Home Apparel RMG sector overcomes challenges, sees growth in export

RMG sector overcomes challenges, sees growth in export

Overcoming various challenges after Rana Plaza building collapse in 2013, country’s apparel sector has saw a rise in export earnings.  Entrepreneurs and economists attributed compliance with the buyers’ conditions, reforms in the ready-made garments (RMG) sector and higher investment and production behind the rise in export in last five years.The deadliest industrial accident is considered as a ‘black chapter’ in country’s RMG sector. According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), export earning in this sector was over US$ 24 billion in 2013-14 fiscal after the Rana Plaza accident and the growth was 13.84 percent. After that, the export experienced a rise and stood at US$ 28.15 billion dollar in 2016-17 fiscal. But, the sector experienced  ups and downs in the growth during the period. Apparel sector earned US$23 billion through exporting products in the first nine months of current financial year (2017-18).Entrepreneurs and economists assumed the earning may stand at US$ 30-32 billion.Although the export growth was nearly US$ 4 billion after the disaster, number of garment factories is not increased.The BGMEA sources said, there were some 5,867 garment factories in the country in 2012-13 fiscal which is plunged to 4,600 in January this fiscal.Though the number of factories is plummeted but productivity increased gradually.However, the number of RMG workers remained unchanged at 40 lakhs.Former BGMEA president Abdus Salam Murshedy told the daily Observer, “Accord-Alliance and National Action Plan (NEP) was formed after Rana Plaza disaster to establish a fire and building safety programme in Bangladesh. Many factories were shut down after failing to meet the conditions of the Alliance and NEP.” Buyers did not encourage these factories to continue productions as most of them were housed in shared buildings, he added.Nearly 80 percent factories remained closed in Dhaka, said Murshedy adding that despite the obstacles, entrepreneurs keep their business on track through more investment. BGMEA President Siddiqur Rahman said, “Total export earnings have increased although growth rate fell down. Entrepreneurs have taken various steps to regain the buyers’ trust, he added.Center for Policy Dialogue (CPD) Research Director Dr Golam Muazzem Hussain said, “The growth rate in RMG sector has fallen to some extent in last 2-3 years. Rana Plaza disaster has no link with this. Growth rate usually moves due to the price of dollar and some other causes.”

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