Beruflich Dokumente
Kultur Dokumente
Table of Contents
1.
2.
3.
Findings:............................................................................................................. 12
3.1 Millennium Garments Limited:.........................................................................12
3.2 RAHAN GARMENTS (PVT) LTD:.........................................................................12
3.3 TOKIO MODEL LIMITED:...................................................................................12
3.4 ALAM FIBER IMPEX LIMITED:............................................................................13
4.
5.
6.
7.
References:........................................................................................................ 21
1.1 Introduction:
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.
Quddus (2006) present an overall analysis of the industry to evaluate its potential as a catalyst
for the development of the rest of the Bangladesh economy.
For Bangladesh, the readymade garment export industry has been the proverbial goose that
lays the golden eggs for more than two decades now. The sector now dominates the modern
economy in export earnings, secondary impact and employment generated. The events in
1998 serve to highlight the vulnerability of this industry to both internal and external shocks
on the demand and supply side. Given the dominance of the sector in the overall modern
economy of Bangladesh, this vulnerability should be a matter of some concern to the
policymakers in Bangladesh. Although in gross terms the sectors contributions to the
countrys export earnings is around 74 percent, in net terms the share would be much less
partially because the backward linkages in textile have been slow to develop. The
dependence on a single sector, no matter how resilient or sturdy that sector is, is a matter of
policy concern. We believe the policymakers in Bangladesh should work to reduce this
dependence by moving quickly to develop the other export industries using the lessons
learned from the success of apparel exports. Support for the apparel sector should not be
reduced. In fact, another way to reduce the vulnerability is to diversify the product and the
market mix. It is heartening to observe that the knit products are rapidly gaining share in
overall garment exports as these products are sold in quota-free markets and reflect the
strength of Bangladeshi producers in the fully competitive global apparel markets.
Preliminary data and informal evidence indicate that this sector seems to have weathered the
devastating floods relatively well. The industry is one hundred percent export-oriented and
therefore insulated from domestic demand shocks; however, it remains vulnerable to domestic
supply shocks and the smooth functioning of the banking, transportation and other forward
and backward linkage sectors of the economy. The Dhaka-Chittagong road remains the main
transportation link connecting the production units, mostly situated in and around Dhaka and
the port in Chittagong, where the raw material and the finished products are shipped in and
out. Despite increased dependence on air transportation, trucks remain the main vehicles for
transporting raw materials and finished products for Bangladesh garment exports. The floods
disrupted the normal flow of traffic on this road.
Eventually, this road link was completely severed for several days when large sections of the
road went under water for a few weeks during the latter phase of the floods. This delinking of
the road connection between Dhaka and the port in Chittagong was as serious a threat as one
can imagine for the garment exporters. The industry responded by calling upon the
Bangladesh navy to help with trawlers and renting a plane from Thai Air that was used to
directly fly garment consignments from the Dhaka airport to the Chittagong airport several
times a day.
One of the key advantages of the RMG industry is its cheap labor force, which provides a
competitive edge over its competitors. The sector has created jobs for about two million
people of which 70 percent are women who mostly come from rural areas. The sector opened
up employment opportunities for many more individuals through direct and indirect economic
activities, which eventually helps the countrys social development, woman empowerment
and poverty alleviation.
The export made by Garments Industries of Bangladesh is improving year after year except
some of the year. Strike, layout, shutdown of company, political problem, economic problem,
inflation etc. are the prime cause of decreasing export in this important sector. But above it,
Readymade Garments Industries is the leading sector in export sector.
Year
Percentage change
2000 01
624.16
32.49
2001 02
866.82
38.88
2002 03
1182.57
36.43
2003 04
1445.02
22.19
2004 05
1555.79
7.67
2005 06
2228.35
43.47
2006 07
2547.13
14.11
2007 08
3001.25
17.83
2008 09
3781.94
26.01
2009 10
4019.98
6.29
2010 11
4349.41
8.19
2011 12
4859.83
11.74
2012 13
4583.75
5.68
2013 14
4912.12
7.21
2014 15
5686.09
15.83
3. Findings:
From the survey we have found some tremendous information that help to build our practical
knowledge about the garments industry of our country. Through our survey we try to bring
out the present situation, problems and the prospects of these industries. In these aspects we
divided our finding into three main parts. First part contains the general information about the
garments industries of our country and the other second and third part contains the problems
and the prospects of these industries sequentially. These topics are discussed belowCompany profile
We take information from five leading garments company to identify the problem of this
sector. Short profile of the Company are given below-
were pursued much more vigorously in the 1990s. These reforms were particularly aimed at
moving towards an open economic regime and integrating with the global economy.
