Bangladesh All Set To Ramp Up RMG To Meet Global Demand

Industry news

Bangladesh All Set To Ramp Up RMG To Meet Global Demand

India’s eastern neighbour, Bangladesh has decided to adopt a smart strategy to ensure that it’s RMG manufacturing units grow steadily and take advantage of the increasing demand in the world markets for RMG goods.

The Bangladesh government based on recommendations from a renowned local economist has envisaged the setting up of a separate RMG zone that could ease the pressure on the RMG industry for international safety compliances and increase productivity astronomically.

Currently, a Chinese firm has conducted a feasibility study of the proposed RMG zone including the environmental impacts. The proposed RMG zone or Palli as is locally known is a 530 acre plot. The zone will be furnished with all the utility services like medical facilities, pollution treatment plants, day-care centers and others social infrastructure. The zone is expected to generate employment for an estimated 300,000 people at more than 250 factories.

Spurt in productivity and improved capacity usage within the RMG special zone would be able to generate, according to an estimate, total export earnings of BDT 312 billion. According to the report submitted by the economists to the Bangladesh government the investment in the special zone would yield eight-fold benefits.

The government has taken urgent steps in this direction having sensed that RMG production and exports comprise the backbone of Bangladesh's manufacturing sector. With these smart investments on the anvil, the RMG industry is comfortably positioned to make more progress in the future.

Currently, the manufacturing sector which has been steadily growing accounts for 30 percent of the GDP. This turns out to be approximately double the share of contribution from the agricultural sector. The RMG sector alone as of today represents almost 85 percent of all Bangladesh’s export earnings. It employs nearly 4 million people. A large part of this work force comprises women.

Bangladesh is in the process of living up to the increasing global expectations as demand for RMG products is slated to increase globally in the coming years. Currently, however, it is facing pressing issues like poor compliance, inadequate infrastructure and meager power capacities.