The Bangladesh Bank (BB) suggested increase in workers' salaries to enhance labour productivity. "Wage should be revised along with other benefits commensurate with cost of living," said the central bank.

BB in a study published in its July-September quarterly said the higher competitiveness of Indian and Chinese units is a threat to Bangladesh's factories in global RMG market.

India and China enjoy relatively high labour productivity and apply more capital intensive modern technologies, the BB added.

The central bank said efficient port services are needed to help apparel factories reduce lead time to become competitive.

Both India and China have advantages in lead time as they get locally available raw materials like fabrics and RMG accessories, the BB said.

The country's RMG products are highly concentrated on low value items such as boys/men's shirts, T-shirts, women's skirts and blouses.

"These items have relatively low rate of profit and face fierce competition from other countries' producers in the post-MFA world," the BB study added.

One of the important weaknesses in Bangladesh RMG sector is the relatively inadequate development of backward linkage industries, the central bank said.

There are insufficient numbers of establishments such as textiles and accessories industries in the RMG sector and they can barely meet the local requirement.

The BB study also highlighted the abundant and cheap labour force and their skill as the strength of the country's RMG sector.

"Our labourers and managers have acquired skill. Therefore, the garment workers have already proved themselves as efficient in needlework," the study mentioned.