RMG accessories makers call out neglect, urge policy reform

Highlights:

• RMG accessories manufacturers produce zippers, buttons, labels, hangers, and tags 
• They operate as a backward linkage industry to the RMG sector
• They say they have been kept outside of Bida's list of investment opportunities

Calling out longstanding policy neglect and discrimination, garment accessories and packaging makers have urged the government to make urgent reforms to support the $8 billion industry that underpins Bangladesh's RMG export ecosystem.

The Chottogram Garments Accessories Association (CGAA) sent a letter to the Bangladesh Investment Development Corporation (Bida) on 15 July, laying out a five-point reform agenda.

Garment accessories manufacturers — producers of zippers, buttons, cartons, labels, poly-bags, hangers, tags, and more — operate as a critical backward linkage to the RMG sector. 

Yet, CGAA claims these businesses have been kept outside national priority sectors and are absent from BIDA's list of investment opportunities.

Signed by CGAA acting president Jamil Ahmed — also a director of the Bangladesh Garments Packaging and Manufacturing Exporters Association (BGAPMEA) — the letter says that the government and regulatory agencies have long been overlooking the sector's contributions, despite its central role in reducing lead times and boosting competitiveness for the country's readymade garments (RMG) exports.

"The accessories and packaging industry has remained invisible in policy discussions, despite supporting the very foundation of RMG exports," the letter says.

The National Industrial Policy (2016) lists 24 priority sectors, but omits garment accessories and packaging. The CGAA argues this exclusion represents a policy-level discrimination that stifles investment and capacity growth.

The letter highlights persistent challenges faced by accessories manufacturers — including payment delays of up to 10 months, denial of continuous bond facilities, and lack of foreign investment due to regulatory uncertainty.

When contacted, Jamil Ahmed, acting president of CGAA, told TBS, "In the letter, we highlighted the challenges faced by accessories and packaging manufacturers, including financial constraints, lack of incentives, and policy discrimination."

He added that CGAA also held a meeting with Bida's Investment Ecosystem Secretary, Md Mokhlesur Rahman, and Joint Commissioner of NBR, Sanawarul Kabir, at the Bida office. 

"We've been assured that our concerns will be considered seriously once the BIDA chairman returns to the country, as he is currently abroad."

Five-point reform agenda

In the letter to Bida, the CGAA outlined five key reforms to grow the garment accessories sector – One-stop digital service for registrations, licenses, and bond processing to cut delays and corruption; Continuous bond facility for accessories makers, as granted to garments and textiles; Fair cash incentives reflecting export contributions, currently enjoyed only by RMG producers; Tax rebates for investments in ERP, research, training, CSR, and compliance tools; Policy recognition of the sector as part of the RMG supply chain to ensure sustainability.

The CGAA urged the interim government to commission a survey on the sector's role and push long-overdue reforms to restore confidence and attract investment.