Factories are scattered and their backward linkage industries also developed in a very scattered manner, as a result in maximum cases production related utilities and supports are being managed far away from manufacturing unit. The process of completion of a RMG Product requires 4-8 production stages. For Knitting, dyeing and printing or for any other technical value addition purpose, in almost all cases, a RMG product has to travel 50 to 100 KM from the main factory. It is wastage of valuable time and affects the quality of the products, as well as increases production cost. That is why factories are not receiving the benefits of clustering due to existing scattered industrial set up.

BKMEA thinks that the establishing economic zones namely ‘Knit Village’ for the sector would be a remedy of these production problems, as ‘Knit Villages’ will intake all kinds of factories in a selected area and significant manufacturing unit can be established within this area. These factories will be eligible to complete all their production stages within the area and factories such as knitting, printing and dyeing could also provide their support in a structured way there. A central Effluent Treatment Plant (CETP) can be constructed for this zone which will not only be an effective way of ETP operation but also reduce huge cost of ETP. Similarly central energy plant can be established which will give the guarantee for uninterrupted power supply. Again these factories could be developed in a planned manner following compliance requirements of international buyers.  Eventually an efficient and self sufficient RMG production can be possible in this knit village.

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IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments.

About IFC-BICF

IFC Bangladesh Investment Climate Fund (BICF) is a long term technical program targeting a better operating environment for businesses. IFC-BICF is funded by UK Department for International Development (DFID) and the European Commission (EC). Its objectives are consistent with the Bangladesh Governments Strategic vision for private sector development within its poverty reduction strategy. Government agencies and IFC-BICF in close collaboration with Key stakeholders–jointly design and implement programs to institute business friendly policies, laws and regulation, and strengthen the institutions that implement them.