During the 1990s, notable progress was made in economic performance. Along with
maintaining economic stabilization with a significantly reduced and declining dependence on
foreign aid, the economy appeared to begin a transition from stabilization to growth. The
average annual growth in per capita income had steadily accelerated from about 1.6 per cent
per annum in the first half of the 1980s to 3.6 percent by the latter half of the 1990s. This
improved performance owed itself both to a slowdown in population growth and a sustained
increase in the rate of GDP growth, which averaged 5.2 percent annually during the second
half of the 1990s. During this time, progress in the human development indicators was even
more impressive. Bangladesh was in fact among the top performing countries in the 1990s,
when measured by its improvement in the Human Development Index (HDI) as estimated by
the United Nations Development Project (UNDP). In terms of the increase in the value of
HDI between 1990 and 2001, Bangladesh is surpassed only by China and Cape Verde.
While most low-income countries depend largely on the export of primary commodities,
Bangladesh has made the transition from being primarily a jute-exporting country to a
garment-exporting one. This transition has been dictated by the countrys resource
endowment, characterized by extreme land scarcity and a very high population density,
making economic growth dependent on the export of labor-intensive manufactures.
In the wake of the 2001 global recession, Bangladeshs reliance on foreign countries as a
market for exports and as a source of remittances has become obvious. If Bangladesh is to
become less vulnerable to the economic fortunes of others, it will need to strengthen its
domestic economy, creating jobs and markets at home. A strong domestic sector and an
improved overall investment environment will provide a more stable source of income like
what the garment industry has provided so far and will rekindle and sustain Bangladeshs
economic growth.
from ordinary shirts, T-shirts, trousers, shorts, pajamas, ladies and childrens wear to
sophisticated high value items like quality suits, branded jeans, jackets, sweaters, embroidered
wear etc. It is clear that value addition accrues mostly in the designer items, and the sooner
local entrepreneurs can catch on to this trend the brighter be the RMG future.
Bangladesh mainly produces five products T-shirts, sweaters, trousers, mens and womens
shirts. Moreover, we are dependent mainly on two markets namely the EU and North America
(the US and Canada). Though we reduced our dependency on these two markets from 93% to
85% in last five years (From fiscal 2009-10 to 2013-14), we need to diversify the destinations of
our apparel export and concentrate on high-end products like suits, lingerie, etc more for the
sustained growth of our apparel industry.
Inadequate infrastructure, bureaucratic inefficiency and corruption are still the major problematic
factors in industrialisation and for growth of an industry. These are also increasing entrepreneurs
cost of doing business. We are also losing price and delivery competitiveness to our business
competitor. The last but not the least, political stability of the country is the key to steady growth
of the industry.
Starting from scratch, Bangladesh has come a long way and is now one of 10 new emerging
countries in the world. The macroeconomic stability, 6% annual average GDP growth, robust
performance of remittance and export, strong foreign currency reserve, and remarkable social
and human development over the past decade all reflect our underlying strengths.
Given the dominance of the RMG industry in the overall economy of Bangladesh, we have to
protect this sector. Rather than basking in the glory we should work hand in hand to retain
sustainable growth and competitive edge of this industry.
7. References:
1. http://www.mole.gov.bd
2. http://www.mole.gov.bd/site/notices/858eebe9-0a2d-4cb7-82f4-
bc16f5c3b97e/---- ---
3. http://www.mole.gov.bd/site/notices/37f55cbc-6875-4ca4-b953b9473864117b/---,----
4. https://resource.ogrlegal.com/bangladesh-labour-rules-2015-published/
5. https://resource.ogrlegal.com/official-english-translation-bangladesh-labouract-2006/
6. http://www.ilo.org/dhaka/Whatwedo/Projects/WCMS_240343/lang-en/index.htm
7. http://www.crowdvoice.org/workers-rights-violations-in-bangladesh?
gclid=CjwKEAjwrOO3BRCX55-L9_WojHoSJAAPxcSP8Gwf9zlA1NF1SoGl35uiCtQxrq-9wQYU9ri_wueAhoC0SDw_wcB