BANGLADESH'S garment industry, the world's number two exporter after China, is facing issues from slowing global demand and an energy crisis at home, reports Bloomberg News
BANGLADESH'S garment industry, the world's number two exporter after China, is facing issues from slowing global demand and an energy crisis at home, reports Bloomberg News. Plummy Fashions, a supplier to PVH Corp, saw new orders in July drop 20 per cent from a year earlier.
'Retailers in both European and US markets are either deferring the shipments of finished products or delaying orders, he said in an interview,' said Plummy Fashions managing director Fazlul Hoque
'As inflation is soaring in our export destinations, it has a serious impact on us.'
Waning orders are a risk to the economy since the garment industry is 10 per cent of gross domestic product and employs 4.4 million people.
'Uninterrupted energy supply is the key to delivering products in time,' said Mr Hoque.
'We're facing a combination of multiple problems at home and abroad.'
As the energy crisis struck, the cost of doing business surged.
Said Standard chairman Atiqur Rahman: 'The cost of electricity from generators is three times what we get from the national grid because diesel is costly,'
'We can't keep our dyeing and washing units shut due to the power outage. If we do, all the fabrics will go to waste.'
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