Deceptive procurement: Within the garment sector, there’s a concerning trend of false purchases, where manufacturers misrepresent transactions to the detriment of authentic suppliers. This practice, highlighted by Mahbubul Alam Shohag, Director (Marketing) at Dody Trims Ltd., not only diverts profits but also places genuine manufacturing units in financial jeopardy.
Delayed or incomplete payments: A delicate issue surfaces as some garment manufacturers, amid cancellations and payment delays intensified by the uncertainties of the Covid period, fail to honor their financial commitments to accessory suppliers. This non-compliance, particularly without back-to-back LC, poses significant challenges for survival in the industry.
Rising prices of raw materials: The accessories and packaging industry, heavily reliant on global sources for raw materials, faces a hurdle with escalating material costs. Unfortunately, domestic backward linkages struggle to provide these materials at a competitive rate, resulting in the closure of numerous such industries.
Inadequate competence in ensuring top-tier product quality: Insiders in the industry suggest that Bangladesh’s accessories and packaging manufacturers may benefit from enhancing their overall expertise to ensure the production of high-quality items, thereby enabling them to compete effectively on the global stage.