RMG industry in Bangladesh has always been the country's backbone. Being the 3rd largest apparel exporter in the world after China and Vietnam, the South Asian apparel manufacturing powerhouse is showing good signs in its global apparel exports. Team Apparel Resources has prepared a presentation to let the readers everything know about Bangladesh's RMG industry.

1. BANGLADESH GARMENT INDUSTRY
AN APPAREL MANUFACTURING POWERHOUSE OF
SOUTH ASIA

2. Content
1. Country Overview
2. Economy Snapshot
3. Bangladesh RMG Industry: Some Facts
4. Bangladesh RMG ExportsYear-wise
5. Percentage of RMG Exports of Bangladesh to theWorld
6.Value of Bangladesh’s RMG Exports in FY ‘17
7.Trade relations with other countries
8. SWOT analysis of Bangladesh RMG industry
9. Possible solutions of the problems in Bangladesh
10. Government initiatives to boost RMG industry in 2018

3. Population:
166,368,149
Area:
147,570 Sq. Kms
Region:
South Asia
GDP:
US $ 285.81
Capital:
Dhaka
Country Overview

4. GDP growth
rate ~ 6.5%
Total Exports ~
US $ 35 billion
(as on FY ’17
end)
44th largest
economy (in
nominal terms)
and 32nd largest
(in ppp terms)
Export oriented
Industries:
garments, jute,
leather, frozen
food
Economy Snapshot

5. The industry contributes
28.1% in the country’s
total GDP
The industry contributes
65% in the total industrial
development
The industry employs
around 4.5 million people
and 80% of them are
women
Bangladesh RMG Industry: Some Facts

6. RMG Industry
in Bangladesh
Target of reaching
US $ 50 billion by
2021
In the FY ’17, it
generated US $
28.14 billion
revenue
Contributes
81.23% of the
export earnings
Bangladesh RMG Industry: Some Facts

7. Bangladesh RMG Exports
The 3rd
largest
exporter of
garments in
the world.
Denim
industry
generates
around
US $ 2 billion
of export
value every
year.
Major
markets are
European
Union, US,
Japan and
Australia.
Bangladesh RMG Industry: Some Facts

8. 5150
5400
5876
4222 4296 4328 4482
0
1000
2000
3000
4000
5000
6000
7000
2011 2012 2013 2014 2015 2016 2017
No.ofFactories
Year
Total number of garment factories in Bangladesh
Bangladesh RMG Industry: Some Facts

9. 24.4 25.4
28 28.130.1 31.2
34.2 34.6
0
5
10
15
20
25
30
35
40
2013-14 2014-15 2015-16 2016-17
Exports of
RMG (In USD
billion)
Total exports
of Bangladesh
(in USD billion)
Bangladesh RMG Exports Year-wise

10. Percentage of RMG exports of Bangladesh
to the world
63.06
18.49
3.36
15.09 EU
US
Canada
Non-traditional
markets

11. 0
5
10
15
20 EU
US
Canada
Non-
traditional
Markets
in USD…
Value of Bangladesh’s RMG exports
in FY 2016-17 (country-wise)

12. Bangladesh and USA
The US is the 2nd
largest export
destination for
Bangladesh.
Longer lead time,
lower prices, lesser
imports by US
retailers, inefficient
port operations,
appreciation of the
local currency
against US $ led to
the decline in
garment exports to
US.
Bangladesh’s
exports face 15.62%
duty to the US
markets, which is
quite high in
comparison to what
Bangladesh’s
competitors such as
Vietnam,Turkey,
China and India have
to face.
The exports to US
declined by 7.47%
onYoY basis to US $
5.2 billion in FY ‘17.
Trade Relationship with other Countries

