Apparel manufacturers in Bangladesh are anticipating certain advantages for them with reference to the challenges faced by Vietnam’s apparel and footwear manufacturers currently.
This is as per media reports, which added the current situation has risen from the USA withholding clearance for some consignments from Vietnam even as it expressed concerns regarding products made with Xinjiang cotton.
It may be mentioned here the Uyghur Forced Labour Prevention Act (UFLPA), enacted on 21st June, 2022, empowers US border authorities with increased abilities to delay or confiscate goods that are partially or entirely produced in Xinjiang, a region in northwest China associated with forced labour practises in that country.
From 2017 onwards, Chinese authorities have reportedly detained up to one million Uyghurs, subjecting them to forced labour. Media reports indicate that certain Vietnamese enterprises have assisted Chinese businessmen in evading US taxes or sanctions by utilising cotton and exporting goods to the United States.
As a result, US customs data until 3rd April revealed that out of the apparel and footwear shipments worth US $ 15 million held for UFLPA inspections, over 80 per cent originated from Vietnam, with only 13 per cent receiving the clearance for entry.
Meanwhile, Faruque Hassan, the President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has underlined Bangladesh garment makers are in a secure position even if experts within the industry have revealed that nearly 85 per cent of their demand for cotton yarn is met through domestic sources, while the remaining is sourced from India, Turkey, Pakistan, and other countries. China’s contribution to the supply is less than one per cent.
