Collaboration between stakeholders vital to recovery of apparel sector

Dhaka (Jan 16, 2021): A collaborative approach between the sourcing and supplying countries, brands and suppliers are the key to ensure better recovery of the apparel sector from the impacts of the Covid-19 pandemic.

Speakers told this at a virtual dialogue on “Recovery of the apparels sectors from the Covid-19 Crisis: Is a value chain-based solution possible?” organised by the Centre for Policy Dialogue (CPD) in partnership with Southern Voice on Saturday.

CPD and Institute of Policy Studies of Sri Lanka jointly conducted a study on the topic, which was revealed at the programme. Commerce Minister Tipu Munshi attended the dialogue as chief guest.

Speakers said the global apparel value chain has experienced an unprecedented disruption in view of the Covid-19 pandemic.

Unlike the earlier crisis, all kinds of activities across the value chain collapsed due to this pandemic, which has adversely affected the up-and-down stream including apparel suppliers, workers, raw material suppliers, brands, and consumers, they noted.

Tipu Munshi said that the government is trying to revive the trade through stimulus packages. In the medium-term, he suggested that Bangladesh should look for new markets through product diversification.

“A collective effort from the brands, buyers, manufacturers and the governments are very vital for the recovery,” he said.

Harry Verweij, Ambassador of the Kingdom of the Netherlands, agreed to the findings of the study presented and expressed interest in working collaboratively with CPD further in the future.

He highlighted how the Government of Netherlands had advised its brands to not cancel orders even during the second wave of the pandemic. He opined that despite the harm due to the Covid-19, the pandemic had opened an opportunity to move towards a people and planet positive garments industry.

Prof Rehman Sobhan, chairman of CPD, suggested a regional response for assisting the suppliers and the supply chain. He also proposed a micro-insurance to ensure the security of the labourers.

“Such social insurance programmes would also require a collaborative approach from the buyers, manufacturers and the government,” he said.

Rubana Huq, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that the apparel sector of Bangladesh could take an inward-looking approach.

“Bangladesh can focus on local demand, as there is a lack of global demand,” she said.

She also added that the small and medium enterprises are financially challenged during this pandemic, and the credit programmes are not reaching these firms.

CPD’s Executive Director Dr Fahmida Khatun shared that the study explored a value-chain based solution for the suppliers of Bangladesh.

Dr Khondaker Golam Moazzem, research director of CPD, made the keynote presentation on the findings.

He stated that the study found that the lack of initiatives of major market players has kept suppliers and the workers in uncertainty to address the medium-term challenges.

Dr Moazzem also shared that major market players, including brands, buyers and governments of sourcing countries, will have to undertake responsible business practices for sustainable recovery. To ensure the earliest recovery, a framework of a value chain based distributive approach was proposed in the presentation.

K M Abdus Salam, secretary of the ministry of labour and employment, Syed Sultan Uddin Ahmmed, specialist on worker activities at International Labour Organization (ILO), Amirul Hoque Amin, president of National Garments Workers Federation, Kalpona Akter, Executive Director, Bangladesh Center for Workers Solidarity and Ziaur Rahman, regional country manager of Bangladesh, Pakistan and Ethiopia of H&M also spoke among others on the occasion.