Home / Knowledge / News / Apparel/Garments / Bangladesh garment industry at crossroads: World Bank
Bangladesh garment industry at crossroads: World Bank
24
Oct '13
The sunny picture of the Bangladesh readymade garments sector has changed and the industry is now at crossroads—the time to act is now and cost of inaction could be high, the World Bank has said in its ‘Bangladesh Development Update-October 2013’.
 
“The deadly incidents of fire and building collapse over the last year have exposed the parlous state of physical and social compliance in the garment industry, placing the country’s primary foreign exchange generator at a historic cross road,” the World Bank report said.
 
Bangladesh’s garment sector has the potential to become a US$ 36-42 billion industry by 2020 if it can prevent a recurrence of the tragedies seen with the Tazreen Fashions fire and the Rana Plaza building collapse, the report said.
 
On the other hand, it could fall into a decline by continuing to neglect workers’ rights and safety, thereby prompting buyers to reduce their dependence on Bangladesh or abandon the country altogether, in order to protect their reputation with consumers, the report added.
 
The industrial accidents have revived concerns over compliance in labor standards and worker safety, and the international community has placed the Bangladesh garment industry under serious scrutiny. 
 
As a result, attention to low worker wages, poor working condition and the violation of workers’ rights has become more pronounced, raising questions about the sustainability and competitiveness of the country’s entire RMG industry.
 
The report terms non-compliance in worker safety as a collective failure of the manufacturers, the buyers, and the government. It says the buyers have demanded quality at low prices without much regard of the working environment, while manufacturers have cut costs by failing to invest in improving safety and labor standards. Moreover, these failures have been aided and abetted by lax enforcement and regulatory capture by government authorities.
 
For Bangladesh garment industry, the time to act is now. The most immediate priority for the Bangladesh Government is to ensure enforcement of the steps suggested by foreign buyers, international agencies and domestic regulatory bodies. All the stakeholders need to work together to ensure a healthy and safe workplace, without which it would be difficult for the sector to recover and continue to grow. 
 
On the other hand, the cost of inaction could be high, as if the EU were to suspend Bangladesh’s favored access to its markets, Bangladesh could see its total exports fall by as much as 4.1 to 8 percent, the report said.
 

Fibre2fashion News Desk - India


Must ReadView All

UK retail firms urge Hammond to ease business rates burden

Textiles | On 20th Nov 2017

UK retail firms urge Hammond to ease business rates burden

Top British retail company CEOs have urged UK finance minister...

L-R: Surya Ajay Agarwal (Director - Donear), Vikram Mahaldar (MD - OCM) & Rahul Rajendra Agarwal (Director - Donear)

Textiles | On 20th Nov 2017

Promoters of Donear Group acquire OCM Woolen Mills

The promoters of Mumbai-based Donear Group have announced the...

Courtesy: Cornell

Textiles | On 20th Nov 2017

Cornell’s tech allows customisation of woven fabrics

Cornell Professor Steve Marschner and Rhode Island School of Design...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search