Global apparel buying firms are exploring alternative destinations to source their garments, owing to rising cost of production in China, and Bangladesh has emerged as priority for these companies to source apparels.
After convening a meeting with representatives of American Chamber of Commerce in Hong Kong (AmCham), the Bangladesh Garment Manufacturers' and Exporters' Association (BGMEA) leaders signalled that big opportunities are looming for Bangladeshi garment sector.
Briefing media after the meeting, BGMEA President Shafiul Islam Mohiuddin said planning to move away for China, world’s top-most buying houses are looking for alternate sourcing options.
He said this is the right time for Bangladesh Government and apparel industry to act, and if timely measures are not initiated the opportunity may lapse.
AmCham President Richard R Vuylsteke said Chinese firms are adapting advanced technologies, which has raised the cost of production making sourcing from there costlier.
Due to this, buying firms are looking at other sourcing options and Bangladesh, Vietnam, Cambodia, Indonesia and Laos have emerged as their preferred choices, he said.
Bangladesh, however, tops this preference list as a number of buyers who earlier sourced from China have already started sourcing from Bangladesh.
Mr. Vuylsteke said all – the government, entrepreneurs and the buyers - would have to team up to take advantage from the situation.
After their Bangladesh visit, AmCham representatives would also be visiting Vietnam, Indonesia, Myanmar and Cambodia, before finally deciding on the quantum of products to be sourced from each nation.
The visiting delegation included representatives of 20 leading buying houses like PVH Corp, Spirit Nike, H&M, Walmart, Tom Tailor, American Eagle and Amer Sports.
AmCham is one of the biggest American Chambers outside the United States and the biggest one in Hong Kong.