BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

CHALLENGES FOR GARMENTS SECTOR IN BANGLADESH AFTER 2004 : AVENUES FOR SURVIVAL AND GROWTH

Author: M. Tahlil Azim, Nasir Uddin

DOI Link: https://www.doi.org/ BIISSj2003v24n1a2

ABSTRACT

The spectacular growth of garments sector in Bangladesh in recent years has dramatically changed the landscape of export composition of the country. Once heavily dependent on exports of primary products led by Jute, the economy of Bangladesh is now experiencing almost 76% export contribution from Ready Made Garments (RMG). With the blessings of cheap labour, pressure for globalization of production based on location economies as well as the favourable treatment from developed countries, Bangladesh and some other developing countries have gradually become the global players in international trade in RMG. However, with the implementation of GAIT convention issued at the conclusion of Uruguay round of negotiation, the Multi-fiber Arrangement (MFA) facility which was extended to favour least developed countries in exporting garments and textiles, is going to be phased out after 2004. Consequently, the beneficiaries of MFA, including Bangladesh will face severe competition in the unprotected world market. Therefore, the major challenge of the garments industry in Bangladesh is to get prepared for survi val and growth after year 2004. This paper is meant to put some lights on this issue. The overall development of competitiveness in RMG sector is contingent upon the initiatives from government, Industry Association (BGMEA) and the firm itself. The paper focuses on the facilitating role of the government and considers the role of BGMEA in developing professionalism, industry advocacy and quality of working life in the industry. Finally, the role of firm-management to imo' 'QVC the competitiveness through the exploitation of 'Ill array of tools like, supply chain management, relationship marketing, collaborative arrangement, exploitation of production and Information Technology etc. are highlighted.