Bangladesh’s readymade garment industry, along with five other sectors, has been identified as the highest potential growth sector for the coming decades, according to a new survey.
LightCastle Partners, a Bangladesh-based think tank, unveiled the findings of the survey of 102 top executives across 12 leading Bangladeshi industries in two major cities, Dhaka and Chittagong, at a programme held at capital Dhaka’s Lakeshore Hotel on February 2, 2018.
The confidence index aims to appraise the business point of view of private sector players representing a variety of industries across the economy.
The survey showed that business confidence went up from “low-to-moderate confidence of +39” in 2016 to “a cautiously optimistic confidence level of +43” in 2017. The index is determined on a scale of -100 to +100.
However, several serious concerns including the classified loans condition, bureaucratic red tapes for doing business, recent slump in readymade garment items prices, transportation and logistical hassles and infrastructure bottlenecks such as port congestions are decelerating the natural growth rate of the business.
Moreover, power outages have increased production costs and final prices as businesses including the apparel manufacturing have to heavily depend entirely on their personal backup generators. The business leaders feel a raft of actions can help improve the current scenario along with investor confidence.
Bijon Islam, Chief Executive Officer (CEO) of LightCastle, told Apparel Resources that Bangladesh needs to shift export reliance on the garment sector, facilitating the ease of starting and doing business, and improving infrastructure and logistics.
“A deeper look on the report suggested business leaders are confident on verticals like power and energy, ICT, and agriculture, while cautious on sectors like readymade garment, banking and finance, real estate and logistics,” Islam maintained.