Cargo Business Newswire

Friday, February 28, 2014

Analysts: Bangladesh goal of $30B in garment exports depends on tech upgrade

Bangladesh, the second largest garment exporter in the world, can't increase its garment exports to the nation's goal of $30 billion by 2015 and $50 billion by 2021 unless it can improve worker productivity and upgrade technology, analysts said at a forum last week.

The Centre for Policy Dialogue, a think-tank, organized the event in association with the DFID-ESRC Growth Research Programme.

Ludovico Alcorta, a director of the United Nations Industrial Development Organization, said Bangladesh should focus on technology upgrades not only for the textile sector but also for other potential sectors within the next decade.

The garment sector in Bangladesh is going through a transition and its restructure is essential, according to Debapriya Bhattacharya, distinguished fellow of the CPD.

"Developing the capacity of workers would play a key role in this restructure and modernization process," Bhattacharya said, "and will strengthen the country's competitiveness, helping the sector advance further in the coming days."

In addition to exporting low-end garments, Bangladesh needs to increase its production of high-end products, said Commerce Minister Tofail Ahmed, since the country wants to earn $30 billion from garment exports by 2015 and $50 billion by 2021.

Azam Mohammed, a Pakistan commerce minister, said financial assistance is a must for technological upgrades. He noted Pakistan imposes a tax of 0.25 percent on all its exports, using the fund for technology upgrades, human resource development and resolving infrastructures deficit.

For more of the Daily Star story: thedailystar.net