With the post-pandemic opening up of the Western markets for Bangladesh's Readymade Garment (RMG) products, there has been a surge in work orders from the overseas buyers for apparel items. Understandably, to make the most of this situation a good number of new RMG production units are learnt to have sprung up between 2021 and 2022. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex body of the sector, has reportedly extended membership to some 110 new such RMG units. Obviously, the development is indicative of the growing vigour of Bangladesh's apparel sector which alone contributes around 80 per cent to the country's total export earnings.
But the important question that would naturally arise is if all these new ventures meet the compliance issues according to set standards. Also, there would be issues with some small-scale units that have grown recently with the sole purpose of working as subcontractors for the larger RMG units. On this score, the BGMEA will be required to be extra careful to ensure that the smaller subcontracting units may follow some basic rules regarding their workers' rights including their wages. It is believed that the BGMEA has been very meticulous in its approach while bringing in the new member units under its fold. Undeniably, the issue has an important bearing on the country's garment exports given the fact that the European and North American buyers are getting increasingly demanding about labour rights and the working conditions of Bangladesh's garment factory workers.
Hopefully, the fresh entrants to the industry will further strengthen the nation's already robust apparel sector, enabling it to grab orders leaving China and Vietnam in addition to the existing Western-origin ones. Even as one appreciates the growth prospects of the RMG sector, there are still reasons to be circumspect. And that is especially so against the backdrop of the current war in Ukraine following Russia's military campaign in that country. The development has triggered punishing economic and financial sanctions from the West against Russia, which is an emerging market for Bangladesh's apparel products. Naturally, the Western sanctions on Russia will have their widespread ramifications impacting Bangladesh's exports particularly to the region.
The BGMEA leaders would do well to factor this development into their overall plan of action to avert any negative fallout from the Ukraine war impacting the country's garment exports. It is worthwhile to note at this point that under the present conditions the Western governments are going to be more sensitive about their business interests in the rest of the world. That would require the RMG sector to be more prudent while strategising the sector's future growth plans.
Admittedly, so far, the export performance of the RMG sector has been remarkable. As reported in this paper, over the past six months in a row between September 2021 and February 2022, the country's export earning in a single month has on an average crossed US$4.0 billion. This is definitely a good piece of news for the nation's overall foreign exchange earning as it would offset to some extent the decline noticed in the amounts of foreign remittance receipts over the past few months. In this context, it is important that the growth trend in export that the garment sector evinced over the past few months is maintained. This would be vital for the economy when the world's financial market is in turmoil.