Amid a lingering fear of global economic slowdown and galloping inflation, Bangladesh's RMG sector’s robust export growth to the European market and the USA is like a breath of fresh air. Reportedly, Bangladesh exported USD 17.56 billion worth of garments to Europe from January to September, posting a year-on-year growth of 43.21 percent, which is the highest the sector has ever achieved in the European market.
It highlights that Bangladesh apparel manufacturers’ huge investment in developing product quality, environmental sustainability and workplace safety is paying off. Today Bangladesh RMG sector is considered a leader in green manufacturing, having the highest number of green factories in the world thanks to unprecedented progress in environmental sustainability and workplace safety. It has brightened the country’s image globally, and as a result, export orders are pouring in despite uncertainties in the global market. The entrepreneurs’ firm commitment to upgrading their manufacturing practices and complying with various rules and regulations of international trade as well as adequate public policy support has been at the root of gradual and steady growth of the RMG sector. The government also worked closely with the central bank with a number of cash incentives for the sector including those for the diversification of the trade to new destinations and new products also proved to be highly strategic. The tax and vat support to the sector has been consistently given by the NBR. As a matter of fact, the fiscal policy of Bangladesh has always been welcoming to this lifeline of our economy.
The policy support given by both the government and the central bank in terms of wage support and low-cost funding support with sufficient interest rate subsidies to the sector for its speedy recovery from the pandemic challenges has been crucial in holding this industry in one piece. As a result, the export growth in this sector is picking up quite faster in recent times.
However, both the government and the BGMEA should take vigorous steps to promote positive gains in this sector. Together we have to make ‘Made in Bangladesh’ a viable brand story in the international arena to increase Bangladesh’s share in the global clothing market further.
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