Some problems impeding RMG sector:
1.Bangladesh imports raw materials for garments like cotton, thread color etc. This dependence on raw materials hampers the development of garments industry. Moreover, foreign suppliers often supply low quality materials, which result in low quality products
2.In addition to the fact that the industry is vulnerable because it is highly dependent on the imported raw materials
3.Labor productivity in the RMG sector of Bangladesh is lower than many of its competitors. Bangladeshi workers are not as efficient as those of Hong Kong, South Korea and some other countries.
4.Most of the illiterate women workers employed in garments are unskilled and so their products often become lower in quality
5.Most factories, technologies used are not the latest
6.Insufficiency of loan in time
7.Uncertainly of electricity
8.Delay in getting materials
9.Infrastructure in the country is deplorably underdeveloped.
10.Problem in taxes and so on often obstruct the industry.
11.In the world market 115 to 120 items of dress are in demand where as Bangladesh supplies only ten to twelve items of garments. India, South Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable progress in garments industries.
12.Garments industries often pay dearly for political unrest, hartal and terrorism etc.
13.Inadequate port facilities result in frequent port congestion, which delays shipment.
14.The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005.
15.Destruction of twin tower on 11 Septemberâ€™ 2001 and invasion on Afghanistan and Iraq and depression in money economy.
16.The application of MFA had negative impact on many garments exporting countries. The countries, which were adversely affected by quotas under MFA, created pressure to discontinue MFA by integrating textile and clothing industries into GATT system. As a result, the Uruguay Round negotiations envisaged the phasing out of MFA by the end of 2004. With the phasing out of MFA, the position of Bangladesh in the world market will change as all countries including those under quota restrictions, will enjoy quota free status. Bangladesh will have to compete with a larger number of established and powerful suppliers of readymade garments.