RMG leaders emphasize innovation and value-addition for next-level growth

  • Sayed Abdullah

M A Jabbar, Managing Director of DBL Group said, DBL stopped the ‘Price-to-Bottom’ approach through innovation in products, R&D, and processes. Only the fire dosing approach won't work- like the T&A industry doing.  Our competitor countries have adopted at least 5 years long strategy long ago to thrive. And we are seeing their progress already. For instance, with the aid of long-term policy, Vietnam has excelled far in terms of value-addition, and product diversification.”

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Figure 1: RMG leaders emphasize innovation and value-addition for next-level growth.

He was speaking at an event titled ‘National Dissemination Session: Future-Proofing RMG for 2030 & beyond.’ Where textile and apparel industry stakeholders highlighted that Bangladesh is poised to graduate from Least Developed Country (LDC) status by 2026. This transition, coupled with the ratification of 27 EU conventions, presents both opportunities and challenges. While the country has made significant strides in its textile and apparel industry, concerns about labor rights and compliance with international standards persist.

Speakers at the event highlighted as Bangladesh navigates these challenges, it must prioritize addressing concerning issues, strengthening its regulatory framework, and investing in innovation and technology to maintain its position as a global apparel hub.

“Whereas we have plateaued at an apparel export target – without doing a proper study or amending necessary policies. And to break through this ceiling, we need strong leadership and institutional support. A comprehensive, industry-wide approach is essential, rather than isolated efforts,” added the DBL Group leader.

M A Jabbar,-DBL Group
Figure 2: M A Jabbar, Managing Director of DBL Group.

In terms of macro-level shortcomings, M A Jabbar said, “Only a few companies like DBL are taking steps to negotiate better prices through innovation in process, own research and development (R&D). A collective effort involving all stakeholders is necessary to achieve significant progress. Only then can we aim for higher export targets like $100 billion or more."

In his discussion, he further stressed the need for passing knowledge to a new generation of RMG leaders. Jabbar added, “We have to convey our 40 years of learning to new generation leaders.”

Chief Guest of the event, Anwar Hossain, Vice Chairman of the Export Promotion Bureau (EPB), and the newly appointed Administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said, “The energy crisis remains a significant challenge for the textile industry. A major hurdle for the industry is ensuring a consistent power supply. Significant investments, estimated at around $25 billion, are needed to improve the country's infrastructure."

“While the government is taking steps to address this issue, a long-term, collective approach is necessary. Improving the ease of doing business and fostering stronger industry-academia partnerships are crucial for the sector's growth.”

Anwar Hossain added, “To enhance competitiveness, we must prioritize upskilling our workforce and diversifying our product range beyond cotton-based textiles. Additionally, streamlining regulatory processes and reducing the burden of multiple audit platforms will help to improve efficiency.”

The BGMEA's initiative to promote a circular economy is commendable. By developing effective business models and a centralized system, we can minimize waste and optimize resource utilization. Ultimately, a collaborative effort involving all stakeholders is essential to ensure the sustainable growth of the Bangladesh textile industry,” BGMEA Administrator concluded.

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Figure 3: Md. Hatem, President, BKMEA.

Md. Hatem, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said, “We are pleading to the new govt. to put a hold on LDC graduation in 2026. A premature graduation will doom our T&A industry along with the rest of the industries.”

In terms of future opportunities and challenges, BKMEA, President said, “To further progress the apparel sector we have tremendous scopes as China is moving out of this business. Also, we have an exemplary lead in green factories and ethical practices like compliance and safety.”

Another notable academician and speaker, Prof. Mohammad A Momen, Former Director, IBA and Co-Founder, Pride Group in his part revealed the dilemma of Bangladeshi readymade garment (RMG) manufacturers, “The reality is that despite doing R&D – it is an advantage, not the advantage to bargain better prices from brands. Despite top factories leading in R&D and diversification, we do not get premiums but instead get some better prices.”

As a way out, Prof. Mohammad A Momen said, “Branding is crucial as brands consider cheap products. Green funds aren't utilized as stipulations are not suitable. So, we take non-productive funds with higher interest. Getting bigger isn't profitable. Rather to sustain profit margin getting thinner.”

M. Masrur Reaz, Chairman, Policy Exchange Bangladesh hosted the event. The event was organized under the Bunon 2030 initiative, led by LightCastle Partners, in close collaboration with Asia Foundation, H&M Foundation and the Policy Exchange Bangladesh.

"As early pioneers in the Bangladesh RMG industry, we have witnessed significant growth and transformation. However, challenges persist, particularly regarding energy supply. China's success can be attributed to its strategic focus on providing reliable energy infrastructure. Unfortunately, our policymakers have not fully grasped the industry's specific needs. This makes it difficult for new entrepreneurs to enter the market. It is crucial to recognize and appreciate the role of entrepreneurs in driving economic growth," Prof. Mohammad A Momen added.

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