...[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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...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 growth in the countries...
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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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...http://www.bangladeshaccord.org/bangladesh/ The southern Asian country of Bangladesh, bordered by India and Burma, has a population of approximately 164 million people[1]. The Bangladesh economy has grown an average of six percent a year over the last two decades and has a population increasing by an average of 1.59% a year[2]. This manufacturing industry accounted for almost 12% of Bangladeshi GDP in 2009 and 2010[3] and employs approximately four million people[4]. The export-oriented Bangladeshi garment manufacturing industry has boomed into a $19 billion dollar a year industry[5] following the expiry in 2005 of an international agreement on textiles and clothing import quotas in place since the early 1960’s[6], duty-free access offered by western countries, and low labour costs. The Bangladeshi textile and garment manufacturing sector is fuelled by young, urbanizing, workers many of whom are women. With the majority of production destined for U.S. and European markets, Bangladesh’s ready-made garment industry now accounts for approximately 78% of total exports[7], second only to China as the world’s largest apparel exporter. However, Bangladesh has a long history of health and safety tragedies in garment and textile manufacturing. Garment factory fires and collapses have killed at least 1800 workers since 2005[8]. The Tazreen Fashions fire on 24th November 2012 and the unprecedented disaster of the collapse of the Rana Plaza factory complex on 24 April 2013, together...
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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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...Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail...
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...The tremendous success of 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...
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...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 economy of Bangladesh in terms...
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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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...Development of Apparel Industry in Bangladesh Garment Industry Large-scale production of readymade garments (RMG) in organised factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per specifications provided by individual customers who supplied the fabrics. The domestic market for readymade garment, excepting children wears and men's knit underwear (genji) was virtually non-existent in Bangladesh until the sixties. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although, the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. In 1999, the industry employed directly more than 1.4 million workers, about 80% of whom were female. With the growth of RMG industry, linkage industries supplying fabrics, yarns, accessories, packaging materials, etc. have also expanded. In addition, demand for services like transportation, banking, shipping and insurance has increased. All these have created additional employment. The total indirect employment created by the RMG industry in Bangladesh is estimated to be some 200,000 workers. In addition to its economic contribution, the expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million...
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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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...EXECUTIVE SUMMARY Readymade Garments Industry is the leading foreign currency earning sectors of Bangladesh. Now-a-days Bangladesh financial sector is very much dependent upon this sector. The annual export income of garments sector is driven from two sources one is woven garments and others is knit wear. Redimet garments is a 100% export oriented garments. Redimet garments exports various garments product in foreign market. The company makes shirts, ladies dress, shorts, trousers, and others for U.S.A, U.K, Europian countries countries. They use high tech machineries to produce a quality garments product. They also add new machineries to increase their production line. They have a mission and the vision is profit maximization. The merchandising philosophy of Redimet garments is to keep good relation with their buyers. The garments Industry maintains a good relationship with every buyer. Hard working and commitment maintenance is their main strategy. They always try to satisfy their buyers. In this perspective the merchandiser always try to do their merchandising activities in due time. The merchandiser of this company is not very much skilled person. More over him has no assistant. For this reason Sometimes the company face problem. So, here Redimet garments can recruit high skilled people with giving high salary. The Redimet garments should improve their product quality, packing system, internal environment, and other merchandising activities to satisfy their foreign buyers...
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...growth and employment generation but this approach has not worked. The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. Bangladesh has a total population of over160 million. Among of vast population about 3.5 million people are working in the garments industries. It is the largest exporting industry in Bangladesh, which experienced phenomenal growth during the last 20 years under the quota system of Multi-Fiber Arrangement (MFA). The abolition of quota system thus brings new challenges for Bangladesh’s apparel industry to continue its current status and enhance it in a free flow of apparel trade era. According to BGMEA, after the Liberation War of Bangladesh, in 1983 the Ready-Made-Garment (RMG) industry emerged to be a most promising sector in the socio-economic context of Bangladesh. From that point of time till now, this industry has grown and developed so rapidly that currently Bangladesh is exporting RMG products worth 5 billion USD every year to countries like EU, USA, Canada and other countries of the world. Now, Bangladesh enjoys the position of being the 6th largest apparel supplier to the USA and EU countries. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. Background of RMG industry in Bangladesh since beginning of ‘80s Export-oriented garment exports from Bangladesh were initiated in the beginning of the 1980s (Bhattacharya and Rahman, 2001; Hoque...
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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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...Industrial Relations at Garments Sector and its Global Impact Prepared By: Md. Mamunur Rashid ID# 2005-3-10-073 Mohammad Abdus Salam 2004-3-10-082 Dewan Mohammad Masum ID# 2003-2-14-053 Course : HRM 414 Section: 1 Department Of Business Administration Prepared For: Dr.Nargis Akhter Course instructor-Industrial Relations Department of Business Administration East West University Date of submission: 12 August 2008 [pic] Letter of Authorization 12 August 2008 Students of Industrial Relations HRM-414 Department of Business Administration East West University, Dhaka Dear Students As a part of your Industrial Relations course, you are hereby assigned a report on Industrial relations at garments sector and its global impact. Assigned report must follow the standard system and methodology and should contain accurate data. You are allowed to form a group of 3 members in order to accomplish your task. The university will appreciate any additional benefit that can be obtained from your report. You are required to submit the report on 10 August, 2008 and do a presentation on 12 August, 2008. I wish you best of luck. Sincerely Dr.Nargis Akhter Letter of Transmittal August 12, 2008 Dr. Nargis Akhter Associate professor Department of Business Administration East...
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