The Export Promotion Bureau (EPB) has released the country-wise export data for the July-May period of FY2022-23. The total RMG export during this period has reached $42.63 billion with 10.67 per cent year-over-year growth. Out of this total RMG export, $21.22 billion went to the EU market with a share of 49.78 per cent of total export.
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, Bangladesh now needs to devise measures to develop skilled manpower in RMG sector in order to invite more foreign investments in the coming days.
Bangladesh needs to pay more attention
to devise an alternative strategy that
encourages diversification of exports,
both in terms of products and destination
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. However, Bangladesh needs to diversify its export basket in order to sustain accelerated economic growth, increase investment opportunities and create more jobs.
Over the last few years we have seen some remarkable changes in our industrial infrastructures. Also, international retailers have got back their confidence to invest in Bangladesh. Besides, some of the biggest apparel exporters have been losing their share in global market because of higher costs of production and shortage of workers. As a result, work orders are being diverted to Bangladeshi factories. Therefore, we should take the privilege of low cost production that we are enjoying in Bangladesh.
New and potential markets must be explored for diversification and sustainability of the sector. The government's recent initiatives to promote thrust sectors including pharmaceuticals, agro-products, plastics, ICT, shipbuilding, furniture, are moving in the right direction. But at the same time it is true that 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.
