Professional Documents
Culture Documents
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Department of International
Business
University of Dhaka
Started in the late 1970s
Exports RMG mainly to USA & EU
RMG industry is the only multi-billion- dollar
industry in Bangladesh
76% of the total export earnings
Nearly 10% of GDP
About 4,000 garments factories
Employing approximately 2.5 million
people, among which 80% are women
The RMG industries are located mainly in 3
cities: Dhaka, Chittagong and Narayangonj
Manufactures mainly two kinds of
garments-
Woven
Knit
To gather knowledge about the overall
scenario of Ready Made Garments Sector of
Bangladesh.
To know about the contribution of RMG
sector in economic development of our
country.
To identify what factors are affecting the
growth of this sector.
To know the competitive advantage of
Bangladesh in this sector.
Current scenario of Readymade Garments
Industry.
Reasons for the growth in this Sector.
Reasons for having competitive advantages
in this Industry.
Economical and financial effect of this
Sector in our national macroeconomics.
Primarydata
Secondary data
Newspaper
Internet
Magazine
Annual Report of BGMEA & CPD
Emergence of Knit-RMG
Product Diversification
Incremental Export Growth
Employment Creation and Wage Bill
Backward and Forward Linkages
Banking and Insurance
Shipping and Logistics
Transport Communication
Professional Services
Information and Communication Technology
Real Estate
Waste Recycling Industry
Emerging Consumer Market
Engineering Sector
Utility Services
Hotel and Tourism
Contribution to Government Exchequer
Number of Segments
First tier factories are inside the EPZ: Have direct
links with
International buyers
Modern equipment
Better quality assurance
A large relatively skilled and educated workforce
Generally better working conditions
Second tier factories are outside the EPZ: Have
a direct, often long-term, relationship with their buyers
and hence some reliability in their orders.
Third tier: which merges imperceptibly with the
informal economy.
External Challenges
Lack of popular brand name
Global economic turmoil
Competition with new giant players
Export of commodities
Internal Challenges
No natural resource endowment
Low wages,
Establishing backward linkages
Lacks adequate facilities
Export competitiveness in the United
States market
1990 2005
Bangladesh has experienced both
quantitative and qualitative changes in
exporting garment products to the
European Union market.
Productdiversification in Bangladesh is
lower than that of India and China
Bangladesh failed in cutting the price in
comparison to China & some other
competitors.
Lead time
Shortening the lead time is the most urgent
priority task for Bangladesh.
Theyarn & fabric-manufacturing capacity of
the country increased over time.
Compliance issues
In
addition to speedy supply, the social
dimensions of the RMG industry are getting
more attention from consumers, social
workers, welfare organizations and brand
name international buyers.
Itrequires special attention to ensure the
long-term sustainability