It is alarming news that the Bangladeshi readymade garment (RMG) industry is facing unexpected hurdles in meeting the $50 billion export target by 2021. In order to achieve this target by the stipulated time exploring newer foreign markets has become an earnest necessity for Bangladesh.
Experts are of the opinion that the failure to diversify products and explore new markets are major factors contributing in losing competitiveness with other exporting countries like Vietnam, Cambodia, India and Pakistan. Considering the situation, Bangladesh must devise a new strategy as to how it can explore new destinations to increase export earnings from RMG sector.
Bangladesh must devise a new strategy as to how it can explore new destinations to increase export earnings from RMG sector
Bangladesh needs over 13 per cent growth for achieving the USD 50 billion export target and in order to speed up the tempo of the country’s current export growth, our efforts to solve infrastructure, power, and institutional bottlenecks need to be followed through.
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.
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.