Global garment manufacturers have closed their physical stores under various government shutdown orders, faced overstocking problems, and are worried about oversupply in the future. They have canceled or delayed orders from Asian OEM factories. Shipping. Stanley Szeto, CEO of LevertStyle, a Hong Kong clothing manufacturer, said that Asia is the main area for OEMs in the garment industry. The reduction in demand for the garment industry will put the risk of OEM jobs in many parts of Asia, and may be Bangladesh, Cambodia, China and other countries that rely on export economies. Cause social problems.
Bangladesh, the world’s second largest garment exporter after China, is the first to bear the brunt. Bangladesh currently has more than 4,600 garment OEM factories, most of which are exported to Europe, the United States, and Canada. Rubanar Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, said that the total export volume of ready-made garments in Bangladesh in the 2018/19 fiscal year was 84.21%, worth US$40.5 billion. Affected by the epidemic, the local OEM factory received canceled orders almost every minute.
Bangladesh Commerce Minister Tipu Munshi said in an interview with CNBC on March 27 that the current cancellation amount has reached 2.6 billion US dollars, and there will be more order cancellations in the future. Rubana Huq is worried that the 4.1 million workers engaged in garment manufacturing in Bangladesh will lose their jobs, and recently called on international fashion brands to pay for and receive goods that have been produced.
