Ungradation, transformation required to ensure growth, experts say at CPD dialogue
Experts at a programme on Thursday said that the garment sector in Bangladesh was at a crossroads and it was the right time for an upgradation and structural transformation of the sector to ensure sustainable growth. At a dialogue organised by Centre for Policy Dialogue, they said the volume of the Bangladesh garment sector was bigger than that of 90 countries in total, but the country’s RMG sector had faced a number of challenges in home and abroad due to recent factory disasters.
‘The need for upgradation and transformation of the garment sector was felt after Rana Plaza building collapse and Tazreen Fashions fire as the two major incidents have created image crisis for the sector across the world,’ CPD distinguished fellow Debapriya Bhattacharya said at the programme held at Ruposhi Bangla Hotel in the city.
He said that the accidents at Rana Plaza and Tazreen Fashions made the stakeholders aware that there should be a transformation and it was the right time for this.
Only raising productivity within garment firms as well as garment sector would not ensure competitiveness, it depends on overall economic capability, Debapriya said.
To enhance productivity of workers is also important for upgradation and transformation of garment sector, he added.
Commerce minister Tofail Ahmed said that structural transformation was needed in the garment sector and the government would extend all-out support for the upgradation of technology.
‘After the Rana Plaza building collapse the government has taken
a number of initiatives to restore its image and a lot of things we have to do in future,’ Tofail said.
He said that Bangladesh had fulfilled most of the conditions for restoring GSP facilities and the conditions which remain unfulfilled would be met by March and a position paper would be sent to the USTR on April 15.
‘If there was no political reason for the suspension of GSP facility, I am hopeful that the facility will be restored,’ Tofail said.
The commerce minister said that the government was business friendly and its priority would be investment and industrialisation.
In the 6th five-year plan the government has taken a plan on product diversification as well as market diversification, he said.
Nikhil Treebhoohun, chief executive officer of Blobal Finance, Mauritius, pointed out seven challenges in the garment sector in Bangladesh including labour management issue, political instability, complicated banking procedures, inefficient customs, autocratic management style, inadequate infrastructure and lack of training.
He suggested to diversify the product range and to improve design capability for upgradation of the sector.
Chris Woodruff, professor at University of Warwick, said despite facing huge challenges the readymade garment sector in Bangladesh had shown tremendous success.
He emphasised on the training of mid-level management.
BNP standing committee member Abdul Moin Khan said that policy was extremely important for the transformation of the RMG sector but unfortunately there was no adequate policy support.
He urged the garment exporters to stop intra-firm competition to grab more orders and said many exporters offered low price for their products to buyers to compete with other exporters.
If exporters stop such practice, they could easily pay Tk 8,000 in minimum wage to workers, Moin said.
Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, said that to overcome the prevailing challenges in the garment sector like social compliance, productivity, new wages and safety standards, upgradation of the sector was a must.
Many countries are providing incentives to factories for introducing new and green technology but in Bangladesh there is no such fund, he said.
Atiqul demanded that the green technology equipment import should be tax free.
-With New Age input
