Earning $50 billion through exports that the country’s readymade garment (RMG) sector has set for itself as the target for the year, 2021 — that will mark the 50th founding anniversary of the Republic – will require a huge sectoral transformation. Not only the competitiveness of the RMG sector in the global apparel market will have to be enhanced but also hard and sustained efforts will have to be made to enable the sector to become more sustainable. This will call for addressing all the issues standing in the way of achieving the target as expeditiously as possible. The year, 2021, is not far away. In this context, the government deserves kudos for the props it has already given to the sector. But it still needs much more to do in order to facilitate the apparel makers to achieve the coveted export target. It is relevant to cite here, for an instance only, the blow, as reported in the FE last Monday, that the country’s export-import business faced on January 18-22 because of technical glitch in the Asycuda world system. The problem has now been resolved but such difficulties could disrupt the supply-chain at this time of throat-cut competition as such malfunctioning leads to shipment delays. In this particular context, the demand of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for an alternative customs channel for emergency use, alongside the global Asycuda world system, merits positive consideration; otherwise, such delays might divert garment importers to other manufacturers elsewhere. The Bangladesh economy is overwhelmingly reliant on the RMG sector, export earnings of which constitute 76 per cent of the total. The interruption in the Asycuda system had earlier held back export and import trade through the seaports. Among other challenges for Bangladesh to maintain or raise its global apparel market share are upgradation of quality and promotion of structural transformation of the whole industry. Technological upgradation will lead to significant gains in value addition and productivity in medium- and long-terms. The government should also create a special fund like Technology Upgradation Fund Scheme of India for providing support to modernisation of the RMG industry. The road to the targeted export earnings is not smooth. Apart from making investments, fixation of safety remediation, pursuit of apparel diplomacy, protection of labour rights and enhancement of productivity as well as figuring out logistical needs of the RMG sector will be required – all through a synergy of actions — in right earnest. The government has to take initiatives for quick release of fund to complete particularly the process of safety remediation. If investment is made in remediation, it will give three rewards – production efficiency, continued tracking of buyers and happy and satisfied workers. The country’s RMG sector has otherwise made extraordinary advancements in some fields during the last two years. Now the manufacturers will have to finish the remediation task as quickly as possible. Furthermore, the country needs skilled workforce and quality products with on-time delivery arrangements. The stakeholders in the sector will require to come up with statistics about how many skilled workers and mid-level managers that the industry needs now and will need in the foreseeable future. Also the capacity of port will have to be strengthened and other-related specific issues have to be clearly identified so that the government can concentrate its focus on a consistent set of policy decisions. All these are all too important if the apparel export target set for the year, 2021, is to be achieved. The key to development of the RMG industry is investment, and to keep it up. For this, uninterrupted gas supply, infrastructure and communication development plus availability of low-cost finance are, among others, critically important. To seize opportunities in new markets, government-to-government negotiations are also a must. In this connection, strengthening the commercial wings of the country’s foreign missions in new markets should receive priority attention in order to help sustain higher export growth of the country’s RMG sector in particular.
