It is encouraging to note that RMG exports to the United States saw a year-on-year growth of 42.48 per cent to $9.06 billion in the January-November period of 2022, higher than $6.36 billion in the mentioned period of 2021. However, the single-month apparel export earnings from the US in November experienced a fall of 9.82 per cent to $597.61 million from $662.70 million in the same month of 2021
It needs to be mentioned that, RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth. It is worth mentioning that Bangladesh holds the second position in the European market and the third position in the US market in the export of ready-made garments.
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.
The world is facing economic crises due to higher inflation caused by the Ukraine-Russia war coupled with Covid-19. Despite the crisis, developed countries are importing more clothes from Bangladesh than before. 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.