2024-05-13 12:15:46
Three challenges need to be urgently addressed for the sustainable development of the garment industry in Bangladesh and to survive in the current competitive market. These are – decarbonisation, the post transition scenario from the list of Least Developed Countries (LDCs) and the Fourth Industrial Revolution or the impact of automation of technology on production systems.
This was stated in the main article ‘Weaving 2030: Policy-making discussion’ at a hotel in Gulshan in the capital on Saturday (May 11). Jahedul Amin, co-founder and director of Lightcastle Partners, presented the keynote.
Business consultancy firm Lightcastle Partners and Policy Exchange organized this round table meeting to highlight the recommendations and actions to be taken to face multi-faceted challenges in the garment industry in order to survive in the competitive market and transition from LDC. The meeting was chaired by the Chairman of Policy Exchange Bangladesh. M. Masroor Riaz. Aini Islam, Director of Program Development Department of Asia Foundation gave the opening speech.
According to the main article, the biggest crisis is coming after transition from the list of least developed countries (LDCs) in 2026. Due to the reduction of other trade benefits including the Generalized Scheme of Preferences (GSP) due to LDCs, the increase in wages of workers, the fear of international buyers turning to countries producing garments at relatively low cost, the non-compliance of some owners of the garment industry, this crisis will further increase.
It also said that according to the 2023 data of the Export Development Bureau, Bangladesh currently ranks second as a single country in the world in terms of exports of ready-made garments. Bangladesh has exported garments worth USD 47 billion till February 2023-2024 fiscal year. According to the data of Bangladesh Bank, the contribution of this sector to the GDP in the fiscal year 2023-204 is 10.35 percent. 4.1 million or more than 41 lakh workers are working in the garment sector. 60 percent of them are women. As a result, if these issues are not addressed now, there may be a negative impact on the garment industry as well as the economy as a whole.
Prominent people spoke – Deputy Secretary of the Ministry of Commerce. Salim Hossain, Director General of Bangladesh Investment Development Authority (BIDA). Ariful Haque, Inspector General of Factory and Institution Inspection Directorate. Abdur Rahim Khan, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatim, Bangladesh Representative of The Asia Foundation Kazi Faisal Bin Siraj and other officials.
Deputy Secretary of the Ministry of Commerce in the round table meeting. Salim Hussain said diversification of export products under Free Trade Agreement (FTA) is necessary to meet the challenges of the garment industry. In that case, Bangladesh can adopt a production based, creative and timely business model.
Bidar Director General Ariful Haque said that an effective export-oriented policy is needed according to the current and future needs of the country’s garment sector. For this, the policy makers can take the advice of the famous consultancy firms of the country.
The Inspector General of the Department of Inspection of Factories and Institutions urged to follow the successful models like Product Linked Incentive (PLI) scheme in India for increasing garment export and market expansion of Bangladesh. Abdur Rahim Khan.
Mohammad Hatim, Executive President of BKMEA, said duty-free access to import raw materials for man-made fiber (MMF) production is necessary to diversify fiber production.