Bangladesh’s readymade garment industry is at the crossroads and could face tough times in the coming days if policy reforms and innovations are not undertaken by the Government and individual manufacturing units, respectively.
This was underlined by the experts and industry people participating in a discussion titled ‘A round table discussion on opportunities and challenges of innovation in the traditional RMG business model,’ organised by the Merchant Bay at Dhaka’s Banani Club recently.
“Over the time we have failed to brand ‘Made in Bangladesh’. Typically, factories of our country engage in a war to bid the lowest price. Doing so they sometimes offer unimaginable price to buyers just to bag the order so as to survive. This low pricing gives an impression to the market that in Bangladesh making cost is less,” opined Director of Knittex Industries Limited, Ehsan Haq, adding, “Factories often do it just to earn the operation cost because unplanned expansion raised the factory operation cost so high that now the factories cannot afford to refuse unrealistic low prices.”
Speakers also pointed out unplanned factory expansion, unavailability of skilled employees, efficiency loss and lack of interest in adopting technological solutions behind the current state of affairs in the apparel manufacturing sector.
Taking part in the discussion, Managing Director of Anam Garments Ltd., Jashim said that like India, Vietnam, Morocco and even Pakistan was beating Bangladeshi factories in terms of pricing and order intake while adding that Bangladesh has been experiencing fall in RMG export recently and if the problems were not identified and solved immediately, many factories would be closed in near future.