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A presentation on…
The
Readymade
Garments
Sector of
Bangladesh
y
Presented to:
Ms. Sadia Noor Khan
Lecturer
Department of Banking & Insurance
University of Dhaka
GROUP- 3
Sadia Salam Mim- 046
MD. Abir Hasan- 056
Tanvir Mahmud- 014
MD. Rizwanul Hoque- 084
Sadia Afrin Snigdha- 072
Sumaya Rashid Misty-(Quota)
History of RMG sector of Bangladesh
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 Reaz Garments, Paris Garments, Jewel Garments,
Baishakhi Garments. 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.
Present situation
5600 factories
5% market share
2nd position in the world
Tk. 5300 minimum wage
4 Million workers 80%female
Source : http://www.bgmea.com.bd/
Raw Materials
• Accessories: interlining, labels, buttons and
sewing , thread.
• Packaging materials: neck boards,
backboards, plastic collar stays, tissue papers,
hangtags, pins and clips, hangers and
polybags, zippers, draw strings and export
cartons.
Comparative statement of total export and
RMG export of Bangladesh
0
5000
10000
15000
20000
25000
30000
35000
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Export of Bangladesh (in million USD)
Export of RMG (in million USD)
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
Export of Bangladesh
(in million USD) 16204.65 22924.38 24287.66 27027.36 30186.62
Export of RMG
(in million USD) 12496.72 17914.46 19089.69 21515.73 24491.88
Source : http://www.slideshare.net/ShahriarRawshon/contribution-of-rmg-sector-in-economic-growth-of-bd
Product wise RMG export
Year Shirt Trouser Jacket T-shirt Sweater
2009-2010 993.41 3035.35 1350.43 3145.52 1795.39
2010-2011 1566.42 4164.16 1887.50 4696.57 2488.19
2011-2012 1733.54 4686.39 2231.16 4713.11 2340.34
2012-2013 1972.89 5185.48 2634.28 5143.22 2620.73
2013-2014 2173.73 5690.78 2973.16 5863.81 2932.94
Source : http://www.bgmea.com.bd/
Strengths and potentials
• Good quality of raw materials
• Present of internationally reputed firms
• Presence of strong business association
• Emphasis on changing trends
• Physical resource
• Knowledge resource
• Capital resource
• Favorable climate condition
• Abundant management executives
• Abundant investors
• Foreign direct investment(FDI)
• Low labor cost
Problems in this sector
• 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
• Lack of implementation of government
initiatives
• Lack of enforcement of business
regulation
• Frequent political unrest and violence
• Lack of proper safety measures
• Lack of proper working environment
Rana Plaza Tragedy
On 24 April 2013, Wednesday at 8:45 AM
Rana Plaza, an eight-story commercial building
and garments factory, collapsed in Savar.
The search for the dead ended on 13 May with a
death toll of 1,129. Approximately 2,515
Injured people were rescued from the building
alive.
Initiatives taken by the government
• National Tripartite Plan of Action on Fire, Electrical
Safety and Physical Integrity in the Ready‐Made
Garment Sector of Bangladesh (NAP)
• Allowing 3 agencies to inspect workplace safety-
1. Accord on Fire and Building in Bangladesh
2. Alliance for Bangladesh Worker Safety and
3. BUET
• to ensure long-term enforcement of a globally
acceptable fire, electrical and structural safety
standard
• upgradation of the Department of Inspection for
Factories and Establishments (DIFE)
Established: 1983
Situation: Hatirrjheel, Dhaka
Present president: Atiqul Islam
Vision: to develop the RMG industry of
Bangladesh and the economy of the country.
Mission: 1. to protect and promote the interests of the
industry;
2. to ensure all legitimate rights and privileges of
the garment workers.
Any
Query ?

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Rmg sector of bangladesh

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  • 4. y Presented to: Ms. Sadia Noor Khan Lecturer Department of Banking & Insurance University of Dhaka
  • 5. GROUP- 3 Sadia Salam Mim- 046 MD. Abir Hasan- 056 Tanvir Mahmud- 014 MD. Rizwanul Hoque- 084 Sadia Afrin Snigdha- 072 Sumaya Rashid Misty-(Quota)
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  • 8. History of RMG sector of Bangladesh 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 Reaz Garments, Paris Garments, Jewel Garments, Baishakhi Garments. 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.
  • 9. Present situation 5600 factories 5% market share 2nd position in the world Tk. 5300 minimum wage 4 Million workers 80%female Source : http://www.bgmea.com.bd/
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  • 11. Raw Materials • Accessories: interlining, labels, buttons and sewing , thread. • Packaging materials: neck boards, backboards, plastic collar stays, tissue papers, hangtags, pins and clips, hangers and polybags, zippers, draw strings and export cartons.
  • 12. Comparative statement of total export and RMG export of Bangladesh 0 5000 10000 15000 20000 25000 30000 35000 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Export of Bangladesh (in million USD) Export of RMG (in million USD) 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Export of Bangladesh (in million USD) 16204.65 22924.38 24287.66 27027.36 30186.62 Export of RMG (in million USD) 12496.72 17914.46 19089.69 21515.73 24491.88
  • 14. Product wise RMG export Year Shirt Trouser Jacket T-shirt Sweater 2009-2010 993.41 3035.35 1350.43 3145.52 1795.39 2010-2011 1566.42 4164.16 1887.50 4696.57 2488.19 2011-2012 1733.54 4686.39 2231.16 4713.11 2340.34 2012-2013 1972.89 5185.48 2634.28 5143.22 2620.73 2013-2014 2173.73 5690.78 2973.16 5863.81 2932.94 Source : http://www.bgmea.com.bd/
  • 15. Strengths and potentials • Good quality of raw materials • Present of internationally reputed firms • Presence of strong business association • Emphasis on changing trends • Physical resource • Knowledge resource
  • 16. • Capital resource • Favorable climate condition • Abundant management executives • Abundant investors • Foreign direct investment(FDI) • Low labor cost
  • 17. Problems in this sector • 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
  • 18. • Lack of implementation of government initiatives • Lack of enforcement of business regulation • Frequent political unrest and violence • Lack of proper safety measures • Lack of proper working environment
  • 19. Rana Plaza Tragedy On 24 April 2013, Wednesday at 8:45 AM Rana Plaza, an eight-story commercial building and garments factory, collapsed in Savar. The search for the dead ended on 13 May with a death toll of 1,129. Approximately 2,515 Injured people were rescued from the building alive.
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  • 23. Initiatives taken by the government • National Tripartite Plan of Action on Fire, Electrical Safety and Physical Integrity in the Ready‐Made Garment Sector of Bangladesh (NAP) • Allowing 3 agencies to inspect workplace safety- 1. Accord on Fire and Building in Bangladesh 2. Alliance for Bangladesh Worker Safety and 3. BUET • to ensure long-term enforcement of a globally acceptable fire, electrical and structural safety standard • upgradation of the Department of Inspection for Factories and Establishments (DIFE)
  • 24. Established: 1983 Situation: Hatirrjheel, Dhaka Present president: Atiqul Islam Vision: to develop the RMG industry of Bangladesh and the economy of the country. Mission: 1. to protect and promote the interests of the industry; 2. to ensure all legitimate rights and privileges of the garment workers.
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