RMG exports hit year’s target in 10 months

Add more diversified products to the export basket

Published : 15 May 2022 07:45 PM

It is encouraging to note that Bangladesh’s readymade garment (RMG) exports have surpassed the $35.14 billion target for the current fiscal 2021-22 within the first 10 months as the country showed economic stability despite the global crisis. Lockdowns in Vietnam and China, coupled with financial turmoil in Sri Lanka have opened up a window of opportunity for Bangladesh to give a boost to its export earnings from Ready-Made Garments (RMG). However, Bangladesh needs to devise measures to develop skilled manpower in RMG sector in order to invite more foreign investments in the coming days.

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. 

The government should take 

necessary steps to facilitate 

exports of halal food 

We should take the privilege of low cost production that we are enjoying in Bangladesh. 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. Hence, relevant authorities should 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.

The government should take necessary steps to facilitate exports of halal food. Halal products have a huge demand in the international market, even in the European market, because of their distinct quality. Reportedly, the global Islamic market is around USD 2 trillion which is 11.9 percent of the global market size. Brazil, Australia, New Zealand and Thailand are leading suppliers to Halal markets. We believe, with proper support from the authorities concerned, Bangladesh can earn more by exporting Halal products