Introduction: RMG (Ready-made Garments) is the leading sector in Bangladesh in terms of foreign currency earnings. Bangladesh is the second largest garments exporter next to china. It contributes 80% of total export earnings. In Bangladesh there are 4 million people, working in around 6000 garments factories and approximately 80% people of them are female. In FY (fiscal year) 2012-2013 Bangladesh reached the export value 21b (billion) USD (21515.73m (million) USD). In FY 2013-2014 the strategic target was 24147.31m USD by export promotion bureau of Bangladesh, but in July‘13-April’14 it reaches 1997 0.02m USD that is 2.72% more than the strategic target (1944 1m USD) during this time. RMG sector has set a target to earn 30b USD by 2015 and 50b USD by 2021. Low labor cost, efficient worker, different organizational support and government support are the main strengths of this sector. Bangladesh market share is 5% of total global RMG market of 450b USD. In FY 2012- 2013 Bangladesh exported 1972 .89m USD of shirts, 5185.48m USD of trousers, 2634.28m USD of jackets and 5143.22m USD of t-shirts. The major importers are European Union, USA and Canada. Knit garments are exported to 148 countries and woven garments are exported to 132 countries. The major buyers are Wal-Mart, Target, Marks and Spencer, Tesco, Levi’s, Zara, JC Penny, GAP, C & A, UNIQLO etc.
My Decision: I hope that this income from this sector will increase day by day.
Why My Decision is Positive:
Bangladesh secures second position in terms of RMG export next to china. China's market share is around 31 percent of the total global garment market of $450b, where Bangladesh holds 5 percent only.
From the view point of labor cost China is paying high price compared to that of Bangladesh. The monthly salary of a Bangladeshi worker would be Rmb 500 to Rmb 600 ($80 to $95), while one Chinese worker now is being paid at least Rmb 2,000 per month. China is now using Bangladesh to outsource its RMG products. China has already placed some orders for manufacturing apparel items in Bangladesh. If the Chinese companies engaged themselves here, it will be a great opportunity for RMG sector of Bangladesh. A survey found that European and US companies are planning to expand the share of their sourcing from Bangladesh from 25 to 32 per cent by 2020, from an average of 20 per cent. From the above perspectives we can say that Bangladesh has a great opportunity to become the hotspot of apparel sourcing.
Our Weapons to achieve goals:
v Dedicated Government.
v Low labor cost.
v Low Land Cost.
v Efficient Environment.
v Efficient and effective worker.
What We Have To DO:
To revivify RMG we need to fulfill the buyer’s requirement. For this the Govt. has to take necessary actions. Garments entrepreneurs should follow the building code for protecting building collapse and to ensure worker safety, give proper facility to worker, try to make branding of RMG sector in the world by making high quality product. RMG sector needs to improve overall operational efficiency and technological up gradation, reducing lead time, markets diversification, appropriate strategy formulation and new policy implementation. To become the world number one apparel sourcing hotspot Govt. and private sector should work parallely.
Conclusion: We know that not every shining things are gold. There are lot of lacking & threat stay in RMG sector which may destroy this whole sector within a moment like weak physical infra structure of garments factory, political instability, less concern on human. We have to solve those problem before any disaster.
References #
http://wiki.org//
http://textilelearnerblog.blogspot.com//
