It is encouraging to note that the country’s export earnings in the ready-made garments sector increased rapidly from different countries across the world despite the economic crisis. Experts are of the opinion that different countries in the world are facing economic crises due to higher inflation caused by the Ukraine-Russia war.
Despite the crisis, developed countries are importing more clothes from Bangladesh than before. It is worth mentioning that Bangladesh holds the second position in the European market and the third position in the US market in the export of ready-made garments.
It needs to be mentioned that, RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth. According to the data released recently by the US official source, Office of Textiles and Apparel (OTEXA) and the European statistical agency Eurostat, in the first 9 months of this year (January-September), Bangladesh has exported more clothes than ever before. Bangladesh's garment exports to European Union (EU) countries increased by 43.21 percent to $17.56 billion in the first 9 months of this year over that in the same period of the previous year, according to the statistics of Eurostat latest data.
Bangladesh now needs to devise
measures to develop skilled
manpower in RMG
sector in order to invite more
foreign investments in the
coming days
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.
However, Bangladesh now 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.
