We do not underestimate the damage done to the economy by blockades and violent political disputes. The opportunity costs suffered by the RMG sector through buyers postponing visits and falls in orders are incalculable. It is still possible, however, to see considerable potential for the country’s leading export industry to continue to grow and provide valuable manufacturing jobs. Despite disruption and increased transport security costs, export earnings from the ready-made garment sector saw 8.4% growth to $2.08bn for the month of March compared to the same period last year. Figures from the Export Promotion Bureau indicate that RMG exports grew by over 3% for the July-March period. These figures are some way short of the growth needed for the sector to achieve its target of $50bn exports by 2021. What matters though is that, in spite of all the difficulty faced, the sector has still been able to increase export sales. Efforts to nurture new export markets are playing their part in helping the sector prove resilient. Likewise, the efforts being made by mutli-stakeholder safety initiatives and the government to improve safety conditions and productivity, are helping keep major brands committed to procuring garments from Bangladesh. Given our low labour costs and the trend of increasing outsourcing from China, there is no reason why the sector cannot get back on track and improve its competitiveness against other nations. An end to political unrest is imperative to boost confidence among buyers to keep orders flowing and secure the funds needed for future growth.