13. Bangladesh and EU
Bangladesh exports to
European Union, though
slow, but secured a growth
of 3.49% in fiscal 2016-17.
The growth was attained
despite speculations
around Brexit negotiation,
national elections in major
European countries,
depreciation of the euro
against the dollar.
According to EPB data,
Bangladesh’s exports to
EU reached to US $ 17.75
billion in FY ‘17.
Trade Relationship with other Countries

14. Bangladesh and China
Bangladesh’s RMG exports
to China increased 14.77%
to US $ 391.59 million in FY
‘17 due to duty free trade
privilege.
China might soon become
the secondAsian country
for Bangladeshi exports.
It is predicted by the
industry experts that
export value to China will
soon cross US $ 1 billion
figure in next few years.
Trade Relationship with other Countries

15. SWOT analysis of RMG Industry of
Bangladesh
Strength It can offer competitive prices.
The industry is quite versatile with extensive production
capabilities.
Duty free access to EU, UK, Canada, Japan, Australia
and recently India are big plus.
Financial support from world bank to improve
the country’s RMG industry.
Vertically integrated manufacturing is one of the positives.

16. Weakness
Longer lead time for some raw materials.
Poor and underdeveloped infrastructure.
Less investment in man made fabrics and warp knitting.
80% of Bangladesh textile exports comprise low value
added products such as trouser, shirt, sweater etc.
Inefficiency in adaptability of fast fashion to survive
in the rapidly changing garment industry
SWOT analysis of RMG Industry of
Bangladesh

17. Opportunities
Due to intense use of lean tools the garment
industry is getting benefits for longer term.
More engagement and empowerment of local management
teams is possible.
Sustainable pricing as compared to its competitors.
Health, safety & environment and Human resource management
are gradually improving in Bangladesh.
SWOT analysis of RMG Industry of
Bangladesh

18. Threats
Slow working of the Government institutions and corruption in
public services are some reasons that create problems for
companies in Bangladesh.
Inconsistent supply of gas and electricity.
Tight profit margins due to lower product price and higher cost of
production.
Port capacity is not great so shipment gets delayed
sometimes.
SWOT analysis of RMG Industry of
Bangladesh

19.  Bangladesh should focus on enhancing their human capital as it reduces the cost of
production.
 The industry should focus on a holistic approach for sustainability across textile and clothing
value chain.
 To come out of “cheap product and cheap price” market positioning, Bangladeshi textile and
garment companies should focus on brand positioning. Strong foreign policy and diplomacy
can overcome these reputational threats.
 To maintain competencies in the sector, it is essential to boost the infrastructural
development of the industry.
 Having comprehensive business friendly policies is essential to inspire new entrepreneurs to
come and invest in country’s textile and apparel industry.
 To understand consumer demand, to design new and value-added products, and to analyze
market situations, there should be more emphasis on research and development part.
Possible solutions for Bangladesh’s problems

20.  The government has commissioned two studies to analyze the feasibility of a floating
terminal and a mid-sized seaport, both near the Chittagong seaport.
 Further, the government has invested US $ 6 billion and has undertaken the construction
of a new seaport the Payra seaport, and the Padma bridge that will help apparel buyers
with better lead times. The Government is investing to enhance enhancing its power
generation capabilities as well.
 The government of Bangladesh is focusing on use of big data. For the same, DIFE
(Department of Inspection for Factories and Establishments), a Bangladesh government
entity, in partnership with ILO, has provided a digitized method of data collection for
safety and compliance issues in apparel manufacturing factories.
Government initiatives in recent years
to boost Bangladesh RMG industry

21.  The government initiatives are supporting Bangladesh industry to be more diverse and
specialized. With growing maturity of industry, technical skills are also maturing.
 The government of Bangladesh is focusing on industry to be more eco-friendly. The top
3 environmentally friendly garments factories in the world are located here.
Bangladesh has 7 out of top 10 LEED factories of the world. The government is
promoting this trend by providing loans at 9% to garment manufacturers that intend to
go green.
Government initiatives in recent years
to boost Bangladesh RMG industry

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