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Garments Industry of Bangladesh is economically most important and one of the most emerging sector of the country.
This is an assignment on “Problem and Prospects of Garment Industry in Bangladesh”.
For writing sequentially this topics is divided into three stages.
First stage includes outlook or front page presentation.
Second stage is divided into followings: Contents, Introduction, Historical Background of Garments Industry in Bangladesh, Present Status of Garments Industry in Bangladesh,
Prospects of Garments Industry in Bangladesh, Problems of Garments Industry in
Bangladesh, Recommendations and Conclusion.
Third stage includes References.
With the help of specific and related data all the points are described in the body part of the assignment. Related pictures and graphical presentations are also included with the points.
Many points are described deeply with the help of related data, graph and references.
Finally, almost all the references are mentioned in the last stage of the assignment.
References are taken from related books, research papers and publications, project papers, websites and related writings of different authors and organizations.

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Large-scale production of readymade garments (RMG) in organized factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per specifications provided by individual customers who supplied the fabrics.
The domestic market for readymade garment, excepting children wears and men's knit underwear was virtually non-existent in Bangladesh until the sixties.
Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although; the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. In 1999, the industry employed directly more than 1.4 million workers, about 80% of whom were female.
The hundred percent export-oriented RMG industry experienced phenomenal growth during the last 15 or so years. In 1978, there were only 9 export-oriented garment manufacturing units, which generated export earnings of hardly one million dollar. Some of these units were very small and produced garments for both domestic and export markets. Four such small and old units were Reaz Garments, Paris Garments, Jewel
Garments and Baishakhi Garments. Reaz Garments, the pioneer, was established in 1960 as a small tailoring outfit, named Reaz Store in Dhaka. It served only domestic markets for about 15 years. In 1973 it changed its name to M/s Reaz Garments Ltd. and expanded its operations into export market by selling 10,000 pieces of men's shirts worth French
Franc 13 million to a Paris-based firm in 1978. It was the first direct exporter of garments from Bangladesh. Desh Garments Ltd, the first non-equity joint-venture in the garment industry was established in 1979. Desh had technical and marketing collaboration with
Daewoo Corporation of South Korea. It was also the first hundred percent exportoriented company. It had about 120 operators including 3 women trained in South Korea, and with these trained workers it started its production in early 1980. Another South
Korean Firm, Youngones Corporation formed the first equity joint-venture garment factory with a Bangladeshi firm, Trexim Ltd. in 1980. Bangladeshi partners contributed
51% of the equity of thee new firm, named Youngones Bangladesh. It exported its first consignment of padded and non-padded jackets to Sweden in December 1980.
Within a short period, Bangladeshi entrepreneurs got familiar with the world apparel markets and marketing. They acquired the expertise of mobilizing resources to export-
Foreign buyers found Bangladesh an increasingly attractive sourcing place. To take advantage of this cheap source, foreign buyers extended, in many cases, suppliers' credit under special arrangements. In some cases, local banks provided part of the equity capital. The problem of working capital was greatly solved with the introduction of backto-back letter of credit, which also facilitated import of quality fabric, the basic raw The government assigned high priority to the development of RMG industry.
Over the last fifteen years or so the garments industries have emerged as the largest source of earning foreign currency. About half of the foreign currency from the readymade garments is earned from European Union and the U.S.A. Besides, Canada, Japan,
Australia, New Zealand; Russia etc. also are other garments importing countries. At present about 20 countries of the world are importers of our garments. Its market is being expanded in the Middle East, Russia, Japan, Australia and many other countries.

