Title AALBORG UNIVERSITY HELPS THE BANGLADESHI GARMENT INDUSTRY Degree of recognition International Media name/outlet Aalborg University News Media type Web Country Denmark Date 01/05/2019 Description Researchers from Aalborg University seek to accelerate the internationalization process, improve the occupational health and safety capability and ensure the sustainability of garment companies in Bangladesh. The project receives 10 million DKK from Danida.
Garment is the lifeblood of the Bangladeshi economy earning 83% of the country's total export revenue. However, the Bangladesh is struggling to keep its position as the world's second-largest exporter of garments after China. Associate Professor of International Business and Strategy Mohammad Bakhtiar Rana is one of the AAU researchers in the Danida funded project. He describes the situation as follows:
- Bangladesh faces intensive competition from countries like Cambodia, Vietnam, Myanmar and Ethiopia as global brands search for cheap labor, low cost location and shorter geographical distance. While foreign retailers continue to offer low price for sourcing, cost of production in Bangladesh is rapidly increasing, which is not only limited to labor but also involved with occupational health and safety (OHS) arrangement and cost of doing business. This condition poses a big challenge for Bangladeshi garment industry where firms do not tend to focus on managerial capability development and innovation across the activities in value chain.
Producer/Author Torben Haugaard Jensen, Dept. of Business and Management URL https://www.news.aau.dk/news/aau-helps-to-improve-the-condition-of-the-bangladeshi-garment-industry.cid405831 Persons Mohammad Bakhtiar Rana