Under The Terrorist Attack Of Bangladesh IS, How Will The Second Major Exporting Countries Come Out?

Bangladesh once was a small and impoverished country for the world economy, but now it has become an export power.

Export industry ranks second only to China.

The clothing industry is crucial to Bangladesh's economy, accounting for 80% of its manufactured exports and creating over 4 million jobs.

But last Friday, a terrorist attack in the capital Dhaka killed 18 foreigners and two local people.

The government of Bangladesh does not want to admit that IS or "base" and other terrorist organizations are infiltrating in China and is worried about "scare away foreign investors".

But this terrible killing has led to heightened fears that violence will threaten the huge clothing industry in Bangladesh.

According to foreign media reports, on the evening of July 1st local time, a western restaurant in the embassy area of Bangladesh capital of Dhaka was attacked by militants. 20 people were killed, 18 of them were foreigners (9 Italians, 7 Japanese, 1 Bangladeshi and 1 imprints).

The terrorist organization "IS" declared responsibility for the attack, but the Bangladesh official denied that "do not want to scare away investors".

Bangladesh is located in Southeast Asia, once a poor and insignificant country for the world economy. Now it has become a big exporter, and is second only to China in the global apparel export industry.

Factories in the country have made large quantities of clothing for brands like Tommy Hilfiger, Gap, Calvin Klein and H&M, and global retailers such as Taghit (Target) and WAL-MART (Walmart) have opened procurement offices in Dhaka, the capital.

The clothing industry is crucial to Bangladesh's economy, accounting for 80% of its manufactured exports and creating over 4 million jobs.

The Agence France-Presse said the government of Bangladesh was reluctant to admit that IS or "base" and other terrorist organizations were infiltrating the country and worried about scare away foreign investors.

But this terrible killing has led to heightened fears that violence will threaten the huge clothing industry in Bangladesh.

General manager of Ananta Garments said: "this incident has great impact on us. For security reasons, some exporters from China and the United States will come to Dhaka to cooperate with us and become more cautious." Ananta

Bangladesh's garment industry has just recovered from the labour conflict three years ago.

New York reported earlier that in March 2013, there were two industrial zones in the western part of the country.

There was a protest in the factory. The police came to suppress the armed conflict with the protesters, which seriously affected the local clothing production and greatly hit the export economy.

In response, Bangladesh leaders dispatched a national security machine to ensure that factories continue to operate.

Then, another factory building collapsed, killing 1100 local workers and stopping production activities.

Bangladesh has low labor force and the minimum monthly wage for workers is only 68 dollars, while mainland Chinese workers earn a minimum wage of 280 dollars per month.

Cheap labor has made Bangladesh quietly become a major exporters of clothing to the United States and Europe.

Over the past few years, the inflation rate has been high in the country, resulting in workers getting paid more thinner, so the local labor conflicts continue.

Alonzo Susan Alonzo Suson, director of the Solidarity Center of the United States labor union, once said: "the clothing industry is the largest industry in the country's export earning, and if the development of the garment industry slows down, it will cause national security problems."

For those countries that are always pursuing the lowest labor cost in the world

Bangladesh has always been an ideal target, especially when China's wage level has risen.

It is reported that McKinsey called Bangladesh "the next China" and predicted that the total export volume of Bangladesh, which is about $18 billion a year (about 112 billion 600 million yuan), will expand by two times before 2020.

According to reports, last October to January this year, Bangladesh's clothing exports increased by 14% over the previous year.

However, last Friday's attack posed a great threat to foreign investors' local production activities.

The western restaurant attacked by militants was very popular with foreigners, and most of the people killed on that day were Italian.

Data show that the total textile imports from Bangladesh in Italy in 2015 amounted to US $1 billion 310 million, more than three times that of the previous 10 years, and this is precisely because Italy shifted the high production costs in Europe to a cheaper Southeast Asian country, Bangladesh.

"There has never been such a serious incident," said Mohammad S. Rahman, President of Bangladesh garment production and Export Association. "This has caused a great blow to the image of our country and will cause great pressure on our commercial activities. So far, to what extent is it hard to say?"

A senior executive in Bangladesh, who is responsible for importing French clothing factories, said he was worried about production problems in the next few days.

However, other local exporters are optimistic that safety concerns can be resolved, and factories can talk with western customers in other Asian countries or regions, such as Singapore or Hongkong, China.

"After half a year, the tension will ease, and everything will come back to the right track," said Abdullah Hil Rakib, general manager of Brothers Fashion, a local exporter.

Similarly, the European clothing brand, which has production plants in the capital of Dhaka, Sweden H&M and Martha & amp; Marks, a retailer with a history of more than 100 years, said that their local production and operation activities have not been affected, and the situation is still controllable in the H&M.

"At the moment, we have no plan to change the origin, but we will keep up with the situation," said H&M spokesman Ulrica B. Lind. "We have been keeping close contact with the Dhaka authorities on staff safety."