Published in The Daily Sun on Monday, 10 March 2014.
Prospect of Accessories, Packaging Industry
Call for attaining compliance to become global industry
Staff Correspondent
Alongside the RMG industry, its associates like RMG accessories and packaging industry must comply with social and environmental issues so that it can become a global industry as well, industry experts observed yesterday.
“Local RMG industry is now passing through a transition period as the buyers are pushing for social and environmental compliance issues. The same thing goes for its associate industries also,” said Dr Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue (CPD).
“Maintaining international standards for all industries is going to be a challenging issue for any emerging economy in the coming days. In case of failure, those industries will vanish,” Debarpriya commented.
In the near future, the total value chain of the RMG industry would be looked into by the international buyers, he added.
His comments came at a seminar on ‘Garments Accessories & Packaging Industries of Bangladesh: Growth, Social Compliance & Environmental Issues’, organised by the Bangladesh Garments Accessories & Packaging Manufacturer & Exporters Association (BGAPMEA) in the city.
The event was organised on the sidelines of GAPEXPO 2014 held at Bangabandhu International Conference Centre.
Apart from its substantial contributions to the export earnings indirectly through apparels, accessories and packaging, the industry has the potential of expanding direct exports and of becoming a global industry, but that will require compliance, noted Dr Debapriya.
Uninterrupted supply of power and gas, availability of undisputed land, and smooth communications including improved port facilities are the key issues to industrial development of Bangladesh, he said.
Refuting suggestions that GSP cancellation by the USA did not hurt the apparel industry, the economist said even though it did not hurt RMG, but squeezed the potentials of other emerging industries like pharmaceuticals, ceramic and plastic.
Speaking on the occasion, Prof MM Akash said the industry would have to link up with other industries like frozen food in addition to the apparel sector to grow by 80 percent rate annually.
He also suggested the entrepreneurs of the sector to keep from profiteering, focusing on labour rights including trade unionism, reinvesting their profits in the country and not living lavishly to grow more.
At the same time, the government should support them with land, necessary knowledge, low-cost capital and good governance, he added.
Addressing the seminar as the chief guest Industries Minister Amir Hossain Amu assured that his ministry will provide necessary support so that the emerging industry can flourish.
“You’ve to move forward, keeping in mind the green environment concept,” he said.
The minister also repented that as a small country like Bangladesh has to face many problems from the big countries.
“Previously, a ban on trade union in the EPZs was sought, but the same is now being forced,” Amu said.
The minister also called upon the industry owners to become careful about “sabotages” and labour issues.
Dr Mokbul Ahmed Khan presented a keynote paper on the subject, while Commerce Secretary Mahbub Ahmed spoke at the seminar, chaired by BGAPMEA President Rafez Alam Chowdhury.