November 08, 2015

Readymade Garmets (RMG) of Bangladesh

Readymade Garmets (RMG) রপ্তানিতে বাংলাদেশ পৃথিবীর দ্বিতীয় বৃহত্তম দেশ।
বাংলাদেশের মোট রপ্তানি আয়ের ৮০% হচ্ছে গার্মেন্টস শিল্প। এদেশের ব্যাংকিং সেক্টরের বৈদেশিক বাণিজ্য মানেই গার্মেন্টস শিল্পের জন্য তুলা/সূতা/মেশিনারি আমদানি আর ইউরোপ আমেরিকায় তৈরি পোশাক রপ্তানি।
আসুন আজ বাংলাদেশের Readymade Garmets (RMG) সেক্টরের কথা জানি।
Bangladesh, the southern Asian country has a population of approximately 164 million people.
Readymade garments (RMG) sector of Bangladesh has raised as the biggest earner of foreign currency.
This sector creates about 4.20 million employment opportunities and contributes significantly to the GDP.
Facts and Notes:
> Major RMG importing country from Bangladesh is USA
> Major RMG export from Bangladesh to Europe Area.
> Total Country export of FY 2014-15 is more than USD 30 Billion
> Export target for RMG for FY 2014-15 is more than USD 26 Billion
> Worker involved in RMG industry more than 4.00 million
> "Accord" is a Fire and Building safety inspection agency of Europe
> "Alliance" represents North American apparel companies and retailers
> BGMEA means Bangladesh Garment Manufacturers and Exporters Association
> BKMEA means Bangladesh Knitwear Manufacturers & Exporters Association
> BTMA is Bangladesh Textile Mills Association
> Bangladesh contributing 4% to 5% of Global RMG market share
> Global Apparel market is approximately USD 400 Billion
> Total RMG export of FY 2014-15 is more than USD 24.58 Billion
“Desh Garments” is the pioneer of Bangladesh RMG sector. In 1979, Desh Garments started a joint project with South Korean company “Daiyuu”.
Quota system was a great blessing for establishing our garments industry.
Quota system was end in the year 2004.
In RMG sector of Bangladesh, there are more than 5000 garment factories (private statistics) at the current time, employing more than 12 lack labors, where 85% of the labor force is women.
Now, RMG industry is the countries largest export earner with the value of over USD 24.58 billion of exports in the last financial year (2013-2014).
Bangladesh is clearly ahead from other South Asian suppliers in terms of capacity of the Readymade garments industry.
All the Readymade garments are classified into 2 broad categories, where one is woven products and another one is knitted products.
Woven products includes: Shirts, Pants and Trousers.
Knitted product includes: T-Shirts, Polo Shirts, Undergarments, Socks, Stockings and Sweaters.
Woven garments still dominates the export earnings of the country.
Now about 40% export earnings has achieved from knitted products.
Key factors of RMG sector:
1. Vast labor force,
2. Skilled human resources,
3. Technological upgrades,
4. Government supports for textile and clothing,
5. Special economic/export processing zones,
6. Creation of textile and clothing villages,
7. Incentive for use of local inputs,
8. Duty reduction for the import of inputs/machines,
9. Income tax reduction,
10. International supports like GSP, GSP+, duty free access etc.
Challenges for RMG Sector:
RMG sector of Bangladesh has achieved the second spot for the highest number of garments exporter.
The major problems faced by RMG sector currently is the lack of safety in working place and working conditions for the millions of garments workers.
Two major incidents in RMG sector of Bangladesh are the Tazreen fire and the Rana Plaza collapse,
Hoping for RMG Sector:
According to the McKinsey survey, it’s seen that 86% of the chief purchasing officers in leading apparel companies in Europe and the USA planned to decrease levels of sourcing in China over the next 5 years because of declining profit margins and capacity constraints.
As survey states, “Western buyers are evaluating a considerable number of sourcing options in the Far East and Southeast Asia, many chief purchasing officers said in the survey that they view Bangladesh as the next hot-spot”.
McKinsey forecasts, export-value growth of 7% to 9% annually within the next 10 years, so the market will double by 2015 and nearly triple by 2020.
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