Bangladeshi apparel items have witnessed a sharper fall in prices compared to the Vietnamese products in the European Union and U.S. markets, according to a study by the Centre for Policy Dialogue (CPD).

The price of 100 kg of made-in-Bangladesh cotton fiber T-shirt declined by 1 percent year-on-year to 1,091.5 euros in 2020. However, the same product manufactured in Vietnam saw a 3 percent price rise, reaching 2,157.9 euros last year, the study found.

 

Similarly, the price of each 100 kg of women or girls’ cotton fiber pullover made in Bangladesh decreased by 7 percent year-on-year to 1,329.5 euros in 2020 whereas the price of the Vietnamese ones remained stable at 2,157.8 euros.

 

The prices of each 100 kg of Bangladeshi man-made fiber pullovers for women and girls fell by 6 percent to 1,319.4 euros from 1,409.6 euros in 2019 at the EU markets. However, the Vietnamese variant has seen only a 3 percent year-on-year price fall, hitting 1,906.2 euros in 2020.

 

In the U.S. market, the price of a dozen of Bangladeshi T-shirts made from cotton fell by 20 percent to USD 17.99 in 2020 from USD 22.43 in 2019 while the price of the same product made in Vietnam declined by 17 percent to USD 31.9 in 2020 from USD 38.2 in 2019.

 

The price of a dozen of Bangladeshi made sweaters and pullovers declined by 2 percent to USD 39.31 in 2020 from USD 40.23 in 2019. However, the prices of the same Vietnamese product remained stable at USD 47.1 in 2019 and 46.9 in 2020.

 

The price of a dozen of Bangladeshi manufactured trousers for women and girls made from cotton fiber declined by 12 percent to USD 64.17 in 2020 from USD 72.88 in 2019 while its Vietnamese variant has seen only a 6 percent price fall, reaching USD 84.6 in 2020 from USD 90.5 in 2019.

 

Bangladesh’s export performance was driven by both volume and value factors, according to the CPD study. Exchange rate management is emerging as a key factor, driving export competitiveness, it said.

 

The CPD also said the export target set for fiscal 2021 to achieve 21 percent growth over fiscal 2020 will not be achieved. It will take some time to even reach the pre-COVID export level of USD 40.5 billion.

 

Source: thedailystar.net