A presentation on Future of RMG in Bangladesh by the students of Sheikh Kamal Textile Engineering College including Akash, Ashraf, Sovan, Mamun & Mokarram . Presentation made by AKASH & TEAM. All information gathered from local research and internet.

5. Introduction
HistoryofRMGsectorofBangladesh
presentsituationofRMGinBangladesh
OverviewofBangladeshReadyMadeGarmentsIndustry
ComparativestatementoftotalexportandRMGexportofBangladesh
MajorProductsExportFromBangladeshAndcontributiontoGDP
ProductwiseRMGexport
SWOTanalysisoffutureofRMGinBangladesh
Processoffutureplan
Detailsabouttheprocessoffutureplan
Vision2041
AGENDA

6. ProblemsandchallengesofRMGsector
Initiativestakenbythegovernment
Recommendation
Conclusion
AGENDA

8. The 100% export oriented RMG industry experienced phenomenal growth during the last 15 or so
years. In 1978, there were only 9 export oriented garments manufacturing units
■They are ReazGarments,ParisGarments,JewelGarments,
BaishakhiGarments.The pioneer in export oriented garments “Reaz Garments” was established
in 1960 as a small tailoring store. Then in 1973 it changed in “M/S Reaz Garments Ltd” and
expanded its operation into export market by selling men’s shirts to a Paris-based firm and
earned 13 million franc.
HISTORY OF RMG SECTOR OF
BANGLADESH

9. 5600
5%
2nd
IN BANGLADESH
PRESENT SITUATION OF RMG
Tk. 5300
4 Million
80%

10. OVERVIEW OF BANGLADESH READY
MADE GARMENTS INDUSTRY

11. COMPARATIVE STATEMENT OF TOTAL
EXPORT AND RMG EXPORT OF BANGLADESH

12. ■RMG
■Frozen Food
■Jute Goods
■leather
■Chemical Products
■Raw Jute
■Agri Products
■Tea
■Others
MAJOR PRODUCTS EXPORT FROM
BANGLADESH AND CONTRIBUTION TO GDP

13. .
PRODUCT WISE RMG EXPORT

14. STRENGTH:
1.
Skilledandavailableworkforce,
Cheapestlabor,
DutyFreeStatus,
36yearsexperienceinApparelexport,
Goodqualityofrawmaterials,
Presentofinternationallyreputedfirms,
Presenceofstrongbusinessassociation,
Emphasisonchangingtrends,
Physicalresource,
Knowledgeresource.
SWOT ANALYSIS OF FUTURE
OF RMG IN BANGLADESH

15. WE
2. WEAKNESS:
SWOT ANALYSIS OF FUTURE
OF RMG IN BANGLADESH
Lack of high skilled labor,
Limitation of technical know-how,
Problem in Power & Gas supply,
Political unrest situation,
Poor quality of infrastructure logistics,
Poor education and training facilities,
Poor living condition of workforce,
Low level of technology application,
Undue competition,
Firms’ inability to exploit value added potential,
Lack of long term plans for apparel industries.

16. 3. OPPORTUNITIES:
Goodreputationofproductquality,
Greatpricingcapability,
ChangeinGovernmentsattitudetowardsRMG.
SWOT ANALYSIS OF FUTURE
OF RMG IN BANGLADESH

17. 3. THREATS:
LaborunrestiNRMGfactories,
Riseofpriceofrawmaterials,
Politicalunrestsituatthecountry,
Lackofimplementationofgovernmentinitiatives,
Lackofenforcementofbusinessregulation.
SWOT ANALYSIS OF FUTURE
OF RMG IN BANGLADESH

18. PROCESS OF FUTURE PLAN

19. Become more competitive.
Most modern equipment.
Chittagong port should be operate 24 hours
three shifts.
The government should within seven days a
package.
EnhancetheChittagongport:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

20. Directshippingfacility:
BSC and other shipping companies should operate
a twice weekly service to korea, Taiwan and Hong
kong to speed up the movement of fabrics from
these countries to the other.
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

