Interview with Mr Syed Nurul Islam

It was really a great opportunity for us to start as competition was not that much strong. Beginning in late 1975, the government gradually gave greater scope to private sector participation in the economy, a pattern that has continued which helped and motivated the young entrepreneur to come into business and grow. In the mid-1980s, there were encouraging signs of progress in the textile sector. Economic policies aimed at encouraging private enterprise and investment, denationalizing public industries, reinstating budgetary discipline, and liberalizing the import regime were accelerated. From 1991 to 1993, the government successfully followed an enhanced structural adjustment facility (ESAF) with the International Monetary Fund (IMF) which we all were able to enjoy bringing the economy in a very upright position.

The world economy, specially two big countries like China and India, are moving with over 8%GDP.This growth will definitely influence the garments/apparels industry. And, therefore, we all need to concentrate in developing the fabrics production in the garment making country like Bangladesh.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the total fabric requirement in the captive market is about 3 billion yards, of which roughly 85 to 90 percent is imported from countries such as China, India, Hong Kong, Singapore, Thailand, Korea, Indonesia and Taiwan. Fabric demand is increasing at the rate of 20 percent per year.

Although the industry is one of the largest in Bangladesh and is still expanding, it faces serious problems, principally because the country does not produce enough of the raw materials necessary for the industry to expand. The primary materials used in the spinning sector are raw cotton and man-made fibers such as viscose and polyester staple fibers. Unfortunately, none of these raw materials are produced in Bangladesh.

In 2006 the world’s consumers spent around US$1.8 trillion worldwide buying clothes. Around one third of sales were in Western Europe, one third in North America and one quarter in Asia.

Today, clothing and textiles represent about seven to eight per cent of world exports.Globally, the workforce in clothing and textiles production was around 31.5 million in 2006.

More than a quarter of the world’s production of clothing and textiles is in China, which has a fast growing internal market and the largest share of world trade. Western countries are still important exporters of clothing and textiles, particularly Germany and Italy in clothing and the USA in textiles.

Output from the sector is growing in volume, but prices are dropping, as is employment, as new technology and vertically integrated structures support improved productivity.

Growth in volumes is almost entirely associated with polyester – volumes of natural fibre production and use having remained approximately constant for several years.

I think Bangladesh will be the global hub for the garments supply. Low cost labor will be the deciding factor for this growth.

The textile quotas under the Multi-Fiber Arrangement of January 2005 have been moderate in Bangladesh and the industry is divided on their impact. While industry analysts say Bangladesh’s garment and textile manufacturers will have to face steep competition from countries such as India, Pakistan, China and Thailand as a result of new policies, the textile companies see no impact on their business.

Bangladesh’s textile industry can be divided into three main categories: public sector; handloom sector; and the organized private sector. The private sector is the fastest growing sector in the country. The handloom industry provides employment for a large segment of the population of Bangladesh and supplies a large portion of the fabric required by the local market. About 20 percent of existing mills in Bangladesh are large-scale mills, roughly 30 percent are medium-scale mills, and the remaining 50 percent are small-scale mills. The number of spinning mills in the country is increasing day-by-day.

I think this is not a bad decision. Our garment sector enjoyed tax benefit for a long period of time. Now is the time for paying the tax to take part in the National GDP growth.

We have to stop politically motivated general strikes, and need major Improvement of infrastructure as well as reform of financial system.

Skill developing of our major work force is one of the key factors for garment industry. This project will assist Bangladesh in further developing human capital resources by strengthening public and private training institutions that improve the skill set and employability of the workforce. By greater participation of women and young people in to this project will help the poverty elevation in the long run.

CSR practice can be put into operation in many ways

• Work place codes to protect workers rights for fair hours of work, pay, vacation and sick leave, to increase diversity and opportunity, to avoid discrimination and to ensure safe working premises.

• Improved management systems for instance through increased stakeholder engagement, shared decision making and employee involvement.

Green Revolution is required for this thrust sector for our safe future generation

• Use of sustainable raw materials, products, technology and energy such as crops that employ no pesticides or have reduced need for water, use of materials made from renewable resources with ‘alternative-green’ substituted chemicals.

• Transportation and waste management for instance, reducing waste by improved design, or choosing materials that can be recycled or are biodegradable.