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Leading
Exporters of Clothing
China
EU (25)
Hong
Kong,
China
Turkey
Table 1: World’s Leading Textile and Clothing Exporters
% Share in world export Leading
1980 1990 2000 2006
Exporters of
Textile
% Share in world export
1980 1990 2000 2006
4.0 8.9 18.2 30.6 EU (25)
42.0 37.7 26.9 26.8 China
12.3 14.2 12.2 9.1
Hong Kong,
China
0.3 3.1 3.3 3.8 US
India
Bangladesh
1.7 2.3 3.1 3.3 Korea,
0.0 0.6 2.1 2.8
Taipei,
Chinese
Mexico 0.0 0.5 4.4 2.0 India
Indonesia 0.2 1.5 2.4 1.8 Turkey
US 3.1 2.4 4.4 1.6 Pakistan
Viet Nam ... ... 0.9 1.7 Japan
Source : WTO Trade Statistics
49.4 48.7
4.6
3.2
6.8
4.0
3.2
1.6
9.3
6.9
7.9
4.8
5.8
5.9
2.6
5.6
35.6
10.2
8.5
6.9
8.0
7.5
2.4 2.1 3.8
0.6 1.4 2.3
2.9
4.4
32.6
22.3
6.4
5.8
4.6
4.5
4.3
3.5
3.4
3.2
The regional flow of the T&C export shows that China is the leading world exporter whose clothing export share has immensely increased from 4.0% in 1980 to 30.6% in
2006. The other major exporters are EU (union of 25 countries), Hong Kong, Turkey,
India, and Bangladesh. It is evident from the Table 1 that the share of EU in the world export of clothing has significantly declined from 42.0% in 1980 to 26.3% in 2006.While the shares of some developing countries such as China, Turkey, Bangladesh, India,
Mexico, and Indonesia among others, have increased (Table 1). For instance, share of
India’s clothing export has increased from 1.7% in 1980 to 3.3% in 2006.
RMG business started in the late 70s as a negligible non-traditional sector with a narrow export base and by the year 1983 it emerged as a promising export earning sector; presently it contributes around 75 percent of the total export earnings. Over the past one and half decade, RMG export earnings have increased by more than 8 times with an exceptional growth rate of 16.5 percent per annum. In FY06, earnings reached about 8 billion USD, which was only less than a billion USD in FY91. Excepting FY02, the industry registered significant positive growth throughout this period.
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Figure 1: Trend of RMG Export Volume, Export Growth and Contribution to GDP.

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The export of world RMG has grown through quantitative restrictions of Multi Fiber
Arrangement (MFA) from 1974 to 1994. These restrictions were phased out during 1994
- 2004 in four phases. Now, with the opening of market, since January 1, 2005, the RMG industry has been fully integrated into the World Trade Organization (WTO).

The contribution of readymade garment (RMG) to the national export increases with the rebound of orders from international buyers following a recovery in the global economy, according to trade data of the Export Promotion Bureau.
The share of RMG products reached 77.17 percent in the July-November period from
77.15 percent in July-October of the current fiscal year.
During the July-November period, the country exported woven garments worth $2.13 billion and knitwear items of $2.59 billion totaling $4.72 billion.
The share of woven garments in the total exports of the country was 34.84 percent and that of knitwear (including sweater) was 42.34 percent, the data said. During the fivemonth period, the total national export was worth $6.10 billion.
In fiscal 2008-09 the RMG contribution was 79.33 percent, while woven segment added 38.02 percent and knitwear items 41.30 percent.
Bangladesh exported woven garments worth $5.92 billion and knitwear worth $6.43 billion in 2008-09, registering growths of 14.54 percent and 16.48 percent respectively compared to the previous year.
Table-3: National Income Aggregates:
Items 2008-2009 * 2007-2008
Changes over previous year absolute Percentage
GDP at current prices (in million
6149432 5458224 691208
Taka)
GNI at current prices(in million
Taka)
NNI at current prices(in million
Taka)
6832305
6358229
5942119
5518610
890186
839619
GDP at constant prices ( base
1995-96 ), (in million Taka)
Per Capita GDP at constant prices (base 1995-96),
(in Taka)
3406524
GNI at constant prices ( base
1995-96 ), (in million Taka)
3784806
Per Capita GDP at current prices,
42638
(in Taka)
3502483
38330
282323
4308
23620
3217260
22593
189264
1027
12.66%
14.98%
15.21%
5.88%
8.06%
11.24%
4.55%
Per Capita GNI at current prices
(in Taka)
47373 41728 5645 13.53%
Per Capita GNI at constant prices
(base 1995-96), 26242
(in Taka)
24596 1646 6.69%
Source : BBS (Bangladesh Bureau of Statistics) * := Provisional, R: =Repeated.
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Most Asian LICs are expected to record positive growth in 2009 and should see a further strengthening of activity in 2010 as global conditions continue to improve.
IMF forecasts suggest Asia will grow by 5.75 per cent in 2010–far higher than the 1.25 per cent predicted for the G-7 economies but well short of the 6.67 per cent average recorded for the region over the past decade.
“A strong rebound in exports is unlikely, given that some of the Asian LICs’ export products including agricultural goods and garments have low responsiveness to global demand changes.”
At present there are about 3500 garment industries in the country and 75 percent of them are in Dhaka. The rest are in Chittagong and Khulna. These Industries have employed fifty lacks of people and 85 percent of them are illiterate rural women. About
76 percent of our export earning comes from this sector.
The prime reason why garment industries have come out to be the champion in the field of export is obviously the cheap labor. Labor is not as cheap anywhere in the world as it is in Bangladesh.
Bangladesh exports its RMG products mainly to the United States of America and the
European Union. These two destinations account for more than a 90 percent share of the country’s total earnings from garment exports. The country has achieved some product diversification in both the United States and the European Union.
Recently, the country has achieved some level of product upgrading in the European
Union, but not to a significant extent in the United States. Bangladesh is less competitive compared with China or India in the United States and it is somewhat competitive in the
European Union.
Table-4: Category-wise exports of different products in 2008 & 2009:

