Internet woes hit garment exports as buyers fret

Global apparel buyers on Monday expressed concern over the Internet connection, which is still slow after the restoration of a weeklong cutoff during the violent anti-quota movement.

They urged sector leaders and suppliers to ensure timely goods shipments and restore high-speed Internet and broadband connections to enable effective communication with their headquarters, according to sources.

At a meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders at BGMEA headquarters in Dhaka's Uttara, the buyers also appealed to authorities and sector leaders to take proactive steps to prevent the ongoing situation from jeopardising Bangladesh's eligibility for GSP plus benefits in its largest export market, the European Union.

Ziaur Rahman, regional country manager of Swedish fast fashion clothing company H&M, Shwapna Bhowmick, regional head of British multinational retailer Marks and Spencer (M&S) and representatives from Inditex and Bestseller attended the meeting.

BGMEA President SM Mannan Kochi, vice-presidents Syed Nazrul Islam, Arshad Jamal Dipu, Abdullah Hil Rakib and Miran Ali were also present.

The BGMEA and buyers' forum pledged mutual support to mitigate the impact of recent disruptions, meeting sources said.

Speaking anonymously after the meeting, a buyer representative told The Financial Express that communication with headquarters remained problematic despite the Internet resumption on 24 July following a week-long blackout.

"Even during previous crises like Covid-19 and other political turmoils, the readymade garment industry was exempt from restrictions and high-speed Internet was available. But this time, the full cutoff of the Internet resulted in no communication," the representative said, adding that the overall communication breakdown could damage the country's image.

Another representative informed the meeting of difficulties in shipping containers to ports as rail communication is yet to resume.

Meeting sources said the GSP plus issue was also discussed, with participants urging BGMEA leaders to work closely with the government.

After the meeting with international retailers and brands, BGMEA President SM Mannan Kochi said the retailers and brands assured them that they will not seek any discount, air shipment or cancellation of work orders because of the latest spell of violence and suspension of production.

Earlier, he requested the buyers for the same issues.

Mr Kochi informed the meeting about BGMEA's engagement with the government to restore stability in the industry and added that they lost significant production and shipment during the closure, causing severe financial and supply chain impact at their end.

He said he assured the buyers that they were committed to meeting their expectations and doing everything within their limits to mitigate the impact of the recent disruptions.

"I urge them all to consider the extraordinary circumstances and show understanding towards their suppliers," he said, adding that any measures due to unexpected delay would only exacerbate challenges they were already facing.

When asked, H&M Regional Country Manager in Dhaka Ziaur Rahman said that H&M would not seek discounts for delays caused by factory closures and port congestion due to the Internet outage.

Meanwhile, local exporters and suppliers are now travelling to export destinations to reassure buyers of timely production and shipments following the reopening of factories and other services.

Talking to the FE, several exporters said buyers were concerned about the current and future situation, expressing worries about timely garment shipments due to violence and port delays.

Shovon Islam, managing director of Sparrow Apparels Ltd, told the FE that buyers were worried about the current situation and future developments.

He said he would travel to the US next week mainly to meet with two major buyers who had been silent about new work orders.

"I was expecting to see an increase in their orders, but they have not said anything specific. So I will fly over to convince them, as there were no delays in their previous shipments," he said.

Another exporter said a $1.5 million shipment from 14 July was still stuck at Benapole port due to customs clearance issues. They had sent an official to India to meet with a buyer who sourced about $25 million from their company.

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