Tackling RMG sector's challenges

A key pillar of Bangladesh's economy, the ready-made garment (RMG) industry is currently grappling with several challenges that could threaten its long-term viability. Recessions in major economies such as the US and the EU have led to a decline in global demand, making it difficult for manufacturers to maintain order levels. Competition from emerging players like Vietnam and Cambodia has intensified the pressure, while the industry's over-reliance on a limited number of export markets hinders its sustainability.

Labour issues remain a persistent concern. Despite improvements in compliance, low wages, long working hours, and worker safety issues continue to draw criticism. The situation is further exacerbated by rising energy prices and the high costs for adopting sustainable production practices, which many businesses are unable to afford.

To safeguard the future of Bangladesh's RMG industry, it is crucial to diversify export markets, negotiate favourable trade agreements in post-LDC graduation phase, and offer incentives for sustainable practices.

Tahmina Rahman Hafsa, Student

Department of Finance & Accounting

School of Business & Economics

North South University

hafsa.tahmina@northsouth.edu