The Impact Of The Belt And Road Initiative On The Garment Industry Of Bangladesh

The ready-made garment industry in Bangladesh is one of the country’s most promising sectors,serving the worldwide market as the second biggest maker and exporter of garment products after China(M.J.,2014).The RMG business provides around 82 percent of Bangladesh’s total export income and nearly 16 percent of its GDP.In the future,it has the potential to remain a major player in this industry in the global market.Trade proposals among countries have been always a crucial factor to facilitate the business outcomes between parties or business entities.Considering the high duty charges;complex and lengthy procedures,different countries are now willing to find out and set specific regulations more than ever that would be favorable for each party.China,as an innovator and a promoter of the finest technologies and logistic supports in the infrastructure development segment,has initiated a massive project that might have an answer for policymakers.The One Belt One Road(OBOR);also known as China’s New Silk Road Proposal,initiated in 2013,would connect “149 countries including China are part of the BRI”(according to www.yidaiyilu.gov.cn),149 countries had signed Mo Us including Palestine,which is not an independent country under the United Nations.countries,accounting for two-thirds of the world’s population.Bangladesh has signed the initial agreement along with the other countries and has been working side by side to make this project a success.In the recent few years,China has encountered a significant increase in the cost of manufacturing garment items.Many buyers and manufacturers seek new locations to explore better business opportunities.Compared to that,the far cheaper labor market and other advantages of several resources make it a lucrative business junction.This opens the door for foreign direct investments(FDIs)in Bangladesh which will ultimately boost the RMG sector through this BRI.This research looks at how OBOR would affect Bangladesh’s garment sector and whether it would be beneficial for Bangladesh for being a partner to accomplish this project.