A up to date witness by the Bangladesh Institute of Building Studies (BIDS) has published that 40% of the country’s ready-made garment (RMG) businesses are grappling with delays in opening letters of credit score (LC) attributable to a shortage of US greenbacks.
Furthermore, RMG stakeholders are also struggling with customs-connected points, with 60% of witness respondents reporting mismatches in harmonised design (HS) codes at some point soon of raw area fabric imports.
The survey, conducted in June on 63 companies with focal point team discussions with RMG suppliers and stakeholders, also highlighted points corresponding to excessive monetary institution bills and delayed payments from customers.
The findings were shared as of late (8 December) on the second day of the “Annual BIDS Convention on Building 2024” at some point soon of a session titled “Expertise, Supply Chain, and Employment in Firms.” The convention is being held at a city lodge and ought to aloof continue till 10 December.
In the heart of the session, Monzur Hossain, analysis director at BIDS, presented a paper titled “Supply Chain Dynamics for Sustainable RMG Bid in Bangladesh” and outlined seven recommendations for the field.
With regards to half of of the respondents (46%) within the witness suggested lowering monetary institution transaction prices, while others emphasised introducing telegraphic transfers (TT), keeping a uniform USD commerce rate, standardising LC bills across banks, lowering tax charges, and adopting developed technologies.
Monzur also emphasised on the importance of effective provide chain administration to meet customers’ lead time requirements, stating that simply paying minimal wages is insufficient for commerce sustainability.
The document also illustrious that Bangladesh faces prolonged lead situations attributable to its geographic space and reliance on transshipment hubs corresponding to Singapore and Malaysia. Not like Bangladesh, competitors adore China, India, and Cambodia just like the revenue of increased self-sufficiency in shipping logistics, the document mentioned.
The session, moderated by Sajjad Zohir, executive director of the Economic Research Staff (ERG), also highlighted the challenges in sourcing supplies promptly from international suppliers, as per the reports findings.
Technological effectivity good points would perhaps per chance impact 18 lakh jobs
A 50% prolong in technological effectivity would perhaps per chance consequence within the loss of approximately 18 lakh jobs in Bangladesh, with the textile and willing-made garment (RMG) sector being basically the most impacted, in accordance to 1 other paper presented at some point soon of the same session.
The findings of this survey titled “How would technological progress impact employment within the manufacturing sector of Bangladesh? An empirical projection” were in accordance to the Solow roar model.
The model, on occasion called the Solow-Swan model, is a neoclassical economic model that analyses how a country’s output modifications over time.
Presenting the paper, Farhin Islam, a analysis accomplice at BIDS, published that 10 lakh job losses are expected within the RMG sector by myself.
The survey also identified completely different vulnerable sectors, including leather-basically based fully fully goods, meals merchandise, furnishings, pharmaceuticals, and plastic and rubber manufacturing.
Talking to The Industry Same old, Farhin clarified, “We found this assuming there would possibly be not any roar within the manufacturing sector.”
Nevertheless, the survey also published that, if the manufacturing sector grows by 10%, with a 50% rise in technological effectivity, the final job creation by 2025, would perhaps per chance surpass the losses, organising over 20 lakh jobs.
The survey projected job roar in sectors corresponding to meals processing, paper merchandise, coke and refined petroleum, non-steel mineral merchandise, and pc and electronics manufacturing.
“The unemployment we forecast will be great lower with labour-augmenting technology as adverse to labour-changing technology,” she mentioned, emphasising the want to upskill the labour force.
“If we are in a position to skill up the team, we are in a position to increase output while conserving jobs,” Farhin added, urging the manager to enforce extra measures for team pattern.
Session contributors also stressed out the social implications of technological adoption.
In the heart of the session, BIDS Director General Binayak Sen highlighted the importance of gender-basically based fully fully employment analysis in idea the broader impact of technological dispositions on the labour force.
