• Linkdin

RMG sector crown jewel of country's export

09 Aug '08
5 min read

Domestic fuel prices have been increased by 33 to 37 percent from July 1, this year, to match up with rising prices in the international market. As a result, the apparel manufacturers will have to bear an additional cost of Tk500 million per month. This has raised concerns about a likely rise of 15 percent in the production costs of exportable apparel items.

Ironically, while the garment industry is growing at a rapid pace, factory owners are complaining of insufficient manpower.

A survey report shows that currently, the country is facing a shortage of 25 percent in the number of skilled workers and it will take a number of years before institutions for training or generating new human resources can be established. BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have also expressed concern over this disturbing situation.

A further study as to the real reason behind shortage of workers has revealed that lack of social recognition in garment jobs, low wages and poor working conditions have been some of the major factors driving out workers to explore better job opportunities.

Considering the market situation, experts have opined that although a remarkable growth in export revenues has been achieved this year, it will take a lot more than just an improvement in production capacity, for the industry to maintain this 20 percent growth rate for the next five years.

Ensuring security for the garment manufacturing units is one of the areas that need to be concentrated upon for a steady and sound market scenario. Ceaseless hike in yarn prices is another concern requiring government attention. Besides, experts have suggested that real growth in garment exports must only be measured in comparison to the growth achieved by competing neighboring countries like China, Vietnam and India.

Officials from BKMEA have lamented the fact that the increase in yarn prices in the domestic market will lead to the country loosing its international competitiveness. Producers on the other hand are worrying over the hike in cotton prices which serves as an essential raw material for the production of apparels.

However, if qualitative measures like reduction in bank interest rate, product diversification and improvement in productivity are incorporated and retained as the key policies, the country is bound to give a run for its money to other competitor countries.

Fibre2fashion News Desk - India

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