Yaa Prospects Of Garments Manufacture Inwards Bangladesh
Wednesday, 19 December 2018
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Prospects of Garments Industry inwards Bangladesh
Mithun Chanda
Dept. of Textile Engineering
Mawlana Bhashani Science together with Technology University
Tangail, People's Republic of Bangladesh
Dept. of Textile Engineering
Mawlana Bhashani Science together with Technology University
Tangail, People's Republic of Bangladesh
Email: mithun_mw@yahoo.com
Overviews of People's Republic of Bangladesh Garment Industry
Agriculture, every bit the example inwards India, has been the backbone of the economic scheme together with primary source of income for the people of Bangladesh, the province made of villages.The authorities wants to decrease poverty past times getting highest productivity from agriculture together with accomplish self-reliance inwards nutrient production. Apart from agriculture, the province is much concerned nigh the growth of export division. People's Republic of Bangladesh has accelerated together with changed her exports substantially from fourth dimension to time. After People's Republic of Bangladesh came into being, jute together with tea were the most export-oriented industries. But with the continual perils of flood, failing jute fiber prices together with a considerable spend upwards inwards globe demand, the role of the jute sector inwards the country’s economic scheme has deteriorated (Spinanger, 1986). After that, focus has been shifted to the component division of the production sector, especially inwards the garment industry.
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| Garment manufacture of Bangladesh |
The Garment manufacture is controlled past times the transfer of production. The globalization of garment production started before together with has expanded to a greater extent than than that of whatever other factory. The companies take hold transferred their blue-collar production activities from high-wage areas to low-cost manufacturing regions inwards industrializing countries. The enhancement of communication scheme together with networking has played a fundamental role inwards this development. Export-oriented manufacturing has brought some practiced returns to the industrializing nations of Asia together with Latin America since the 1960s. The foremost relocation of garment manufacturing took house from North America together with Western Europe to Nihon inwards the 1950s together with the early on 1960s. But during 1965 together with 1983, Nihon changed its attending to to a greater extent than lucrative products similar cars, stereos together with computers together with therefore, 400,000 workers were set off past times the Japanese textile manufacture together with Garment Industry. In fact, the minute flooring wearable transfer from Nihon to the Asian tigers – South Korea, Taiwan, Hong Kong together with Singapore inwards 1970. But the style of shifting production to rest there. The increment inwards labor costs together with complimentary merchandise spousal human relationship activities inwards connecter with the expansion inwards the economies of the Asian Tigers. The sector has suffered the 3rd shift of production from 1980s to 1990s; from the Asian Tigers to other developing countries – Philippines, Malaysia, Thailand, Republic of Indonesia together with Red People's Republic of China inwards particular. The 1990s take hold been led past times the concluding grouping of exporters including Bangladesh, Srilanka, Islamic Republic of Pakistan together with Vietnam. But Red People's Republic of China was a leader inwards the electrical flow of the relocation every bit inwards less than 10 years (after 1980s) Red People's Republic of China emerged from nowhere to choke the world’s major manufacturer together with exporter of clothing.
Bangladesh Garment Sector together with Global Chain
The travail of this transfer tin live clarified past times the salary structure inwards the garment industry, all over the world. Apparel labor accuse per hr (wages together with fringe benefits, US$) inwards USA is 10.12 but it is solely 0.30 inwards Bangladesh. This deviation accelerated the globe clothe exports from $3 billion inwards 1965, with developing nations making upwards merely fourteen percent of the total, to $119 billion inwards 1991, with developing nations contributing 59 percent. In 1991 the publish of workers inwards the ready-made garment manufacture of People's Republic of Bangladesh was 582,000 together with it grew upwards to 1,404,000 inwards 1998. In USA, however, 1991-figure showed 1,106.0 grand workers inwards the clothe sector together with inwards 1998 it turned downward to 765. 8 thousand.
The presented information reveals that the style of depression labor charges is the fundamental ground for the transfer of garment manufacturing inwards Bangladesh. The exercise initiated inwards the belatedly 1970s when the Asian Tiger nations were inwards quest of tactics to avoid the export quotas of Western countries. The garment units of People's Republic of Bangladesh are mainly relying on the ‘tiger’ nations for raw materials. Mediators inwards Asian Tiger nations construct an intermediary betwixt the textile units inwards their domicile countries, where the spinning together with weaving choke on, together with the Bangladeshi units where the cloth is cut, sewn, ironed together with packed into cartons for export. The same representatives of tiger nations uncovering the marketplace for People's Republic of Bangladesh inwards several nations of the North. Large retail trading companies placed inwards the USA together with Western Europe give most orders for Bangladeshi garment products. Companies similar Marks together with Spencers (UK) together with C&A (the Netherlands) command working capital missive of the alphabet funds, inwards proportion to which the working capital missive of the alphabet of Bangladeshi owners is patience. Shirts manufactured inwards People's Republic of Bangladesh are sold inwards developing nations for 5 to 10 times their imported price.