21. WorkerssafetyinBangladesh:
Ensuring workplace safety at all garment factories
is a gigantic task and will take time to accomplish.
But we believe the government of Bangladesh,
BGMEA and BKMEA, with the support of global
brands and international development partners,
will be able to ensure the safety of the RMG
industry.
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

22. Various measures should be taken to improve
movement of trucks between Chittagong and
Dhaka.
The import of new cargo trucks should be
made duty free.
Railway wagon capacity should be increased
and improved.
Improvedinlandtrucking,rail:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

23. We are dependent mainly on two markets namely
the EU and North America (the US and Canada).
The Nordic countries, Central Asia, Africa, the Middle
East are some of the places a serious effort can be
made to carve out a niche for Bangladesh garments.
President BGMEA can lead a delegation in some of
these countries.
SEARCHFORNEWMARKETS：
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

24. There is a lot of potential to expand exports to Italy,
Germany, Britain and France, who are the principal
importers in Europe.
Special efforts should be made to persuade the EU to
relax its rules of origin.
Special efforts should be made to persuade the EU to
relax its rules of origin.
EXPANSIONOFEXPORTTOEUROPE:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

25. The government should make a special effort to
persuade the Indian government.
Every effort should be made to get India to
implement this commitment within the next hundred
days.
Duty free access to the Indian market will open up
tremendous opportunities.
DUTYFREEACESSTOINDIANMARKET:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

26. BGMEA and EPB should jointly set up an IT unit, which
should also be able to undertake research work.
BGMEA’s web page should be fast.
Interactive and should serve to market worldwide.
The IT/research cell should moniter world wide
development.
ESTABLISHMENTTOJOINBGMEA/EFBIT:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

27. Bangladesh Bank should meet periodically with local
Banks to monitor developments in the RMG sector.
Local Bank should encourage to reduce their charges
of LCs
IMPROVEDBANKINGSYSTEM:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

28. Government must closely monitor not only labor
costs but also utility charge.
If necessary RMG factories may be given electricity
and water at subsidized rates.
Telephone charges for overseas calls from
Bangladesh are today among the highest in the
world.
Similarly government must ensure a steady supply of
power to all RMG factories.
REDUCTIONUTILITYCOST:
DETAILS ABOUT THE PROCESS
OF FUTURE PLAN

29. ProductDiversification
BackwardIntegration
FlowofInvestment
LaborProductivity
CheapLabor
Research&Development
Training
1.
2.
3.
4.
5.
6.
7.
VISION 2041

30. Lack of R & D
Lack of Modernize Equipment
Lack of new investment
Effect of Global Recession
Energy CrisIs
Tight Monetary Removal of
Subsidy on Textile sector Policy
Lack of new investment
Safety Issue
PROBLEMS AND CHALLENGES
OF RMG SECTOR

31. NationalTripartitePlanofActiononFire,Electrical
SafetyandPhysicalIntegrityintheReady-Made
GarmentSectorofBangladesh(NAP).
Toensurelong-termenforcementofaglobally
acceptablefire,electricalandstructuralsafety
standard.
UpgradationoftheDepartmentofInspectionfor
FactoriesandEstablishments(DIFE).
INITIATIVES TAKEN BY THE
GOVERNMENT

32. Workersmustbetrained.
Equalopportunitiesintermsofcompensation
packages.
Moreattentiontoimprovetheworking
environment.
Strictsafetylawshouldbeimposed.
Investmoreinresearchanddevelopment.
Economicandpoliticalstability.
Infrastructureandtransportationshouldbe
developed.
RECOMMENDATION

33. It is important that the government convey a clear
impression to helping the RMG sector.
We hope that success will require good team work and
co-ordination within the government.
In Future we can hope that Bangladesh will get a
development country status by increasing of Export of
RMG to the world.
CONCLUSION

34. THANK YOU EVERY
ONE FOR BEING
WITH US...

35. ANY QUERY ???