In90 percent of Bangladesh's total earnings from garment exports came from its exports to the United States and Europe.
April 20, By Syed A. Above, a plants in a garment factory promote a greener work environment. The sector employs over 4 million people, about 80 percent of whom are women from rural communities. However, experts warn that in addition to addressing worker safety issues, the Bangladesh readymade garments landscape should prepare itself to address the environmental consequences of a rapidly expanding industry.
While the government acknowledges the importance of this, there has not been much discussion about how to take this forward.
The program uses a cluster-based approach to improve environmental performance of the non-wet processing members of BGMEA, and will later extend the program to wet processing industries.
As part of its green initiative, a vintage denim factory has created a natural landscape surrounding the manufacturing areas. Some have been registered to go green. The system is credit-based, allowing projects to earn points for environmentally friendly actions taken during construction of factories and during operations.
The major motivation for factories to adopt more environmentally friendly practices and policies has been the emergence of a global market niche that values factories that go beyond just meeting standard compliances to adhering to higher environmental standards.
Going green has competitive advantage in cases where buyers seeking to appeal to this niche are willing to offer some form of incentive to factories that promise lower emission products. The fact that the sector is proactively embracing the opportunities under green growth, even before environmental compliance has become binding, demonstrates the resilience and maturity of the sector.
Advocates claim that the short-term costs for adopting green growth initiatives such as reducing emissions pays off in the long-term, thanks to more efficient usage of resources.
The major challenge is that companies tend to view this approach as simply incurring extra costs as the longer-term benefits are not immediately visible. The result so far is only the factories on top of the capability pyramid have started thinking of going green as they can afford to invest in leveraging negotiations with the elite buyers.
Realizing the possible value of green growth initiatives and the necessity of a policy framework, The Asia Foundation laid the groundwork for an upcoming green industrial policy workshop in Dhaka, in collaboration with Center for Budget and Policy, Dhaka University, and MCCI.
The study will include the perspectives of all stakeholders, including international buyers, manufacturers, local and international suppliers of green technologies, and policymakers.
The Asia Foundation will work with the Ministry of Industries, think tanks, and business chambers to develop a strategy paper on green industrial policy in Bangladesh to be presented at the workshop in July The BGMEA is well positioned to engage with policymakers to inspire the industry to adopt green initiatives.
The views and opinions expressed here are those of the author and not those of The Asia Foundation or its funders.Manufacturing in Bangladesh has for the last 30 years been defined by the readymade garment (RMG) industry—and for good reason. The nearly 7, RMG facilities in Bangladesh produce 16 percent.
Download the full report, Bangladesh’s ready-made garments landscape: The challenge of growth (PDF).
About the author(s) Achim Berg is a principal in McKinsey’s Frankfurt office, Saskia Hedrich is a consultant in the Munich office, and Thomas Tochtermann is a director in the Hamburg office. Bangladesh aims to raise its exports of readymade garments (RMG) to Canada at least fivefold to $ billion by , the chief of the Canada Bangladesh Chamber of Commerce and Industry (CanCham.
Bangladesh Garments. "Royal Asia Garments Manufacturing Factory Bangladesh a Bangladeshi garments-apparel factory is world chief of textile readymade garments search.
Over the past years it has been witnessing a retail revolution and fast changing retail landscape. The organised retail industry is gradually inching its way forward to be the next most booming sector in Bangladesh like readymade garments; only if appropriate concerted strategies can be taken.
The changing retail market landscape. We ar ABA group – the readymade garments producer aligning the vision with Bangladesh, the most popular country as an apparel manufacture on the entire planet.
Mission To manufacture with responsibility by ensuring the most dynamic interaction amoung human, machine and method, and to leave the world a better place for the generation to come.