The now multi-billion dollar readymade garment industry is currently passing through a critical juncture, as conspiracies both at home and abroad are being hatched in the sector. The overall performance of apparel exports in the last year compared to previous years has not been that different. The growth rate has been around 9% over the previous year, which is slightly lower than the past five years’ average of around 12%. This drop can be attributed to several factors likes the cancellation of the US generalised system of preferences (GSP), the Rana Plaza tragedy, political instability, the energy crisis, and discriminatory treatment by some major global buyers and various propaganda about factory diseases. Bangladesh’s apparel exports have been concentrated to two major destinations — the EU and North America. The share of our apparel export to markets other than EU and North America was 6.88% during the 2008-09 fiscal year, which had increased to 14.71% in 2013-14. From June 2013, the US suspended Bangladesh’s trade benefits under the GSP program that made Bangladeshi (barring RMG) products ineligible for duty-free treatment. Now is the time to diversify our export destinations, and the oil-established Middle Eastern countries can be a future destination for us. This diversification of export destinations, with growing exports, is a healthy sign. Over the last five years, there has been a significant rise in exports to Japan, China, India, South Korea, South Africa, Russia, Brazil, Mexico, and Chile. The simplification of GSP rules of origin by the EU, Japan, Norway, Switzerland, and duty-free and preferential market access by India, China, Korea, and Malaysia are all positive signs for us. In April 2012, the world’s leading strategy consulting firm McKinsey & Co released a study titled “Bangladesh’s ready-made garments landscape: The challenge of growth.” McKinse forecasted that the Bangladesh apparel sector could reach $30bn by 2015 and $50bn by 2021. Unfortunately, Bangladeshi entrepreneurs cannot export to Middle Eastern countries for the lack of necessary steps or lobbying and advocacy. The region has the possibility of netting us $20bn in the export of RMG commodities. Bangladesh has carried out exports worth $847m, according to Kuwait Bangladesh Chamber of Commerce and Industry (KBCCI). It is, however, important that necessary steps be taken by diplomats, missionaries, and the export promotion bureau (EPB) in those countries. That will make sure that RMG exports will increase dramatically in the year of 2021, as estimated by entrepreneurs of this sector. In addition to RMG exports having huge opportunities, other sectors like the export of labour force, pharmaceutical products, handicrafts, tannery commodities, and the export of various types of produce which can be pursued in Middle Eastern countries. Kuwait can become a central point in this region, according to the president of KBCCI. The secretary of KBCCI estimated that because of a lack of marketing, we have not been able to enhance export growth in the Middle East — but our government bodies should take the necessary measures in each of the individual countries. It was also noted that presently the lion’s share of RMG goods come by way of China, Turkey, the US, and EU. If direct negotiations with Middle Eastern business authorities can be ensured, only then can we expect to see any benefits. KBCCI is going to organise a trade fair on April 23 in Kuwait, hopefully Bangladeshi entrepreneurs and the government will be able to increase advocacy and lobbying to boost exports. All entrepreneurs should be involved in the discussion. One of the vice presidents of BGMEA has stated that it will only be possible to reach our 2021 financial goals if the necessary facilities are made available by the government. In fact, it would help ensure that we reach two goals at the same time: The RMG vision, and our aspired status of becoming a middle-income country by 2021. Apart from China, other countries and regions such as Japan, Russia, India, Australia, New Zealand, Canada, Korea, Turkey, Southeast Asia, Central and South America, as well as the Middle East have enormous potential to be future destinations for the RMG exports of Bangladesh. In the meantime, Bangladesh must continue to work on improving infrastructure, ensuring power and eco-compliance, and maintaining a world-class working environment by building eco-friendly RMG factories, according to United States Green Building Council (USGBC). However, there are some long-term challenges to the growth of the RMG sector. Infrastructure and governance, compliance issues, supplier performance, workforce supply, raw materials, and economic and political stability being some of the bigger hurdles. Bangladesh also needs to gradually diversify its export products to include other industries, where it can be competitive in the long-run. We are optimistic that the new wave of opportunities and the growth momentum will energise the apparel industry to add new success stories in the coming years — opportunities that clearly mark the RMG vision for 2021.
