Bangladesh’s ready-made garment (RMG) accessories and packaging industry has experienced significant growth in recent years, driven by the widespread adoption of radio frequency identification (RFID) technology. According to the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), the number of local factories producing RFID products has soared from just 5-6 to 30 in the past five years, a figure that directly reflects the popularity of RFID technology in Bangladesh’s garment industry.
The rise of RFID technology has not only brought technological innovation to the industry, but also promoted the modernization of the entire industry. Using electromagnetic fields, RFID technology can automatically identify and track product tags, which can be read without direct scanning, greatly simplifying the inventory management process. In addition, the application of RFID technology has enhanced the security of retail spaces and provided merchants with a more efficient means of tracking goods.
Md Shahriar, president of BGAPMEA, pointed out that the demand for RFID technology is continuing to grow, and more and more buyers have expressed strong interest in this technology. As a result, more than 100 factories are ready to invest in RFID manufacturing in order to gain a place in the local market and direct exports. At present, the direct export value of accessories and packaging sectors has reached about 1 billion US dollars, and the certified export value has reached 8 billion US dollars. These data undoubtedly prove the huge role of RFID technology in promoting the export of Bangladesh's garment industry.
In addition to technological innovation, the application of RFID technology is also closely linked to the sustainable development plan of Bangladesh's garment industry. As EU legislation on environmentally friendly materials becomes increasingly stringent, manufacturers are actively investing in biodegradable and recyclable packaging materials. According to the Md Shahriar report, about 20% of Bangladesh's exported garments currently use this environmentally friendly material, and it is expected that this proportion will reach 100% by 2026.
It is worth mentioning that Bangladesh's accessories and packaging sector is currently able to meet more than 90% of local demand, an achievement that marks the sector's transition from past reliance on imports to independent production. Especially during the COVID-19 pandemic, the sector provided all the necessary accessories and packaging materials for the export industry, ensuring the normal operation of Bangladesh's garment industry.
However, despite the bright prospects, Bangladesh's garment accessories and packaging industry still faces some challenges. Small and medium-sized manufacturers have difficulties in obtaining foreign currency letters of credit, resulting in them having to purchase US dollars at higher over-the-counter market prices. In addition, these smaller entities also face higher interest rates, which further aggravates their competitive position with large companies. To overcome these challenges, the government needs to take measures to stabilize energy supply and factory safety to create a favorable investment environment for the industry.
Despite some challenges, Bangladesh's garment accessories and packaging industry has maintained a strong growth momentum. With the continuous promotion and application of RFID technology and the industry's increasing focus on sustainable development, the industry is expected to maintain its competitiveness in the global market. Md Shahriar is optimistic about growth in 2023 and hopes that the government will take measures to address the challenges facing the industry to ensure its continued development.
This paper is from Ulink Media, Shenzhen, China, the organizer of IOTE EXPO (IoT Expo in China)