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This study seeks to focus on issues relating to i) continuation of fast growth in the basic garment sector; ii) providing an environment for encouraging export of mid and higher-value garments; iii) possibilities for diversification into IT-enabled services-business process outsourcing, or ITES-BPO; and iv) drawing some more general lessons for overall export growth.

See Less - Basher, Abul; Kathuria, Sanjay; Moorty, Lalita. Consolidating and accelerating exports in Bangladesh.

“But development in exports cannot be taken for granted.

Second only to China, Bangladesh’s garment exporting sector will need to participate with the impact of an already huge base and major market share in key markets.” Exports can grow quickly, the report suggests, but only if “critical bottlenecks” are addressed – the first of which is the provision of successful trade logistics.

Indeed, faster export growth will be critical if Bangladesh is to achieve the accelerated growth necessary to reach its goal of becoming a middle income country by 2021.

The focus of this study is to analyze the constraints to continued rapid growth in overall exports.

In the meantime, it warns that Bangladesh’s skills gap is “increasingly visible in all manufacturing sectors, and maybe more so in the garment sector”, where it reports a high refusal rate for final goods.

Several Chinese members have visited Bangladesh in the recent past, to discover the impending clothing industry (RMG) in the country. Shafiul Islam, President of Bangladesh garment manufacturers and exporters Association (BGMEA), “different groups and Chambers on behalf of the Chinese textile and garment sector of Bangladesh in the recent past have visited.” He adds that “In fact, a team of representatives from a Chinese Chamber of commerce visited us this week back and try these teams who postponed clothing by the sector of Bangladesh to explore”.

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Indeed, such knowledge is critical for better and more effective lending approaches, and for supporting the Bank's policy dialogue with Government." While China’s wage growth presents major opportunities for countries with less expensive labor, Bangladesh will need to overcome significant bottlenecks to ensure that its exports continue to grow at the pace seen over FY05-10, when dollar exports nearly doubled." According to the report, “Consolidating and Accelerating Exports in Bangladesh” exports can grow faster, provided critical bottlenecks are addressed.Bangladesh needs to improve its trade logistics and infrastructure, increase supply of skilled manpower, and ensure compliance with Government’s labor standards.Effective trade logistics will give Bangladesh a competitive edge in exports of garments as well as other products.

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Indeed, faster export growth will be critical if Bangladesh is to achieve the accelerated growth necessary to reach its goal of becoming a middle income country by 2021.