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B'desh RMG exports can double if key issues resolved
22 Dec '11
2 min read
Garment exports from Bangladesh can double by 2020 if some key issues confronting the industry are resolved in near future, according to RMG exporters and world market monitors.
The issues include unsatisfactory functioning of ports, bad road network, slow transportation, mounting labour costs and insufficient provision of utilities like power, gas and fuel oil.
McKinsey Quarterly, an online business journal, said Bangladesh's readymade garment (RMG) industry is expected to grow at a rate of nine percent over the next 10 years and the export value is likely to reach US$ 42 billion by 2020.
However, according to analysts, the industry is likely to see a 30 percent rise in wages during the period, which would be in addition to the expenses it would need to incur for enhancing capacity of workers.
Rising at an year-on-year rate of 43 percent, Bangladesh garment exports grew to over US$ 17.9 billion during the last fiscal, while the export target for the current fiscal has been fixed at around US$ 20.29 billion, the Export Promotion Bureau stated.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), developing infrastructure, road network and port efficiency and improved provision for supply of utilities like natural gas, power and water are essential to rapidly boost the export earnings.
Bangladesh-Malaysia Chamber of Commerce and Industry said even with the continuing power supply and other issues, the industry is making around US$ 20 billion in exports each year, and can boost the same to US$ 50 billion with better provisions for these facilities.
As stated by the Bangladesh Power Development Board officials, the peak-hour demand has grown to over 7,000 MW, and the industry still faces a power shortage of around 2,000 MW.
Bangladesh has over 5,000 garment units that employ around four million workers, 80 percent of whom are female.
The issues include unsatisfactory functioning of ports, bad road network, slow transportation, mounting labour costs and insufficient provision of utilities like power, gas and fuel oil.
McKinsey Quarterly, an online business journal, said Bangladesh's readymade garment (RMG) industry is expected to grow at a rate of nine percent over the next 10 years and the export value is likely to reach US$ 42 billion by 2020.
However, according to analysts, the industry is likely to see a 30 percent rise in wages during the period, which would be in addition to the expenses it would need to incur for enhancing capacity of workers.
Rising at an year-on-year rate of 43 percent, Bangladesh garment exports grew to over US$ 17.9 billion during the last fiscal, while the export target for the current fiscal has been fixed at around US$ 20.29 billion, the Export Promotion Bureau stated.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), developing infrastructure, road network and port efficiency and improved provision for supply of utilities like natural gas, power and water are essential to rapidly boost the export earnings.
Bangladesh-Malaysia Chamber of Commerce and Industry said even with the continuing power supply and other issues, the industry is making around US$ 20 billion in exports each year, and can boost the same to US$ 50 billion with better provisions for these facilities.
As stated by the Bangladesh Power Development Board officials, the peak-hour demand has grown to over 7,000 MW, and the industry still faces a power shortage of around 2,000 MW.
Bangladesh has over 5,000 garment units that employ around four million workers, 80 percent of whom are female.
Fibre2fashion News Desk - India
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