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In a recent survey, it is realized that a large portion of population are working in the
RMG sector. A worker (male or female) earns at best (1000-1600) taka per month as basic. But it is a matter of close observation that a significant percentage of workers are marrying within RMG. So, both husband and wife are working in garments and earning at best 3500 taka as basic.
Now the question, is 3500 taka enough to lead life in a costly city like Dhaka? The answer is no. Then what is happening around us. Can you even imagine? Since freedom is the birth right of a man, mother’s milk, fathers affection and love are the birth right of a child. Mother and father are working in garments all the day round and earn money not enough to live together. So, they are bound keep their child in the village with their mother, mother in law or sister in law. The child must not be growing like any other child who lives with their father and mother. As a result, this child is becoming irrigative. Its mental growth is downward. He or she is not getting a good environment of education.
He is always dejected. The child is growing up in an unwelcome world. In the long run, this child will not honor the parents since relationship is not as such. What will happen after 50 years if the children are not grown properly?
From the law of business, we have seen that if the owner is unable to provide good working environment for the worker, it is the violation of law. Side by side the workers must get a good compensation package from the owner. This compensation package must include salary, medical service, home allowances, transportation, trainings and education
=> On the other side, UD consumption improved in January 2010 by 4.0-5.0 percent compared to the same month last year, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data.
“But the concerns for Bangladesh are the sudden price hike of cotton by 25 percent on international market and yarn price rise on the local market by 30 percent as the Free on
Board (FoB) value remained static,” said BGMEA President Abdus Salam Murshedy. If a commodity is quoted on a FoB basis it means the cost of the goods and their loading on to a ship are included but not the insurance or freight charges. He said the exporters’ cost increased as they have to send the goods by air to maintain the lead-time. Recently the exporters are continuously failing to maintain the lead-time due to failure in on-time production caused by low gas pressure in the plants, he said in an interview recently.


