ASSIGNMENT ON READYMADE GARMENTS SECTOR IN BANGLADESH

SUBMITTED TO: SAAD IMRAN NOOR SUB: COMPUTER

SUBMITTED BY NAME: ABDULLA AL HADI ID: 111083077 SEC: F CLASS ID : 1 DATE: 28TH MARCH 2010

ACCKNOWLEDGEMENT

INTRODUCTION
While agriculture for domestic consumption is Bangladeshs largest employment sector, the money gained from exporting textiles is the single greatest source of economic growth in Bangladesh. Exports of textiles, clothing, and ready-made garments accounted for 77% of Bangladeshs total merchandise exports in 2002. Only 5% of textile factories are owned by foreign investors, with most of the production being controlled by families or Bangladeshi companies.

History of garments sector of Bangladesh

Immediately after the founding of Bangladesh tea and jute were the most export-oriented sectors. But with the constant threat of flooding, declining jute fiber prices and a significant decrease in world demand, the contribution of the jute sector to the countrys economy has deteriorated.The garment industry in Bangladesh became the main export sector and a major source of foreign exchange starting in 1980, and exported about $5 billion USD in 2002. The industry employs about 3 million workers of whom 90% are women.Two non-market factors have played a crucial role in ensuring the garment sectors continual success namely quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and preferential market access to European market.

Effect of the Agreement on Textiles and Clothing

From 1995-2005 the WTO Agreement on Textiles and Clothing (ATC) was in effect, wherein more industrialized countries consented to export fewer textiles while less industrialized countries enjoyed increased quotas for exporting their textile. Throughout the 10 year agreement, Bangladeshs economy benefited from quota-free access to European markets and desirable quotas for the American markets. export market USA (textile) USA (clothing) EU (textile) EU (clothing)

market share in 1995

<3%

4%

<3%

3%

market share in 2004

3%

2%

3%

4%

READY MADE GARMENT SECTOR of BANGLADESH

The Fastest Growing Export Sector of The Country
Starting in late seventies, the apparel industry of Bangladesh now accounts for over 64% of the country's total export earning. Country's apparel export rose to US$2628 million in 1996 from a mere US$6 million in 1981. To about 30 countries around the world, Bangladesh presently exports ready-made garments, with over 45% to USA, 50% to the countries in EU and 3% to Canada and rest to the other countries of the world. Country's apparel export has been growing on an average at the rate of 25% for last several years. The country, last year ranked 6th largest apparel exporter to the USA the EU.

Bangladesh Garment Export

There are about 2500 export oriented ready-made garment industry in Bangladesh those are clustered over mainly Dhaka and Chittagong. Such distribution offers buyers advantage to choose the right manufacturers and exporters, throughout the year, with minimum effort.
Garment Factory in Bangladesh

Textile Sector of Bangladesh Offers Best Invest Opportunity in South Asia

BY Redwan Ahmed
Ex-President, Bangladesh Garment Manufacturers & Exporters Association

After Liberation when country's traditional items of export could not yield expected result, in late 70s the government and a section of entrepreneurs - young, educated and dynamic, began to emphasize on development of non-traditional items of export. By the year 1983, Ready-Made-Garment (RMG) emerged to be a non-traditional export oriented sector most promising in the socioeconomic context of the country. By that time, those entrepreneurs felt a necessity of sectoral trade body, non-government in nature, free from traditional bureaucracy, to help the RMG sector and to boost up the foreign exchange earnings of the country urgently needed at that time. Responding to that necessity, 19 (Nineteen) RMG manufacturers and exporters joined together and by their untiring efforts got Bangladesh Garment Manufacturers and Exporters Association (BGMEA) incorporated on February 20, 1983, Today 2400 small and medium scale privately owned garment factories, registered with BGMEA, spread in cluster over the EPZ and urban areas of Dhaka, Chittagong and Khulna, are manufacturing ready-made garments of varied specifications as per size and designs stipulated by the overseas buyers.

Overall Problems and Prospects of Bangladesh

Abstract: Bangladeshi Garment Industry is the largest industrial sector of the country. Though the history of Readymade Garment Industry is not older one but Bangladeshi clothing business has a golden history. Probably it started from the Mughal age in the Indian subcontinent through Dhakai Muslin. It had global reputation as well as demandable market around the globe especially in the European market. Many Garments owners, workers, & buyers have helped my by providing their valuable opinion on the topic or through interview. So I am grateful to them for helping me by providing primary data. Again I would like to offer my warm thanks to all of them for helping me a lot in construction of this dissertation report. Keywords: Problems and Prospects Bangladeshi Ready-Made Garment Industries