Bangladesh Garment Manufacturers and Exporters Association (BGMEA) signed an agreement with PricewaterhouseCoopers (PwC) on Tuesday to conduct a study on Bangladesh's RMG sector roadmap to recovery.
The objective of the study is to develop a strategic roadmap and an action plan for the industry covering thematic areas including development of an export target for 2032 with an interim target of 2025.
The sector has shown remarkable growth over the last two decade becoming the second largest exporter in the world.
However, the turn of the last decade has presented some major roadblocks and scope for improvement for the industry.
The impending graduation from LDC status, the immediate and lingering impact of Covid, changing industry dynamics (growing share of MMF, move towards sustainability, diversification of sourcing bases, etc), is prompting the industry to take significant steps to address these challenges and move towards its growth vision.
In such a context, the study will also develop strategy for other key areas including product and market diversification, technology upgradation, transition towards sustainable/green production, strengthening the upstream value chain segments, skilling and improving access to finance.
The study will cover extensive secondary and primary research to assess constraints, key drivers and elements of competitiveness for the sector in Bangladesh and deliver actionable recommendations.
Faruque Hassan, president of BGMEA, said Bangladesh's RMG industry is now at a crossroads – on one side are huge opportunities while challenges are on the other side.
"We need to chalk out research and data-driven strategies in order to retain our competitiveness and sustain our growth by seizing the opportunities and overcoming challenges that lie ahead. The study will help to set research-based targets and pragmatic strategies for the apparel industry of Bangladesh."
Mamun Rashid, managing partner, PwC Bangladesh, said, "This is an important and timely initiative taken by BGMEA to explore new avenues and prospects for the garments industry as supply change and consumer behaviors shift. PwC is happy to support this initiative."
BGMEA Directors Asif Ashraf, Abdullah Hil Rakib, Barrister Vidiya Amrit Khan and Chair of BGMEA Standing Committee on Foreign Mission Cell Shams Mahmud, Kaustabh Basu, executive director, Management Consulting at PwC, Rumesa Hussain, director, and Sarah Karim, Markets lead PwC Bangladesh were present at the signing ceremony.
The study will be funded by IFC's Partnership for Cleaner Textile (PaCT II) programme, supported by the government of Denmark through the Danish International Development Agency (DANIDA) and the Embassy of the Kingdom of the Netherlands in Bangladesh.