Diversification of RMG sector to boost competitiveness urged
Business Report :
Bangladesh’s $47 billion readymade garment (RMG) industry stands at a critical juncture, facing both promising opportunities and mounting challenges in a fast-changing global trade environment.
Industry leaders, policymakers, and trade experts have stressed the urgent need for export diversification, productivity gains, and stronger competitiveness to protect market access and achieve ambitious targets after the country’s LDC graduation.
These calls came during a breakfast meeting organised by the American Chamber of Commerce in Bangladesh (AmCham) on “Bangladesh’s RMG Sector: The Way Forward”, held Tuesday in Dhaka.
Senior representatives from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Export Promotion Bureau (EPB), the Bangladesh Competition Commission, and the US Embassy joined economists, investors, and policymakers in the dialogue.
A.H.M. Ahsan, Chairperson of the Bangladesh Competition Commission, urged the industry to move up the value chain through vertical diversification-from basic, low-value apparel to high-end, specialised products.
Describing the US tariff hikes and upcoming LDC graduation as a “wake-up call,” he said Bangladesh must strengthen productivity and adaptability to meet future trade challenges.
EPB Vice-Chairman Md. Anwar Hossain outlined proposed policy reforms, including a bank-backed bond facility to support partial exporters and enable duty-free imports against bank guarantees.
He also announced plans for a “$100 billion RMG Export Cell” to coordinate on energy, banking, and taxation issues, with the goal of achieving $100 billion in garment exports by 2027-2028.
BGMEA President Mahmud Hasan Khan identified energy shortages as one of the most pressing obstacles to growth, particularly for gas-dependent backward linkage industries.