Over the last fifteen years or so the garments industries have emerged as the largest source of earning foreign currency.
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2.5 In the industry sector, which contributed 29.7 percent of GDP, growth rate slowed down from 6.8 percent of FY08 to 5.9 percent in FY09.
Within this sub-sector knitwear, rice milling, dairy products, leather products, footwear, embroidery, wooden furniture, paper and paper products, nonmetallic mineral products etc. showed substantial growth in the first six months of FY09.
Despite global economic rescission, woven garments and knitwear, the country's key export industry, showed substantial growth in FY09. Exports of woven garments and knitwear achieved 14.5 and 16.2 percent growth respectively during FY09.
[To illustrate these topics more specifically we can use the references of previous table no.: 3 & 4 of page no.: 05 & 06.]
Export Promotion Bureau (EPB), Bangladesh
during the FY-2008-
2009, contribution of the major export items were Ready made garment (Knit-41.31%,
Woven-38.02%).
In the July-November period of the current fiscal year, Bangladesh exported woven garments worth $2.13 billion and knitwear items of $2.59 billion, with the share of garments in national exports increasing.
The share of RMG products reached 77.17 percent in the July-November period from
77.15 percent in July-October of the current fiscal year.
The share of woven garments in the total exports of the country was 34.84 percent and that of knitwear (including sweater) was 42.34 percent.
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After the emergence of Bangladesh radical change has come to our garment sector.
Garment industries started working from the 10's of the late century. At present there are about 3500 garment industries in the country and 80 percent of them are in Dhaka. The rest are in Chittagong and Khulna. These Industries have employed fifty lacks of people and 90 percent of them are illiterate rural women. About 80 percent of our export earning comes from this sector.
Formal paid employment at end of March 2009 totalled 20,326, declined by 1,768 from the comparable 2008 period. The drop was largely dominated by the decline of 1,324 in the secondary industry followed by the declines of 544 and 12 in tertiary and primary sectors whilst the public administration industry had increased by 111 respectively.

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Ready Made Garments, for the last couple of decades, have been the life- line of
Bangladesh's economy. At the last count, the sector accounted for nearly 80 per cent of export earnings. Consequently, it provides profits for the currently surging consumer class that drives the economy further forward and jobs for hundreds of thousands of semiskilled workers, mostly women, who in turn provide livelihood for millions
And woman entrepreneurship is practiced here from the very beginning. As one of the oldest export-oriented garment factories, the Baishakhi Garment in 1977. Still our
Industries have employed fifty lacks of people and 90 percent of them are illiterate rural women. Many women hold top executive positions in RMG industry.
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With the rise of Industrialization specially RMG sector activities of many Ministry as
Ministry of Industries, Ministry of Textile & Jute, Ministry of Trade, Ministry of Foreign
Affairs, Ministry of State and related Government Institutions become more pro-active in sense of overall development of the country. Many institutions raised to assist this sector like BGMEA, BKMEA, ITET and many more which act as the representative of this sector to collaborate with Government. In July 1996, 2,357 garment factories were registered with the Bangladesh Garment Manufacturers and Exporters Association
(BGMEA). The growth has indeed been phenomenal, since the ready-made garment industry began modestly as late as the 1970s.
Creation of a separate ministry would unburden the ministry of industries. And the
Bangladesh Garments Manufacturers and Exporters Association (BGMEA) have been

11 justifiably pleading for long for the creation of a separate ministry to exclusively deal with RMG issues. So far, the suggestion failed to create any impact on the government.
More on in case in joint venture projects related ministries political activities become more meaningful with the rise of RMG industries in Bangladesh. Bangladesh has many joint venture projects with China, Korea, Japan, India etc.
This helping attitude, in turn, would have had a beneficial spillover effect on the political climate, which would have improved the prospects of cooperation in other areas.

In EPZ’s and in outside factories many foreign workers, technicians, engineers work with Bangladeshi related persons. Though these RMG industries we become able to enrich & expand our culture and cultural identity and trends with the whole world. So this is a great opportunity for Cultural Prospect of Bangladesh.
More on, in these industries, people tethered from all-over the country, from different parts, having different trend & culture. Through the expansion of RMG industries, people there get opportunity to meet with different cultural traditions.
Now-a-days world of Fashion & Dresses moving forward rapidly. And most important contribution of this movement is the contribution of RMG sector. It is surely helping the
Culture of Bangladesh in the way of prospect with a strong hand.
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In light of growing competition among readymade garment (RMG) exporting countries and consumers' preference for products which meet internationally recognized social standards, it is essential for Bangladesh's RMG suppliers to improve social compliance in their factories.
Training and upgrading the skills of government inspectors, social compliance trainers and especially factory staff, including midlevel managers and workers, is a necessity.
Factory Impacts:
A survey revealed that in most factories where PROGRESS has trained social compliance professionals, social compliance has improved. The following good practices were noted:
Senior factory management is involved n social compliance training, and at least one senior officer is responsible for social compliance. The senior social compliance officers up-date their social compliance knowledge regularly and have good relationships with supervisors and workers. Floor supervisors and workers assisting in social compliance activities are regularly trained and supported by the senior social compliance officer.
Employees receive special training, for instance, on reproductive health and HIV/AIDS prevention. Workers are more knowledgeable about labor law issues and the handling of administrative procedures. Workers' sense of responsibility towards their factory has increased. Communication and relationships between management and workers has improved. Grievance handling has improved. Protective equipment is regularly used.
Housekeeping has improved . The accident rate is low.

