The plan is expected to improve efficiency at factories, which in turn is expected to increase the competitiveness of Bangladesh’s factories – particularly in the apparel sector – at the international market. Eventually, this is expected to create a robust export growth. The long-term plan is aimed at boosting productivity not only at apparel factories but also at the other manufacturing and processing sectors in Bangladesh.
Bangladesh’s apparel sector occupies around 83 per cent of the country’s export basket. Apparel manufacturers recently raised workers’ wages in Bangladesh. This is one sector they have identified that can cover up the additional costs and bring in profits. This will be even more effective if Bangladesh manages to properly brand its products in the apparel market. One key aspect where there is room for improvement is the efficiency of workers. The efficiency level of workers in Bangladesh is between 40 per cent and 45 per cent – much lower compared to competing countries like Vietnam and Sri Lanka.