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Department
Of
Business
Administration
Noakhali Science and Technology
University
A PowerPoint Presentaion
On
“The Effect of Ready
Made Garments sector in
the Economy of
Bangladesh”
Course Code: BBA-4204
ASH- 1310060M
Presented by....
Mamunur Rashid
Effect of RMG in the
Economy Of Bangladesh
Abstract
 2nd largest RMG exporting country in the world.
 Major source of foreign income.
 Playing vital role in social, educational, cultural
and technological perspective.
 Ensuring employment of more than 40 lakh people.
 Promoting the women empowerment.
Abstract
 Major source of income of the govt.
 Building up skilled man power by introducing
various training program.
Objective of the Study
To attain the knowledge about primary activities
of ready-made garments sector of Bangladesh.
 Identify the effect of ready made garments sector
in the economy of Bangladesh.
Identify the ostacles in development process of
ready-made garments sector.
Opportunities & Prospects of RMG sector.
To suggest some ways by which RMG sector can
improve their position in global market.
From various secondary data sources like
BKMEA, BGMEA, Bangladesh Bank, Export
Promotion Bureau, Internet browsing
through website searching, Different
published material Such as books and articles.
Methodology
Overview of Bangladesh Ready
Made Garments Industry
Year Issues
1970-1980 Early period of growth
1982-1985 Boom days
1985-2008 Imposition of quota restriction 1990
Child labor issue and its solution 2003
Withdrawal of Canadian quota restriction 2005
Riots and strike by garments labor 2007-2008
Stable growth
2008-2015 Continuous growth
2016-2021 Sustainable Growth
Share in global export of RMG
industry
India 3%
Turkey, 4%
Bangladesh 5 %
Chaina 36%
Others 52%
Membership and employment
Year No of Garments Employment (in lakh)
2007-08 4743 2.80
2008-09 4925 3.50
2009-10 5063 3.60
2010-11 5150 3.60
2011-12 5400 4.00
2012-13 5876 4.00
2013-14 4222 4.00
2014-15 4296 4.00
2015-16 4328 4.00
2016-17 4482 4.00
Comparative statement on export of RMG
and total export of Bangladesh
YEAR EXPORT OF RMG TOTAL EXPORT OF
BANGLADESH
% OF RMG’S TO
TOTAL EXPORT
2007-08 10699.80 14110.80 75.83
2008-09 12347.77 15565.19 79.33
2009-10 12496.72 16204.65 77.12
2010-11 17914.46 22924.38 78.15
2011-12 19089.73 24301.90 78.55
2012-13 21515.73 27027.36 79.61
2013-14 24491.88 2007-08 81.13
2014-15 25491.40 31208.94 81.68
2015-16 28094.16 34257.18 82.01
2016-17 28149.84 34655.92 81.23
Contribution of RMG Sector in
Bangladesh
Different Sector Social Impacts
• Banking and Insurance
• Shipping and Logistics
• Contribution to
Government
• Engineering Sector
• Utility Services
• Information and
Communication
Technology
• Emerging Consumer
Market
• Women
Empowerment
• Child Labor
Prospects of the RMG Industry
Product Diversification
Backward Integration
Flow of Investment
Labor Productivity
Cheap Labor
Research and Training
Problems and challenges of RMG
sector
Lack of
Modernize
Equipment
Energy Crisis
Lack of new
investment
SWOT Analysis
 Lack of high skilled labor.
 Limitation of technical
know-how.
 Problem in Power & Gas
supply.
 Political unrest situation.
 Labor unrest in RMG
factories.
 Rise of price of raw
materials.
 Political unrest situation of
the country.
 Good reputation of product
quality.
 Great pricing capability.
 Change in Governments
attitude towards RMG
 Skilled and available
workforce.
 Cheapest labor
 Duty Free Status
 36 years experience in
Apparel export.
