Maintain law & order and ensure gas supply to help industries seize opportunities in the global trade shift

I think the number one challenge for the country will be maintaining law and order. Since the change of regime, we now hold a unique position to improve our country's image by restructuring laws and regulations. I believe many investors are eager to invest in Bangladesh, especially with the return of Donald Trump, as businesses fear their long-term trade opportunities in China. Consequently, these investors are seeking alternatives to China. Countries like Vietnam and Indonesia are thriving with diverse product offerings, while Pakistan's business sector is declining due to irregularities. Bangladesh has the best opportunity to attract diverted business from China if it follows Vietnam's model rather than Pakistan's.

Secondly, Bangladesh's opportunity is huge since it is consistently competing with Opening Price Point (OPP) products such as basic t-shirts and underwear. Instead of merely increasing production lines in existing mills, we can focus on enhancing capabilities within these mills and adding value to our products. For example, we could manufacture printed t-shirts instead of plain ones, expand the capacity for embroidery, and invest in innovations such as moisture-wicking fabrics for sportswear. Such small investments can add value to our products and increase our FOB from $2 to $4–$5. Rather than increasing the volume, increasing the complexity of our products opens up a huge prospect for growth.

Energy is another huge challenge. We had a good last month with gas pressure, but as of today (4 Dec), we are again facing low gas pressure. As a result, it is hard to maintain a work plan. For example, if my fabric capacity is 40 tons, due to low gas pressure, only 25 tons are produced. So, if I have 100 lines, I can fully operate only 50 lines as we lack fabrics. This causes us to miss our buyers' schedules. I would suggest the government take a look at what the returns are per dollar. Instead of giving the gas elsewhere at a subsidised rate, the gas should be given to industries like textiles or garments where captive generation with combined heat and power is utilised at 90% efficiency. If this is done, these industries can bring in more foreign currency into the economy and generate more employment.

Azizur Chowdhury, Managing Director, J.M. Fabrics Ltd.

Click here to view the full New Year issue of Economic Intelligence Bangladesh.