Bangladesh’s target of achieving RMG exports worth US $ 100 billion by 2030 is something that needs the support of all industry stakeholders who are on their toes for the same. In the last fiscal, Bangladesh’s RMG exports stood at US $ 47 billion and with each apparel product, on an average, there are 17 per cent – 18 per cent of accessories and packaging items attached. From this viewpoint, accessories and trims exports stood at US $ 8.12 billion last year. To meet the set target by 2030, US $ 14.94 billion should be produced by accessory and trims companies. And coming into the picture here is Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), a 35-year-old prestigious trade organisation representing more than 2000 members (mostly deemed exporters), garments accessories and packaging manufacturers.

In discussion with Apparel Resources (AR), Md. Shahriar, MD of Adzi Trims (Indet Group), a young entrepreneur associated with many trade bodies, who was also recently elected President of the association, shared how he is upbeat about reaching the US $ 100 billion roadmap.

AR: You have a massive target and a lot of work ahead. What are the immediate steps you have planned?

Md. Shahriar: Our present export/production is around US $ 8 to 9 billion and should double to achieve the target of US $ 100 billion. We will need the support of the Government for the renewal of all business documents with minimum fees, payment of all utility bills at a subsidised rate, formulating the Customs Act with business-friendly sections and also establishing an accessories and packaging institute for skill development of workers. Moreover, modernising testing laboratories to ensure the quality of our products and all other activities will also be one of our key points being put up before the Government.

AR: You have taken over at a time when the industry is facing plenty of challenges – energy shortages, increasing costs, dollar crunch, Taka depreciation. What’s your take on these challenges and how do you plan to address them?

Md. Shahriar: Yes, the scenario is full of challenges and the issues are mostly common for all stakeholders. So we will have more thrust on collective efforts and will work together with other trade bodies like the BGMEA, BKMEA and BTMA.

We have observed that every year, around 55 to 60 entrepreneurs are joining the trims and accessory sector, but at the same time, nearly a similar number of companies are failing to survive in this domain. In my opinion, special policy support and soft loan facilities for members can help them come out of this crisis. We have reached out to the concerned Ministries and Departments for special policy support including rescheduling their loans with soft terms and conditions.

Considering the existing and upcoming challenges of the RMG industry, we are optimistic that the Government will provide support in terms of development and diversification of accessories and packaging products as these are also key products for the RMG industry.

AR: What exactly is your roadmap and what efforts will you be taking for the same?

Md. Shahriar: Smart BGAPMEA is our top priority and our team has already planned for an SOP in this regard. BGAPMEA’s member industries are 100 per cent export-oriented and enjoy limited bonded warehouse facilities.

To run the business, the warehouse owners have to get more than or less than 21 types of services from different departments of the Government. For better supervision of bonded goods and authentication of the industry, the Government, by issuing SROs and General Orders, has empowered related trade organisations to renew and recommend those services. Presently, we are providing these 21 services manually but we will introduce a smart digital platform for these services which will save time, cost and effort of our members. It may take time but we will make sure to do it on a priority basis.

AR: Except for a few giants, most of the Bangladeshi trim companies are lacking on automation, product development and R&D fronts. How can thrust be increased on the same?

Md. Shahriar: This is an important issue and part of our roadmap to cope with the buyers’ choices. There are no other ways than to develop and diversify the products. Considering this issue, the BGMEA and BPGMEA (Bangladesh Plastic Goods Manufacturers and Exporters Association) have already established their institutes.

Our efforts are also going on to establish an educational institution for trims sector, for which we have conducted a study with the support of the Ministry of Industry. To speed up activities, we have already started our Institute of Packaging and Accessories (BIPA) and Testing Laboratory in a rented place at West Manikdi.

Our idea is to have everything under one roof that is the BGAPMEA Complex. Our Secretariat, BIPA, research centre, modern testing laboratory, our members’ club and all other BGAPMEA-related organisations should be within this complex. We have bought one acre of land in the institutional zone of the Purbachal Project of RAJUK for the same. We are waiting for the final allotment of the Purbachal plot, which, once done, will speed things up.

AR: Direct export of garment accessories is a big opportunity for the accessories companies but export is not up to potential. What will be BGAPMEA’s planning to ensure an increase in accessories’ exports?

Md. Shahriar: In the financial year 2022-23, we had direct export of US $ 1 billion. A few of our members are exporting almost 19 accessories items including Price Tags, Hangers, Belly Bands, RFID Tags, Corrugated Cartons, Back Boards and Neck Boards, etc., to around 17 countries like South Africa, Pakistan, India, Ethiopia, China and Sri Lanka.

We have decided to organise a single-country trade fair in potential countries and for this, we are seeking the help of the Commerce Ministry and the Export Promotion Bureau. To promote our products, we will also participate in international fairs. In addition, we have also planned to send business delegations to our potential countries to find buyers. We believe that we will be able to increase our international market within a short time.

AR: What are the other major issues hindering the business growth of BGAPMEA’s members and how do you plan to overcome these issues?

Md. Shahriar: The growth of business is also dependent on business-friendly customs and banking regulations. Although most of the laws that were made before the birth of Bangladesh have been upgraded and modernised as per present demand, customs are still following the Customs Act which was introduced in 1969. As per Industry Policy, Export Policy and Textile Policy, we are equally entitled to get all facilities that direct exporters are availing.

We will form a dynamic committee on customs to pursue the customs authority to facilitate our businesses. Our members are also suffering from recovering export value. Although there are clear instructions from Bangladesh Bank to the buyers of deemed exporters to pay export value timely, a few practical reasons make it difficult to get the price on time. The buyers of the deemed exporters get a part of their export value in advance. But in case of the payment being made by them to the accessories and packaging item suppliers, they and their bank, in the name of acceptance and maturity, delay the payment which blocks capital. The impact of this delayed payment makes it difficult to run factories smoothly. So, it is imperative for us to discuss and negotiate with Bangladesh Bank to find a plausible solution to this ongoing issue.