Considering the magnitude of various challenges, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has stressed the need for government policy support to navigate the troubled times and maintain competitiveness in the global market.
Faruque made the call when a delegation from the BGMEA, led by him, held a meeting with Dr. Md Khairuzzaman Mozumder, Secretary of the Finance Division at the Ministry of Finance on Tuesday at Bangladesh Secretariat.
The delegation comprised BGMEA senior vice president SM Mannan (Kochi) and vice president Rakibul Alam Chowdhury, read a press release.
The meeting revolved around pressing issues concerning the country's ready-made garment industry, its potential, and the vision to sustain growth and development.
During the meeting, Faruque pointed towards the profound impact of the Russia-Ukraine conflict on the global economy, which has presented a significant challenge for the readymade garment industry of Bangladesh.
He said the repercussions of the Russia-Ukraine war have led to severe inflation in the USA and EU countries and demand for apparel in key export markets like Europe and America has declined as consumers prioritize essential items such as food and fuel over clothing. "This has resulted in the decline of garment exports to Europe and the USA," he added.
Faruque said the decrease in garment exports, which constitutes over 84 percent of Bangladesh's total export earnings, has impacted the country's foreign reserves.
He also underscored the industry's increasing focus on diversifying into non-cotton products including man-made fiber (MMF) based garments, given their high demand globally, and urged the government to encourage and facilitate this shift through policy support.
Furthermore, the BGMEA President highlighted the industry's commitment to environmental sustainability, including efforts in developing the capacity of recycling and promoting a circular economy.
He stressed the need for government support to advance recycling and circularity within the Bangladesh's garment industry.
In addition to these concerns, the delegation called for easier and faster services from the banking sector for the RMG industry.
