Paving the way towards growth and prosperity

Wrapped with unsolved challenges emerging from the pandemic, just when the RMG industry of Bangladesh was moving towards the end of the tunnel, the war in Ukraine plunged it into a renewed crisis in the just concluded year 2022. 

On one hand, disruption in the global supply chain became a major cause of headache for the manufacturers, on the other hand, decayed demand in the retail market and history's highest rise in the overall cost of production posed another layer of challenges before the industry.

The war among the big shots caused a troublesome situation for all of us — some of us got hit directly and some indirectly. With an almost 9% rate, global inflation saw the record highest level in 2022. As a result, the price of commodities, including fuel oil, food, and raw materials, went up subsequently. The prediction of another global recession also made the brands and retailers extra cautious, leading to small batches of orders and nearshoring tendency.

Nevertheless, the picture is not overall gloomy. Hitting a record, the RMG industry of Bangladesh crossed a milestone of  $40 billion in the last fiscal year and emboldened us to set a $100 billion export target by 2030. The overall export of Bangladesh has also reached a new height with around $55 billion. Apart from the major markets EU and the US, our export share in non-traditional markets has doubled from 6.87% in FY2008-09 to 14.96% in FY2021-22.

Among the major non-traditional markets, Japan, India and South Korea's growth were significant. Bangladesh has already become the top denim-sourcing country for the US and the EU. Now we are in close competition with the largest apparel exporter China. We have also regained our position as the second-largest apparel exporter in the world, which was lost to Vietnam for a brief period of time. As per the latest published WTO Trade Statistical Review 2021, Bangladesh now holds 6.37% share of the global apparel market, ranked just after China. 

Bangladesh's RMG industry also saw a stunning growth in the number of green garment factories. In 2022, 30 garment factories received international recognition for being green, which is the highest number of factories certified as green in a single year. It takes the total number of LEED certified green garment factories of Bangladesh to 183. Among these, 60 are rated platinum, 109 gold and 10 silver while four simply received certifications. Some 550 more Bangladeshi factories have registered with the USGBC to receive LEED certifications.

The year 2022 was also memorable for another reason. A long-term goal for us, "Made in Bangladesh 2022," was successfully accomplished, which was by far the first of its kind week-long mega program. Throughout the whole week, through panel discussions, seminars, workshops, factory visits, fashion and heritage exhibitions, etc. we showcased our strength and capability to cater investments from the whole world.

Our overall logistics and infrastructure sector got a new boost in 2022 as it was a milestone year of inaugurating several megaprojects like Padma Bridge, Metro Rail, Patenga Container terminal, Karnaphuli Tunnel and more. All of these actually showcase how much we have progressed in the last 50 years of our independence and we are rapidly moving towards fulfilling "Vision 2041" and "Golden Bengal" envisioned by Father of the Nation Bangabandhu Sheikh Mujibur Rahman. 

As we wholeheartedly thank the government of Bangladesh, especially Prime Minister Sheikh Hasina for her prudent leadership and guidance, we sincerely request to expedite the completion of other megaprojects like Bay terminal, the Dhaka BRT and others, as these will offer a holistic solution for the overall transport problem. The completion of the third terminal at Hazrat Shahjalal International Airport will also take our country's strength to another level.

There are other improvements as well. For example, previously, we could use only one land customs port to import cotton and yarn, but now we can import those through other significant land ports. Our Chattogram port is also accommodating large container vessels with 10-metre-draught and 200-metre-long, which was allowed for 9.5-metre-draught and 190-metre-long ships, previously. All of these improvements are making Bangladesh ready and posing us as an attractive destination for investment and growth.

We have achieved a lot in the just concluding year 2022 even after combating multiple challenges at a time. Going forward, we want to keep a positive tone where we will continue to approach our strategy of a dual combination of sustainability and growth. Market diversification, product development, shifting to high-end fashion items, technological upgradation, design and skill development will be our priority in the coming years. 

Also, we will put special focus on SME businesses so that they can also thrive amidst the difficulties. We believe that opportunities and challenges go hand in hand and we will try to make the best out of any situation, as always.

Resilience to the challenges and the ambition to achieve the final goal is what has taken our industry to the level where it stands today. Manufacturers, with the help of hard work and effort of the workers and special assistance from the government, have overcome millions of challenges in the past. The year 2022 was no different. We believe that in this new year, we will be able to reach the furthest level of excellence and growth; but only through collaboration and joint efforts among all stakeholders.

The author is the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)