue this financial year amid cancellations from some of the world's largest brands and retailers, two major industry bodies said on Tuesday.


Reuters



The two groups, which represent the vast majority the readymade garment and knitwear manufacturers in the country, said cancellations were increasing daily amid coronavirus-driven lockdowns globally, and these risked jeopardizing millions of jobs in the poor South Asian nation.

Low wages have helped Bangladesh build its garment industry, with some 4,000 factories employing 4 million workers.

Garment exports accounted for $34.12 billion, or 84% of the country's overall exports of $40.53 billion, in the fiscal year ended June 30, 2019.

"We've lost more than $3 billion due to the crisis. All our orders until July have been cancelled or suspended," Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said.

"Suspended orders will eventually get cancelled. All these orders were placed for summer and it takes three months to get these delivered. If they are not taking supplies now they will not take it when the summer is over," said Hatem, adding buyers had adopted a wait and watch policy, and are refraining from placing new orders.

"Many factories will be closed if this persists," he added.

One industry source, who asked not to be named as the order books are confidential, said Gap, Zara, and Primark were among the brands that had cancelled orders.

Gap, Zara and Primark did not immediately respond to emails seeking comment.

Readymade garment makers face a similar hit, warned Rubana Huq, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Huq said some 1,048 factories that were part of BGMEA had reported that orders for over 900 million garments worth $2.9 billion had already been cancelled or were being held up.

Huq said the order cancellations could affect some 2 million workers in the readymade garments segment.
Prime Minister Sheikh Hasina recently unveiled a $588 million package for the country's crucial export sector, asking companies to put the money towards paying workers.

"This is not enough. The government should come up with more stimulus to save the country's biggest export sector," said Rezwan Selim, a director of BGMEA.

Siddiqur Rahman, a top exporter who supplies H&M , and Walmart among others, said the situation was dire.
"We're facing an unprecedented time," he said. "No one knows how long this is going to take. We're trying hard not to shut down our factories. But how long can we hold out?"

© Thomson Reuters 2022 All rights reserved.