...A SWOT Analysis on RMG Sector in Bangladesh RMG is the leading industry in Bangladesh. It is basically a labor-intensive industry and it needs limited financial investment and relatively simple technology compared to other high technical industries. The success story of Garment Industry in Bangladesh is the story as to how the readymade garments starting in the late seventies as an insignificant non-traditional item of export. In 1998-99 this sector has earned 4019.98 million US$ through exporting which is 75.67% of the total export. The tremendous success of Readymade Garment (RMG) exports from Bangladesh over last two decades has surpassed the most optimistic expectations. At present Bangladesh is the 6th largest exporter to USA and in 1997 Bangladesh becomes 18th largest exporter in the world. Now Bangladesh ranks first export of T-shirts to Europe (BGMEA, 1997-98). The overall impact of the readymade garment export industry is certainly one of the most significant social end economic developments in contemporary Bangladesh. The remarkable achievement of RMG sector is now exposed to each and every country. Despite these impressive achievements and the probable challenges in the near future, if properly managed, the prospects for further expansion and growth for this sector remain bright. There are some major threats still exits in this sector but Bangladesh has the ability to overcome these threats. Readymade Garment (RMG) industry holds a key position in the...
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...[pic] INDEPENDENT UNIVERSITY BANGLADESH CHITTAGONG CAMPUS ASSIGNMENT ON: Challenges of garments industry in Bangladesh COURSE TITLE: International business-mba-514 SUBMITTED TO: dr. tahlil azim COURSE INSTRUCTOR Mba-514 SUBMITTED BY: irfan riaz ahmed ID: 0531045 SEC: 01 Mba-514 DATE OF SUBMISSION: 20-09-2010 TABLE OF CONTENT |SL. NO. |PARTICULARS |PAGE NO. | |1. |ABSTRACT |3 | |2. |INTRODUCTION |4 | |3. |BACKGROUND OF THE INDUSTRY |5-7 | |4. |PRESENT COMPETITIVE SITUATIONS OF THE INDUSTRY IN THE WORLD MARKET |7-13 | |5. |PROBLEMS OF THE INDUSTRY |13-15 | |6. |PROSPECT OF THE INDUSTRY |15-18 | |7. |CONCLUSION & RECOMMENDATION |19 | |8...
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...FIRST DRAFT RISE OF READYMADE GARMENTS INDUSTRY IN BANGLADESH: ENTREPRENEURIAL INGENUITY OR PUBLIC POLICY by MOHAMMED ALI RASHID Professor of Economics North South University Paper presented at the Workshop on Governance and Development organized by the World Bank and BIDS at Dhaka on 11-12 November 2006 I. INTRODUCTION The 100 percent export-oriented readymade garments (RMG) industry of Bangladesh has witnessed remarkable growth since its inception in the late 1970s. Paradoxically, this flagship industry of Bangladeshi private entrepreneurial talent took roots through the first export consignment of shirts from Bangladesh made by the state-trading agency, the Trading Corporation of Bangladesh (TCB), in the mid-1970s under countertrade arrangements and the destination was some East European countries. Subsequently, however, private entrepreneurs entered the industry and phenomenal growth took place in RMG exports from Bangladesh. Export of RMG increased from US $40 thousand in 1978 –79 to US $6.4 billion in 2004-05. The industry has also provided employment to nearly 2 million workers, most of them women drawn from the rural areas. Explosive growth of RMG exports is of course not unique to Bangladesh. The annual compound growth rate of RMG export industries in Indonesia (31.2%), Mauritius (23.8%), and Dominican Republic (21.1%) compares favourably with that of Bangladesh 1 (81.3%) over the 1980-87 period . However, while initial conditions were favourable for export...
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...Addressing problems of RMG sector→ Anu Mahmud [pic] Bangladesh is now exporting readymade garment (RMG) products worth around 20 billion dollars per annum to different countries of the world. The RMG sector is one of the main sources of our foreign exchange earnings. Recently, an opportunity to expand this sector has been created. China has emerged as a big importer of Bangladeshi apparel products. Though the market for garment products was limited at the beginning, now it is expanding gradually. If Bangladesh can export RMG products to China, then it can easily double the amount of the present export earnings. So, alongside the existing markets, Bangladesh should give more attention to the China’s RMG market. As the European and American apparel markets have become competitive, the earnings from this sector have remained below the expected level. So, there is an urgent need for exploring new markets for our RMG products. The door of this possibility has opened further after the recent visit of some topmost RMG industry delegations of China to Bangladesh. China’s interest has been aroused due to lower labour costs in Bangladesh. But if we fail to maintain a production-friendly atmosphere, we will not be able to attract more foreign direct investment. In this regard, it is necessary to improve the existing infrastructure. The issue of electricity and gas supply will come to the fore, so Bangladesh should address the issue. At the same time, if we fail to provide corruption-free...