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With the rise of RMG industry the utilization of nature and natural resources become more. To give back-up the RMG industry many backward linkages rise as spinning, weaving, knitting, dyeing, finishing and many others. If all these factories follow Ecofriendly technologies then Environmental Prospect can be ensured.
There is nothing more to mention about the Environmental Prospect with the rise of any kinds of industry. But Eco-friendly technologies like Effluent Treatment Plant (ETP) can be used to keep nature livable to the next generations.
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The Bangladesh garment industry is the largest employer of women in the formal manufacturing sector. The conditions of the 1971 war, in fact, created the protocapitalists, and the post-1975 economic policies of the military regime enabled them to become capitalists. The work has different meanings for women of different classes and these perceptions influence gender roles and practices within the household. Women from various class backgrounds are employed because they can be molded into compliant workers. Some single women feel empowered by their earnings. Most married women are unable to leverage their income into greater decision-making power.
These Industries have employed fifty lacks of people and 90 percent of them are illiterate rural women. About 80 percent of our export earning comes from this sector.
Table-5: Women Employment in RMG industries in the 1990s:

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Due to political problem in the past two years around 4000 factories in Dhaka have been on wildcat strike, 16 factories were burnt down by strikers and hundreds more ransacked and looted, pitched battles were fought with cops and private security forces in workplaces. These events have ignited a wave of fierce class struggle in the garment industry up and down the country. These revolts are spreading beyond the workplace and are absorbing the wider working class community.
Garments industries often pay dearly for political unrest, hartal and terrorism etc. The international market has withdrawn quota advantage over garments export form
Bangladesh since December 2005.
The allegations of planned and rumour-fed violence against the garments industry should be duly investigated. If the allegations prove to have any basis, the authorities need to find out who are investigating the violence from time to time and why. The
Chairmen of BGMEA and the Bangladesh Knitwear Manufacturers and Exporters
Association (BKMEA) alleged time and again, that the incidents, instigated from outside, were deliberate attempts to foment unrest in the garments industry. Some unknown quarters, they say, are out to destroy the vibrant garments industry of Bangladesh to promote their hidden agenda.
No aggrieved worker can do what the unknown elements are doing to damage the industry, they say. Only outsiders, without any sense of belonging to the industry can be as unruly as they are. Such elements smash and loot anything in the factories without any hesitation. In the process 400 garments factories were damaged in recent years. Some of the incidents, according to allegations, were prompted by non-government organizations
(NGOs).
A separate ministry can obviously pay the needed attention to all these concerns. The government needs to give up its indifference to create a separate ministry as suggested by
BGMEA.

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Since freedom is the birth right of a man, mother’s milk, fathers affection and love are the birth right of a child. Mother and father are working in garments all the day round and earn money not enough to live together. So, they are bound keep their child in the village with their mother, mother in law or sister in law. The child must not be growing like any other child who lives with their father and mother. As a result, this child is becoming irrigative. Its mental growth is downward. He or she is not getting a good environment of education. He is always dejected. The child is growing up in an unwelcome world. In the long run, this child will not honor the parents since relationship is not as such. What will happen after 50 years if the children are not grown properly?
From the law of business, we have seen that if the owner is unable to provide good working environment for the worker, it is the violation of law. Side by side the workers must get a good compensation package from the owner. This compensation package must include salary, medical service, home allowances, transportation, trainings and education.
Many workers have the potentialities to do something better. If they are provided training, they can go in higher ranks and lead a good life. This opportunity also motivates them to work spontaneously.
The recommended minimum average wages (which include Traveling Allowance,
House Rent, Medical Allowance, Maternity Benefit, Festival Bonus and Overtime
Benefit) in the units within the Bangladesh Export Processing Zones (BEPZ) are given about 40% lower than outside the BEPZ. These discriminations mental strength to the unrest situation, which creates social problems.
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Photo: Industrial waste indiscriminately dumped in water body to the peril of the localities around.
Environmental problems of today are of complex character as industrialization has been diversified in quality and by regions. Environmental pollution depends on various

