Rising up to the challenges of RMG industry

The Ready-made Garments (RMG) industry, which contributes significantly to the national GDP and provides livelihoods for millions, is now facing numerous challenges that demand immediate attention. One major factor is the rising cost of labour. Cheap labour has been traditionally a competitive advantage for the industry, but labour cost is now increasing, making it harder to maintain Bangladesh's competitiveness. While fair wages for workers are essential, balancing these with global competition is challenging, especially given the rapid expansion of apparel production in countries like Vietnam and Cambodia.
Environmental regulations also pose a significant challenge. The global shift towards sustainable practices requires substantial investment in eco-friendly technologies and methods within the RMG sector. Although these changes are crucial, they bring operational and financial challenges as manufacturers work to meet stringent environmental criteria.
The promotion of sustainability, particularly through the establishment of green factories, is also noteworthy. These green factories not only reduce environmental impact but also position Bangladesh as a leader in eco-friendly garment production. Aligning the sector with global sustainability standards will depend on the widespread adoption of LEED certification and renewable energy use among manufacturers.
To ensure long-term growth, the RMG sector must diversify its product range. Moving into high-value products like technical textiles and fashion-forward apparel can open new markets and reduce dependence on traditional apparel categories. Investment in research and development (R&D) can also drive design and fabric innovation, enhancing Bangladesh's competitive edge. Furthermore, strengthening brand identity and implementing robust marketing strategies can elevate the global profile of Bangladeshi RMG products, enabling better margins and fostering consumer loyalty.
Ultimately, creative strategies to address rising costs, competitiveness, and environmental challenges will shape the future of the RMG sector in this country and elsewhere. Government support and industry-led diversification initiatives are essential for ensuring the sector's success on the international stage. Collaboration among all stakeholders will be key to securing a sustainable and prosperous future for Bangladesh's RMG industry.

Rakib Ahmed, Student
Department of Finance
North South University
[email protected]