Successfully reported this slideshow.
History of Bangladesh Textile & Apparel Sector
&Strength & Weakness of textile & Apparel sector
Total Textile Process at a Glance
History of Apparel Industry in Bangladesh :
In 1971 Firstly process of
industrialization to replace
import & particularly the
ready made sector.
In 1975 - 76 BTMC never
managed to match pre-1971
output & that is fiscal year &
In 1980 – 85 percent the
textile industry are assets.
In 1982 new industry policy
& Export processing zone
In 1972 formed new govt.
private owned textile
factories are creating a
state - owned enterprise
HISTORY OF export-oriented readymade garment (RMG)
There are only 9 export
industry in 1978 , such as
Reaz gmts. Paris gmts. Jewel
gmts. & Boishaki gmts.
Reaz gmts establish in 1960.
But in1973 it changed it’s
name to Reaz gmts Ltd &
started to export by selling
10000 pcs of shirt to France,
valued 13 million franc in
1978. That was first direct
export of apparel.
Desh gmts.Ltd first joint
venture in Bangladesh ,
technical & marketing
collaboration with S.Korean
Daewoo corporation ,
established in 1979 . First
100% export oriented
History of export
In 1980, Youngone (49%) and Trexim (51% equity)
formed a company named younone Bangladesh
exported first consignment of padded and
nonpadded jackets to sweden in dec 1980. It had
trained 120 operators including 3 women in S.
Korea Went to the production in 1980.
Apparel Industry in Bangladesh Till to the end of
1982, there were only 47 garment manufacturing
units. Break through occurred in 1984-85 when
numbers of garment factories increased to 587.
In 1999, there were 2900 garment factory in the
country. Average growth rate of garment export is
22%. Now, the numbers of garment manufacturing
units in Bangladesh is 5500.
History of Bangladesh Garment Manufacturers and Exporters
The Bangladesh Garment Manufacturers and Exporters
Association (BGMEA) is a "powerful lobby" group with 4,000
members who "account for four of every five dollars earned
from exports. Twenty-five MPs have investments in the textile
industry. The BGMEA inspects non-complying textile factories.
Following the fatal fire in November 2012 at a Dhaka garment
factory where 112 workers were killed, "BGMEA sent
inspectors to some of its members’ factories. Four buildings
had structural flaws or violated construction or labour laws.
The factories, owned by Atiqul Islam, BGMEA president, Atiqul
Islam among others. There were no prosecutions. who had
warned the owner of building was unsafe but he ignored them
and the factories stayed open. Workers said they had been
pressed to show up because orders were overdue. 846
garment traders were also registered with BGMEA in 2009
although legally they are not obligated to do so.
History of Education in textile sector :
'Bangladesh University of Textiles (BUTex)' is the only
public university specializing in textile engineering in
Bangladesh. It was graduated from college in full
flagged university on 22 December 2010 by an
ordinance of Education Ministry and has a glorious
history starting as a weaving school under British
colonial rule in 1921. Now the University offers
graduation courses in Textile Engineering, Textile
Management & Fashion design. 'Khulna University of
Engineering and Technology (KUET)' is also going to
start B.Sc. in Textile Engineering for session 2012–
Analysis Strength :
Competitive price advantage due to cheap labor
and Governmental Assistance . Skilled Human
Resource , Duty and Quota free access and GSP
Integrated Supply Chain, Specially in Knitwear
International Image of a reliable supplier of
Analysis Opportunities :
• Potential for higher value addition by
developing backward linkage. Reduce lead time
by developing infra structure of transportation,
faster custom clearance, strong backward
linkage . Improved image by adapting
environmental and social standards .
• Diversifying apparel product switching from
basic product to fashionable product. May get
preferential access in USA and Canadian market
in near future.
Analysis Weakness :
• Weak Structure, in particular production
efficiency, product development, marketing
skill, customer service, controlling, planning,
management skill, technical know how
Producing mainly basic products.
• Heavily depend on importing woven fabrics, low
value addition Poor image of adapting
international and Corporate social standards
Political, Social and worker unrest.
• Main Reason of the Weakness of trade union movement of garment sector in
• 1. Disunity and division of organizations.
• 2. Unlimited and long working hours.
• 3. Absence of Job security.
• 4. Migration from factory to factory.
• 5. Absence of weekly holiday and other holidays.
• 6. Majority of women.
• 7. State policy.
• 8. Elite class ownership.
• 9. Low wage.
• 10. Unemployment of the country.
• 11. Building structure is not good.
• 12. No unity in Worker.
• 13. No special training & proper education in the female worker.
Reasons Of The Weakness Of Trade Union Movement In
• The export of ready-made garments (RMG) increased from
$USD 3.5 million in 1981 to $USD 10.7 billion in 2007. Apparel
exports grew, but initially, the ready-made garments RMG
industry was not adequately supported by the growth up and
down the domestic supply chain (e.g., spinning, weaving,
knitting, fabric processing, and the accessories industries).
• From 1995 to 2005 the WTO Agreement on Textiles and
Clothing (ATC) was in effect, wherein more industrialized
countries consented to export fewer textiles while less
industrialized countries enjoyed increased quotas for
exporting their textiles. Throughout the 10-year agreement,
Bangladesh’s economy benefited from quota-free access to
European markets and desirable quotas for the American and