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...History of Ready-made Garment (RMG) Sector in Bangladesh Now a days textile sector of Bangladesh retains it's top position in global market. This can't be gained overnights. Bangladesh can get it's present position by dint of merit and industry of people of Bangladesh. The base of textile sector was first established in 60th decade of the last century."mercury shirts"which is originated from Karachi started the rmg business first.the industry exported shirts to the European market in 1965-66 first. | | In 1977-78 only 9 exporting industries were available in this country which deal with 10 million used every year.there were 3 big industries available in that time.they were: 1. Riaz garments 2. Jewel garments 3. Paris garments. Of them, Riaz garments was the most well known and oldest industry in that time.In urdu road of Dhaka it started it's business with some tailoring shop first.In that time it was known as Riaz store.In 1973,it was named Riaz garments.In 1978,it started exporting products abroad.it exported 1 million pieces of shirts to the Olanda,a South Korean company. Another garments known as Desh Garments ,also treated as the pathfinder of textile sector in Bangladesh. In 1979 Desh Garments opened a joint venture project with south korean company "Daiyuu". At present RMG sector of Bangladesh deals with 22 billion USD every year.4 million people directly depend on the ups and downs of the sector.the 81% of the total export earnings are come from...
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...Women Empowerment in Bangladesh: Effect of WTO Non-Agricultural Market Access (NAMA) Introduction The negotiations on Non-Agricultural Market Access (NAMA) in the World Trade Organization (WTO) are expected to lead Bangladesh to substantial increase in ReadyMade Garments (RMG) export in world market. The NAMA negotiations are aimed to reduce or eliminate tariffs, including tariff peaks, high tariffs, tariff escalation and nontariff barriers for non-agricultural goods, in particular on products of export interest to developing countries. Non-agricultural products include industrial goods, manufactured goods, textiles, fuels and mining products, footwear, jewellery, forestry products, fish and fisheries, and chemicals. Collectively, they represent almost 90% of world merchandise exports. WTO has decided to take Special and Differential treatment for developing and least developed Members like Bangladesh, including through less than full reciprocity in the reduction measures to assist LDCs to participate effectively in the negotiations. NAMA negotiations are likely to have important positive implications for the LDCs like Bangladesh in the form of increased export. As the structure of Bangladesh export is heavily titled towards labor-intensive sectors as apparels and textiles, increase in export will likely to have consequent positive implications on new job creations in RMG sector. In Bangladesh nearly 3 million workers are with RMG sector of which 80% is female workers. The...
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...[pic] Assignment On “Impacts of the Ready-Made Garments (RMG) Sector to the Bangladesh Economy” SUBMITTED TO Mahboob Ul Alam A full time faculty member of ‘’BGMEA Institute of Fashion & Technology (BIFT)’’ SUBMITTED BY Wasik Chowdhury Abdur Rahman Jewel Md. Shahadat Hossen Chowdhury Course Name: Apparel Merchandising (MER 227) Batch : 57 SUBMISSION DATE: September 21, 2011 Letter of Transmittal September 21, 2011 Mahboob Ul Alam A full time faculty member of BGMEA Institute of Fashion & Technology (BIFT) Subject: Submission of Report on Contribution of the Ready-Made Garments (RMG) Sector to the Bangladesh Economy Dear Sir, This is my pleasure to submit this study on “Contribution of the Ready-Made Garments (RMG) Sector to the Bangladesh Economy”. We have done our level best to complete the report in time and with the quality of my expectation. The whole experience of this report enables us to get an insight in to the real life situation. We have really enjoyed working in ’BGMEA Institute of Fashion & Technology (BIFT) preparing the report. Hope the report will be met your expectation and standard. We would like to thank you for your supportive suggestion and helping me to carry on this study. Sincerely yours, Wasik Chowdhury Abdur Rahman Jewel Md. Shahadat Hossen Chowdhury Acknowledgement At first we desire to express our deepest sense of gratitude of almighty Allah. With profound regard we gratefully acknowledge...
