Editorial
RMG sector must realise its full potential
Devise ways to make it happen
The factors behind the rather sluggish trend in our RMG sector have been identified by experts but the real challenge before them is to suggest how we go about redressing them for the sake of utilising the sector's full potential. The US' cap on China's export growth at 7.5 percent till January 2008 is nearing its end with countries like Bangladesh facing the prospect of increased competition from China. But we should be able to weather that storm like we did in the first phase of the post MFA era in 2005 provided we can utilise our strengths and overcome our weaknesses with some special efforts.
We know the things we need to do but what is important is to set an order of priority not only in terms of urgency but also of doability of the agenda. The first order of priority is to cut back on our lead time which is very long. Buyers would like an order to materialise on a short notice but we need 90 to 120 days to deliver on an order. One of the reasons being we are overwhelmingly dependent on import of raw materials for manufacture of readymade garments. There had been track records of delays at the level of customs and port authorities. Port efficiency has since increased but there is room for further improvement. Basically we lack in backward linkages to garment industries to enhance our value addition by way of attaining self reliance in the garment manufacturing sector. In woven garments we don't even have 20 percent backward linkages. Large doses of investment in this area are imperative.
Labour unrest is an area where we can have a turnaround in the situation with special efforts made to improve worker-management relations based on a basis of continuing dialogues and adherence to tripartite agreement by all units.
The majority of our garment factories, some put it at more than 70 percent are compliant yet some outside media are said to be showing the problem factories. Our missions abroad need to counter this propaganda.
The bottom line is, we should have a composite committee with private and government sector representatives to devise a strategy to respond to the current challenges before the garment sector.
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