SPOTLIGHT |
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it was BDT 77 for a long time . Competition among the sourcing countries has increased manifold . If you want to stay in this business , you have to be very cautious and competitive . Our market share is only 6 per cent whereas China enjoys 37 per cent .
These are all global problems over which we have no control . Besides , there are global propaganda against us which create more problems for the industry , as it generates a negative perception about the country , which is not true . Only last year , we had made commitment regarding amendment of EPZ laws governing labour , labour rights ethics and Bangladesh Labour Act ( BLA ), but there is no respite .
AOB : What are the threats that you foresee ?
Rahman : Our port capacity is very poor and it virtually always remains clogged . Following our complaints to the PM , she has given orders to open all the ports , 24x7 which is a good decision . Also , the Government is preparing to hire 4 cranes for the port . If you think about Dhaka air freight , the situation is even more chaotic . I ’ ve been fighting every day for the industry for the last 1½ years since I have been holding this post , and now finally last month , the Government has formed a committee to look into the issues regarding airport freight , but the situation is still far from what it should be .
I think the fresh thrust that the Indian Government has given to this sector could also make things more challenging for us . India is giving lots of incentives to its industry such as Rs . 6,000 crore cash incentives , upgradation fund of up to 30 per cent and even if one sets up a factory in some remote area like Odisha or Jharkhand , the State Governments will give Rs . 1,500 per month for every worker for 3 years . They are also enjoying bank loan with low interest rate . Also , India has its own resources – cotton , land , textile background , deep sea ports , etc . But we ’ ve nothing of our own . We don ’ t even have a deep seaport . That ’ s why our lead time is very high . Nowadays , fashion is changing rapidly , but we ’ re still struggling to reduce lead time , especially in
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woven garments , for which we have to still import more than 65 per cent fabrics from China , India and Pakistan .
AOB : What is the situation like on the compliance front ?
Rahman : For the industry , the Accord , Alliance and National Action Plan have created another set of challenges . We don ’ t find these types of agencies anywhere else in the world . Now they are expecting us to extend their tenure for another 3 years . They ’ re giving us new CAPs one after another and it has been challenging for us to fulfil their demand .
Yet , 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 , including for instance – Best woven factory , Best washing plant and Best spinning mill . But still the custodians of compliance are unhappy with our efforts . I have seen factories in Italy , Vietnam , Cambodia and even in China . Our factories are much better in terms of compliance . I ’ ve been in this business for last 34 years and seen lot of things . No country will allow you to pay unannounced visit to the factories but we allow announced or unannounced visits to the factories . The buyers came to visit our factory even before Rana Plaza tragedy and called all the workers on the floor to ask questions in terms of their wages , safety or other issues . We allowed all these things , which won ’ t be permitted in any other country . After all these manoeuvres , everybody is talking negative about us . Now we ’ ve decided that enough is enough … We ’ ve finally decided to raise our voice .
AOB : RMG sector is the lifeline of Bangladesh ’ s economy . Is it not a top priority for your Government to ensure a good conducive environment to work ?
Rahman : Our Government is very business-friendly and we have been getting very good support from our PM herself . But , the problem is that the product price is going down
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every day and this the Government can ’ t control . The reality is that Bangladesh is no longer a ‘ cheaper ’ destination . Though we ’ ve developed our efficiency level , we have also increased the wage range by 25 per cent . Today , we have a very productive workforce that is loyal but ‘ outsiders ’ are always trying to influence them to create unrest .
Everybody is talking about labour rights but nobody is talking about their responsibilities . Now we ’ re doing a social dialog project to train the workers about their rights and responsibilities . We have set up offices in different places . Retailer brands like H & M have also set up offices to train the workers . In our factories , we have a participation committee and also a safety committee .
We are even working to develop the middle management level , for which the new university is coming up to provide quality education . There are 9 training centres established in different remote places to train the mid-level employees and the workers . We even have some expert trainers to train them and have also been providing them job facilities .
AOB : What are the new directions to keep the growth momentum ?
Rahman : Exploring new markets have become very critical for growth ; there is a big market , each in Russia and China . We are also focusing on South Africa , Japan , and Australia apart from already catering to South America . Of all the potential markets , we consider Russia as the biggest market for us . We have requested the Government to seek out facility of duty-free entrance into this huge market . Japan is also a very good market . We know China has a very big domestic market of US $ 400 billion . Despite their significant global presence , we can find some space there for us .
We are also looking at new product categories and moving up in the value chain . In earlier days , we didn ’ t even know about R & D , but now many of our factories have product development teams , although the numbers are still small . Slowly but surely we ’ re learning , and hopefully , can produce some diversified products in the coming days .
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“ The reality is that Bangladesh is no longer a ‘ cheaper ’ destination . Though we ’ ve developed our efficiency level , we have also increased the wage range by 25 per cent . Today , we have a very productive workforce that is loyal but ‘ outsiders ’ are always trying to influence them to create unrest .”
– Md . Siddiqur Rahman
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