This slide represents "Contribution of RMG sector in National Economy Of Bangladesh". Slide were made with the help of secondary data which was already available in the internet. you are free to use this slide. for feedback you can send me mail in - bassistbless@gmail.com
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3. Introduction
The economy of Bangladeshis largely dependent
on agriculture
RMG sector has emerged as the biggest earner of foreign
currency
The overall impact of the readymade garment exports is
certainly one of the most significant social and economic
developments in contemporary Bangladesh
Over one and a half million women workers employed in
semi-skilled and skilled jobs producing clothing for exports
Bangladesh is clearly ahead from other South Asian suppliers
4. Findings & Analysis
The role RMG sector in Bangladesh economy is remarkable. . It’s seen that, from the
last decade . RMG sector contributes to the national economy in considerable rate.
About 76% of total export earnings come from RMG sector.
Figure shows the total export of RMG products in different year
5. Total Number of garments Factory in Bangladesh according to
BGMEA
Year Number of
Garments
2010-11 5150
2011-12 5400
2012-13 5876
2013-14 4222
2014-15 4296
5150 5400
5876
4222 4296
2010-11 2011-12 2012-13 2013-14 2014-15
EmployeesNumber
Year
Number of Employees
6. Investment in RMG
Year Total Invested Amount in
Million US$
2010-11 25216.34
2011-12 26032.35
2012-13 30125.56
2013-14 28563.32
2014-15 27685.28
Source: CPD (Center for Policy Dialog Bangladesh)
25216.34
26032.35
30125.56
28563.33
27685.28
2010-11 2011-12 2012-13 2013-14 2014-15
Investment in RMG
Series 1 Column1
7. Total Export versus RMG Export of Bangladesh
Year
Total Export
Amount
RMG Export
Amount
2010-11 22924.38 17914.46
2011-12 24287.66 19089.69
2012-13 27027.36 21515.73
2013-14 30186.62 24491.85
2014-15 31198.45 25491.42
Data Source: Export Promotion Bureau Compiled by BGMEA
22924 24287
27027
30186 31198
2010-11 2011-12 2012-13 2013-14 2014-15
Amount
Year
Total Export
8. Total Export versus RMG Export of Bangladesh Comparison by year
Data Source: Export Promotion Bureau Compiled by BGMEA
0
5000
10000
15000
20000
25000
30000
35000
year 2010-11 2011-12 2012-13 2013-14 2014-15
AMOUNTINUS$
Comparison RMG Export vs Total Export
total expo. Amount RMG Expo. Amount
9. Strength, Weakness, Opportunity & Threat of Garments sector of Bangladesh
Strength
Considerable Qualified/keen to learn workforce available at low labor charges.
Energy at low price.
Easily accessible infrastructure like sea road, railroad, river and air
Accessibility of fundamental infrastructure, which is about 3 decade old, mainly
established by the Korean, Taiwanese and Hong Kong Chinese industrialists.
FDI is legally permitted.
Moderately open Economy, particularly in the Export Promotion Zones.
GSP under EBA (Everything but Arms) for Least Developed Country applicable
to EU).
Improved GSP advantages under Regional Cumulative.
Looking forward to Duty Free Excess to US, talks are on, and appear to be on
track.
10. Weakness
Lack of marketing tactics.
Absence of easily on-hand middle management.
A small number of manufacturing methods.
Lack of training organizations for industrial workers, supervisors and managers.
Autocratic approach of nearly all the investors.
Fewer process units for textiles and garments.
Time-consuming custom clearance.
Unreliable dependability regarding Delivery/QA/Product knowledge.
Subject to natural calamities.
Opportunity
EU is willing to establish industry in a big way as an option to china particularly for
knits, including sweaters.
Bangladesh is included in the Least Developed Countries with which US is committed
to enhance export trade.
Sweaters are very economical even with china and is the prospect for Bangladesh.
If skilled technicians are available to instruct, prearranged garment is an option
11. Threat
The exporters have to prepare themselves to harvest the
advantages offered by the opportunities.
Unless new strong market is explored in home or abroad, any
non-cooperation from USA & EU may jeopardize the whole
Bangladesh RMG export business and consequently the textile
manufacturing.
Sudden price hike of cotton and yarn in the global market may
push Bangladesh to a very awkward situation to devastate the
business.
The type of labor and political anarchies of the recent days if
prevails in the future, Bangladesh may lose the business in the
way Sri Lanka has lost.
12. The RMG industry is the backbone and motor of Bangladesh's economy
low labor costs have always been one of the competitive advantages for Bangladesh
garments in the global sourcing market
, Bangladesh is the seventh largest RMG exporter in the world
4,200 apparel factories export garments worth nearly US$ 10 billion, contributing
more than 75% to Bangladesh's total export earnings
The industry provides direct employment to over 2.3 million workers - mainly women -
and indirectly supports the livelihood of about 20 million people
, increasing production costs are putting the industry in a very precarious economic
situation
pressure from buyers has been increasing, demanding from suppliers' full compliance
with internationally recognized social and environmental standards
Assistance of Bangladesh Government to RMG
13. Women in the Garments Industry
The garment sector has provided employment opportunities to women
the rural areas that previously did not have any opportunity to be part
formal workforce
This has given women the chance to be financially independent and
voice in the family because now they contribute financially
Most women come from low income families
Low wage of women workers and their compliance have enabled the
to compete with the world market
Women are paid far less than men mainly due to their lack of
Particulars Figure
Total Worker 3.60 million
Total Women Worker 2.88 million (78%)
14. Political Problem : The first victim of confrontational politics is the garment sector as
the exporters face challenges in production, marketing, distribution of raw materials,
destruction of factories by the enraged political party supporters. The activities of the
stop for the confrontational politics. Workers cannot move up to the factories during
chaos like shutdown and political impasses.
Land Crisis : Many local and foreign investors are not getting adequate land for
establishing industries for scarcity of land even at higher prices. It will be very difficult
suitable industrial plot in the Dhaka, Mymensingh, Savar, Ashulia, Narayanganj and
industrial belts for setting up new industrial units.
Marketing and Price Negotiation Limitation : Majority of the first generation garment
entrepreneurs did not start their business with formal education. They started their
normally and got bigger later, although the second generation is very organized. S0
negotiation, which is very vital for sustenance of business, remained unattended to
Limitation of Garment Industry
15. It’s a prime duty for us to provide a perfect working place for the readymade
garments sector of Bangladesh which has given our economy a strong
footing, created jobs for millions of people, especially for women, lifted
them for the abyss of chronic poverty and given them a magnificent life.
Now what we have needed to do is dealing with all the challenges facing our
readymade garments industry, paving the way for its further development.
Conclusion