Problems and Prospect of RMG Sector in Bangladesh. This presentation Made By Tasnim Alam. He is a studen of National institute of fashion technology(NIFT).He study Apparel Manufacture Technology(AMT).

2. A Presentation On………….
Prospect and Problems Of
RMG Sector in Bangladesh

3. Presented To
Shabnam Mustari
Faculty of National institute of fashion Technology(NIFT)
Name: Tasnim Alam
ID :1836006031
Name: Sakibul Alam
ID :1836006005
Name: Yeasin Prodhan
ID : 1836006034
Name: Maksuda Akter
ID : 1836007002
Name: Kamrun Nahar Asa
ID : 1836007001
Presented By

4. We pray for the forgiveness of their
souls who gave their lives under
Rana Plaza in 24th April 2013.

6. Now We will See……..
Problems Of RMG Sector in
Bangladesh

7. Problems Surrounding Readymade
Garments Sector:
The Garments industry of Bangladesh has been the
key export division and a main source of foreign
exchange for the last 25 years. National Labor laws
do not apply in the EPZ, Leaving BEPZA in full control
over work conditions, wages and benefits. Garments
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

8. Insufficient of loan:
Insufficiency of loan in time, uncertainly of electricity,
delay in getting materials, lack of communication,
problem in taxes etc. Often obstruct the industry. In the
world market 115 to 120 items of dress are in demand
where as 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.

9. Price competitiveness:
China and some other competitors of Bangladesh have
implemented sharp price-cutting policies in exporting
garment products over the last few years, but Bangladesh
has failed to respond effectively to such policies. China was
able to drop the export price of 29 garment categories by 46
per cent on average in the United States within a year, from
$6.23 per sq. meter in December 2001 to $3.37 per sq.
meter in December 2002. Bangladesh needs to respond to
such price-cutting policies of its rivals in order to remain
competitive in the quota-free global market.

10. Improper Working environment
Taking the advantages of workers poverty
and ignorance the owners forced them to
work in unsafe and unhealthy work place
overcrowded with workers beyond capacity of
the factory floor and improper ventilation.

11. Unskilled Workers
Most of the illiterate workers employed
in garments are unskilled and so their
products often become lower in quality.

12. Political Crisis
Political Unrest and strikes are the highest risks in sourcing from Bangladesh.

13. 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.

14. 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.

15. Unit Labor cost
Bangladesh has the cheapest unit labor cost in South Asia. It
cost only 11 cents to produce a shirt in a Bangladesh, where
it costs 79 cents in Sri Lanka and 26 cents in India. Clearly,
Bangladesh comparative advantage lies in having the
cheapest unit labor cost.

16. 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.

17. Electricity and gas problem
Women Harassment

18. Now We will See
Prospect of RMG Sector in
Bangladesh.

19. Over 81% of the country’s total exports, was 0.2% in the 1980s. Employed about 4
million people or about 40% of manufacturing sector employment, 80% of whom are
women. Indirectly support about 20-25 million people. The number of firm has grown
from 180 to over 6000 in 30 year(3600 are registered).

20. Contribution of RMG Sector to the National Economy
The role 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.

21. International Market Created By RMG Sector
Bangladesh has great opportunity to catch
the market share of Chinese RMG in world
(420 billion USD without China) as well as
domestic market of china(About 300 billion
USD) as China is going to divert From RMG
Production.

22. IS MOVING
TO
EU and other importers are willing to move from China to
Bangladesh to Establish Big Enterprise.

23. Opportunity of RMG Sector in
Bangladesh
RMG sector of Bangladesh has some key
factors which inspired for steady growth of this
sector. Though its a matter of great surprising
for so many that how RMG sector of
Bangladesh continues to show its robust
performance in the world.

24. We expect one day Bangladesh
will become a developed state by
the garment industry.

26. For Joining Us