Industry leaders and policymakers on Monday urged Bangladesh's apparel and textile sectors to rapidly embrace artificial intelligence (AI), automation, Industry 4.0 and higher value-added manufacturing to remain globally competitive and successfully navigate the challenges of post-LDC graduation.

They observed that future competitiveness would depend less on low-cost manufacturing and more on productivity, innovation, sustainability and technology-driven production.

The observations came at the inaugural session of the two-day BAYLA Future Summit 2026, organised by the Bangladesh Apparel Youth Leaders Alliance (BAYLA) in Dhaka.

Labour and Employment Minister Ariful Haque Chowdhury said the apparel sector remains one of the key pillars of Bangladesh's economy and a major source of employment, making it essential to develop skilled, innovative and responsible young leaders to sustain its long-term growth.

He said the government was working to ensure a balanced industrial environment that protects the interests of both employers and workers, adding that reskilling and upskilling the workforce for a technology-driven industry had become imperative.

The minister also said new policy initiatives were being formulated to support sustainable industrial growth and employment generation, urging young entrepreneurs to create opportunities rather than wait for them.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the industry's future would depend not only on low production costs or market access but also on higher capabilities, productivity and adaptability.

He warned that garment factories would struggle to remain competitive without adopting AI and digital technologies, adding that businesses embracing digital transformation would gain a significant competitive advantage.

Crediting earlier generations for making Bangladesh the world's second-largest apparel exporter, he said the responsibility now lies with younger leaders to steer the industry towards sustainable, technology-driven growth.

Vidiya Amrit Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the industry must move beyond basic contract manufacturing towards innovation, branding and value creation as the next generation faces greater challenges, including sustainability compliance, geopolitical uncertainties and the realities of post-LDC trade.

She said manufacturers should stop competing solely on price and instead negotiate with global buyers for fair pricing and shared responsibility for compliance costs.

Describing AI, automation and Industry 4.0 as essential to improving productivity, she noted that many factories have yet to meaningfully integrate these technologies and pointed to Bangladesh's relatively low factory efficiency compared with competing countries.

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