Build on compliance to boost RMG competitiveness

20131201Raji

We welcome the announcement by the Alliance for Bangladesh Workers Safety that more RMG factories have completed 100% of required remediation work to ensure the highest international standards of safety.

Of the 528 factories visited by Alliance, a clear majority are making progress as the brand-led stakeholder initiative completes two years of work. While there is a lot more to be achieved, as a fifth of Alliance inspected have made less than 20% progress, it is evident that the work being undertaken by Alliance, Accord, the Sustainability Compact and National Tripartite Action Plan, is moving encouragingly forward.

This is vital to help Bangladesh’s garment manufacturing sector move on from the Rana Plaza disaster and build a safe and sustainable industry.

Mckinsey’s most recent report indicates major buyers are still looking to move RMG production away from China and Bangladesh is expected to be a main destination.

As global competition increases, with Myanmar recently announcing a minimum monthly wage of around $67 a month for a six-day work week, it is absolutely essential Bangladesh’s RMG sector ties improving compliance with investment to increase productivity and competitiveness. It cannot afford the risks of a race to the bottom, but must strive to add value and diversify products and customers so that it can build and grow on its established links with major buyers and brands.

It is encouraging to see Alliance working with Bangladeshi stakeholders and USAID to help fund new loans for factory improvements. It must be hoped these moves will also help exporters achieve the aim of restoring the country’s GSP privileges with the US to help boost confidence.

The government should allocate under-utilised khas and other state-controlled lands for investors to develop new industrial zones and allow more new RMG factories to be built, to help secure the industry’s future.

Source: Dhaka Tribune