DHAKA: Bangladesh apparel industry needs to work on its market strategies for the future as after getting the status of a developing nation in 2021, the country will lose the export benefits it currently enjoys being a least-developed nation. As of now, it has zero-duty benefit to the European Union (EU) and Generalised System of Preferences (GSP) to some nations.
Apparel exports to EU will face a duty of 12.5 per cent after 2021. International buyers who currently import apparel from Bangladesh are also likely to work out strategies with Bangladesh’s long term plans, said Johan Frishell, Swedish ambassador to Bangladesh at a discussion during the fifth Bangladesh Denim Expo in Dhaka, according to Bangladeshi media reports.
Bangladesh can continue to enjoy zero-duty benefits to EU even after 2021, if it attains the GSP Plus status. It can be attained by maintaining international standards in human rights, environmental balance and curbing corruption. Long-term plans are also likely to ensure a sustainable business for Bangladesh and offer long-term predictability to international buyers. The country should also carry out bilateral negotiations with buyers from EU, Canada and the US to continue receiving duty-free benefits after it becomes a developing nation, said Frishell.
Thomas Prinz, German ambassador to Bangladesh suggested that the country should focus on products that are socially and environmentally compliant. Roger Hubert, regional head of Bangladesh and Pakistan of H&M is of the opinion chemical, water and waste management should be a priority for the Bangladeshi government and entrepreneurs. He added that mandatory industrial accidental and life insurance should also be in place for the skilled labour force.
At least 2,000 new garment factories will have to be established in Bangladesh to achieve the target of exporting garments worth $50 billion by the end 2021 and the country is likely to achieve it, said Arshad Jamal Dipu, chairman, Tusuka Group. Najeeb Sayed, country manager and dress director of PVH Bangladesh believes that marketing is important for achieving this target and he also suggested increasing the efficiency level of the workers to maximise production and reduce costs.
