PPE Exports: An Unlikely Savior For Disrupted RMG Sector in Bangladesh
Ever since the pandemic has disrupted the global supply chain of the Ready Made Garment (RMG) sector, Personal Protective Equipment (PPE) gowns and other products have turned out to be its unlikely savior.
Bangladesh, the world’s 2nd largest RMG exporter, has turned this glooming situation into an opportunity, not just bolstering the export numbers but also complementing the livelihood of millions of people. Many garment manufacturers have already set up new lines of production to meet the soaring demand of PPEs, especially from the US and EU.
This, in turn, has also led to the recruitment of a few hundred more workers – a move to increase production capacity. With strong manufacturing capabilities, BEXIMCO Group has turned out to be one of the front runners in PPE production.
From distributing PPE gowns and masks to police officers & front line health workers to exporting to the US and EU countries, BEXIMCO Group, co-founded by Salman F Rahman, didn’t layoff any employees during this time of crisis and instead turned this into a good opportunity for everyone.
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Every month, the Bangladesh corporate giant is exporting $20 million worth of PPEs. Since people all over the world are buying PPE products at a rampant pace to protect themselves from the rogue pathogen, BEXIMCO eyes the export $250 million worth of PPE in 2020 and 2021.
To complement the growth of such industries, Finance Minister AHM Mustafa Kamal has altogether waived VAT charges on the manufacture of PPE products, since the pandemic is here to stay for some time.
Similarly, another leading garment exporter, Urmi Group has received a lot of work orders for PPEs. Asif Ashraf, its managing director said, “I am waiting for the FDA’s approval. I hope I can obtain the certification very soon.”
So far, about 30 local garment factories have started manufacturing PPEs – a new element in the country’s garment business, facilitating both the GDP growth and employment sustenance.