15 factors like type of industry, raw materials, production technologies, location of industries, etc. For a particular type of industry, change in energy source e.g. shifting from coal to petrol/diesel, and raw materials as well, caused significant change in types of diseases as well as magnitude of damages.
Even before becoming industrial powers, the industrialized nations caused a variety of environmental problems. They are still confronting with serious environmental issues of water, food and air pollution. Some of them have been solved by the application of engineering techniques or by imposing legal constraints, while others still remain untouched or unresolved. They are now thinking of striking a balance between industrial development and environmental problems.
Till 1962 the number of industries in Dhaka was about 100, most of them of small to medium scale and located mostly in present old Dhaka area. The important industries in the country are textile & dyeing, leather, paper and pulp, fertilizer, sugar, steel, oil refining, chemical and pharmaceuticals and other small scale agro-based and agro-allied industries and of course the readymade garments.
In 1986, DoE identified 903 industries as most polluting that swelled to 1176 in 1997.
Currently the list of polluting industries is expected to be much longer. Many industries are located on the banks of natural streams or rivers while many others in the residential areas causing air and water pollution through smoke emission and dumping of untreated effluent. Monitoring results by the Department of Environment (DoE) and other research organizations indicated alarming level of the localised air and water pollution by those industries. The condition of Buriganga, Balu, Turag, Shitalakshya, Karnafuli, Bhairab rivers is a glaring example of deteriorating environment.
Rapid and unplanned urbanization, commercial development along with very high population pressure have made Dhaka an environmentally polluted city in the world. The number of tanneries has increased to over 200 from 26 in 1975. Nearly 2000 garments industries have been established all over the city since the early 1980s. Rapid and unplanned establishment of industries in different places of the city is responsible for localized pollution effects. As a result, water of those surrounding rivers and lakes has already exceeded the national standard limit in pollution.
The concern about environmental issues, however, has been reflected in different policy initiatives taken by the government of Bangladesh. The major policy initiatives, strategies and plans emphasized environment and natural resources management to achieve sustainable development. The National Environment Policy 1992, National
Forest Policy 1994, National Water Policy 1999, National Agriculture Policy 1999,
National Land Use Policy, 2001 all aimed to ensure development in harmony with the natural environment. The Wetland Policy (Draft) puts special emphasis on the conservation of wetlands.
Government along with industry owners should come forward to minimize this problem and people from all sectors should be concern not to pollute the environment any more.

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
Though financial prospects are more in case of RMG industry than financial problem, there have some financial problem.
Sometimes due to political unrest situation like inter-factory strike, hartal & many other causes delay or missing of garments order delivery. These things causes serious hamper in industry finance & in overall export & earnings too.
On the other hand, these industries are causes massive environmental pollutions. And financial losses due to these pollutions are now measuring by money. A strategic cost/benefit analysis indicates that, with continuing increase in the urban population and ongoing deterioration of the environment of Dhaka city consequent, losses would mount from year to year. Without any action, the total estimated minimum financial loss (cost to the economy of Dhaka and Bangladesh as a whole) would be US$ 51.1 billion over the next 20 years. Contrarily, if appropriate measures are taken to clean up Dhaka, estimated net economic benefit would be more than US$ 50.0 billion. Results of environmental protection will be realized through increased agricultural and industrial productivity, improved human health, increased biodiversity, etc.

