Urgency for RMG sector restructuring

Experts are of the opinion that for Bangladeshi RMG sector to expand its business up to $50 billion per annum by 2021, a major thrust has to be given to upgrading technology and improving worker productivity. Enhancing capacity to produce high-end products will require serious investments in upgrading human capital. Bangladesh can ill-afford to remain content with its present levels of achievement in the field. Going by media reports, new entrants like a number of African countries could in the near future undercut the Bangladesh position on competitive pricing.
On the productivity issue, Bangladesh lags behind its nearest competitors by a significant margin. According to BGMEA data, we understand that Bangladeshi workers on average earn $69 per month with productivity standing at 77 per cent. In comparison, Vietnam pays a higher monthly minimum wage of $78 while their workers boast of productivity at 90 per cent. Indeed, all other nations including Pakistan claim higher productivity rates than Bangladesh, a trend that might eventually threaten to erode Bangladesh's coveted position as the second largest garment exporter after China.
Such an eventuality, if left to play out on its own, will have disastrous implications for the country. RMG constitutes about 80 per cent of our foreign exchange earnings. It has become imperative for policymakers to look into ways to improve the skills of our workers including providing favourable work environment. Skill development will be greatly helped by introducing technical curricula in secondary schooling and higher secondary schooling levels that would produce workers armed with the required skills who could contribute to making high-end garments products.