The RMG sector of Bangladesh is undoubtedly sewing a more sustainable economy for the nation; it is the primary source of employment, providing around 4.4 million jobs and generating $28 billion in export revenue (The Consequence of Transformation, pg. 30). We are a globally recognized force, second only to China; our RMG exports have experienced an annual growth of nearly 15-16% annually and with this dynamic, we strive to achieve the $50 billion apparel export by 2021.
Nevertheless, though we have made notable progress in this sector, our long-standing performance is under the threat of both external and internal factors. With Vietnam, India, and Indonesia rising as nations with favorable labor cost, lower duty rates and efficient production capabilities, the competition has against Bangladesh is higher than ever. Furthermore, the UK’s decision to leave the EU and Trump’s proposed higher import duty will hamper two of the major revenue producers for the local RMG export industry (Time to Move Up a Gear, pg. 12).
Internally, the nation must work a number of factors that are deterring it from remaining a key player. This initiative must start with improving the infrastructure within Chittagong, as the port city is the pioneer of RMG export within the nation. In this context, specific zones with access to the port, satisfactory electric provisions, efficient access to roads and commendatory policy implementation. Additionally, we must focus on creating training institutes for workers of all levels, from the factory to the managerial level. Given that AI might become a game-changer in the systematic production of RMG products, the local Engineering and Computer Science sectors must focus on incorporating technological solutions to retain Bangladesh’s competitive lead in this industry.
