RMG: The Mainstay of Bangladesh Economy

·    Accounts for 78% of country’s export earning

·    Contributes more than 10% to GDP

·    Employs 3.6 million people directly, 80% of them women

·    The industry has created a platform for 2.8 million women to engage in new productive role in the society and empowering them

·    Playing a lead role to alleviate poverty through skills development and employment generation

·    Around 20 million people are directly and indirectly depending on this sector for their immediate livelihoods

·    Accelerating the industrial growth and employment through exports

·    Economy moving out from Aid to Trade

China+ & Bangladesh

·    China moving to high-end and secondary industries

·    Rising production costs in China

·    Labor shortages causing wage increases

·    Revaluation of Yuan

·    Largest impact on labor intensive industries

·    Increasing demand in Domestic market- less interest in Import

·    Bangladesh represents a clear alternative to China in some particular product and market segment

·    Two major exporting countries, in close proximity, Japan and Australia already have shifted a large amount of their sourcing to Bangladesh

Quick Facts

·    First RMG export was made in 1978 worth US$ 12000

·    Bangladesh became the 2nd largest apparel exporting country in the world. During the fiscal year 2010-2011 our garment export totaled USD17.91 billion, a 43% increase over previous year

·    Gained 30 years of experience in garment manufacturing

·    Competitive price with international quality standard

·    State-of-the-art factories with good housekeeping and social standards

·    Superiority in lower end niche as well as plenty of suppliers doing brand items.

·    Increasing trend of direct sourcing through local offices at Dhaka

·    Enjoys zero duty access in the European Union, Canada, Australia, Japan, Norway and Switzerland through GSP scheme

Md. Atiqul Islam
President, BGMEA

“Beginning from almost nothing in the 1970s, the apparel industry has experienced very rapid growth in employment, production, and exports so far.  It has been a journey of capacity building in response to growing demand and competition, and we are already the second largest clothing exporting country in the world.

We are proud not only for the success in reaching at this position but also we have brought a silent revolution in the socio-economy. In a moderate Muslim country like Bangladesh, the garment industry has brought a social revolution through creating jobs for hundred thousands of women and empowering them. The apparel industry offers a major opportunity for families to rise up from poverty and recognized as one of the main vehicles for alleviating poverty in Bangladesh.

The industry has now achieved the strength for a big leap forward. Our entrepreneurs are now going for environment friendly green manufacturing plants; they are investing in the state of art sophisticated production technologies. Plus we have a historically proven efficient workforce and competitive price and quality, as an added advantage. Relying on these inherent strengths, we have proved ourselves in the past, we have grown stronger even in the economic downturn, and we are thinking even bigger in the coming years. We are not only target oriented, but also we look into the process how we have achieved our goal. We have attained the capacity and we foresee ourselves as the future leader, because it’s the best that we deliver.”