The gross value addition (GVA) of readymade garment (RMG) business, country’s biggest export wage earner, remained virtually static between seventy and seventy five percent within the last decade chiefly.
Analysis of variety of quarterly reports of Bangladesh Bank on worth addition of fashion industry counsel such worth addition scenario.
One can well review what the circumstance of significant value addition resembled even 10 years back. That the nation had the option to expand value addition from a pitiful 20-30 percent to well more than 75 percent is no little achievement. At the underlying stage when Bangladesh went into trading clothes, the main value that could be added to completed items was that of cutting and sewing. From such a state, higher value started to be included different checks mostly from the accessibility of domestic fabric and a large group of accessories related with piece of clothing generation.
Credit must go to the business visionaries in the textile division, who made extraordinary endeavors to set up textile mills, including composite fabric plants, with huge speculations. This is especially noteworthy for a nation that had basically no textile base. As imports were available to sustain the piece of clothing industry, rise of these local fabric plants confronted genuine difficulties. Be that as it may, steadily, utilization of local materials was observed to be a favored choice by the abroad merchants. This is the means by which, value addition ended up being an amazing accomplishment in our clothing exports. Clothes made in Bangladesh is getting a place to higher class customers in Europe and North America.
As referenced, it is no mean achievement that Bangladesh’s RMG industry today is presently in a situation to bring more than 75 percent value addition. Normal value addition from the monetary year 2010 to FY 17 stayed at around 75.0 percent. In the financial year 2014-15, value addition topped at 75.67 percent, as indicated by a Bangladesh Bank report. In the last monetary year (2016-17), net value addition fell by 0.28 percent. The national bank readies the report on value addition considering yearly information on RMG fares and import of crude materials under consecutive letters of credit. In the FY’17, import costs of raw materials remained at over $7.0 billion through consecutive L/Cs which was 24.93 percent of all out RMG export value. Value expansion of sew items is accepted to associate with 90 percent and that of woven items around 50 percent. At times, value addition of the two clothing items changes.
In the interim, the division individuals are presenting the most recent innovation and redesigning technology to improve the nature of the texture for value added items.
A few business people are creating value added items for outside customers. Denim items have open door for gigantic value addition through different washing. Even jogger pant manufacturers in Bangladesh can add value addition on their garments including shirts, sweaters, knit tops, ladies dresses.
The accessories and packaging ventures likewise have ability to fulfill more than 98 percent need for export-oriented RMG industry.
In addition, the businessman is working and supporting manufacturers to integrate the latest technology as it will help to add more value to garments.
Bangladesh has an opportunity to yield more value added products through research and development. Many local trades have established research and development (R&D) divisions to develop value added products, the BGMEA president added.