It is good to note that Bangladesh bagged the second position again in the global apparel export market in 2021 after it was pushed back in third position by Vietnam in 2020. Reportedly, Vietnam’s share in global ready-made garment exports dropped to 5.80 per cent in 2021 from 6.40 per cent in 2020. On the other hand, the share of Bangladesh in the global RMG market increased to 6.40 per cent in the last year from 6.30 per cent in 2020. It needs to be mentioned that, RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth.
We should take the privilege of low cost production that we are enjoying in Bangladesh. Bangladesh is now capable of making quality products at low prices. Therefore, the government needs to encourage entrepreneurs by giving several fiscal and technical supports. 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.
Bangladesh now needs to devise measures
to develop skilled manpower in RMG
sector in order to invite more foreign
investments in the coming days
A recent study says that low productivity, 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, relevant authorities should come up with effective measures to tackle the challenges in no time. Also, new and potential markets must be explored for diversification and sustainability of the sector.
However, Bangladesh now needs to devise measures to develop skilled manpower in RMG sector in order to invite more foreign investments in the coming days. In order to sustain the current tempo of the country’s export growth, our efforts to solve infrastructure, power, and institutional bottlenecks need to be followed through. A comprehensive policy package coupled with supportive governmental incentives will help our export industry grow further. Bangladesh needs to pay more attention to devise an alternative strategy that encourages diversification of exports, both in terms of products and destination.