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BGMEA eyes green growth in RMG sector

Bangladesh readymade garment (RMG) industry will become a role model of green industrialization in the world as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a target worth 50 billion US dollars up to 2021. Faruque Hassan, Managing Director of Giant Group and senior vice-president of the BGMEA, disclosed such ambitions plan for transformation of the country’s main export industry. He said that environment protection and green production are important in the present global context as the buyers in the developed countries are accentuating green growth in the industries. Bangladesh will celebrate its 50th anniversary of independence in 2021 and the country is set to become a lower-middle income one by that time. Faruque Hassan believes Bangladesh will not achieve its targeted growth in the readymade garment sector at the cost of environment. Bangladesh Garments Manufacturers and Exporters Association (BGMEA) set a goal two years ago in Apparel Summit 2014 for increasing annual export of readymade garments to US$50 billion by 2021 on the 50th anniversary of Bangladesh. Although the world’s clothing exports could not keep positive growth in 2015 and also in 2016, it is estimated that the market will reach US$ 650 billion by 2020 which is now at US$ 445 billion. ‘We have the possibility of grabbing a good share of this growth. The demographic advantage of Bangladesh coupled with duty-free and quota-free market access enjoyed as a least developed country (LDC) and increasing the capacity of backward linkage industries indicate a bright future of the industry in its march forward. Market diversification and moving to a high value-added segment are going to be critical to pursue the next big opportunities, said Faruque Hassan, also honorary consul of Greece. As China’s relative share of global Readymade Garment (RMG) exports shows a downward tread thanks to a rise in standard of living there, a number of nations are queuing up to grab the opportunity. As the second largest RMG exporter in the world, Bangladesh is naturally a front runner in this race. However, the country faces stiff competition from South Asian and South East Asian neighbours. Besides, Bangladesh is yet to address systematically its weaknesses in creating a congenial business and investment atmosphere. According to the World Trade Statistical Review 2017 of the World Trade Organisation (WTO), Bangladesh’s share in global RMG market went up from 5.9% in 2015, to 6.4% in 2016. On the other hand, China’s market has dipped from 39.3% to 36.4% in 2015. Meanwhile, a 1% rise in expected wages over there would raise the probability of women entering the labour force by 30.6% in Bangladesh. The report also said 10% price increase in China on the US market would also create 4.22% more employment in Bangladesh. However, according to the Ease of Doing Business rankings published by World Bank, Bangladesh slipped one step to 177th after being ranked 176th last year. To capture a stake in China’s RMG market, Bangladesh needs to identify products that are currently in demand across the globe, and also the buyers for these products, said industry insiders. “Bangladesh is ready with a pool of safe and compliant factories certified by the global buyers. What this sector really needs is better infrastructure to ensure smooth delivery of products,” said BGMEA senior vice president Faruque Hassan. Bangladesh’s RMG sector, a $28 billion industry, has taken the lead in green manufacturing as it has established 67 eco-friendly green buildings, the highest number in the world. Officials of the apparel industry and the U.S. Green Building Council (USGBC) came up with the initiative at an awards ceremony for Green Factory owners in the city recently. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in association with USGBC and GBCI launched “LEED Green Factory Award” in recognition and celebration of Bangladesh’s RMG sector’s strides in green industrialization. Over the years, we have heard about green buildings in the RMG sector in other countries like Sri Lanka. Now, Bangladesh has the highest number of green factories in the apparel sector,” said Md Miran Ali, chairman of Remi Holdings Ltd, a LEED platinum certified company, which scored 97 out of 110. We have to inform the people about the latest green technology so that everyone can learn and be encouraged to establish the sustainable industry, said Miran. He expressed the hope that about 10% of the total RMG sector in next decade will use green technology. “Bangladesh’s overall branding as well as the RMG sector is negative. We cannot just say that Bangladesh is a country of green buildings,” said Fazlul Haque, managing director of Plummy Fashions, a platinum certified factory. “It is time to say and brand Bangladesh, as well,” he said. Meanwhile, US Ambassador in Dhaka Marcia Bernicat in a meeting with BGMEA leaders said that the garment and apparel factories in Bangladesh are among the safest in the world. She, however, has cautioned against any complacency. “Since 2013, with the help of Accord and Alliance, you have dramatically transformed your garment and apparel factories, making them among the safest in world,” she told a farewell lunch in her honour organised by the Bangladesh Garments Manufacturers and Exporters Association (BGMEA). “I was here for much of this time and witnessed this transformation first-hand. I realise that this was a difficult and expensive process, but it will continue to pay off for years to come – if you don’t become complacent,” said the ambassador. “Now the challenge is completing remediation of the factories under the National Action Plan and maintaining all the progress you have made in the Alliance and Accord factories. I encourage you to draw on the expertise and experience that Alliance and Accord have to offer and to accept transitional arrangements – like the SMO (Safety Monitoring Organisation) – to keep your hard-earned progress on track until the RCC (Remediation Coordination Centre) is ready to assume full responsibility,” she said. The outgoing envoy appreciated the role of BGMEA in managing the engine of Bangladesh’s economy, helping to lift hundreds of thousands of workers out of poverty, and making Bangladesh a key player in global trade. She said, “I am thankful for the constructive discussions we have had during my tenure and the opportunity to take stock of the achievements and challenges we all face in our attempt to work together to ensure and enhance the prestige of the words, “Made in Bangladesh”. However, Bernicat said that the next big hurdle for BGMEA is the issue of worker rights the progress of which has lagged in recent years. “As I’ve emphasised many times, adhering to international labour standards is not just the right thing to do – it is the smart thing to do. I encourage you to make necessary and relevant legislative changes as soon as possible,” she said adding, “There is no upside to dragging this out. Bringing your laws up to international standards – and implementing them – will improve Bangladesh’s international competitiveness and help it increase its market share in the worldwide garment industry.” BGMEA President M Siddiqur Rahman thanked the departing US ambassador for her constructive role in strengthening the Bangladesh-US relations and extending support for the development of Bangladesh RMG industry.

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