Garment makers should diversify products to be ready for post-LDC era

Local garment makers should diversify their products and invest in human resource development to prepare for any hurdles that may come after Bangladesh graduates from a least developed country (LDC) in 2026, according to experts.

Besides, creating a business-friendly environment by ensuring timely policy reforms and good governance will be crucial for addressing challenges in the post-LDC era, they said.

These comments came at a "Validation Workshop on Final Draft Study Reports on Market Access, Comparative Advantage and Export Diversification and Upscaling the RMG Sector".

The event was organised by the Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD) at the NEC Conference Room in Dhaka yesterday as shown in a press release.

The government is attaching the highest priority to ensuring a smooth and sustainable LDC graduation. As such, several in-depth studies are being carried out by the SSGP to formulate relevant strategies.

Against this backdrop, yesterday's workshop was held to disseminate and review the major findings of these studies among relevant stakeholders, the press release said.

Speaking as chief guest, M Tofazzel Hossain Miah, principal secretary of the Prime Minister's Office, urged the country's garment makers to focus on product diversification.

He also emphasised the need to explore new markets for local apparel products and develop a skilled workforce in the industry, particularly for managerial positions.

Mohammad Abdur Razzaque, research director of the Policy Research Institute, pointed out that global demand for manmade fibre (MMF) and blended garment items is increasing faster than that of cotton.

This calls for adopting a dual-track strategy to consolidate the country's position in the cotton apparel market while expanding its share in the MMF segment, he said citing the studies.

The findings also underscored the need to devise a "fibre security strategy", ensure duty-free access for all fibres and establish a dedicated low-cost investment fund to support MMF investments.

"Local apparel makers could move towards a multi-fibre arena by ensuring duty-free access for all fibres," said Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA).

ERD Secretary Md Shahriar Kader Siddiky presided over the meeting.

Tapan Kanti Ghosh, senior secretary of the commerce ministry, AHM Ahsan, vice-chairman of the Export Promotion Bureau, and Sharifa Khan, adviser of the SSGP, were present at the event.

Mohammad Belal Hossain Chowdhury, director general of the Duty Exemption and Drawback Office, and Abdullah Hil Rakib, director of the Bangladesh Garment Manufacturers and Exporters Association, were among the panellists.