Collaboration of a native private garment industry, Desh Company, with a Korean company, Daewoo is an of import example of an international garment chain that plant every bit 1 of the grounds of the expansion of garment manufacture inwards Bangladesh. Daewoo Corporation of South Korea, every bit component division of its global policies, took involvement inwards People's Republic of Bangladesh when the Chairman, Kim Woo-Choong, offered an aspiring articulation venture to the authorities of Bangladesh, which included the growth together with physical care for of tyre, leather goods, together with cement together with garment factories. The Desh-Daewoo alliance was decisive inwards terms of getting into globe markets of the times when wearable imports hve been pregnant reform inwards this marketplace after the signing of the Foreign Ministry inwards 1974. Daewoo, a South Korean exporter of clothing, was looking for opportunities inwards countries that barely had their share. Limiting charge per unit of measurement for Korea of AMF, the export of Daewoo has been limited. People's Republic of Bangladesh every bit an LDC had the opportunity, without constraint together with and so with the utilisation of Daewoo for exports hitting Bangladeshtheir market. The purpose behind this demand was that People's Republic of Bangladesh would rely on Daewoo for importing raw materials together with at the same fourth dimension Daewoo would larn the marketplace inwards Bangladesh. When the Chairman of Daewoo displayed involvement inwards Bangladesh, the country’s President seat him inwards touching with the chairman of Desh Company, an ex-civil retainer who was seeking to a greater extent than entrepreneurial pursuits.
To fulfil this wish, Daewoo signed a collaboration contract with Desh Garment for 5 years. The contract also incorporated the fields of technical training, purchase of mechanism together with fabric, flora institution together with marketing inwards furnish for a specific marketing committee on all exports past times Desh during the contract phase. Daewoo also imparted an exhaustive practical grooming of Desh employees inwards the working atmosphere of a multinational company. Daewoo keenly helped Desh inwards buying mechanism together with fabrics. Some technicians of Daewoo arrived People's Republic of Bangladesh to flora the flora for Desh. The destination outcome of the association of Desh-Daewoo was important. In the foremost 6 years of its business, i.e. 1980/81-86/87, Desh export value increased at an annual average charge per unit of measurement of 90%, reaching to a greater extent than than $5 meg inwards 1986/87.
It is claimed that the Desh-Daewoo alliance is a pregnant chemical element for the growth together with achievement of Bangladesh’s entire garment export industry. After getting linked with Daewoo’s create names together with marketing network, overseas buyers went on with buying garments from the corporation heedless of their origin. Out of the opening trainees most left Desh Company at several times to erect their ain competing garment companies, worked every bit a way of moving cognition all through the whole garment sector.
It is essential to seat the outcomes of the physical care for of moving production from higher pay to depression pay nations for both developing together with developed nations. It is a bare fact that most of the Third World nations are at nowadays on the way to industrialization. In this procedure, workers are working nether unfavorable working environs – minimal wages, unhealthy house of work, lack of security, no project guarantee, forced labor etc.
The road of globalization is total of ups together with downs for the developing nations. Relocations of comparatively mobile, blue-collar production from industrialized to developing nations, inwards some circumstances, tin take hold troublesome effects on social life if – inwards the absence of efficient planning together with talks betwixt international organizations together with the authorities and/or organisations of the host land – the transferred activity encourages urban-bound relocation together with its bridge of rest is short. Another negative outcome is that the ascent inwards job and/or income is non expected to live satisfactorily large together with extensive to lessen inequality. In connecter with the negative results of relocation of manufacturing on job inwards developed countries, nosotros realize that inwards comparatively blue-collar industries, the growing imports from developing nations Pb to unavoidable losses inwards employment. It is held that the evolution of merchandise with the South was a pregnant ground of the disindustrialisation of job inwards the North over past times few decades.
After all employees who are constantly working nether unfavorable circumstances take hold to acquit the brunt. Work is under-control across the People's Republic of Bangladesh garment sector.The Appalling working atmosphere has been brought to low-cal inwards the People's Republic of Bangladesh garment industry.
