AmCham calls for diversification, energy solutions to secure Bangladesh's RMG future

The American Chamber of Commerce in Bangladesh (AmCham) hosted a breakfast meeting today (14 August) at the Sheraton Dhaka, focusing on "Bangladesh's RMG Sector: The Way Forward."

Key industry and policy leaders, including BGMEA President Mahmud Hasan Khan and Director Faisal Samad, discussed the sector's pressing challenges and opportunities, reads a press release.

AmCham President Syed Ershad Ahmed stressed Bangladesh's high dependence on garments, which contribute 81.5% of total exports and 11% of GDP.

With the EU and US absorbing 40% and 17.6% of exports respectively, he warned that heavy reliance on Western markets leaves the economy vulnerable to trade policy shifts.

Citing ADB and World Bank projections, he said US tariff hikes could reduce GDP growth by up to 2 percentage points, urging diversification and proactive policies to build resilience.

Bangladesh Competition Commission Chairperson AHM Ahsan called for vertical diversification within RMG — from low- to high-value products — to enhance export resilience ahead of LDC graduation.

BGMEA President Mahmud Hasan Khan highlighted energy shortages, especially for gas-reliant backward linkage industries, as a critical growth barrier.

With only two FSRUs in operation, he pressed for infrastructure expansion and renegotiation of cancelled investment commitments. He noted that fewer than 3,000 of BGMEA's 7,100 members are still exporting, with many smaller factories closing due to low productivity.

EPB Vice Chairman Md Anwar Hossain outlined policy reforms, including a proposed bank-backed bond facility for partial exporters and the creation of a "$100 Billion RMG Export Cell" to coordinate energy, banking, and tax issues. He expressed optimism about achieving $100 billion in RMG exports by 2027–28 through collaboration and diversification.

Participants also flagged energy insecurity, weak backward linkages, the absence of top global sportswear brands, and the need for green manufacturing, automation, and logistics upgrades. The dialogue concluded with a call for more platforms to bridge gaps between government agencies and businesses, ensuring practical solutions for sustainable growth.

The meeting ended with a vote of thanks from ASM Mainuddin Monem, the release added.