Bangladeshi Apparel Makers Paid One of the Lowest Prices in the World

Bangladeshi garment makers received one of the lowest prices in the world last year due to a lack of value-added apparel items, lack of negotiation skills, and an image crisis. Among the garment trading nations in the world, Bangladeshi garment items were paid $2.79 per unit or per square meter equivalent (SME) in the US market in 2018, according to data from the Office of the Textiles and Apparel (OTEXA) in the US.

Chinese and Ethiopian exporters were paid lesser: $2.35 and $2.45 per SME respectively. The Turkish exporters were paid the highest: $7.38 per SME. Per SME from Malaysia fetched $5.37, Laos $4.98, Indonesia $3.81, Myanmar $3.08, Vietnam $3.28, and Thailand $2.88Bangladesh has not been receiving high prices because the local exporters are mainly competing in some particular items like woven shirts and bottoms that have many competitors, said Sharif Zahir, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“The buyers have alternatives, so they do not want to pay high prices.” However, a few new competitors like Myanmar and Ethiopia are managing better prices than Bangladesh although they are far beyond in compliance, he said. “Here, the image crisis of Bangladesh is a major challenge. The buyers do not want to pay because of our image crisis after the Rana Plaza building collapse.” Although the minimum wages of many garment-producing countries are below Bangladesh’s, they are still receiving better prices.


he said. “We are working to brighten the image of the country as we have been following compliance strictly and strengthening workplace safety,” said Zahir, also the managing director of Ananta Denim. Bangladesh needs two particular improvements at this moment: improving its rankings in the World Bank’s ease of doing business index and manufacturing value-added garment items. 

Only 20 percent of the exports now are value-added garment items.“Bangladesh will get more prices if it manufactures outerwear, dresses, and jackets,” Zahir said. The efficiency level of workers needs to be enhanced too: it is nearly 50 percent whereas in other countries it is 80 percent, he said. (thedailystar)

Category and Tags
More stories by
20 Reasons to Consider Cautiously Before Investing in Japan

While there are many investment opportunities in Japan, it's vital to weigh the risks and potential downsides. Here are 20 factors that may make some investors hesitant to make an investment in Japan and from my 7 years of experience living in Japan

First Time in the UK, a Special Sculpture Honors Hijab-Wearing Women

In Birmingham, England, the first sculpture honoring women who cover their heads will be unveiled. A piece of art by Luke Perry with the working title "The Strength of the Hijab" stands five meters (16 feet) tall and weighs roughly a ton.The designer

Muhammad Yunus: A Compelling Contender for the 2023 Bangladesh Presidential Election

Bangladesh is in need of a president who can manage complicated issues while promoting a sustainable economy and social advancement as the country gears up for its presidential election in 2023. In this situation, Muhammad Yunus' candidacy stands out

Pathao receives authorization to offer payment services

The subsidiary is permitted by the license to provide payment services in Bangladesh under the trade name "Pathao Pay."The announcement that Pathao Pay would be granted a PSP license...

Apple will begin disbursing $500 million in the iPhone Slowdown Lawsuit.

The reimbursement for iPhone users who filed a class action lawsuit against Apple, claiming the company purposefully slowed down its older models to encourage customers to switch to the newest model, will now be made. As revealed la

Follow Business Habit on Facebook, Twitter