It is good news that export earnings from readymade garments (RMG) increased to US$3.31 billion by 21.72 percent in July this year over the corresponding period of the preceding year. Bangladesh needs over 13 per cent growth for achieving the USD 50 billion export target and 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.
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. Experts opine that because of the widening trade dispute between the world’s two biggest economies, lion’s share of RMG exports from China to the US now would be diverted to Bangladesh and other potential RMG manufacturing countries like India, Vietnam, Chile and Mexico. It is needless to say that such a situation has opened up a window of opportunity for Bangladesh to give a boost to its export earnings. In this regard, Bangladesh needs to undertake massive plans to develop skilled manpower in Ready-Made Garments (RMG) in order to attract more foreign investors.
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 needs to undertake
massive plans to develop skilled
manpower in Ready-Made Garments (RMG)
in order to attract more foreign investments
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. Therefore, we urge relevant authorities to 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.