Bangladesh Ready Made Garments (RMG) Sector at a glance
Posted by Kauser BHUIYAN under Blog | No Comments
• World textiles and clothing industry was worth USD 527 billion in 2009 while Bangladesh exported USD 12.75 billion making up 79.33% of its total exports. • Bangladesh Export Promotion Bureau forecasts more than USD 16 billion export in this fiscal year and USD 25 billion by 2013. • The revised Rules of Origin (RoO) adopted by the European Commission, effective since 1 January 2011, allows Bangladesh to continue enjoying GSP advantages even for the imported primary materials like fabrics. • Germany imported more than 11% of total textiles and clothing export from Bangladesh for the period of April – September 2010 and is the largest importer of woven items. • Knitwear is the leading export-earner at USD 6.41 billion, followed by woven wear of USD 5.92 billion and textiles and other products of USD 0.42 billion. • It is estimated that the RMG sector contributes 11-15% to GDP of Bangladesh adding 38% of value to the industrial sector. • Around 4.5 million workers are employed in the textiles and clothing industry of which 80% are women. • The success of the export-oriented clothing industry can be attributed to four key factors: (a) quality, (b) price, (c) lead-time and (d) reliability. • Key investment opportunities in the sector lie in the Primary Textile Sector to strengthen backward linkages in the garment accessory industry and in exporting Bangladeshi branded apparel. • Investments in textile and fashion design training institutes and diversification into manufacture of niche clothing items would provide positive impacts on the sector.