For the last few decades, the spectacular growth of textile sector in Bangladesh has dramatically changed the landscape of export composition of the country. Once heavily dependent on exports of primary products led by Jute, the economy of Bangladesh is now experiencing almost 80% export contribution from textiles & Readymade Garments (RMG). But the skills shortage at all levels of the industry from operator through to owner tend to lower efficiency which makes it critical to cope up with the global competition. To survive in this sector Bangladesh must take immediate pragmatic policies enabling it to compete more efficiently in the changing business environment through skill enhancement programs. ‘Skills for Employment Investment Program’ (SEIP) is such a program contributing in reducing the gap between demand and supply of skilled workers in the textile and apparel industry.
With the blessings of cheap labor and resilient entrepreneurs, Bangladesh has now an export goal of $50 billion within 2021. The Global Textile and Apparel, or T&A, trade is expected to grow to USD 1 trillion by 2020. Additionally, in the recent past global apparel markets have seen a paradigm shift, moving towards increased product differentiation, and catering to a diverse, aware, and demanding customer base. Retailers have thus gravitated towards demographic shifts, societal and economic influences and environmental concerns.
In the apparel industry, efficiency is considered to be the key indicator for measuring any manufacturing unit’s performance. Technopak analysis suggests that countries like China, India and Pakistan are producing goods at a higher rate of efficiency compared to Bangladesh or Vietnam (as mentioned in Exhibit 5).
In this scenario Government of Bangladesh has taken several steps to optimize the human resource of textile sector. A National Skills Development Policy (NSDP) was approved by the Government in January 2012. The NSDP emphasizes the imperative need to improve the supply of human resources with necessary skills and attitudes to meet the industry demand for skilled workers. The NSDP emphasizes the importance of better alignment of Technical and Vocational Education and Training (TVET) with skills development systems and industry skills demand.
The ‘Skills for Employment Investment Program’ (SEIP) is being implemented by Finance Division, Ministry of Finance. The project will support training providers to meet industry skill requirements; finance skills training of 260,000 trainees with 182,000 job placement; implement a vocational trainer development program; and implement a skills assessment, certification and quality assurance system. The project activities cover the whole of Bangladesh through both public and private sector training providers. Date of commencement of the Project was July 2014 and date of completion is December 2017.
The overall objective of the project is to qualitatively and quantitatively expand the skilling capacity of identified public and private training providers by establishing and operationalizing a responsive skill eco system and delivery mechanism through a combination of well-defined set of funding triggers and targeted capacity support.
Bangladesh Textile Mills Association (BTMA) is a trade organization of Primary Textile Industry involved in to facilitate members of the association to the development of Yarn Manufacturing, Fabric Manufacturing and Dyeing-Printing-Finishing of the textile products under private sector and it was registered in 1983. BTMA has taken a 3(three) years Project to implement Skill for Employment & Investment project for the employment Total outlay of SEIP Project will be Tk.39.95 crore of which ADB will give Tk.35.96 crore & BTMA will give Tk 3.99 crore. BTMA contribution will be in the form of rental & other incidental expenses for using the Space of BTMA and NITER for project office training purposes. The project will be implemented in 3 years beginning from Jan’2015. All 30960 persons will be trained under this project. Such Training will be given in 32 different disciplines of Spinning, Weaving & Processing to the different level Management staffs of Member Mills.
This project is targeting the strengthening of industry linkages towards its various stake holders e.g. government, employees. There is also a mandatory job placement condition imposed towards the industry association. Upon successful completion of the training program anyone can find his/her way towards the industry. Up skilling courses are designed to enhance the efficiency of current workforce.
- Bangladesh Textiles Mills Association (BTMA)
- Finance Division, Ministry of Finance, Government of the People’s Republic of Bangladesh
- Technopack Analysis