SPOTLIGHT
An Update on Garment Industry
Md. Siddiqur Rahman, President, BGMEA
Bangladesh is going through one of
its worst phases in two decades with
growth in garment exports slowing
down quite drastically in the Financial
Year 2016-17. While overall exports in
the fiscal year (ended in June) rose
nearly 1.7 per cent from a year earlier,
garment sales posted only 0.2 per
cent growth, 7.34 per cent below the
target. This is the slowest growth in
15 years. Leading the industry at this
very critical juncture is Md. Siddiqur
Rahman, President, BGMEA. Rahman
is a stalwart of the industry being
Chairman of the Sterling Group of
Companies and closely associated with
the BGMEA for many years in various
capacities. Though his two-year tenure
is nearing an end, his dynamism has
resulted in an extension of another
six months in office by the governing
board. In a very honest interaction
with team Apparel Online, the President
of BGMEA shares the reasons behind
the setback and measures being
taken to get the industry back on the
growth track.
Excerpts from the interview….
AOB: Industry has seen a very difficult
year, what are the factors that have
derailed the Bangladesh growth story?
“The industry is self-motivated. We have 67 ‘green’ factories, while 220 more
factories are on their way to get ‘green’ factory status. Moreover, seven
industrial units of the country have been ranked among the top 10 in a list of
the world’s 25 most environment-friendly factories.”
– Md. Siddiqur Rahman, President, BGMEA
22 Apparel Online Bangladesh | AUGUST 2017 | www.apparelresources.com
Rahman: Over the past 10 years we
experienced about 13 per cent growth
year-on-year, which had become our
benchmark, but this year, there is
practically no growth. There are several
reasons for the slowdown including the
fall of Euro, Brexit, US Elections and
also an unusually slow global economy.
Another thing is that dollar has also
depreciated by 4-5 per cent against
Bangladeshi Taka in last 4-5 years.
Indian currency is devaluated by about
30-35 per cent, Turkey by 102 per cent;
Vietnam, Cambodia, and even China’s
currency devaluated, whereas currency
of Bangladesh has appreciated – 1
Dollar was BDT 84, but now it is 80;