RMG Market All Over The World

1. A mission with a vision
PRESENTATION
On
RMG Market All Over The World
1

2. Submitted To
Md. Ali Azam
Rokon
Lecturer
Department of Textile
Engineering.
Primeasia University.
Banani,Dhaka-1213
2

3. Submitted By
ID: 113-176-041
113-067-042
121-499-041
121-330-041
SEC: B
Date: 13-08-2015
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4. Introduction:
 The garment industry has played a pioneering role in the
development of industrial sector of Bangladesh. The textile
and clothing sector now stands at a crossroads. Trade in RMG
& Textile sector has undergone a fundamental change as MFA
quota system has been out on December 31, 2004. Though it
took a rather late start i.e., in 1976 but it soon established
its reputation in the world market within a short span of
time. Resultantly garment is now one of the main export
items of the country. Besides, enriching the country's
economy it has played A very important role in alleviating
unemployment. At present there are more than 4825
garment factories in the country employing more than 10
million labors. As a result the garments industry of
Bangladesh expanded with unprecedented success.4

5. History
 In the 1950s, labors in the Western World became highly organized;
forming trade This and other changes provided workers greater rights
including higher pay; which resulted in higher cost of production.
Retailers started searching for places where the cost of production
was cheaper In order to control the level of imported RMG products
from developing countries into developed countries ,Multi Fiber
Agreement(MFA) was made in 1974. The MFA agreement imposed an
export rate 6 percent increase every year from a developing country
to a developed country. It also allowed developed countries to impose
quotas on countries that exported at higher rate than the bilateral
agreements. In the face of such restrictions, producers started
searching for countries that were outside the umbrella of quotas and
had cheap labor. This is when Bangladesh started receiving
investment in the RMG sector. In the early 1980s, some Bangladeshis
received free training from Korean Daewoo Company. After these
workers came back to Bangladesh, many of them broke ties with the
factory they were working for and started their own factories.
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6. Facts and Figures
 In the 1980s, there were only 50 factories
employing only a few thousand people. Currently,
there are 4490 manufacturing units. The RMG
sector contributes around 75 percent to the total
export earnings. In 2007 it earned $9.35 billion . Of
the estimated 10 million people employed in this
sector, about 50 percent of them are women from
rural areas. USA is the largest importer of
Bangladeshi RMG products, followed by
Germany, UK, France and other E.U countries. In
fact, Bangladesh is the 6th largest supplier of
apparels in the US market.
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7. Development of the Export
of RMG Sector:
 In terms of GDP, RMG’s contribution is highly remarkable; it
reaches 13 percent of GDP which was only about 3 percent in
FY91. This is a clear indication of the industry’s contribution to
the overall economy. It also plays a pivotal role to promote the
development of other key sectors of the economy like banking,
insurance, shipping, hotel, tourism, road transportation,
railway container services, etc. One of the key advantages of
the RMG industry is its cheap labor force, which provides a
competitive edge over its competitors. The garment industry is
by far the country’s most important manufacturer, earning
around $5 billion annually and accounting for about two thirds
of all exports. Bangladesh has about 2,500 garment factories
with up to 10 million livelihoods dependent on it directly or
indirectly. About 80 per cent of garment workers are women.7

8. Global RMG market: Bangladesh
projected as 'Next China
 As China has started losing its attractiveness due
to a rise in costs of doing business there,
Western buyers are now searching for 'next
China'. They are evaluating all options to
strengthen their proximity sourcing. Bangladesh
is clearly the preferred next stop for the
sourcing caravan. Other markets in Southeast
Asia will increase their exports too, but will not
be able to replace -- at least in the near future -
- Bangladesh as a viable RMG sourcing hub.
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9. Comparative Statement on Export of RMG
& Total Export of Bangladesh:
YEAR
EXPORT OF RMG
(IN MILLION US$)
TOTAL EXPORT OF BANGLADESH
(IN MILLION US$)
% OF RMG’S TO TOTAL
EXPORT
2000-01 4859.83 6467.30 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01
2003-04 5686.09 7602.99 74.79
2004-05 6417.67 8654.52 74.15
2005-06 7900.80 10526.16 75.06
2006-07 9211.23 12177.86 75.64
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 19089.69 24287.66 78.60
2012-13 21515.73 27027.36 79.61
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10. BAR CHART
70
72
74
76
78
80
82
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
% OF RMG’S TO TOTAL EXPORT
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11. MAIN APPAREL ITEMS EXPORTED FROM
BANGLADESH
YEAR SHIRTS TROUSERS JACKETS T-SHIRT SWEATER
2000-2001 1073.59 656.33 573.74 597.42 476.87
2001-2002 871.21 636.61 412.34 546.28 517.83
2002-2003 1019.87 643.66 464.51 642.62 578.37
2003-2004 1116.57 1334.85 364.77 1062.1 616.31
2004-2005 1053.34 1667.72 430.28 1349.71 893.12
2005-2006 1056.69 2165.25 389.52 1781.51 1044.01
2006-2007 943.44 2201.32 1005.06 2208.9 1248.09
2007-2008 915.6 2512.74 1181.52 2765.56 1474.09
2008-2009 1000.16 3007.29 1299.74 3065.86 1858.62
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
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12. BAR CHART:
0
1000
2000
3000
4000
5000
6000
7000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Shirt
Trousers
Jackets
T-Shirt
Sweater
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13. Percentage Chart (Export product
of Bangladesh):
13