Strength
Opportunities Threat
Weakness
1 2 3 4 5
Competitive
rivalry
between
existing
players
Threat
Of
substitutes
Threat
Of
new
entrants
Bargaining
power
Of
customers
Bargaining
power
Of
suppliers
Five competitive forces analysis on
Garments of Bangladesh
Porters Generic Model
Matrix
Cost
leadership
Focus
strategy
(Low cost)
Differentiation
strategy
Focus strategy
(Differentiation)
Recommendation
Equal opportunities in terms of
compensation packages
Strict safety law should be imposed
Economic and political stability
More attention to improve the
working environment
Invest more in research and
development
Infrastructure and transportation
should be developed
Workers must be trained
Limitations
of
The Study
Thank
You

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Project presentation on RMG sector in Bangladesh

  • 3. Noakhali Science and Technology University
  • 4. A PowerPoint Presentaion On “The Effect of Ready Made Garments sector in the Economy of Bangladesh” Course Code: BBA-4204
  • 6. Effect of RMG in the Economy Of Bangladesh
  • 7. Abstract  2nd largest RMG exporting country in the world.  Major source of foreign income.  Playing vital role in social, educational, cultural and technological perspective.  Ensuring employment of more than 40 lakh people.  Promoting the women empowerment.
  • 8. Abstract  Major source of income of the govt.  Building up skilled man power by introducing various training program.
  • 9. Objective of the Study To attain the knowledge about primary activities of ready-made garments sector of Bangladesh.  Identify the effect of ready made garments sector in the economy of Bangladesh. Identify the ostacles in development process of ready-made garments sector. Opportunities & Prospects of RMG sector. To suggest some ways by which RMG sector can improve their position in global market.
  • 10. From various secondary data sources like BKMEA, BGMEA, Bangladesh Bank, Export Promotion Bureau, Internet browsing through website searching, Different published material Such as books and articles. Methodology
  • 11. Overview of Bangladesh Ready Made Garments Industry Year Issues 1970-1980 Early period of growth 1982-1985 Boom days 1985-2008 Imposition of quota restriction 1990 Child labor issue and its solution 2003 Withdrawal of Canadian quota restriction 2005 Riots and strike by garments labor 2007-2008 Stable growth 2008-2015 Continuous growth 2016-2021 Sustainable Growth
  • 12. Share in global export of RMG industry India 3% Turkey, 4% Bangladesh 5 % Chaina 36% Others 52%
  • 13. Membership and employment Year No of Garments Employment (in lakh) 2007-08 4743 2.80 2008-09 4925 3.50 2009-10 5063 3.60 2010-11 5150 3.60 2011-12 5400 4.00 2012-13 5876 4.00 2013-14 4222 4.00 2014-15 4296 4.00 2015-16 4328 4.00 2016-17 4482 4.00
  • 14. Comparative statement on export of RMG and total export of Bangladesh YEAR EXPORT OF RMG TOTAL EXPORT OF BANGLADESH % OF RMG’S TO TOTAL EXPORT 2007-08 10699.80 14110.80 75.83 2008-09 12347.77 15565.19 79.33 2009-10 12496.72 16204.65 77.12 2010-11 17914.46 22924.38 78.15 2011-12 19089.73 24301.90 78.55 2012-13 21515.73 27027.36 79.61 2013-14 24491.88 2007-08 81.13 2014-15 25491.40 31208.94 81.68 2015-16 28094.16 34257.18 82.01 2016-17 28149.84 34655.92 81.23
  • 15. Contribution of RMG Sector in Bangladesh Different Sector Social Impacts • Banking and Insurance • Shipping and Logistics • Contribution to Government • Engineering Sector • Utility Services • Information and Communication Technology • Emerging Consumer Market • Women Empowerment • Child Labor
  • 16. Prospects of the RMG Industry Product Diversification Backward Integration Flow of Investment Labor Productivity Cheap Labor Research and Training
  • 17. Problems and challenges of RMG sector Lack of Modernize Equipment Energy Crisis Lack of new investment
  • 18. SWOT Analysis  Lack of high skilled labor.  Limitation of technical know-how.  Problem in Power & Gas supply.  Political unrest situation.  Labor unrest in RMG factories.  Rise of price of raw materials.  Political unrest situation of the country.  Good reputation of product quality.  Great pricing capability.  Change in Governments attitude towards RMG  Skilled and available workforce.  Cheapest labor  Duty Free Status  36 years experience in Apparel export. Strength Opportunities Threat Weakness
  • 19. 1 2 3 4 5 Competitive rivalry between existing players Threat Of substitutes Threat Of new entrants Bargaining power Of customers Bargaining power Of suppliers Five competitive forces analysis on Garments of Bangladesh
  • 20. Porters Generic Model Matrix Cost leadership Focus strategy (Low cost) Differentiation strategy Focus strategy (Differentiation)
  • 21. Recommendation Equal opportunities in terms of compensation packages Strict safety law should be imposed Economic and political stability More attention to improve the working environment Invest more in research and development Infrastructure and transportation should be developed Workers must be trained