More investments are necessary to build a sustainable RMG industry and it will also increase the production expenses in factories.
However, foreign buyers are not increasing the purchase price for apparel items made in Bangladesh.
Keeping that in mind, apparel traders and the State Minister of the Ministry of Foreign Affairs Md Shahriar Alam urged buyers to increase the price of Bangladesh apparel items.
During Apparel Summit 2022, experts said that sustainable pricing is necessary to build a sustainable industry. On Tuesday, four sessions were held at the International Convention City Bashundhara (ICCB) focusing on the development of the apparel industry.
During the discussion, Abdus Salam Murshedy, member of the Parliament and former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said: “Sustainable products increase our expenses and the whole industry is in a challenging situation right now. We witnessed heavy losses due to the Covid-19 pandemic and the Russia-Ukraine war. The prices of raw materials also increased.”
“Buyers always talk about green products and sustainability. But we have to keep in mind that it requires lots of investments as well. We have to increase the price of our products,” he added.
Murshedy further said that the buyers and importers are like a family. “We always talk about sustainability. But now, the raw materials that are necessary to produce apparel products are getting more expensive while the price of our products keeps declining. I would like to ask our partners to increase the price of products.”
Kutubuddin Ahmed, former president of BGMEA said: “67% of the consumers want sustainable products now. We have to focus on sustainability and transparency.”
40% of the top 100 green factories are in Bangladesh. We have emphasized on energy, utility, chemical, workplace safety and workers' safety. Now we need to focus on innovation, he added.
State Minister of the Ministry of Foreign Affairs Shahriar Alam was present as the chief guest during the opening plenary session. He said: “Australia gave us written commitments that they will be offering us a duty-free market til 2029. I would like to request the European Union (EU) to ask the member states to also extend that facility of access to duty-free markets.”
He also said that the labour law in Bangladesh will be updated and the salary of the workers will be revised. He urged the buyers to keep it in mind and not put excessive pressure on pricing.
Answering the questions by journalists, Shahriar Alam said that the gas crisis in the country will reduce within the next three months.
Zuena Aziz, principal coordinator (SDG Affairs) of the Prime Minister's Office (PMO) said: “We are focusing more on producing green products and building environment-friendly factories. The government is also working on building 100 economic zones.”
BGMEA President Faruque Hassan said that the industry crossed the $40 billion milestone, which is about 82% of country's total export in the last 2021-22 fiscal year (FY).
The robust growth in the RMG industry, which helped Bangladesh achieve both international prowess and domestic prosperity, didn't come by chance. The industry continues to be positioned as the second largest exporter globally through excellence in quality, competitive cost, well-timed delivery, and outstanding practices in sustainability.
The apparel industry is a time-tested industry, which has made commendable progress in the area of sustainability, especially in workers' well-being and industrial relations in the last decade, he added.
“Today, Bangladesh is probably one of the safest and cleanest apparel manufacturing countries in the world, which offers the best sustainable solution to our valued clients. Bangladesh has by far the highest number of green garment factories in the world. US Green Building Council (USGBC) certified a total of 177 green factories. Of which, 58 are platinum rated,” the BGMEA president further said.
Faruque Hassan said: “41 out of the world's top 100 garment factories are in Bangladesh. Eight of the top global 10 LEED-certified factories are located in Bangladesh, and the country is the home to 48 out of the top 100 LEED-certified factories in the world. Moreover, 550 more factories are in the pipeline for certification.”
Director of BGMEA Fazla Samim said that Bangladesh needs a ministry to monitor the logistics sector, adding that we need to spend more on the logistics sector compared to other countries.
“In Bangladesh, there are about ten ministries and twenty-four government agencies looking after the logistics sector. As in other countries, there is a need for a focal point ministry so that discipline can be brought in this sector and logistics costs can be reduced. The most important thing is to ensure smooth coordination so that with a single document, whole logistics support services can be ensured,” he added.
