Reports that the government plans to revive the option of reduced corporate tax rates for the garment sector offer further good news for businesses looking to upgrade RMG factories. Ongoing efforts by the government, ILO, and stakeholder initiatives such as Accord and Alliance have been making welcome progress on remediation and improving safety standards, and the value of garment exports is steadily increasing. For the garment sector to achieve its goal of doubling exports to $50 billion by 2021, a comprehensive approach needs to be taken to maximise investment in building new factories where productivity and standards can both be improved. Lack of land and reliable energy supplies are the two biggest deterrents that need to be overcome. It is still vital then for the government to facilitate greater investment by freeing up underused, state-owned land for the development of new industrial parks. The government also needs to keep up a national focus on enhancing labour rights. This can help not only improve working conditions and increase the appeal of Bangladeshi goods, but also strengthen the industry’s case for securing a fairer deal from importing nations such as the United States which impose higher than average quotas on RMG products. All stakeholders stand to benefit by helping to grow long-term investment in the sector. Better conditions and factories can both help raise productivity and quality for consumers and help to improve living standards for workers. Buyers and brands must play their part by investing more in long-term orders and building closer relationships with well-performing producers, to enhance the sector’s cash flow and enable it to attract new funds to keep upgrading standards.