Bangladesh is unique in RMG production in comparison with the other RMG producing country because of less cost of labour. For this reason, upgraded technologies are used less in this country. Beside this, for economic & quality production quite updated technologies are used.
For pattern & marker making Computer Aided Design (CAD) & Computer Aided
Manufacturing (CAM) are using.
In Sewing Section, which is the largest part of the garments industry using Special type of sewing machines like Button hole machine, Button attaching machine, Bartak machine, Blind stitch machine etc. are using. High speed Lock stitch machine (SPM:
1500-5500), Chain stitch machine (Stitch length: 1.5-4.5mm), Over lock machine (SPM:
6500-8500), Flat lock machine (SPM: 6000) etc. are used in most of the modern factories.
Maximum 9 needle sewing machines are using too.
And for final Finishing, High quality washing machines with Stone wash, Normal wash are using in individual Washing Plants.
After-all the aim is to produce Economic production by ensuring high quality.

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
From the Table-5 of page no.-12 we see the actual percentages of women employment in RMG industry is around 88% on average. After being the greatest part of this industry they still discrimination in comparison with international standard of wage or salary.
Table-6: Average Hourly Wages in RMG Industry (Where 88% of total is women):
Ref: Journal of Textile & Apparel Technology & Management
Volume-6, Issue-2, Fall-2009.
Even they discriminate in comparison to men workers in the RMG factories. More on, the participation of women in administration is very rare.
Beside this, they also faced problem in work place due to environment of work, attitude towards them, mental & even physical harassments too. Due to over-night duty they have to face social problems too.

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By SWOT (Strength, Weakness, Opportunity & Threat) we can analyze the Problems
& Prospects of RGM industry.
>>Bangladesh offers cheapest labour among RMG producing countries.
>>It has a Compact, Organized & Favorable infra-structure.
>>It has lots of Pre-export Financing institutions for assistance.
>>Management appears to be very dynamic & capable of improved performance.
>>There are various associations like BGMEA, BKMEA, BEPZA etc. to build the strong collaboration with various related organizations.
>>Limitations for some modern machinery in some specific sectors.
>>Lack in establishing large companies to attract buyers directly.
>>Lack of high skilled labour.
>>Limitation of technical know-how.
>>Limitation in Producing Raw Materials.
>>Political unrest situation, which making buyers step back in some cases.
>>Improper use of Ports & not so smooth & strong Transportations.
>>Problem in Power & Gas supply.
>>Improper attention of Governments policy makers.
>>Good reputation of product quality in outside world will increase more option of export.
>>Strong rise of knitting sector.
>>Very good quality yarn is now producing.
>>More options of new employments.
>>Great pricing capability.
>>Attracting new buyers by establishing new buying houses.
>>Encouraging new joint venture projects.
>>Change in Governments attitude towards RMG sector.
>>Rise of competitiveness in export market for India, China, Cambodia etc.
>>Political unrest situation of the country.
>>Rise of price of raw materials.
>>Environmental pollutions are threat for survival.
>>Labour unrest in RMG factories.
>>Capability to hold the market for long term future.

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To give concept about recent status of RMG industries in Bangladesh, outcomes of
Focus Group Discussion (FGD) from SWOT analysis of three RMG industries is mentioned below.
The industries which took part in analysis process:
1. Micro Fiber Ltd.
Kutubpur, Fatullah,
Narayanganj.
2. Badhon Garments.
BISIC Shelponogory,
Fatullah, Narayanganj.
3. Be-con Knit Wear Ltd.
Kutubpur, Fatullah,
Narayanganj.
>>Getting enough orders of RMG products for a long time.
>>Good reputations on keeping commitments.
>>Strong marketing & management department.
>>Structural & Financial infrastructure.
>>Good co-operative relation with BGMEA, BKMEA, BEPZA etc which helping all the time in development.
>>Limitation in own backward linkages.
>>Limitation in Producing Raw Materials.
>>Political unrest situation, which making buyers step back in some cases.
>>Improper use of Ports & not so smooth & strong Transportations with Narayanganj.
>>Problem in Power & Gas supply.
>>Great pricing capability.
>>Strong rise of knitting sector.
>>More options of new employments.
>>Good reputation of product quality in outside world will increase more option of export.
>>Labour unrest in RMG factories.
>>Political unrest situation of the country.
>>Rise of competitiveness in export market for India, China, Cambodia etc.

