Garments Sector Growing Up from Crisis

RMG industry, one of the top export earning sectors, is converting crisis into new possibilities. After all the hindrances of political violence, strikes, tragic incidents and labor strike, this sector is now recovering all the problems and contributing to the national economy.

Bangladesh is very near fulfilling the target of exporting 50 billion USD by 2021 including 30 billion earning in RMG sector. But this sector is the main victim of political turmoil and instability. Moreover, this sector was in an image crisis because of the fire incidents, tragic incidents and labor strike. But recently this sector is running in full swing due to the calm political environment. Garment factory owners are trying to heart and soul to obtain the trust of foreign buyers.

Garments Sector Growing Up from Crisis

More than 30 percent of work orders were placed in the countries like India, Vietnam, Indonesia, and Cambodia instead of Bangladesh in the beginning of the year due to the consciousness of the buyers about the working environment and safety of the workers after the incident of TAZREEN Garments, RANA PLAZA collapse and political violence. But now this sector is recovering the image crisis rapidly and more orders are being placed and garment owners are passing a busy schedule. Some companies are even running extra shift.

BGMEA president, ATIQUL ISLAM has said, this business friendly environment needs to be continued at any cost to attract more buyers. It is also necessary to ensure labor safety, good working environment and stable political situation.

Though, textile sector is in pressure for poor infrastructure, working safety and other issues, net earnings is increasing gradually. Executive director of Center for Policy Dialogue (CPD) Dr. MUSTAFIZUR RAHMAN has said that if we can overcome these problems, Bangladesh can export 50 billion dollar only from garment sector by 2021. We have to work with more responsibilities to get back the GSP and 2 thousands and 73 million USD has been exported since GSP is not available, he added.

Former senior vice president, SIDDIQUR RAHMAN has said that there is now no problems considering workers wage but, critical banking system, insufficient ports, poor infrastructure, lack of skilled labor is restraining the development of this sector. We have to increase production as well as increase minimum wage.

Different national and international organizations are now working on this sector and National Action Plan has been designed under the supervision of International Labor Organization (ILO). Canada, European Union, Japan, USA, UK are also aiding to establish the plans.

Japan International Cooperation Agency (JICA) and International Finance Corporation (IFC), a concern of World Bank are lending money with little interest. A fundamental change is waiting for this sector though WORD BANK has complained that entrepreneurs are not serious about working environment and working safety still now.

Buyers are not leaving Bangladesh after all the incidents in this sector because they get garment products at a cheap possible rate. Asian Development Bank (ADB) has said, due to the increase of minimum wage, labor cost has increased and productivity of workers needs to be developed to compete in the world market.

Reported by-
Tanvir Hossain
Reporter of Textile Tribune
Shahid Aziz Hall
Bangladesh University of Textiles
Email: tanviranikbutex@gmail.com

11:32 PM