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...Textile industry of Bangladesh | | Prepared By S.M. SAZ LUL HOQUERoll: 46, Session: 2007-08Department of International BusinessPrepared ForDR. KAMAL UDDINProfessorDepartment of Int’l BusinessUniversity of Dhaka Date of Submission | 7/13/2011 | Following the new rule of origin (RoO)[2011], textile industry (spinning, weaving, and fabric processing) in Bangladesh face severe challenges to maintain its production and as well as export market whereas it create new opportunity for the clothing (RMG, Knitwear) sector. Its seams the new EU’s RoO [January 1, 2011] creates a dilemma for the export oriented industry of Bangladesh. This rule may also affect the overall all economy of Bangladesh in future. On This study is focused on the identification and evaluation of the affect and future strategy for the Bangladeshi Textile and Clothing Industry due to this new rule. | Introduction With the introduction of the New EU’s RoO in January 1, 2011, a number of countries will be affected, particularly those in the South Asian regions. Not all of them will be affected in a positive way; some will come out as losers and some in an ambiguous position. It is in the latter category that the country of Bangladesh is perceived to belong, because this rule is beneficiary for the Clothing sector but at the same time is my hinder the growth of the textile industry. Though Bangladeshi clothing industry is basically based on the import raw material, but in just under a decade Bangladesh textile...
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...globalization is toward a more integrated and interdependent world economy Globalization makes the world short and easy to communication. Bangladesh is famous for exporting RMG respectively. Through globalization Bangladesh is earning a lot foreign remittance in RMG sector. RMG Bangladesh: In 1978, Bangladesh starting earning through RMG and in that year Bangladesh RMG sector earn only one million dollar. However now in 2012 RMG sector of Bangladesh yearly turnover is 4.2 million dollar. The sector contributes significantly to the GDP. Our labor is cheap for a reason we can earn through RMG sector, our lion percent of people work in garments sector. It is possible because of globalization impact. The Globalization of Readymade Garments Bangladesh: As we all know, globalization means in a sentence ‘cross border business.’ Reduce all trade barriers around global. Bangladesh is also under globalization. There are few global institutions are- *World Trade Organization (WTO) *International Monitory Fund (IMF) *World Bank (WB) *United Nation (UN) We need global institutions because it helps to manage, regulate, and promote to establish multinational treaties in global market place. Trade barriers: Bangladesh RMG sector can earn money because globalization reduces the trade barriers in business. It helps to export and import over the global. Our RMG sector is more flexible about trade with developed countries. Technology: Technology is now much developed. We can communicate easily...
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..................................................................... 4 1.2 History of RMG Sector in Bangladesh: ................................................................................................ 4 1.3 Objective of Study: .............................................................................................................................. 6 1.4 Methodology: ...................................................................................................................................... 6 1.4 Limitations of the study: ..................................................................................................................... 7 CHAPTER 2: ................................................................................................................................................... 8 2.0 AN OVERVIEW OF RGM .......................................................................................................................... 8 . 2.1 Ready Made Garments Export Condition in brief: .............................................................................. 8 2.3 RECENT GLOBAL TRENDS IN TEXTILE AND GARMENTS: ..................................................................... 9 2.4 Contribution of RMG sector in total export in Bangladesh: ............................................................. 10 2.5 Problem of RMG Export in Bangladesh...
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...readymade garment exports from Bangladesh over the last two decades has surpassed the most optimistic expectations. Today the apparel export sector is a multi-billion-dollar manufacturing and export industry in the country. The overall impact of the readymade garment exports is certainly one of the most significant social and economic developments in contemporary Bangladesh. With over one and a half million women workers employed in semi-skilled and skilled jobs producing clothing for exports, the development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh. Literature Review: Several authors have analyzed aspects of the garment industry in Bangladesh. Of the various aspects of the industry, the problems and the working conditions of female workers have received the greatest attention. There are several studies including the Bangladesh Institute of Development Studies (BIDS) study by Salma Chowdhury and Protima Mazumdar (1991) and the Bangladesh Unnayan Parisad (1990) study on this topic. Both of these studies use accepted survey and research methodology to analyze a wealth of data on the social and economic background, problems and prospects of female workers in the RMG sector. Professor Muzaffar Ahmad looks at the industrial organization of the sector and discusses robustness and long-term viability of apparel manufacturing in Bangladesh. Wiigton (2000) provides a good overview of this industry, especially the developments...
