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The Bangladesh Garment Industry: Challenges of the 21st Century

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The Bangladesh Garment Industry: Challenges of the 21st Century
The Bangladesh Garment Industry: Challenges of the 21st century
Introduction
Readymade Garment (RMG) Industry occupies a dominant position in the export-manufacturing sector of Bangladesh. The advent of the RMG sector happened during the early 80s in Bangladesh. Since then, due to supportive policies of the Government of Bangladesh (GoB), this industry has experienced a significant growth. In 1988, the export-oriented RMG sector overtook the traditionally dominant jute sector in terms of gross export accruals. And since then this sector has continued to consolidate it predominant position in the export basket of Bangladesh. According to data of 2003-2004 financial year, the export earnings of the RMG sector was 5686.09 million US dollars, which constituted 74.79 percent of total export earnings. The industry, which started with only a few factory units during 1980s, now boasts 4094 factory units employing around 1.5 million workers.

Composition of Production
The garments products of Bangladesh include both knit and woven wear. Share of knitwear in the total production of garment in Bangladesh is steadily increasing over time. At present, knit wear accounts for about 33 percent of the total production. Of the woven wears, high-value products are shirts, jackets, coats, blouses, sportswear and many more casual and fashion apparels. Recent data shows that production of these high value items either decreased over the years or increased at a very nominal rate compared to other basic low value-added items such as trousers or shorts. Thus, product diversification in the Bangladesh garment industry has been rather slow and products are mainly low value-added or low-fashion items. Of all the produced items in 2001-2, around 40 per cent were exported to USA markets and 53 per cent were exported to the EU markets, with Germany being the highest imported or Bangladeshi garments. However, data of 2003-4 shows that exports to EU has increased to 65 per cent, while exports to

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