A inquiry reveals that xc percent of the garment employees went through illness or illness during the calendar month before the interviews. Headache, anaemia, fever, chest, stomach, oculus together with ear pain, coughing together with cold, diarrhea, dysentery, urinary tract infection together with reproductive wellness problems were to a greater extent than mutual diseases. The garment factories gave a bonus of dissimilar diseases to the employees for working. With a stance to finding out a link betwixt these diseases together with industrial threats, wellness status of employees has been examined before together with after coming inwards the garment work. At the destination of examination, it was coming out that nigh 75 percent of the garment workforce had audio wellness before they entered the garment factory. The reasons of wellness declines were industrial threats, unfavorable working environment, together with want of staff facilities, inflexible terms together with weather condition of garment employment, workplace pressure, together with depression wages. Different work-related threats together with their influence on wellness forced employees to exit the project after few months of joining the factory; the average length of service was solely four years.
The garment sector is disreputable for fires, which are said to take hold claimed over 200 lives inwards the past times ii years, though exact figures are tough to find. Influenza A virus subtype H5N1 shocking example of absence of workplace security was the burn inwards Nov 2000, inwards which almost 50 workers lost their lives inwards Narsingdi every bit be doors were closed.
From the inwards a higher house analysis of the working Atmosphere of the wearable industry, nosotros tin conclude that recollect the piece of work environs of most 3rd globe countries, inwards item the evolution of the Garment Industry inwards People's Republic of Bangladesh before the foremost globe countries. The flat of job inwards many (not necessarily) textiles together with wearable units inwards developing countries take hold us dorsum to set upwards inwards the nineteenth century inwards Europe together with North America. The abuse of workers' wearable during the flow of nativity on the evolution of the caput of the United Statesfactories reviewed inwards a higher house is to a greater extent than or less same every bit it seen at nowadays inwards the People's Republic of Bangladesh garment industry. Can nosotros province that garment employees of the Third World nations living inwards the 21st century? Is it a furnish of the Sweatshop?
In a way, the Western companies are guilty of piteous working atmosphere inwards the garment sector. The developed nations want to create to a greater extent than turn a profit together with therefore, strength the developing nations to cutting downward the manufacturing cost. In social club to live on inwards the competition, most of the developing nations select immoral practices. By introducing inflexible terms together with weather condition inwards the business, the global economic scheme has left few alternatives for the developing nations.
Development of Garments Industry inwards People's Republic of Bangladesh
In the plain of industrialization, role of textile manufacture is found real prominent inwards both developed together with developing countries. Economic history of Great Britain reveals that inwards the 18th Century the cotton fiber mills of Lancashire inwards Great Britain ushered inwards the foremost industrial revolution of the world. Moreover, during the finally 200 years or to a greater extent than many countries of the globe take hold used textile together with wearable manufacture every bit an engine for growth together with a ground for attaining economical evolution (Ahmed, 1991).
Over the past times few years garment manufacture is found to take hold played such an of import role inwards the physical care for of industrialization together with economical growth. This manufacture is infact trying to seat the bike of her declining economical dorsum to the rails past times giving essential life blood to it (Chowdhury,1991). The growth of garment manufacture inwards Bangladesh is a comparatively recent one. In the British flow in that location was no garment manufacture inwards this component division of the Indo-Pak-Sub-Continent. In 1960 the foremost garment manufacture inwards People's Republic of Bangladesh (Then East Pakistan) was established at Dhaka together with till 1971 the publish rose to give (Islam, 1984). But these garments were of dissimilar type intended to serve domicile marketplace only. From 1976 together with 1977 some entrepreneurs came forrad to setup 100% export oriented garment industry.
