Home ›› 22 Oct 2022 ›› Editorial
A recently published report alluding to Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated that the ready-made garment (RMG) sector is giving utmost priority to productivity enhancement as it prepares for the next phase of development. While addressing the closing ceremony of the Network to Integrate Productivity and Occupational Safety and Health (NIOSH) as its chief guest the BGMEA president said “Bangladesh’s apparel industry has immense growth potential. We are making all-out endeavours to seize every opportunity ahead where productivity enhancement is a key priority area as we prepare for the next development phase.”
According to media reports Bangladesh, over the past decade or so, has greatly improved its production facilities and compliance issues. As such, it is encouraging to see that international clothing retailers and brands see the value that Bangladesh provides and are deciding to continue to use Bangladesh as the home ground for all their RMG production needs.
It is well known that in in the last four decades, the RMG sector has emerged as the lifeblood of the Bangladesh economy. More than 81 per cent of the country’s export earnings come from this sector. Starting with the export of only 12000 dollars in the early 1980s, the industry crossed 42 billion dollars’ worth of export in the last fiscal year 2021-22.
However to achieve the sector’s avowed goal to reach the $ 100 billion export mark Bangladeshi apparel exporters have to ensure a sustained export growth of 11.45 per cent. We believe that the development of the country’s infrastructure, exploration of new markets, production of high-end products and contracts with good buyers are vital in this regard.
There is no room for complacency. The sector is facing a serious shortage of skilled workforce which is likely to slow down the up-gradation and transformation of the garment industry necessary to meet the demand from the global clothing industry. Such a shortage has emerged as a major constraint to the realisation of the sector’s true growth potential, in terms of productivity and production of high-end apparel.
According to the Directorate of Textiles, at present, the country’s apparel sector is facing a shortage of about 0.11 million skilled manpower, from floor to executive level. The problem will turn more complex if the exporters fail to fill up the positions of highly skilled middle management officials and skilled workers needed in the sector.
Reduction of lead time, lead time reduction can be ensured through improving services and improvement of seaport facilities, increased railway capacity, improving the efficiency of Dhaka airport by dedicating a special channel for fast clearing of RMG exports, and increasing airfreight capacity in ensuring the fastest delivery of sample goods and other accessories and also developing strong backward linkages. While most importantly, a trade facilitation idea should be introduced, for example, a single window system to reduce lead time. Since single window system will allow manufacturers and exporters to deal with multiple government agencies that are situated in multiple locations under one roof to obtain the necessary papers, permits, and clearances to complete their import or export processes in one go.
Despite many difficulties faced by the RMG sector over the years, it has successfully carved out a niche in the world market and kept continuing to show robust performance. The resilience of the RMG sector has enabled it to achieve the second highest RMG exporter’s status in the world and the Made in Bangladesh is now uttered with pride as the worldwide famous logo. It is not the race with other manufacturers that Bangladesh only has to be concerned about. Rather Bangladesh should emphasize value addition to its export basket.
