Views:0 Author:Site Editor Publish Time: 2020-02-28 Origin:Site
Bangladesh’s apparel industry, the $34 billion industry and the lifeline of the economy may suffer badly due to the outbreak of ongoing Coronavirus as the supply chain of raw materials for the sector might be disrupted if it prolongs and spread further.
Figure 1: Bangladesh textile and apparel sector is highly dependent on China. It can be a disaster with a delay in shipment if the supply chain does not work properly. Courtesy: Feature China/Barcroft Media via Getty Images
Primarily some of the apparel makers have started to feel the pinch of virus outbreak as the suppliers of raw materials are facing problems in ensuring timely shipment as the government extended the New Year holiday.
On the other hand, the movement of business people between the two countries is going through restriction and the Bangladesh government has stooped on arrival visas for Chinese people.
Why China factors for the apparel sector
China is the number one trade partner of Bangladesh. As of last fiscal year, China-Bangladesh bilateral trade stood at $14.48 billion. China- Bangladesh bilateral trade is in favor of China as it has the largest share among the trade between the two countries. According to Bangladesh Bank data in the fiscal year 2018-19, Bangladesh imported goods worth $13.65 billion, while the country exported products of $831.2 million in the same period.
On top of that, over 50% of Bangladesh’s textile and textile-related goods including garment accessories are imported from China. In addition, about 40% of capital machinery and spare parts for the textile and garment industry come from the country.