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Name of the Factory:
Address:
Year of Establishment:
By taking permission let’s start questioning………..
[To administrative person as General Manager, Manager or others]
Question-1: Do you know about SWOT analysis of an industry? (If not) May I explain about it?
Answers: ………………………………………………………………………………….
Question-2: What are the points you would like say about the strength of your factory?
Answers: ………………………………………………………………………………….
Question-3: What are the points you would like say about the weakness of your factory?
Answers: ………………………………………………………………………………….
Question-4: What are the points you would like say about the opportunity of your factory?
Answers: ………………………………………………………………………………….
Question-5: What are the points you would like say about the threat of your factory?
Answers: ………………………………………………………………………………….
Question-6: What do you want to tell about the recent condition of the RMG industries of
Bangladesh?
Answers: ………………………………………………………………………………….
Thank you for giving me time & for helping me in SWOT analysis.
Name of the person took interview:
Time taken interview:
Date taken interview:

21
In writing of this assignment I have to face some limitations. In data collection most of the time I have to depend on secondary data’s which were collected from various sources, research papers, books, internet etc. To enrich the paper I have to give some personal opinions too.
But, to prepare it in a practical & useful concept I used a questioner in an analysis & tried to bring the outcomes of it.
There were limitations on specific data for political prospect, cultural prospects, social prospects, political problem, social problem etc.
Overall these limitations were tried to overcome by closely related data’s.
The contribution of readymade garment (RMG) to the national export is around 80%, which represents the importance of this sector. It makes scope of employment of around
3500 millions women of the country. May it not be very old sector of industrialization, but it provides biggest contribution in national economy.
It may have some problems but prospects of this sector are so good & important that expectations from this sector are very closely related to the fortune of the country.
The RMG sector will overcome from all the problem & expectation is that, Bangladesh will stand as the world’s largest RMG exporter as soon as possible.

22

Case of the Garment Industry of Dhaka, Bangladesh; by-Khandaker Mainuddin.

IMF Working Paper: The End of Textile Quotas: A case Study of Impact on
Bangladesh; Prepared by –Montfort Mlachila & Youngzheng Yang.

Growth of Garment Industry in Bangladesh: Economic & Social Dimension;
Edited by Pratime Paul & Majumder Binayak Son.

An Introductory Knowledge About Garments Manufacturing Technology; by-Md.
Saiful Azam, Md. Abu Saleh, Khondokar Abu Nafis.

Export Promotion Bureau (Website).

Economic Trend (Website).

Bangladesh Bank (Website).

World Bank (Website).

Asian Development Bank (Website).

Bangladesh Garments Manufacturers and Exporters Association (BGMEA)
(Website).

WTO Trade Statistics.

Garments industries are the silent killers in Bangladesh; Author: Dulal Chandra
Pattak.

Challenges facing the garments industry; by-Shahiduzzaman Khan.
 gtz-compliance (Website).

Revolutionary Wave engulfs Bangladesh by Lal Khan and Adam Pal (January 15,
2007)

Bangladesh and the World Bank saga by Jamil M. Iqbal (May 23, 2005).

RMG sector problems need focussed attention; by-Amin Ibrahim.
 ‘Economic and Political Developments and Prospects in Bangladesh’ by-
International Consulting Economists Association.

: http://www.thedailystar.net/newDesign/news-details.php?nid=126016

The development-environment conflict: Lessons learnt; by-Md Sohrab Ali.

Becoming a Garments Worker: The Mobilization of Women into the Garments
Factories of Bangladesh; Author: Nazli Kibria.

Journal of Textile & Apparel Technology & Management; Volume-6, Issue-2,
Fall-2009.

The Rise of the Bangladesh Garment Industry: Globalization, Women Workers, and Voice, by Fauzia Erfan Ahmed; The Johns Hopkins University Press.
 www.fibre2fashion.com/industry-article .