Readymade Garment Industry of Bangladesh (BDRMG)
The industry
of RMG is one of the most potential and revenue earning sector of Bangladesh.
The standing of the RMG market is known worldwide. It was started in the late
1970s. Soon it became one of the major economical strength for Bangladesh. The
RMG sector has added very much in earning foreign exchange, balancing export
and import, huge unemployment problem for the country and empowerment of women
along with giving them financial support.
Bangladesh-origin
products met quality standards of customers in North America and Western
Europe, and prices were satisfactory. Business flourished right from the start;
many owners made back their entire capital investment within a year or two and
thereafter continued to realize great profits. Some 85 percent of Bangladeshi
production was sold to North American customers, and virtually overnight
Bangladesh became the sixth largest supplier to the North American market.
Ready-made
garments manufactured in Bangladesh are divided mainly into two broad
categories: woven and knit products. Shirts, T-shirts and trousers are the main
woven products and undergarments, socks, stockings, T-shirts, sweaters and other
casual and soft garments are the main knit products. Woven garment products
still dominate the garment export earnings of the country. The share of knit
garment products has been increasing since the early 1990s; such products
currently account for more than 40 per cent of the country’s total RMG export
earnings (BGMEA website). Although various types of garments are manufactured
in the country, only a few categories, such as shirts, T-shirts, trousers,
jackets and sweaters, constitute the major production-share. Economies of scale
for large-scale production and export-quota holdings in the corresponding
categories are the principal reasons for such a narrow product concentration.
With about $15 billion in exports in 2010, ready-made garments are the country's
most important industrial sector; they represent 13% of GDP and more than 75%
of total exports. Recent surveys carried out by the consulting firm McKinsey
and the accounting firm KPMG identified attractive prices as the most important
reason for purchasing in Bangladesh. Price levels will remain highly
competitive in the future, since significant efficiency increases will offset
rising wage costs. Besides labour cost and duty advantage, raw materials and
real estate costs are also cheaper in Bangladesh. There is also no doubt that
Bangladesh is benefitting from various preferential trade agreements providing
tax free entry into several dozen countries. But Bangladesh has its own
challenges to overcome. 
Major Apparel
items
Major Apparel Items Exported From Bangladesh, in Million USD
|
|||||
Year
|
Shirts
|
Trousers
|
Jackets
|
T-shirt
|
Sweater
|
1995-96
|
807.66
|
112.02
|
171.73
|
366.36
|
70.41
|
1998-99
|
1043.11
|
394.85
|
393.44
|
471.88
|
271.70
|
2001-02
|
871.21
|
636.61
|
412.34
|
546.28
|
517.83
|
2004-05
|
1053.34
|
1667.72
|
430.28
|
1349.71
|
893.12
|
2007-08
|
915.6
|
2512.74
|
1181.52
|
2765.56
|
1474.09
|
2008-09
|
1000.16
|
3007.29
|
1299.74
|
3065.86
|
1858.62
|
2009-10
|
993.41
|
3035.35
|
1350.43
|
3145.52
|
1795.39
|
2010-11
|
1566.42
|
4164.16
|
1887.5
|
4696.57
|
2488.19
|
"Beginning
from almost nothing in the 1970s, the apparel industry has experienced very
rapid growth in employment, production, and exports so far. It has been a journey of capacity building in
response to growing demand and competition, and we are already the second
largest clothing exporting country in the world.
Our
entrepreneurs are now going for environment friendly green manufacturing
plants; they are investing in the state of art sophisticated production
technologies. Plus we have a historically proven efficient workforce and
competitive price and quality, as an added advantage. Relying on these inherent
strengths, we have proved ourselves in the past, we have grown stronger even in
the economic downturn, and we are thinking even bigger in the coming years. We
are not only target oriented, but also we look into the process how we have
achieved our goal. We have attained the capacity and we foresee ourselves as the
future leader, because it’s the best that we deliver.”
Lastly we
are not only proud for the success in
reaching at this position but also we have brought a silent revolution in the
socio-economy. In a moderate Muslim country like Bangladesh, the garment
industry has brought a social revolution through creating jobs for hundred
thousands of women and empowering them. The apparel industry offers a major
opportunity for families to rise up from poverty and recognized as one of the
main vehicles for alleviating poverty in Bangladesh.
References:
- http://www.academia.edu/853076/Wealth_and_Deprivation_Ready-made_Garments_Industry_in_Bangladesh
- http://edupedia.educarnival.com/export-performance-of-readymade-garments-sector-of-bangladesh/.
- http://textilelearner.blogspot.com/2011/12/opportunity-of-ready-made-garments.html
