The Challenges of RMG sector of Bangladesh

The Challenges of RMG sector of Bangladesh: A luck entrant to apparel trade world with a modest begining in 1980 as a non-traditional sector, Ready Made Garments (RMG) industry in Bangladesh has carved out a niche for itself. This is the only sector that has achieved phenomenal growth almost unaided by anybody. Now considered as one of the major thirst sector, RMG industry accounts for 78.86% of total export earnings, employing about 4 million people.
The RMG sector accounts for around two-thirds of the country's total foreign exchange earnings through merchandize sales abroad. Bangladesh's GDP (Growth Domestic Product) waves about 300 billion dollar in which RMG sector contributes about 12% in every fiscal year. Export of apparels to the USA and EU meeting the native demand have been increasing significantly due to the trade privileges give by the USA and EU. Currently Bangladesh exported garment products worth $12.57 billion to the EU in fiscal year 2012-13 and $11.38 billion in fiscal year 2011-12, according to the Export Promotion Bureau (EPB). According to the World Bank's report, Bangladesh is the second largest garment products exporter country after China. A large number of youngsters, by their untiring effort are playing a pivotal role to compete with the Cambodia, Vietnam, India, Pakistan, Philippines in the international market. Besides earning a substantial amount of foreign exchange, this rapidly growing sector has already been generated employment for the unemployed workers and young hardworking entrepreneurial class which was absent in the country. Garments industry in Bangladesh emerged as a profitable, quick yielding investment sector and open up a wide range scope for entrepreneurial development. But the future of the RMG of Bangladesh depends on many subjects. After the cancellation of GSP by the USA, the trade privileges have shrieked. Although Bangladesh exports less than 1 percent of $5 billion annually under the GSP to the USA market, the impact of the withdrawal GSP is significant. This is because, some other countries in the EV where the country enjoys duty waiver, might be influenced by the USA decision.
On the other hand, GSP facilities given by the USA and EU to some countries like Pakistan, India, and Sri Lanka would make an unfavorable business competition for Bangladesh. 
As per the advices of some EU and USA businesses Bangladesh Govt. has already appointed about 200 inspectors to monitor the working environment and conflagration management of garment factories. But it is a matter of regret that Bangladesh Govt. has yet to achieve their complacent for the working environment of the garment factories.
Labor unrest and violence in the garment sector has become a regular picture of our garment।

industry. Labors of the garment industry often raise their voices against the garment owners to increase the prevailing wage. They also want to form a labor union the garment factory. But the owners neither give their attention to increase wage reasonable nor to form the labor union. So the garment labors go to the street and make agitation against the owners. This has a ominous sign to the emerging sector.
Despite internal political instability, moor labor productivity, unrest and violence and many other drawbacks, the tremendous expansion of the RMG sector did not remain in a cul-de-sac, day-after-day, the apparel industry of Bangladesh has been grasping the international market by its quality product. So it is needless to say, bright future is waiting for the betterment of RMG sector.