Both domestic together with international environs favored the rapid growth of this manufacture inwards Bangladesh. By mid seventies the established developed suppliers of garments inwards the globe markets i.e. Hong Kong, South Korea, Singapore, Taiwan, Thailand, Malaysia, Indonesia, Srilanka together with Bharat were severely constrained past times the quota restrictions imposed past times their major buyers similar USA, Canada together with European Union. To keep their occupation organisation together with competitive border inwards the globe markets, they followed a strategy of relocation of garment factories inwards those countries, which were complimentary from quota restrictions together with at to the lowest degree same fourth dimension had plenty trainable inexpensive labour. They found People's Republic of Bangladesh every bit 1 of the most suitable countries. Available records demo that the foremost consignment of garments was exported from the province inwards 1977 past times Reaz together with Jewel Garment. Desh Garment was the foremost biggest manufacturing flora that started functioning at Chittagong inwards 1977. In fact that was the humble outset of novel articulation venture garment manufacturing flora inwards Bangladesh. Thereafter many entrepreneurs became interested together with started to setup garment factories next the Desh garment together with realising the futurity prospects globally every bit well. Available records also demo that 1 of the reasons of the growth of garment manufacture inwards People's Republic of Bangladesh is the collaboration of a local private garment industry, Desh garment with a Korean company, Daewoo. As component division of its global strategies, the Daewoo Corporation of Republic of Korea became interested inwards People's Republic of Bangladesh when the Chairman, Kim Woo-Choong, proposed an ambitions articulation venture to the Government of People's Republic of Bangladesh which involved the evolution together with functioning of tyre, leather goods, cement together with garment factories (Rock, 2001). South Korean Company, Daewoo, a major exporter of garments, was looking for opportunities inwards countries for using their quotas subsequent to the signing of MFA inwards 1974. Because of the quota limitation for Korea after MFA, the export of Daewoo became restricted.
Bangladesh every bit a LDC got the chance to export without whatever restriction together with for this ground Daewoo interested to utilisation People's Republic of Bangladesh for their market. The ground behind this want was that People's Republic of Bangladesh volition depend on Daewoo for importing raw materials together with at the same fourth dimension Daewoo volition larn the marketplace inwards Bangladesh. For this want Daewoo signed a 5 years collaboration understanding with Desh Garment. It included collaboration inwards the areas of technical training, purchase of mechanism together with fabric, flora setup together with marketing inwards furnish for a specific marketing committee on all exports past times Desh (Rock, 2001). The outcome of the collaboration of Desh-Daewoo was significant. In the foremost 6 years of its operation, Desh export value grew at an annual average charge per unit of measurement of xc percent reaching to a greater extent than than $ 5 meg inwards 1986-87 (Mahmood, 2002). Rahman (2004) argued that the Desh-Daewoo collaboration is an of import factor to the expansion together with success of Bangladesh’s entire garments export sector. In such a context, next Table-01 shows the style of growth together with evolution of garment manufacture inwards Bangladesh.
Table1: Growth of RMG factories together with job inwards Bangladesh 
The capacity every bit good every bit publish of equipments is real practiced indicator to examine the actual seat of the garment manufacture every bit good every bit size of the industry. In such a context, the next Table deals inwards this regard.
Table-2: Garments Industries with publish of Machine
Source: Annual Report of BGMEA. Figures inwards parentheses call for percent
From the Table 02 it is found that to a greater extent than than one-half of the total garment industries inwards People's Republic of Bangladesh take hold the publish of machines upto 100 or less than 100 together with real few industries take hold the machine to a greater extent than than 200. It indicates that the little scale industries take hold been dominated inwards the garment sector.
Contribution of Garments Industry to the Economy
Garments Industry occupies a unique seat inwards the People's Republic of Bangladesh economy. It is the largest exporting manufacture inwards Bangladesh, which experienced phenomenal growth during finally ii decades. By taking reward of an insulated marketplace nether the provision of Multi Fibre Agreement (MFA) of GATT, it attained a high profile inwards terms of unusual telephone substitution earnings, exports, industrialisation together with contribution to gross domestic product within a brusk bridge of time. The manufacture plays a fundamental role inwards job generation together with inwards the provision of income to the poor. Nearly ii meg workers 1 straight together with to a greater extent than than 10 meg inhabitants are indirectly associated with the manufacture (Ahmed together with Hossain, 2006). The sector has also played a pregnant role inwards the socio-economic evolution of the country. In such a context, the style together with growth of garments export together with its contribution to total exports together with gross domestic product has been examined the next tabular array shows the position.
Source: Economic Review of Bangladesh, BGMEA together with Computation made past times author. Figures inwards parentheses call for chemical compound growth rates (CGR) for the respective periods.
