Abu Shadate Faisal Mahamude PhD, Deputy General Manager (Dyeing and Finishing), Cotton Club (BD) Ltd, Bangladesh.
Kaniz Farhana, PhD, Professor, Department of Apparel Engineering, Bangladesh University of Textiles, Bangladesh.
Abstract
In Bangladesh, the ready-made garment (RMG) industry leads in terms of employment, output, and foreign exchange profits. Over the past three decades, Bangladesh has become the world’s second-largest exporter of clothing, despite not producing cotton. Our clothing industry was still the preferred option for many nations, even throughout the global economic downturn when imports from major sourcing nations sharply decreased. The RMG industry accounted for 1.1% of all exports in 1982–1983. One of the main influences on the development of Bangladesh’s garment industry was the economic reform in the 1980s. The government implemented policies to promote foreign investment and create a business-friendly environment in recognition of the RMG sector’s potential. Tax breaks, duty-free machinery imports, and expedited export processes were among the incentives that contributed to the development of the apparel industry.
Keywords: RMG, Textile Sector, Strategy, Major crisis.
Introduction, Problems and Opinion
In 2013-14 this scenario raised to more than 80%. According to the Export Promotion Bureau (EPB), garments exports from Bangladesh earned $46.99 billion in fiscal 2022-23, registering a moderate growth of 10.27%, which was $42.61 billion in the last fiscal year. However, we have seen that lots of media criticize that the data is not transparent and it was modified. The textile and clothing bring foreign currency which has enormous importance in our national economy as Bangladesh is an import-dependent country. Textiles and clothing have blessed us by employing an immense workforce (Most of the illiterate women and half-illiterate) which is keeping our society in balance, and giving us a new avenue of economic growth. We just want to explore the main topic as our government changed recently and afterward, how can we maintain in the coming days to stabilize our economic situation and further improvement as well;
To enumerate the RMG factories that have operated efficiently and made on-time bank installment payments for the previous five years. Here are our observations: Bangladesh Bank will provide a report in a month if they recruit five or six dazzling textile industries. On the other hand, to identify the factories that have been receiving funds for the past five years and that are not only operating correctly but also failing to make their bank loan payments on time. The only action the authorities can take in this situation is to take action regarding them without halting the factories. In our view, if they truly want to be a successful firm, we should talk to them rather than just give them six months. A group consisting of a lawyer, an economist, two professors from a specialized textile university, and a few textile industry experts (Particularly textile engineers).
Its a need to increase dollar collection, the infrastructure that we already have in the textile sector is capable of exporting $65 to $70 billion in every fiscal year. However, there is a big void between the investment and its utilization. About 60-70% of factories have been running below their capacity due to poor marketing teams even though some factories’ marketing teams are well-built their production team cannot manage the shipment/lead time and quality of the goods for the buyer. We have lots of textile educational institutes and almost about 20 public and private universities are engaged in textile and fashion-related education, one of them specially made for only textile, apparel, and fashion-related education; however, it is a matter of sorrow that none of them fully engaged with our modern industrial technology. They have no industrial involvement even though they have no funds to develop the cutting-edge technology of textile sectors. For example, we already have developed 1000 knit garments and back-process knit composite units but we cannot develop suits-making industries where we can earn 100 times more dollars within the same investment.
