Speakers at a meeting on Thursday underscored the need for export diversification, enhancing productivity and competitiveness to withstand future trade challenges and maintain global market access alongside framing proactive policies to build resilience.
They were speaking at a breakfast meeting organized by the American Chamber of Commerce in Bangladesh (AmCham) on 鈥楤angladesh鈥檚 RMG Sector: The Way Forward鈥� at a hotel in the capital.
Mahmud Hasan Khan, president, BGMEA, along with Faisal Samad, director, BGMEA, attended the breakfast meeting, said an AmCham press release here.
Speaking on the occasion, AHM Ahsan, chairperson, Bangladesh Competition Commission, emphasised vertical diversification within the RMG sector moving from low to high value production to build export resilience.
With the US tariff hike and upcoming LDC graduation, he described the situation as a 鈥榳ake-up鈥� call for enhancing productivity and competitiveness to withstand future trade challenges and maintain global market access.
Md Anwar Hossain, vice-chairman, EPB, highlighted policy reforms, including a proposed bank-backed bond facility to support partial exporters, enabling duty-free imports with bank guarantees.
He said strengthened US-Bangladesh ties offer new export opportunities, while a new 鈥�$100 billion RMG Export Cell鈥� will streamline coordination on energy, banking, and tax issues with BGMEA, BKMEA, and others.
With enhanced collaboration and sector diversification, Anwar believed that Bangladesh can reach $100 billion in exports by 2027-2028.
Mahmud Hasan Khan, president, BGMEA, highlighted energy shortages as a major challenge for RMG growth, particularly for gas-dependent backward linkage industries, with only two FSRUS (Floating Storage and Regasification Unit) currently operational.
He urged infrastructure expansion and criticized the abrupt cancellation of 54 LOIs, calling for renegotiation to protect investors鈥� confidence.
Welcoming the Merchant Power Purchase Agreement for solar energy, he cited land scarcity as a barrier.
With fewer than 3,000 of BGMEA鈥檚 7,100 members still exporting, Mahmud said the association is stepping up support to boost efficiency and ensure sector resilience.
In his opening remarks, Syed Ershad Ahmed, President, AmCham, highlighted Bangladesh鈥檚 heavy reliance on exports, with garments accounting for 81.5 per cent of total exports and 11 per cent of GDP.
The EU and US take over 40 per cent and 17.6 per cent of exports respectively, leaving the economy highly exposed to global trade shifts, he added.
Bangladesh鈥檚 export dependence on Western markets exceeds that of India and Vietnam.
Citing ADB and World Bank, he cautioned that US tariff hikes could cut GDP growth by 1-2 percentage points, while trade uncertainty and protectionism threaten investment and financial stability.
With a 1 per cent tariff rise reducing global trade by 0.5-1 per cent he stressed the need for diversification and proactive policies to build resilience.
Other participants highlighted key challenges in Bangladesh鈥檚 export sector, including energy insecurity, lack of major global sportswear brands, and weak backward linkages.
They emphasized the need for policy coherence, automation, green manufacturing, solar energy, and logistics upgrades.
High costs, tight liquidity, and weak risk governance were also raised, with calls for stronger collaboration, skills development, and actionable roadmaps to boost productivity, attract investment, and drive sustainable growth beyond RMG.
Gazi AKM Fazlul Haque, director general (investment ecosystem), Bangladesh Investment Development Authority (BIDA) and Mohammad Naziur Rahman Miah, first secretary (customs: export and bond), National Board of Revenue (NBR) also contributed to the dialogue.
Paul Frost, commercial counselor, US Embassy, and Leena Khan, labor attach茅, US Embassy were also present in the dialogue.
AmCham treasurer, Al-Mamun M Rashel, AmCham members from the RMG sector, economists, academicians, and other relevant stakeholders were also present in the dialogue.
The dialogue concluded with a call to foster more such discussions where key challenges can be openly raised and considered by relevant ministries and regulatory bodies.
These platforms are essential for bridging the gap between government institutions and businesses, enabling all stakeholders to work collaboratively toward practical, coordinated solutions.
After the presentation and remarks, attendees shared their challenges and suggestions for policy alignment in the Bangladesh鈥檚 RMG sector.
At the end, ASM Mainuddin Monem offered the vote of thanks.
