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Failure of proper costing dragging RMG industry down

The economy of Bangladesh solely depends on the garments sectors. During 2018-19 the garments export of our country is amount $34.13 billion sharing 84% out of total country export $40.53 billion. Bangladesh started doing the readymade garments (RMG) business almost 40 years ago. Gradually the growth of garments export of our country has increased remarkably.

Failure-proper-costing in-BD-RMG

Bangladesh is called the second-largest apparel supplier as a single country in the global apparel market. But it seems that Bangladesh would lose its position ‘the second-largest apparel supplier’ to Vietnam soon. However, Bangladesh started its journey in the apparel sector prior to Vietnam and the industry expects continuous growth in the global market. But calendar year 2019, the Bangladesh apparel sector achieved only a 0.44% export growth whereas Vietnam achieved 7.30% growth.

In addition, recently our readymade garments sector has been facing several challenges for the last few years. Production cost goes up, but the price of products declines. In Bangladesh, the minimum workers’ wages have already been increased by 51% in December 2018 as the living standard and economy of Bangladesh are growing steadily.

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