Government needs to support research and development in the textile industry to invent new products and technologies. In addition to being a major problem, energy is also a dire scenario for our clothing sector. The majority of the textile industries have been operating below capacity due to gas and power problems for the past ten years. Diesel has been used by several factories, which is merely a decision to nearly die. The value of the global textile industry is expected to increase from the current 480 billion to 700 billion dollars, according to the study magazine. The structure of the textile industry has a direct impact on the proportion of fuel and electricity used in the nation’s overall energy consumption. On-time production is a crucial factor in preserving textile exports, as the textile industry is regarded as a highly labor-intensive sector that thrives on a varied labor supply. We are forced to provide energy support, particularly gas supplies to operate a gas generator and industrial boiler. There are more factories in some areas without any investigation into the capacity of the gas lines. Without considering the industry size or line pressure, Petro-Bangla just provided the line. From our standpoint, Petro-Bangla made the right choice about the gas pressure balance in the business. Additionally, you cannot grant new manufacturing permission in certain red zones rather the authority can give permission in which area has proper gas supplying force. Moreover, government policy needs to change, we have to search for more gas fields rather than import coal, oil, and LNG. The improvement of energy efficiency in the textile Industry reduces GHG emissions into the environment. For this, from the very beginning, different areas in the industry must be identified to improve energy efficiency by applying specific technology, upgrading the newer efficiency technology, and searching for new technology. If the technologies are installed, then various benefits should be achieved with energy savings such as water savings, materials savings, reduced waste, higher production, and higher product quality.
Bangladesh government has a Ministry of Textiles and Jute, the most interesting matter is the ministry has almost 10 organization boards including BJMC, BTMC, Bangladesh Handloom Broad and Jute Corporation but no textile expert can lead the position of BJMC or BTMC or Handloom Broad. Even they have no engagement with Bangladesh University of Textiles or associated with forefront research of textiles. 100% project of Textiles and jute ministry lead by the interest only related to building construction. As we see on the ministry website there is no project related to efficiency improvement, industry research, or export market capability improvement whereas it has been seen in Japan they have various projects related to export development, management improvement even product research. If we go to the root cause analysis then we see that the ministry currently has an innovation team led by two additional secretaries and other six members who do have not a single textile expertise or education. Our viewpoint is that the textile sector would be like the banking sector as our present Honorable Governor Dr. Ahsan H Mansur made some efficient expert team to resolve some instant crises in the Banking sector to strengthen the financial conditions. Similarly, Bangladesh’s textile ministry needs to make a few teams who can observe textile customs and tax systems like importing synthetic yarn to duty-free facilities as the world market was valued at USD 66.11 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.4% from 2023 to 2030 (as per grand and view research). Indians enjoy 25% less price in synthetic fabric. Furthermore, we only have 2-3 synthetic yarn industries, so for diversification of product category we need to establish a synthetic yarn industry in the meantime we need tax-free synthetic yarn.
Vietnam, our rival, has become a rising star in the world textile and apparel business in recent years. Vietnam has an extensive tradition of being a major player in the world of textile crafting, and it has quickly become one of the leading countries in this field. Fashion companies and clothing manufacturers from all over the world are drawn to the nation because of its strategic position, affordable labor costs, and emphasis on innovation and technology. Vietnam’s textile and apparel industry is well-positioned for future expansion because of a strong dedication to sustainability and a desire for constant improvement. Vietnam’s textile and apparel exports reached a whopping $44 billion in 2022, demonstrating the industry’s strong expansion. This was a 14.7% annual growth, enhancing the Southeast Asian country’s standing as a major international supplier of clothing.
Our garment workers already understand the concepts of sewing, cutting, finishing, and packing, and the majority of them produce basic things. They now require technical expertise as well, and the factory requires technical advancements to increase output, reduce waste, and employ more skilled individuals. Japan, for instance, has a Lean Management System. The Lean Production Philosophy, which originated from the TPS (Toyota Production System) collection of business concepts created in post-war Japan, is where lean principles originated. The fundamental idea behind lean is to reduce costs by getting rid of waste (Muda in Japanese). Toyota became the world’s leading automaker because of the Lean principles, which also helped Japan become a major economic force.
With its significant GDP, export, and employment contributions, Bangladesh’s apparel industry has become an important driver of economic expansion. Bangladesh has shown itself to be robust and competitive in the global economy despite challenges like labor unrest. By investing in technology, innovation, and sustainable practices, Bangladesh may improve its reputation and seize opportunities for future growth and development. After 53 years of independence, the government of Bangladesh is the most skilled and knowledgeable. This committed academic government now has the potential to alter the system.