The outbreak of coronary virus spreads across the globe. The main export market of Bangladesh has reduced sales due to limited movement of people in many countries of Europe. Garment products stores have been temporarily closed in many cities. This has impacted Bangladesh’s exports. Customers have already requested that certain invoices not be shipped in advance. Some have requested not to send all the products of the whole purchase now or to stop the making of garments (not cut fabric).
BGMEA President of the garment industry owners’ association. Rubana Haque told Ittefaq that the exporters had already informed him of such decision from at least 20 buyer companies. He also warned of a major liquidity crisis for exporters in the future if this situation continues. Economists say imports have declined at the start of the Corona virus, but this time the problem is doubled as exports start to decline. This will have a negative impact on local revenue. This could create a crisis in the global economy as well as in Bangladesh’s economy.
Mohammad Hatem, the Owner of MB Fashion in Narayanganj and Senior Vice President of BKMEA, told Ittefaq that a European consumer company had recently lowered it after already making a purchase at its establishment. Some parts requested not to be exported. This situation is compounded by the decline in sales in Europe.
Another exporter, Shahidul Haque Mukul, shared the same experience. His US-based consumer company said it would send a small quantity of goods and not make any remaining purchase products. Former Vice President of Classic Fashion BGMEA Shahidullah Azim said the production had to be stopped immediately after 3,000 back shirt export loans.
Sources said that a portion of other exporters also faced such a situation. They fear that if Corona’s situation does not improve, European countries will gradually become more alert. As a result, sales will continue to decline. In the meantime, Italy, one of the largest economies in Europe, is almost isolated. The whole country is called quarantine. Gradually the same situation can be created in other countries. In several states of the United States, the movement of people has been restricted, along with the closure of various institutions.
About 8 percent of Bangladesh’s exports go to Europe and American countries. Dr. “We are in a difficult situation because of the spread of the Corona virus.” Entrepreneurs may face major challenges, especially in Ramadan and Eid-centric bonuses in the future. They are notifying the government of the situation.
However, not all entrepreneurs are talking about reducing their export orders. The management authority of a factory in Chittagong’s Karnafuli EPZ, named Demin Expert, said their customers have not yet said anything about order shipment or cancellation of shipments. However, they are monitoring the situation.
Europe-based brand H&M has not yet issued any directive on reducing the supply of garments, said a Dhaka office source. Ziaur Rahman, Head of the Bangladesh office of H&M, told Ittefaq, “We have to be prepared for any decision, considering the reality of the global situation.
Meanwhile, the Asian Development Bank (ADB) recently said in a report that the potential damage to Bangladesh’s economy could be as high as Tk 1.75 bn or Tk 20 thousand 7 cr under the influence of the Corona virus. This is equal to zero percent of Bangladesh’s gross domestic product (GDP).
Executive Director of the Policy Resource Institute (PRI). Ahsan H Mansur told Ittefaq, “The two major markets for our exports are now in Europe and America. Demand for commodities is now decreasing due to problems with the supply of raw materials, accessories in the beginning. This is a double crisis. Never before has there been such a bipartisan crisis.