FROM PAGE B1

Participation in GVCs, especially in the apparel sector, has been central to Bangladesh’s export-led growth. It has also supported inclusive development by creating jobs -- particularly for women -- and reducing poverty.

The sector now accounts for most export earnings and employs around 4.5 million people, more than half of them women. Despite this progress, concerns remain about continued reliance on low wages and poor working conditions.

Efforts have been made to improve safety and sustainability in the industry, including the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety.

These were introduced after the Rana Plaza collapse in 2013, which killed more than 1,100 people in a building housing five garment factories. However, the report said these efforts are still not complete.

“Bangladesh has done very well in garments, but that is a very labour-intensive activity with little upgrading to higher value-added work,” said ADB Chief Economist Albert Park, speaking at a media briefing on the sidelines of the 59th Annual Meeting of the Board of Governors of ADB in Samarkand, Uzbekistan, which concluded yesterday.

He added that Bangladesh should look for opportunities to move up within GVCs.

“And also, for Bangladesh, there is such a concentration in this one export sector that it is very risky for the economy if something unexpected occurs that really affects that sector, as we have seen in the past,” Park said.

He added that Bangladesh should diversify into other sectors and allow easier import of inputs without tariffs.

“The same kind of treatment that readymade garments get should be extended to other sectors to expand opportunities,” he said. “And meanwhile, really think about opportunities to upgrade.”

Neil Foster-McGregor, principal economist at ADB, presenting the main findings of the report, said production processes are becoming increasingly capital-intensive.

He added that geopolitics and rising sustainability demands will reshape GVCs.

He said future competitiveness will depend on resilience, sustainability and firm capabilities, not just low labour costs.