Bangladesh’s exporters do not get fair and reasonable prices for their products. Reasons include lack of negotiation skills. Negotiation skills at both the entrepreneur level and government level and relationships with buyers are seen as important for reaping fair prices for export products. Exporters get lower prices for readymade garment products compared to Cambodian and Vietnamese exporters from global buyers. Buyers do not want to pay higher prices, although the cost of production will go up further with wage hike, port congestion and higher transportation cost.

Domestic competitiveness, cost of doing business, workplace safety, diversification of products and markets, skilled labor force, attracting foreign direct investment and technological advancement and automation in the production process are key to maintaining momentum in export growth.

Readymade garment workers in Bangladesh log in 60 hours a week. In Cambodia they work 47 hours a week. Also 54 per cent of workers in Bangladesh are paid below the minimum wage. The country’s entrepreneurs are being urged to provide a living wage to enhance productivity and meet the nutritional needs of workers. Another issue is that of lead time. This would be a matter of concern for RMG exports in future as the country might lose the cost advantage in coming days.