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...Assignment on Apparel Industry Compliance System Author: Md. Nasir Uddin, Md.Mozammel Haque, Md.Fakhrul Islam Sumon, Saiful Islam, Kazi Mahbubul Hoq Department of Textile Engineering Daffodil International University Introduction: Bangladesh has emerged as a key player in RMG (Ready Made Garment) sector since 1978. Textiles and clothing account for about 85% of total export earnings of Bangladesh. Out of which, 76% comes from the apparel sector which covers the major products of knit and woven shirts, blouses, trousers, skirts, shorts, jackets, sweaters, sports wears and many more casual and fashion items. |[pic] | |Chart : Bangladeshi RMG export thourghout the decade | The pivotal factor in the apparel industry is the workforce i.e. the sewing operators, the helpers, cutting masters, pattern makers, finishers etc.. Bangladesh is endowed with abundant and cheap labour force that is easily trainable and convertible into semi-skilled and skilled workforce |[pic] | |Fig: garments Manufacturing | Quality of goods exported from Bangladesh has always been questioned by the foreign buyers due to lack of experience and awareness of Garment manufacturers associated in the trade....
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...courses in the BBA department. * We are doing this report so that we can analysis the readymade garment (RMG) sector of Bangladesh and find out the problems and remedies of this sector. Objectives of the study: The main objectives of this report are * To gain knowledge about the industrial unrest in the readymade garments industry of Bangladesh. * To identify the problems of RMG sector of Bangladesh. * To analysis the problems of this sector. * To fine out the remedies that could solve the problems of RMG sector. * To gain in-depth knowledge about the readymade garments industry of Bangladesh. Data collection method: This assignment has been completed by taking information from different relevant sources. This assignment also consists of a significant amount of data obtained from some secondary sources. For the secondary data, we have taken some information from the internet. We also collect information from various industries’ web sites. Limitation of the study: Though our study is based on secondary data, there is a possibility of getting fake information. This study is weak in some points. The notable ones are as under: * This report has been made basis only on the secondary data. * The survey was conducted in a very short time so we were not able to collect more information. * This survey made on crisis situation of Bangladesh, so it was difficult to collect samples. * Lack of experience in this field. Analysis Technique &...
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...identify whether new products, services or businesses have the potential to be profitable. However, it can be very illuminating when used to understand the balance of power in other situations. Porter's 5 Forces are named after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. The forces are, 1. Competition in the industry 2. Potential of New Entrants into Industry 3. Power of Suppliers 4. Power of Buyers 5. Threat of Substitute Products Readymade Garments(RMG) Industry of Bangladesh Bangladesh, the southern Asian country has a population of approximately 164 million people. The economy of Bangladesh is significantly dependent on agriculture. But it’s a great news for the country that, readymade garments (RMG) sector of Bangladesh has raised as the biggest earner of foreign currency. This sector creates about 4.2 million employment opportunities and contributes significantly to the GDP. Readymade garments (RMG) of Bangladesh is powered by young, urbanizing, workers, where most of them are women. History of RMG Industry of Bangladesh The foundation of textile sector was first established in the 60th decade of 19th...
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...IMPACT OF GLOBAL RECESSION ON READY MADE GARMENTS INDUSTRY OF BANGLADESH IMPACT OF GLOBAL RECESSION ON READY MADE GARMENTS INDUSTRY OF BANGLADESH Prepared for: Dr. Muhammad Ziaulhaq Mamun Course Instructor Research Method (K301) Prepared by: Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq Rayhan (ZR-45) Sayan Muhammad Rafi (ZR-48) Rafat Shamim (ZR-51) Ishmam Rahman Abedin (ZR-53) Bushra Barkat (ZR-54) Institute of Business Administration University of Dhaka June 30, 2012 30 June 2012 Dr. Muhammad Ziaulhaq Mamun Professor Institute Of Business Administration University Of Dhaka Dear Sir, Here we present the report “Impact of Global Recession on Ready Made Garments Industry of Bangladesh”. In this report we tried to analyze the current RMG industry scenario and the various factors associated with it which have been influenced by the global financial crisis. We believe our report will facilitate strategic planning for both the decision makers in the market and identify possible counter measures and new possibilities. We hope the report meets your expectations. We will be glad to answer any query about the report. Sincerely yours, Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq...
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