Analysis of BRI on RMG industry of Bangladesh

1. BELTANDROADINITIATIVE
Bangladesh’s Sovereignty, And the Social-Economic
impact on the Ready-Made Garments industry.
Presented By
Parvez Hossain
575824

2. SYNOPSIS
Belt And Road Initiative :
Bangladesh's present
administration became a signatory
to China's "Belt and Road Initiative"
(BRI)
A development plan focused on
establishing alliances and
developing infrastructure to
enhance regional commerce.
construction of ports, trains, and
expressways, as well as energy and
information technologies. Future
investment will be directed on
education, food and beverage,
leisure, tourism, hospitality, and
healthcare
Ready-made garments industry :
. In 1976, the first clothing factory
opened
, Bangladesh's most fantastic export
earner; $30bn in 2019.
fastest growing industry in recent
years, employing around 4 million
people and rising at a pace of more
than 20%
business grew primarily because of
the abundant availability of labor,
mainly female workers.
the most job prospects for females
in the industrial sector, accounting
for more than 85 percent of
production employees.

3. Problem Definition
How the Chinese BRI initiative will impact the social-economy variables
of the RMG industry of Bangladesh?
Research Methodology
• Qualitative research has been conducted : Literature review and field research
• Primary source of Data: Bangladesh Export Processing Zone (BEPZA), the Daily
Statement of Affairs of different Internet-based publications, Bangladesh
Garments Manufacturers and Export Association (BGMEA). National new
papers, e.g., Dhaka Tribune and The daily star.
• Field research: Structured interview of HR manager of a garment factory.

4. Economic Analysis
FDI in RMG Sector :
• Investment is increasing at a breakneck pace in the readymade garment sector.
• Bangladesh's primary source of export revenue.
• In 2016, total FDI in the Bangladesh garment sector was approximately 489 million USD, and it has been snowballing in recent years ( (HOSSAIN, 2015
Impact of BRI on RMG sector:
◦ . China has been working hard in recent years to develop a new version of its economy fuelled by high-end, high-tech industries capable of competing with the world's
largest and best, which is why the cost of garment production in China is increasing daily.
Challenges of RMG Sector:
◦ Continuous supply of cheap labor
◦ Production capacity
◦ Workers human rights.

5. Social
Consequences
Super low wages. Difference between china and
Bangladesh is very high.
Buyers always portraying themself as the good
guys. Blame game.
Workers are the victim.
Child labor and sweat shop.
Keeping Bangladesh its sovereignty.

6. Conclusion
The BRI has committed to providing physical
and soft infrastructure throughout its corridors
to promote connectivity and economic growth
The implementation of BRI projects will need
adjustments to trade facilitation :
standardization and harmonization of
procedures and regulations across countries,
the enhancement of border trade facilitation
and logistics, cross-border electronic data
exchange, expedited customs clearance,
customs cooperation, and measures to ensure
people, vehicles, and vehicle cargo move.
. BRI project selection and planning should be
prudent, with a clear grasp of the economic
and social advantages that would result from
such initiatives.
To solve the issues connected with BRI
projects, the Bangladeshi Government should
execute them via an open, transparent, and
competitive contracting and procurement
procedure to assure the projects' quality.
To ensure project completion on schedule and
with a minimum of cost overruns, public
disclosure of BRI project financing terms and
conditions, monitoring, reporting, and anti-
corruption measures should be included in the
project implementation system.

7. THE END