Home / Knowledge / News / Apparel/Garments / Bangladesh's advantage in RMG cannot be taken for granted
Bangladesh's advantage in RMG cannot be taken for granted
29
Oct '14
The advantage enjoyed by Bangladesh in readymade garment (RMG) sector cannot be taken for granted, and the country’s competitiveness in the apparel export market may erode in the long run if working conditions do not improve, says the World Bank in its Bangladesh Development Update October 2014.
 
In the immediate future, stronger attention is needed to swiftly complete the transition in the Bangladesh garment industry, feel authors of the report. According to them, “much more needs to be done for effective implementation of wage increases and the new labor legislations, recruiting more factory inspectors and complete building inspections followed by swift remediation measures such as relocation of closed factories.”
 
Despite several policy reforms carried out by the Bangladesh Government since the Rana Plaza tragedy, the World Bank report warns that lack of visible progress in upgrading labor and safety standards in garment factories could trigger loss of preferential access to EU markets. “Although Bangladesh still has an edge as apparel exporter over other competitors, its competiveness may erode in the long run if working conditions do not improve.”
 
On a positive note, the report says, “Despite the ongoing debate on worker safety issues, buyers plan to increase their sourcing share from Bangladesh through 2020. The advantage of low wage and abundance of labor is still the most important factor in sourcing from Bangladesh. Although the Government raised the minimum wage by 77 percent in the aftermath of the Rana Plaza tragedy, Bangladesh still has the lowest wage rate among its competitors, except for Myanmar.”
 
Apart from costs, Bangladesh still holds the advantage of capacity and ability to handle large volumes of orders in a timely manner. However, Bangladesh’s advantage cannot be taken for granted. Increased attention to compliance has led buyers to reconsider their supplier base in Bangladesh and search for new alternatives, which might result in fewer orders placed in Bangladesh in the future.
 
Although progress in improving workplace compliance is on track, more needs to be done in order to fulfill the commitment of raising it to international standard. Safety compliance is improving, but there is no place for complacency. Sustainable compliant industry warrants constant monitoring and continued action by the stakeholders.
 
Implementation progress of the amendments made in the Labor Law is extremely slow with a weak monitoring mechanism, and the Government needs to expedite enforcement of labor rights, says the report.
 
Lack of coordination among the global brands is leading to inspection fatigue for some manufacturers and creating confusion. The report suggests that buyers should improve coordination on factory inspection and shift gear towards assisting the implementation of remediation measures.
 
On the other hand, cooperation among garment manufacturers needs to improve. Citing a BGMEA survey, the report says the implementation of new minimum wage scale was slower than expected as 40 percent factories could not implement the new rate at the agreed time of December 2013. (RKS)

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Vikas Banduke

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

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Rupa Sood and Sharan Apparao
Nayaab

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

October 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
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

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
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

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
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

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
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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