Readymade Garments Exports from Bangladesh: Challenges and Possible Way-Out

Abstract

Bangladesh's readymade garments (RMG) export has faced tremendous competition from several countries in the last few years. The challenge has been increased further due to the Covid-19 pandemic. Covid -19 poses a substantial threat to Bangladesh's garment sector. The survival of RMG exports is vital for the consistent economic growth of Bangladesh. This paper aims to identify the future challenges of RMG exports from Bangladesh and feasible solutions to unravel the problems. The study is descriptive and based on secondary data. Secondary information is gathered from different books, websites, articles, and newspapers. Previous studies show that the RMG sector has experienced numerous challenges, including inadequate infrastructure, political instability, excessive interest rates on bank loans, fire disasters, a scarcity of raw materials resources, covid-19 pandemic effect, etc. Regarding revenue and profitability in foreign currency, Bangladesh's readymade garments (RMG) industry has outperformed all other sectors since its independence in 1971. It creates a substantial impact on the national economy by providing a large number of work opportunities and by eliminating poverty through social development. Bangladesh will graduate from the least developed country (LDC) in 2026, adding new challenges for the RMG. Therefore, BGMEA and BKMEA, among other regulatory agencies, should take the required efforts to remove these obstacles from their respective jurisdictions before facing any new challenges. The researchers identified some potential solutions to ensure that the RMG industry can keep its position in the international marketplace.