Preview

Rmg Analysis of Bangladesh

Powerful Essays
Open Document
Open Document
1724 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Rmg Analysis of Bangladesh
MACROECONOMIC ANALYSIS

The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a significant role in terms of employment generation. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country.

RMG’s contribution in terms of GDP is highly remarkable; it has reached 13 percent of GDP which was only about 3 percent in 1991. It also plays a pivotal role to promote the development of other key sectors of the economy like banking, insurance, shipping, hotel, tourism, road transportation, railway container services, etc.

One of the key advantages of the RMG industry is its cheap labor force, which provides a competitive edge over its competitors. The sector has created employment opportunities for about two million people of which 70 percent are women who mostly come from rural areas. Thus the industry helps in the country’s social development, women empowerment and poverty alleviation.

Currently RMG earns the lion's share of foreign exchange earnings.

INDUSTRY ANALYSIS

The Readymade Garment (RMG) industry of Bangladesh marked the leadership of private enterprise and the country’s successful transition to a major export-oriented economy. The key products of this industry are Knit and Woven Shirts and Blouses, Trousers, Skirts, Shorts, Jackets, Sweaters, Sportswear and many more casual

You May Also Find These Documents Helpful

  • Good Essays

    Employment and economic growth in Bangladesh depends upon exports of textile products which were allowed through a preferential quota system for textile market export from poor markets to rich markets. As soon as the shift to a free trade regime appeared along with the competition with countries such as China and Indonesia the quick collapse of Bangladesh’s textile industry has been predicted. However, the opposite occurred. We can highlight three major reasons to explain what happened:…

    • 899 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The Textile Industry in Bangladesh is growing fast despite the fact of the global economicslowdown. In current situation, businesses like Wall Mart and their customers look very cautiously towards the product necessity, value and price. Firms are more focused to lower the operational and transaction costs and to maintain their profit margins. In this global condition, various factors contributed that Bangladeshi textile industry move towards the path of growth and leaving noticeable footprint in the global textile industry as a success story.…

    • 1474 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Bangladesh had no sign of the ready-made garment industry until late 1970s to early 1980s when foreign investors started their businesses in Bangladesh. The emergence of an export-oriented RMG industry in Bangladesh can be traced to a confluence of policy trends at global and national levels. The opportunity came to us as a result of quota system imposed on some developed countries. The idea of readymade garments came to our country in 1978 from South Korean company Daewoo. Daewoo trained some 130 officials of Desh Garments and had a…

    • 838 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    [5] CPD. 2007. Bangladesh`s Apparel Sector In Post-MFA Period: A Bench-marketing Study on the Ongoing Restructuring Process. Annual report of the Centre for Policy Dialogue.…

    • 7303 Words
    • 30 Pages
    Powerful Essays
  • Better Essays

    Shahadat

    • 869 Words
    • 4 Pages

    The garment industry has played a pioneering role in the development of industrial sector of Bangladesh. Though it took a rather late start i.e., in 1976 but it soon established its reputation in the world market within a short span of time. Resultantly garment is now one of the main export items of the country. Besides, enriching the country's economy it has played a very important role in alleviating unemployment. At present there are more than two thousand one hundred garment factories in the country employing more than 12 lack labors. 85 percent of the labor force is women.…

    • 869 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Women Empowerment

    • 19986 Words
    • 80 Pages

    through the lens of equity and inequality. Poverty is not only about 'poor ' people but also…

    • 19986 Words
    • 80 Pages
    Powerful Essays
  • Good Essays

    In recent time it is argued that the crisis in the Ready Made Garment (RMG) sector is not only limited to the wages and allowances of the workers. Productions and exports of the factories have decreased and the price of the apparels is decreasing in the international market. The owners of this industry allege that, the supply of gas and electricity is not continuous, because of which they are to use generators to keep the production process of the factories uninterrupted, resulting in the increasing cost of productions. But it is urgent to reduce the cost of production to comply with the foreign buyers' demand and the competitive international price. Moreover, serious and untoward incidents in the form of chaos and confusions are frequent in this sector on the basis of rumours and petty demands of the workers. It has become a way of frequently destroying factories by spreading news of misbehaviour of the factory owners with the workers.…

    • 1851 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    introduction to nishat

    • 646 Words
    • 3 Pages

    Despite efforts to bring in diversification in country's overall economic get-up the textile sector continues to be the most important segment of the national economy. Its share in the economy, in terms of GDP, exports, employment, foreign exchange earnings, investment and revenue generation altogether placed the textile industry as the single…

    • 646 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Employee Turnover

    • 1129 Words
    • 5 Pages

    INTRODUCTION Productivity is very important issue for an industry or organization. There are several factors on which productivity of an organization mostly depends upon. Employee’s turnover is one of them which is considered to be one of the challenging issues in business nowadays. The impact of turnover has received considerable attention by senior management, human resources professionals and industrial psychologists. It has proven to be one of the most costly and seemingly intractable human resource challenges confronting by several organizations globally.…

    • 1129 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the only recognized trade body that represents the export oriented garment manufacturers and exporters of the country. Ready-made Garment (RMG) emerged as a promising export earning sector of the country by the year 1983. Bangladesh at that time lacked a sect oral trade body, non-government in nature, free from traditional bureaucracy, to help the sector to boost up the country’s foreign exchange earnings. Entrepreneurs and the government in the post…

    • 5047 Words
    • 16 Pages
    Powerful Essays
  • Best Essays

    The Rise of Bangladesh

    • 4510 Words
    • 14 Pages

    The textiles and clothing industry in Bangladesh has become the major source of economic growth in the country after agriculture .Today, the $19 billion a year industry is highly export oriented and currently stands as the world’s second largest producers of textiles and garments behind China. With very steady and stable increases in its volume of production being experienced over the years. The textile industry of Bangladesh has been at the forefront of foreign exchange earnings due to its low costs finished garments. This can be attributed to several factors for which will be expatiated upon.…

    • 4510 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    It is also a fact that RMG producers from Bangladesh have been rather late in waking up to these issues on which depend the sustainability of their export activities . But awareness is not generally absent in respect of them and there are many RMG units which have taken comprehensive measures recognizing that this is indispensable for the secure growth of their exporting activities. The owners of the RMG industries should appreciate the fact that any improvements carried out in the areas of monetary and other benefits of workers, plus their working conditions, would only hedge them against the breakout of the kind of troubles that seemed about to deal fatal blows to the RMG sector several times since 2006. In fact, worse troubles are apprehended from workers after the recent Tazreen fire incident and the Rana Plaza collapse that led to the death of over a thousand workers.…

    • 3560 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Although Bangladesh is not developed in industry, it has been enriched in Garment industries in the recent past years. In the field of Industrialization garment industry is a promising step. It has given the opportunity of employment to millions of unemployed, specially innumerable uneducated women of the country. It is making significant contribution in the field of our export income.…

    • 831 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Garments industry is one of the important industries in Bangladesh having nearly 13% contribution to the Gross Domestic Product (GDP). This industry employs near about 5 million people and it is the second largest contributor to foreign currency reserve after remittance in terms of net of export and net of remittance. Readymade Garments (RMG) is considered as the backbone of this sector which employs 3.6 million people. This is considered as backbone because this RMG industry creates scopes for the other backward linkage industries including fabric manufacturing industry, wet processing industry, spinning industry, etc.…

    • 4673 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a significant role in terms of employment generation. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country.…

    • 855 Words
    • 4 Pages
    Good Essays