Future of RMG sector
Rezaul Haque Sumon Department of Economics, University of Dhaka
We are well informed that the MFA quota system was phased out on Jan 1, 2005.This has become a threat to our RMG sector as well as its export. Because, after the phase-out Bangladesh has lost its quota facility. China and India are now in the dominant position in RMG exports. All countries have now access to the 'Open Entry' competition. So, we have to compete with all. This is the time to take proper steps to avoid all the risks and perils. For this, investment appraisal --domestic as well as foreign-- is very necessary in the sector. We have to make both backward and forward linkages. Lead time should be reduced, quality of products have to improve. The quick supply methodology should be introduced along with quick shipment.If we can do all these things, the phase-out will be an opportunity, not a threat.
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