The existing policies implemented by the government over the last years have been fruitful towards boosting the country’s export earnings. It is heartening to note that Bangladesh has surpassed Vietnam and regained its position as the second largest apparel exporter in the world by earning $35.80 billion in 2021. According to the Bangladesh Export Promotion Bureau (EPB) and the Vietnam Trade Promotion Agency (VIETRADE) data, in the same year, Vietnam, one of the main competitors of Bangladesh in the world trade of garment industry, exported $31.08 billion. As a result, Bangladesh's garment exports exceeded Vietnam's by $4.72 billion,
Bangladesh needs to frame strategies as to
how it can explore new destinations
to increase export earnings from RMG sector
Over the last few years we have seen some revolutionary changes in our industrial infrastructures. Consequently, international retailers have got back their confidence to invest in Bangladesh. However, Bangladesh now needs to undertake massive plans to develop skilled manpower in Ready-Made Garments (RMG) in order to attract more foreign investors. Experts are of the opinion that shortage of mid-level management professionals and limited backward and forward linkages are among major challenges that need to be addressed for further expansion of the country’s RMG sector.
The other challenges identified by the study included dependency on import of raw materials, inadequate supply of utilities, transport services and high production costs, limited facilities in ports, lack of interest in financing small and medium producers, administrative and regulatory constraints. Hence, departments concerned should come up with effective measures to tackle the challenges in no time. Also, there is a need for an exemption of taxes on raw materials and backward linkage industries to survive competition with others, which will help expand the country’s export earnings.
We need to diversify our export basket for sustainable economic growth. Bangladesh is now capable of making quality products at low prices. The existing policies taken by the government to boost export earnings have been very fruitful in many cases. But more support for other potential products on the part of the government can help export earnings rise to a great extent. In order to compete with other Asian countries, we should look forward to adding more diversified products to our export basket. Bangladesh needs to frame strategies as to how it can explore new destinations to increase export earnings from RMG sector. Last but not the least, focus should be given on potential export items such as processed agro-products, Halal-products, jute and jute goods, leather, pharmaceuticals and so on.
