Knitwear makers urged to be more competitive

The knitwear manufacturers of Bangladesh are urged to become more competitive to sustain in the world market by exploring new avenues, improving quality of products and enhancing labour productivity, according to Dr AB Mirza Azizul Islam from Dhaka.

A possible decline in knitwear exports is expected due to end of the European Union embargo on China from January 2008.

The Institute of Apparel Research & technology (IART) organised the programme at a city hotel marking the launch of its maiden research paper on Impact of Removing EU Safeguard Measures against China.

The knitwear manufacturers sought government intervention in lobbying with their European counterparts so that the European Union continues such safeguard measures till 2008. The Government is working to successfully face the possible challenges emerging from the discontinuation of imports growth cap on certain Chinese RMG products the European Commission imposed in 2005.

Mirza Aziz, also in charge of the Ministry of Commerce, said the government has succeeded in a considerable improvement in law and order situation and services at the Chittagong Port, which will help improve productivity and competitiveness of the sector.

President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Haq informed the function that the industry experienced around 10% of shortfall in export orders during the peak summer season.

Mostafizur Rahman, Research Director, Centre for Policy Dialogue (CPD), pointed out the preference erosion that could hit Bangladesh RMG industry hard as the country will lose the duty facility it gets in EU and Canada. He urged the RMG makers to maintain all environment and other social compliances in order to increase productivity of the sector.