Editorial
Garments export stuttering
Special measures needed to rev it up
After successfully weathering the storm of the post-MFA era and recording a 35 percent export growth in apparel market in 2004-05, the garments sector is showing signs of taking a tumble. Just to understand the magnitude of the decline in the 12-month period ending June this year, the sector registered a modest growth of 16.5 percent compared with 23.12 percent in 2005-06. Translated in monetary terms, we have lost potential earning to the tune of US$ 1.5 billion on account of orders being diverted to countries like Cambodia, Vietnam and China.
Our image took a drubbing due to a sharp deterioration in worker-employer relationship marked by widespread unrest in garment factories over minimum wage and job security problems. This resulted in extensive damage to 400 factories and Dhaka Export Processing Zone being shut down twice in just eight weeks sending wrong signals to our buyers.
Given the above state of affairs, we need to take a hard look at the sector and adopt a strategy that can help revitalise it and restore its full market share. In the month of October, a surge in winter orders is expected which BGMEA should be able to cash in on. The workers, employers and the government must work unitedly to make it happen. Let them start a fresh dialogue to pull the sector out of the woods. As the first step towards a forward movement of the sector, the tripartite agreement signed between the government, BGMEA and the sector's labour force should be implemented in full by all factory managements without ado. There is no denying the fact that if the industry continues to be in a state of turmoil and disarray with an undercurrent of discontent amongst its work forces things are bound to worsen as time progresses, even if other factors improve or remain favourable. The overall business climate will also have to be improved to dispel any misgivings in the minds of our RMG buyers.
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