The country's apparel export earnings reached USD 38.57 billion during the July-April period of FY 2022-23, that is 9.09 percent higher over that in the same period of the previous fiscal year. However, a detailed analysis of the single month figures reveals a recent decline in the growth of apparel exports. Reportedly, the country's apparel exports declined significantly by 15.48 percent in April 2023, amounting to USD 3.32 billion, compared to April 2022.
It is worth noting that RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth. Reportedly, 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.
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.
