Policy Roundtable on Sustainable Growth of Apparel Sector

LightCastle Partners Organizes Roundtable Policy Dialogue on Sustainable Apparel’s Future

In a concerted effort to align the perspectives of industry leaders and policymakers, LightCastle Partners, in collaboration with Policy Exchange, arranged a policy roundtable discussion on May 11, 2024. This roundtable event provided a platform for prominent figures to articulate their concerns and propose potential solutions.

Such initiatives underscore LightCastle’s commitment to fostering collaboration within the apparel industry, leveraging research, engaging with the private sector, and advocating for meaningful change.

The dialogue event convened an esteemed gathering of industry leaders, policymakers, and development partners to delve into the multifaceted challenges looming over the impending transformations in the apparel sector.

At the core of the policy roundtable’s objectives was a resounding call for strategic interventions to address pressing issues, including the dollar crisis, and exchange rate fluctuations in the apparel export market, the transformative impacts of the 4th industrial revolution, the implications of Least Developed Country (LDC) graduation, decarbonization, and geopolitical tensions, among others.

These challenges collectively threaten the sustainable growth trajectory of the garment industry. The event, titled ‘Policy Roundtable: Future-Proofing Bangladesh’s RMG Sector- Navigating Industry Shifts by 2030,’ served as a pivotal component of the Bunon 2030 program, reflecting a proactive stance towards safeguarding the industry’s resilience amidst dynamic shifts.

The roundtable discussion was held as part of the Bunon 2030 initiative under the “Oporajita: Collective Impact on the Future of Work in Bangladesh” project, supported by The Asia Foundation and funded by H&M Foundation. Bunon 2030, an initiative under this project, aims to address industry challenges such as the impact of automation, circularity and decarbonization, upcoming LDC graduation, and the well-being of women apparel workers to foster sustainable growth in Bangladesh’s garment sector.

Ainee Islam at the Policy Roundtable of sustainable apparel's future

The session commenced with an opening remark from Ainee Islam, the Director of The Asia Foundation. She emphasized the importance of the ‘Oporajita’ and the pivotal role played by all implementing partners. She underscored collaboration as the main focus of the program, stating,

“Concentrating on women workers in the Ready-Made Garments (RMG) sector, the advent of the Fourth Industrial Revolution is significantly jeopardizing their roles. Therefore, the Oporajita initiative aims to equip workers with the necessary abilities to navigate the impending wave of automation effectively. Moreover, we are committed to establishing an enabling workplace environment conducive to the long-term retention of women employees.”

Following that, a keynote presentation titled “Policy Discussion: Navigating Industry Shifts by 2030,” was delivered by Zahedul Amin, Co-founder & Director of Finance, Strategy & Consulting Services at LightCastle Partners. The presentation shed light on the impending crisis expected beyond 2026 as LDCs, including Bangladesh, facing the loss of trade benefits and increased labor costs. Moreover, losing out on GSP benefits will hamper the industry’s competitiveness on a greater scale.

Zahedul Amin at the Policy Roundtable of sustainable apparel's future

Subsequently, the roundtable discussion was moderated by Dr. M Masrur Reaz the Chairman of Policy Exchange Bangladesh. As guest of honor, Md. Ariful Haque, Director General of Bangladesh Investment Development Authority (BIDA), Md. Abdur Rahim Khan, Inspector General of the Directorate of Inspection of Factories and Establishments, and Mohammad Hatem, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) graced the event.

Dr. M Masrur Reaz led the discussion by underscoring the importance of sustainability in the whole supply chain of the apparel industry. He stated that “Embracing sustainability is no longer a choice but a global mandate, as evidenced by the stringent criteria such as EU Due Diligence and Green Deals, alongside environmental regulations like Extended Producer Responsibility (EPR) and Environmental Product Responsibility, which are prerequisites for countries engaging in export-driven endeavors”.

Masrur Reaz at the Policy Roundtable of sustainable apparel's future

During the event, Ariful Haque emphasized the need for increasing engagement between stakeholders and the policymakers while stating “Policymakers can engage in consultations with pertinent stakeholders to craft effective export-oriented policies tailored to the needs of the apparel sector in Bangladesh”.

Ariful Haque at the Policy Roundtable of sustainable apparel's future

Md. Abdur Rahim at the Policy Roundtable of sustainable apparel's future

While Md. Abdur Rahim Khan stressed the importance of undertaking innovative solutions by emulating successful models like the Product Linked Incentive (PLI) scheme in India, where tailored mechanisms could be devised to support and incentivize the Bangladeshi apparel export market.

Side by side, Mohammad Hatem suggested providing duty-free access to importing raw materials for the production of Man-Made Fibers (MMF) to facilitate fiber diversification in the local apparel industry of Bangladesh.

Mohammad Hatem at the Policy Roundtable of sustainable apparel's future

The discussion further highlighted the significance of policy reforms to hold Bangladesh’s competitiveness in the global apparel export market. In response to the discussions, Md Selim, Deputy Secretary of Ministry of Commerce, highlighted the need for Free Trade Agreements (FTAs) to necessitate diversification of the export basket. Bangladesh could adopt a product-based business model and invest in sector-specific initiatives to facilitate the transition away from reliance on the Ready-Made Garments (RMG) sector.

Md Selim at the Policy Roundtable of sustainable apparel's future

Additionally, representing the industry Shams Mahmud, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Managing Director of Shasha Denims, addressed job creation avenues. He proposed the establishment of recycling firms, such as those focused on plastic recycling yarn, as a means to generate employment opportunities and reduce waste simultaneously.

Shams Mahmud at the Policy Roundtable of sustainable apparel's future

The event concluded with closing remarks from Faisal Bin Seraj, Country Representative of The Asia Foundation. He emphasized the importance of such dialogues as a platform for fostering a deeper understanding of the current dynamics within the RMG sector; highlighting the pivotal role of these discussions in creating an enabling environment for women apparel workers, thereby contributing to their empowerment and advancement within the industry.