The apparel export vision would not be so easy to achieve as the sector will have to overcome a new dimension of international hurdles like ensuring fire and safety standards while facing the existing domestic bottlenecks.
Industry insiders were skeptical about the route to touch the finish line with only seven years in hand – a period during which the export earnings would have to double from the present figure achieved in last 35 years.
Despite all odds – be it domestic or external – the industry has by now become about US$25 billion one in a period five times more than what the policymakers now hoping for ($50bn) during the remaining period up to 2021, when they country would celebrate the 50 years of independence.
“We’ll be able to make the dream comes true if the problems are solved,” said M Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The exporters never said no to improve the factory standards and ensure workers’ safety, but often and again raising a concern where the investment would come from to meet the requirements imposed by the buyers and importing countries.
They are mainly demanding low cost fund at home and financial assistance from the buyers apparently as a pre-condition. The fund would be required for relocation of factories and remediation as the so called Accord and Alliance, the buyers’ representatives here, were monitoring the progress of implementation of the activities needed to ensure the standards and safety issues.
In the domestic front, the industry is considering another difficulty it would have to face is utility connections in the would-be relocated areas. The government, however, gave a verbal assurance to the sector that it would get priority in cases of the relocation.
With the newer version of difficulties, the industry would also have to go with the problems like political uncertainties and infrastructure at home, and emerging external adversities to chase the target.
“Infrastructure including power, port, place (land), political stability and low-cost funds are the major challenges,” the BGMEA president listed as he was talking to the Dhaka Tribune on Friday.
After the Rana Plaza building collapse, the Accord and Alliance committed to improve safety standard. They have completed inspection of RMG units and found less than two percent factories risky.
The buyers’ platforms have prescribed remediation and Corrective Action Plan (CAP) to ensure safety.
“For remediation and relocation as per the Accord and Alliance prescription, the sector need low-cost funds from the government as well as the buyers,” BGMEA vice president Shahidullah Azim said.
Policymakers should take the RMG sector as a priority sector as it earns over 81% of the total export earnings and contributes over 10% to GDP, he said.
“We should make our ports well equipped and then concentrate on deep sea port to tackle the next rush of shipments,” said Abdus Salam Murshedy, president of Exporters Association of Bangladesh (EAB).
He said the Dhaka-Chittagong highway is a vital issue for the RMG sector to facilitate shipments in time.
Enhancing workers productivity, entering into medium and high-end products from low end, and exploring new markets is a must, said Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue.
Meanwhile, the government has to take the initiative and negotiate with the countries to lower duty to make the industry more competitive in terms of price, he added.