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Competitiveness at stake for Bangladesh garment sector

03 Sep '10
5 min read

Bangladesh's advantage lies in a combination of competitive costs, reliable and hardworking labor force, and production of quality products. Also, collaboration among the various stakeholders and the involvement of buyers in making factory level improvements has given buyers the confidence that the country is serious about making some positive changes.

Fibre2fashion: Will the country be able to maintain its 'winning streak' what with the current labour turmoil and poor raw material resources?

Dr Saxena: Over the last few years, the various stakeholders in the industry have begun to form into a policy network, rather than remain disparate interest groups pursuing their own interests. Thus, in spite of the recent labor unrest, the various stakeholders are much more cohesive as an industry focused on key policy changes than they ever have before. This will ensure that the industry will continue to thrive and do well.

Fibre2fashion: What measures has the country taken to ensure it remains a competitive apparel sourcing destination?

Dr Saxena: The country has in fact made some significant changes both at the factory level and national level, though more needs to be done. Most factories in Bangladesh are now compliant, with day care facilities, proper restrooms and eating areas, and fire safety measures. There have been some improvements to the Chittagong port which has cut down lead times by several days. The wage increase is significant and important since it was last increased only four years ago, and was not even addressed 12 years prior. This is still significant, even though not all the labor groups have accepted it.

Fibre2fashion: What can be the 'ideal' panacea for the problems the country is suffering currently from?

Dr Saxena: There is no panacea, per se, but the country needs to focus on improvements in several areas. First, infrastructure improvements need to take place rapidly, especially in the area of power generation. Lack of power is one of the biggest barriers to productivity. At the factory level, middle managers are the biggest barriers to policy implementation. Though laws have passed that grant sick leave, maternity leave, etc., many managers do not implement these policies in their factories, either because they are ignorant of them or they simply do not wish to do so. Managers need to be trained to be effective managers. Women also need the opportunity to rise to managerial roles. Currently more than 85% of the labor force in the garments industry is women, but very few are in managerial roles. Finally, the issue of wage increases needs to be addressed frequently. Garment factor owners will certainly object to a sudden large wage increase after four years which will hurt their competitiveness. This needs to be addressed incrementally so it will not be a big shock to the owners' business.

Fibre2fashion: Does India have any 'outside chance' over Bangladesh as it is currently being construed giving it a decisive advantage in the near future, as a more competitive sourcing destination for global textile and garment consumers?

Dr Saxena: I am not an expert on India's garment industry, so it is hard for me to compare. However, with the advantages of Bangladesh that I mentioned above and if continued improvements are made, the country will certainly remain competitive and be one of the most appealing sourcing destinations for the global garment industry.

Fibre2fashion News Desk - India

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