Problem and Solution of RMG

Sector in Bangladesh

Submitted by: Sanjida Afreen

Department of Industrial Engineering
 Contents

 Introduction
 contribution of RMG sector in
Bangladesh
 Some problems and
 Some solutions of RMG sector
 conclusion
Introduction of RMG Sector: It is expanded to Ready–
Made Garments. The economy of Bangladesh is largely dependent on
agriculture. However the RMG sector has emerged as the biggest earner
of foreign currency. The RMG sector has experienced an exponential
growth since the 1980s. The sector contributes significantly to the
GDP. Which makes us new rising country in earth.
Contribution of RMG Sectors : The contribution of RMG
sector in Bangladesh economy is remarkable. It’s seen that, from the
last decade, RMG sector contributes to the national economy in
considerable rate. About 76% of total export earnings come from RMG
sector. From a statistics it’s known that, in FY 2003-04 RMG sector of
Bangladesh earned US$ 5,686.06 million, in FY 2004-05 the value was
US$ 6,417.67.67 million, in FY 2005-06 the value was US$ 7900.80
million, in FY 2006-07 the value was US$ 9,211.23 million, in FY 2007-
08 the value was US$ 10,699.80 million, in FY 2008-09 the value was
US$ 12.35 billion and finally in FY 2013-14 the value stands at
$24.49billion,Contribution of RMG sector in Bangladesh.
Therefore, RMG sector in Bangladesh acts as the vertebral column of
our economy these examples are such as:
Solving Unemployment Problem: Bangladesh is one of the most
densely populated countries in the world. With the increase of
population employment opportunities is not creating accordingly. So a
large number of its population is to remain jobless. But the growth of
RMG sector have created job opportunities for more than 6 million
people directly and about 30 million more indirectly.
Women Social Status: In Bangladesh, the majority of workers of RMG
sector are women. Women are not kept confined within the four walls
of kitchen only to cook. They are now incoming which has changed
their contribution in family and social decision making.
Development of other Key Sectors of Economy: The RMG sector
stimulates the development other key sectors of economy and
contributes to launce of some business firms like Bank, Insurance,
Transport, Logistic, Communication process, buying house, liaison
office, money laundering etc.
International Relation: RMG sector helps Bangladesh to make
international relationships among the other countries in the world.
Bangladesh exports garments to different nations of the world such as
U.S.A, UK, Germany, France and other E.U countries which make a
better international relationship among the nations.

Some problems of RMG sector: 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.
Raw materials: Bangladesh imports raw materials for garments like
cotton, thread color etc. This dependence on raw materials hampers
the development of garments industry. Moreover, foreign suppliers
often supply low quality materials, which result in low quality products
Unskilled workers: Most of the illiterate women workers employed
in garments are unskilled and so their products often become lower in
quality.
Improper working environment: Taking the advantages of workers’
poverty and ignorance the owners forced them to work in unsafe and
unhealthy workplace overcrowded with workers beyond the capacity of
the factory floor and improper ventilation. Improper ventilation, stuffy
situation, filthy rooms are the characteristics of the majority of our
factories. The owners’ profit is the first priority and this attitude has
gone to such an extent that they do not care about their lives.
Lack of managerial knowledge: There are some other problems
which are associated with this sector. Those are- lack of marketing
tactics, absence of easily on-hand middle management, a small number
of manufacturing methods, lack of training organizations for industrial
workers, supervisors and managers, autocratic approach of nearly all
the investors, fewer process units for textiles and garments, sluggish
backward or forward blending procedure, incompetent ports,
entry/exit complicated and loading/unloading takes much time, time-
consuming custom clearance etc.
Insufficient for loan: Insufficiency of the loan in time, the uncertainty
of electricity, delay in getting materials, lack of communication, the
problem in taxes etc. Often obstruct the industry. In the world market,
115 to 120 items of dress are in demand whereas Bangladesh supplies
only ten to twelve items of garments. India, south Korea, Hong Kong,
Singapore, Thailand, Taiwan etc, have made remarkable progress in
garments industries. Bangladesh is going to challenge the garments of
those countries in the world market.
Unit labor cost: Bangladesh has the cheapest unit labor cost in South
Asia. It costs only 11 cents to produce a shirt in Bangladesh, whereas it
costs 79 cents in Sri Lanka and 26 cents in India. Clearly, Bangladesh’s
comparative advantage lies in having the cheapest unit labor cost.
Working hours: Though the wages are low, the working hours are
very long. The RMG factories claim to operate one eight-hour shift six
days a week. The 1965 factory Act allows women to work delivery
deadlines; however, women are virtually compelled to work after 8
o’clock. Sometimes they work until 3 o’clock in the morning and report
back to start work again five hours later ar 8 o’clock. They are asked to
work whole months at a time the Factory Act, which stipulates that no
employee should work more than ten days consecutively without a
break.
Safety Problems: Because of the carelessness of the factory
management and for their arrogance factory doors used to be kept
locked for security reason-defying act. Safety need for the worker is
mandatory to maintain in all the organization.
For these happening so many problems in RMG sector. workers
forcing their garments owners by doing movement to get their
demands.

46 garments have been closed already. Workers are loses their job
also, these all problems mainly effecting our country incomes.
Such as these problems effecting-

Though RMG sector of Bangladesh has achieved the second spot for the
highest number of garments exporter, but it has a lot of problems. The
major problems faced by RMG sector currently is the lack of safety in
working place and working conditions for the millions of garments
workers. It’s become a great challenge for the upcoming financial year
of Bangladesh.

Some Solution of these problems:

RMG sector and government are directly connected with each other
through their vision about Bangladesh which is all about the
development of the country. So for all problems are created, both are
equally responsible. The Bangladesh government already initiated
several support measures specifically targeting this sector. For the
expansion of the RMG industry the government plays an important role
by providing various policy supports at every step including bonded
warehouse facilities, duty drawback incentive, cash compensation
scheme, stable exchange rate, lower export price and the facility of
procuring raw materials. According to the discussion about the
problems some solution could be served-
 Management labor conflict.
 Proper management policy.
 Maintainable time schedule for the product.
 Proper strategic plan.
 Solve the license problems.
 Provide proper environment for the work.
 Keep the industry free from politics.
 Credit must provide when the industry in need.
 Regarding Fire Safety.
 Proper infrastructure.
 Protection against fire and smoke should be ensured.
 Building should be constructed with fire resisting materials.
The government should focus on production and procurement of high
quality raw materials within the country. For this endeavor
Government should use Public Private Partnership. This will in turn
gives the nation an ample opportunity to add a significant amount with
the national income.

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 generation and in the provision of income to the
poor. To remain successful, Bangladesh needs to remove all the
structural obstacles in the transportation facilities, telecommunication
network, and power supply, management of seaport, utility services
and in the law and order situation. The government and the RMG
sector would have to jointly work together to maintain competitiveness
in the global RMG market. Given the remarkable entrepreneurial
initiatives and the dedication of its workforce, Bangladesh can look
forward to advancing its share of the global RMG market.

Thank you