RMG industry expands as export rebounds
Al Amin :
The country’s apparel industry has expanded significantly in last couple of years as exports have rebounded defying various odds, the sector insiders said.
They said the readymade garment export declined by a massive $6 billion in ’20 fiscal year compared to FY 2018-19 as the covid-19 pandemic initially took its toll on exports.
From $28 billion in FY 2019-20, the apparel export grew to $ 31.45 billion in FY 2020-21, $ 42.61 billion in FY 2021-22 and reached a remarkable US$ 47 billion in FY 2022-23.
Amid the slowdown in the global economy and faltering global retail landscape, this accomplishment stands as a monument to the incredible adaptability of the entrepreneurs, and a testament of their continued investments and vision, they added.
As the export growth in the past few years suggests an upward trend in industry’s expansion, new members are joining the BGMEA family, the entrepreneurs said.
Since 2018, a number of 565 factories became permanent members of the apex body of the apparel sector, while 603 factories obtained provisional membership status, they said.
Half of them have become members in the last two years (2022 and 2023).
Total 278 factories became permanent members and 316 factories received provisional membership of the BGMEA during the time, according to the BGMEA data.
It also said a good number of factories have also closed down due to various challenges like the impact pandemic, global inflation caused by the Russia-Ukraine war, which impacts on consumer spending and retail business during the past few years.
BGMEA President Faruque Hassan told The New Nation, “Among the factories or members who have joined us in past few years, not all of them are new in the industry.
Parts of these new establishments are expansion of existing units, while a good number of industry professionals, who were serving this industry in different capacities became entrepreneurs.”
“Most importantly, young entrepreneurs particularly, second and in few cases third generations who have taken over the responsibility of business, would complement with youthful energy and fresh thoughts, keeping us nimble and adaptable to the ever-evolving dynamics of the global market,” he added.
“Various initiatives have been taken to boost the industry in the past few years. Some of them are already bearing fruits and helping to expand the sector, the BGMEA president said.
Despite the success story of the apparel sector, the industry is likely to face various challenges throughout the year as the fuel oil shortage has emerged as a main crisis of Bangladesh’s economy.
According to a study conducted by Centre for Policy Dialogue (CPD), 60 per cent of the requirement of gas is being supplied to industries. As a result, gas-dependent industries like ceramics, steel and textiles are experiencing production disruptions.
The Covid-19 pandemic significantly impacted the industry, resulting in the cancellation of international orders and an estimated loss of $3.15 billion.
In 2022, the industry’s efforts to bounce back from the impact of the pandemic were hampered by the emergence of additional challenges, including geopolitical conflicts and a weakening global economy.
The industry faced multifaceted challenges, including electricity and gas shortages, coupled with exchange rate fluctuations and dollar crises, which disrupted apparel production by increasing costs for factory owners.
Reduced demand from the United States and the European Union also triggered a crisis in the industry.
