Assignment On Readymade

Garments
Activities In Bangladesh
Geo-101
Sec:03

Group Members

Md.Sazzad Hossain(12304068)
Mostofa Sadab(12304061)
Md.Azimul Islam(12304059)
Hesamul Aziz(12104198)

Submitted to
Md. Asif
Rahman
(MNS)

Lecturer of

The ready-made garments(RMG) activity in

Bangladesh belongs to the secondary economic
activity for its feature and nature
Now the question might arise that how RMG
activity is a secondary economic activity.
To give the answer of this question, at first we
have to know what secondary economic activity is?
Secondary economic activities are those
activities by which Homo sapiens conduct economic
activities to produce secondary products. It increase
the value of the raw materials and it is basically
manufacturing activities.
RMG activities is a secondary economics activity
because it increases the value of the raw materials
and it is involves in manufacturing activities.

History of RMG activities in

Bangladesh

1950 was the beginning of R.M.G activity in the Western World.

Gradually it spread to many developing countries. RMG activity
started in Bangladesh at the begging of 1980. At the beginning
Some Bangladeshis received free training from the Korean
Company Daewoo. Then they started their own industries. In 1980
there was only 50 garment industries in Bangladesh. These
industries arranged only a few thousand job opportunity for the
Bangladeshi citizen and it contributed only 3% on the total GDP.
Now it is not a small industries anymore . Gradually it increased
day by day and become a major exporting industry in
Bangladesh.

Present scenario of RMG

activities
At present we can not think the economy of
Bangladesh without RMG activity. It has become one
of the major aspect of the economic activity of
Bangladesh. The present position of RMG in
Bangladesh is
Total Industries: 5600
Total Worker:
Direct:3.7million
Indirect: .50million
Total Export: 21515.73 million %$
Contribution in GDP: 13%
Percentage in total Export: 79.63%

Geographical Location of Garments

Activity in Bangladesh

Bangladesh Garment Manufactures & Exporters Association (BGMEA)

BGMEA is the only Management organization for RMG in Bangladesh
Description of BGMEA:
BGMEA is being run by a 27-member elected Board of Directors. Four Vice
Presidents having important portfolios, along with a secretariat of experienced officials,
assist the Board in formulating and executing vital policies and programs of the
organization. The president is the highest executive authority of the BGMEA. BGMEA
plays a very strong role in leading the industry in concurrence with the government.
Address:
BGMEA Complex, 23/1 Panthapath Link Road, Karwan Bazar, Dhaka-1215
.

Major Activities of BGMEA:

BGMEA works to protect and promote the interests of

the industry; thus ensuring a sustained growth in the
foreign exchange earnings of the country.
Maintains liaison with foreign buyers, business
associations and chambers.
BGMEA has set up a Crisis Management Committee for
emergencies.
BGMEA brings the opportunities for local manufactures
to interact with foreign buyers and form new rapport by
arranging different apparel fairs at home and abroad.
Organizes trade missions to explore the new markets
and to facilitate trade in existing markets and
organizes seminars for recommending on key policies.
Provides arbitration facilities to the garment workers
free of cost.

Reason of developing RMG activities in Bangladesh

Bangladesh has a population over 150million.

Around half of the population is women.
Most of the people lives below the poverty level.
The wage of the labor is very low.
It has seaport which is needed to export.

Contribution of RMG activities in Bangladesh

It creates job for a huge number of citizen of Bangladesh.

* Direct Job 3.7 million
* Indirect Job .50 million

Its total share in national export in 2012-2013 is 79.63%.

RMG contributes 13% of the total GDP of Bangladesh.

RMG is playing a vital role in the export sector in Bangladesh.

The export of Bangladesh is mainly depend on RMG activity. A
large portion of the Export of Bangladesh is run by this activity.

The table is showing how the export of

Bangladesh is dependable on RMG activities

Year

Total export
of
Bangladesh

Export of
RMG (in
million US$)

%of RMG to
total export

2009-10

16204.65

12496.72

77.12

2010-11

22924.38

17914.46

78.15

2011-12

24287.66

19089.69

78.60

2012-13

27018.26

21515.73

79.63

Women in RMG activities

Women are the main workforce of RMG sector.

Almost 70 percent of RMG workforce is women.
They are facing hardship and poverty.
Most of these women are illiterate or having less than
primary level education
They come to urban areas in search of work in garment factories
for better living conditions.

RMG market of
Bangladesh

USA is the largest market

of Bangladeshi RMG. Our
other large markets are :

EU
Germany
UK
France
Spain
Italy
Canada
Netherland
Belgium
Denmark

Country wise export of RMG product from Bangladesh

Country
Name

200910(Amoun
t in million
$US)

201011(Amoun
t in million
$US)

201112(Amoun
t in million
$US)

201213(Amoun
t in million
$US)

USA

3693.40

4625.16

4539.40

4996.58

Germany

2000.08

3130.97

3398.89

3678.28

UK

1260.02

1759.87

2130.07

2448.93

Spain

521.54

849.41

1071.12

1218.23

EU

7190.75

10519.84

11375.56

12564.85

Competitors of Bangladesh
As RMG has a huge global
market its very competitive
industry also. There are some
big global competitors of
Bangladesh. The main
competitors of Bangladesh
are :
China
India
Vietnam
Thailand
Cambodia
Sri Lanka
Philippine

Position in the world

Bangladesh is the second largest
textile manufacturer in the world where
China holds the first position.
Enjoys zero duty access in the
European Union, Canada, Australia,
Japan, Norway and Switzerland through
GSP scheme
Alone Bangladesh meet 17% world
demand of Ready made garments .

Challenges of RMG
activity

Political uncertainty
Labor unrest
Distance between the owner and Labor
International politics
Improving labor quality
Rapid fire accidents in the factory

The Area were we can

develop

We have to improve the infrastructure

We can form labor union
We can increase the facilities for the labor.
Reduce political uncertainty
Arrangement of easy loan facility
Concern about International conspiracy
We can make a separate ministry for RMG

Future of RMG activity in

Bangladesh
Bangladesh has a very bright future in RMG sector
if they Can manage the associated factors.

China is the main competitor of Bangladesh in RMG

sector. Now a days the wages of labor is increasing in
china . For that reason in future they might have some
problem regarding this issue. So we can take this chance

At present we are importing most of the raw materials of

this sector. But we can produce it in our own country.

There are many new markets is open in the world such as

Brazil, South Africa etc. If we can catch this market that
would be very good for this industry.