POST TIME: 19 April, 2019 00:00 00 AM / LAST MODIFIED: 19 April, 2019 02:15:34 AM
Investment in RMG promotes export

Investment in RMG promotes export

The phenomenal economic rise of Bangladesh from a war-torn, privation filled nation has been due to the development of the RMG (Ready Made Garment Sector). In the last 20 years, the RMG sector’s growth has fuelled the economic miracle of Bangladesh that included not only social development but also women empowerment. As Bangladesh secures her place as the second biggest exporter of apparel to the global market after China, another Tk. 1000 crore is being invested to make the garment accessories manufacturing more competitive.

Bangladesh has been making accessories like labels, zippers, badges and buttons for some time but this new injection of funds will add further impetus to the industry, inspiring many new entrepreneurs to look for a new dimension in the RMG sector. Obviously, when the accessories making side flourishes, there will be more jobs and most importantly, a new arena for women to be involved in.

The government has brought down corporate tax for RMG industries from 15 per cent to 12 percent which is an incentive but banks also have a role to play since loans at easy conditions will add an impetus to the expansion of the sector.

The tragic Rana Plaza accident has compelled most factories to become compliant to international safety standards which have secured Bangladesh’s position as the second largest exporter of garments. To maintain this enviable place, the garment sector needs more export processing zones, especially those in areas where zones will also play a role in much needed social elevation.

While products made in Bangladesh are exported to many countries, Africa still remains unexplored and therefore, aggressive attempts needs to be made to seek out new markets. Also, it’s about time international brands set up their factories in Bangladesh under special privileges like tax rebates, economic zones plus uninterrupted power supply.

In the last two decades a class of ultra rich has emerged in Bangladesh from the RMG sector and the accessories industry will now create a space for more wealthy Bangladeshis to emerge. This is indeed something to be proud of because wealth accumulated by business people have a trickle down impact, providing high paid jobs for many students currently studying at textile related universities.