14. GDP Growth Rate:
14

15. Major country wise export scenario
of garments product from Bangladesh
 The major destination of our RMG products is EU, USA, Canada,
Japan, and Australia. Bangladesh is currently the 4th largest apparel
exporting country to the US market, trailing behind only China,
Vietnam and Indonesia. Not long ago, Mexico’s apparel exports were
significantly higher than of Bangladesh which is reversed in the
recent months. Bangladesh was the top export performer in the
European Union market in 2009 with 6 percent growth, when all
other countries, except for Qatar, suffered an export fall in the
common market due to a global financial contraction. Bangladesh
shipped products worth 5.8 billion euro’s to the EU in 2009,
increasing from 5.7 billion euro’s in 2008, witnessing a 6.3 percent
rise. During the time, Bangladesh outperform edits global
competitors: China, India and Vietnam.
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16. Contribution of the apparel
industry in Bangladesh economy:
 More than 25 million people are directly
and indirectly dependent on this sector
for their livelihoods.
 The RMG export constitutes more than
16% of GDP.
 Accelerating the industrial growth
through exports and leading the growths
of secularly industry.
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17. Competitiveness of Bangladesh
Apparel Industry
 Bangladesh apparel industry has come across a long way. As
mentioned, it was not only for `cheap labor' or even `China
plus one.
 Price advantage.
 Diversity.
 Capacity.
 International standard quality control process.
 30 years experience in garments manufacturing.
 Rapidly developing backward linkage industry.
 Policy Support.
 Financial and Bank support.
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18. Bangladesh being the second largest
apparel exporters is expected to play a
major role in the global apparel market.
 With three decades of experiences, supply of cheap labors,
huge number of entrepreneurs grown over the years
Bangladesh has established a structural competitiveness in the
apparel industry, which is likely to sustain for the years to
come as the structure of most developed countries has
declined in last 5 decades since the LTA (long term agreement
regarding international trade in cotton textile) came into force
in 1962, (Source: Discussion paper no 5, WTO). With the
export doubling in a decade, Bangladesh apparel industry
requires support from stakeholders. Entrepreneurs require
investing more on the entrepreneurial skills development,
improving the existing productivity, developing the living
standard of workers and providing them a green healthy
working environment.
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19. Problem:
 The garment industry of Bangladesh has been the key export division
and a main source of foreign exchange for the last 25 years. National
labor laws do not apply in the epzs, leaving BEPZA in full control over
work conditions, wages and benefits. Garment factories in
Bangladesh provide employment to 40 percent of industrial workers.
But without the proper laws the worker are demanding their various
wants and as a result conflict is began with the industry. Low working
salary is another vital fact which makes the labor conflict. Worker
made strike, layout to capture their demand. Some time bonus and
the overtime salary are the important cause of crisis. As a result the
production is hampered. Insufficient government policy about this
sector is a great problem in Garments Company There are some other
problems which are associated with this sector. Entry/exit
complicated and loading/unloading takes much time, time-
consuming custom clearance etc.
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20. Prospectus of the RMG industries:
 Despite many difficulties faced by the RMG industry over the
past years, it continued to show its robust performance and
competitive strength. The resilience and bold trend in this
MFA phase- out period partly reflects the imposition of
‘safeguard quotas’ by US and similar restrictions by EU
administration on China up to 2008, which has been the
largest supplier of textiles and apparel to USA. Other factors
like price competitiveness, enhanced GSP facility, market
and product diversification, cheap labor, increased backward
integration, high level of investment, and government
support are among the key factors that helped the country to
continue the momentum in export earnings in the apparel
sector. Some of these elements are reviewed below.
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21. Conclusion:
 The Ready-Made Garments (RMG) industry occupies a
unique position in the Bangladesh economy. It is the
largest exporting industry in Bangladesh, which
experienced phenomenal growth during the last 25 years.
By taking advantage of an insulated market under the
provision of Multi Fiber Agreement (MFA) of GATT, it
attained a high profile in terms of foreign exchange
earnings, exports, industrialization and contribution to
GDP within a short span of time. The industry plays a key
role in employment generation and in the provision of
income to the poor. To remain competitive in the post-MFA
phase, Bangladesh needs to remove all the structural
impediments in the transportation facilities,
telecommunication network, and power supply,
management of seaport, utility services and in the law and
order situation.
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22. Reference:
 http://www.thefinancialexpress-
bd.com/2014/03/28/25672
 https://www.scribd.com/doc/45953315/Major-
Country-Wise-RMG-Export
 http://www.mapsofindia.com/whitepages/appare
ls-textiles-and-accessories/garments-
manufacturers-wholesalers-and-exporters
 http://textilelearner.blogspot.com/2012/02/proc
ess-flow-chart-of-garments.html
 www.bgmea.com (for Comparative Statement and
other important topics)
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23. THE END
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