Economists, industrialists and politicians called Thursday for transformation of the garment industry and increasing its productivity to overcome the challenges the sector faces.
They also observed that a successful transformation can not only enhance the competitiveness of the country's readymade garment (RMG) sector in the global clothing market but also make it more sustainable.
The call was made at a dialogue on "Bangladesh's Garment Sector: Upgradation and Structural Transformation" organised by Centre for Policy Dialogue (CPD) at a city hotel.
Distinguished Fellow of the CPD Dr. Debapriya Bhattacharya moderated the roundtable discussion where the discussants focused on taking a combined effort by both the government and the industry players in this regard.
Upholding RMG's contribution to Bangladesh's economy, UK's International Economic Development Group of ODI's Head of Programme Dr. Dirk Willem te Velde said the sector is bigger than the GDP size of 90 countries.
He said amidst challenges, Bangladesh can maintain its market share, upgrade quality and promote structural transformation of the whole industry.
United Nations Industrial Development Organization's (UNIDO) Development Policy of Statistics and Research Branch Director Dr Ludovico Alcorta said technological upgradation and substitution of labour for capital in textile industry will lead to significant increase in value addition in the medium term and productivity in medium and long term.
He said garments will hit a growth and employment peak soon and its contribution to growth will begin declining in a decade or so. "Diversification away from garments will eventually be necessary to sustain economic growth and employment," he added.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md. Atiqul Islam said there is no alternative but to upgrade and transform the industry to overcome the challenges and cope with the changing pattern of global clothing industry.
Seeking measures from the government, he said the government should create a special fund like Technology Upgradation Fund Scheme (TUFS) scheme in India for providing planned support for modernisation of textiles industry in the form of interest reimbursement and capital subsidy.
Former BGMEA president Anwar-Ul-Alam Chowdhury said the government did nothing significant as far as infrastructure and education of the industry concerned.
He said the country has been facing image crisis after Rana Plaza tragedy and fire incident at Tazreen Fashions. "The government should try its best to reduce the cost of the industry and boost the country's image outside.
Commerce Minister Tofail Ahmed said Bangladesh's economy has transformed over the last 42 years. The country exported goods worth US$3.80 billion in 1996 when he became commerce minister for the first time.
"Now, the country exports goods worth US$30.50 billion a year. In spite of suspension of GSP facility in the US market, we've managed to earn US$273 million in the June-January period of the current fiscal," he said.
He, however, expressed his firm belief that the industry will be able to overcome the challenges as it did in the past with the help of the government.
Former minister and BNP standing committee member Abdul Moyeen Khan gave full credit to the manufacturers to take the economy to the current level.
"I must rely on you, not on the government in terms of upgradation and structural transformation. You must play the lead role to this effect," he added.
"Bangladeshi RMG sector is at a crossroad. The sector now needs transformation to keep its growth continuing," said Dr. Bhattacharya, also Member, International Advisory Committee DFID-ESRC Growth Research Programme.
"This is the time to take a fresh look over the future prospects of the industry; this is the time to find out how we can update the industry and increase productivity," he added.
He said skill of overall environment of the country's largest foreign currency earning sector needs to be upgraded to achieve success.
"For achieving this, we need to develop infrastructure like power, gas, roads connectivity and a package of combined state policies," he added.