It is revealed from the Table 03 that the value of garment exports, portion of garments export to total exports together with contribution to gross domestic product take hold been increased significantly during the flow from 1984-85 to 2005-06. The total garments export inwards 2005-06 is to a greater extent than than 68 times compared to garments exports inwards 1984-85 whereas total country’s export for the same flow has increased past times xi times. In terms of GDP, contribution of garments export is significant; it reaches 12.64 percent of gross domestic product inwards 2005-06 which was solely 5.87 percent inwards 1989-90. It is a clear indication of the contribution to the overall economy. It also plays a pivotal role to promote the evolution of linkage little scale industries. For instance, manufacturing of intermediate production such every bit dyeing, printing, zippers, labels has began to take hold a foothold on express scale together with is expected to grow significantly. Moreover, it has helped the occupation organisation of basling, insurance, shipping, hotel, tourism together with transportation. The sector also has created jobs for nigh ii meg people, of which lxx percent are women who mostly come upwards from rural areas. The sector opened upwards job opportunities for many to a greater extent than individuals through direct together with indirect economical activities, which eventually helps the country’s social development, adult woman empowerment together with poverty alleviation. In such a way the economic scheme of People's Republic of Bangladesh is getting favorably contribution from this industry.
Garment Exports from People's Republic of Bangladesh (Million US Dollars)
Export-oriented garment exports from People's Republic of Bangladesh were initiated inwards the outset of the 1980s (Bhattacharya together with Rahman, 2001; Hoque, Murayama together with Rahman, 1995; Murayama, 2006; Rhee, 1990; Zohir together with Paul-Majumder, 1996). Influenza A virus subtype H5N1 Korean investor was deeply involved inwards the inception of the occupation organisation inwards Bangladesh. In the foremost one-half of the 1980s the publish of garment exports from People's Republic of Bangladesh was almost zip (Figure). But together with so garment exports grew rapidly, so that inwards the outset of the 1990s garments made upwards nigh a one-half of total exports from Bangladesh. The growth has continued almost without suspension together with the value of garment exports reached three-quarters of the value of total exports at the destination of the 1990s. Though a negative touching on from September xi is apparent inwards 2001, garment exports speedily picked upwards after that. Thus, the rapid growth of garment exports has continued for a quarter of a century with picayune disturbance.
Post MFA Scenario inwards People's Republic of Bangladesh
The textile together with clothe industries take hold led industrializatio n at the early on stage of evolution inwards many countries of the world. Most developed countries which take hold lost competitiveness take hold imposed quantitative restrictions on the merchandise inwards textiles together with wearable since the 1950s, although in that location has been progress inwards merchandise liberalization every bit a whole. Over the finally 30 years, international merchandise together with investment inwards the global textile together with garment (T&G) sectors has been influenced past times Multi-Fiber Agreement (MFA) quantitative restrictions (quotas) applied past times the major developed province importers (the United States, the European Union, Canada together with Norway) on T&G exports from (predominantly) developing countries. MFA quotas were negotiated bilaterally together with applied on a discriminatory ground to some exporting countries but non to others, thus differing from province to province inwards both production coverage together with the grade of restrictiveness. In such a context, the Multi-Fiber Arrangement governed the merchandise inwards textiles together with wearable from 1974 to 1994. This organisation was superseded inwards 1995 past times the Agreement on Textiles together with Clothing (ATC) nether the direction of the World Trade Organization (WTO). From 1 Jan 2005 all such quantitative restrictions on the merchandise inwards textiles together with wearable were phased out, together with finally abolished. Historically speaking that every bit per requirement of The ATC, all MFA quotas on T&G products live removed over a ten-year transition flow separate into 3 phases together with ending on 1 Jan 2005, thus finally incorporating international T&G merchandise into full general GATT rules that prohibit discriminatory measures together with telephone telephone for the reduction together with elimination of quantitative restrictions.
Table1: Growth of RMG factories together with job inwards Bangladesh
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| Source: Various articles together with Annual Report of BGMEA. |
Table-2: Garments Industries with publish of Machine
| Year | Garment Industry having No of Machine | Total | ||
| 2004 2005 | Upto 100 | 101 – 200 | 201 together with over | 3510 (100) 3668 (100) |
| 2253 (64) 2275 (62) | 726 (21) 773 (21) | 531 (15) 620 (17) | ||
From the Table 02 it is found that to a greater extent than than one-half of the total garment industries inwards People's Republic of Bangladesh take hold the publish of machines upto 100 or less than 100 together with real few industries take hold the machine to a greater extent than than 200. It indicates that the little scale industries take hold been dominated inwards the garment sector.
Contribution of Garments Industry to the Economy
Garments Industry occupies a unique seat inwards the People's Republic of Bangladesh economy. It is the largest exporting manufacture inwards Bangladesh, which experienced phenomenal growth during finally ii decades. By taking reward of an insulated marketplace nether the provision of Multi Fibre Agreement (MFA) of GATT, it attained a high profile inwards terms of unusual telephone substitution earnings, exports, industrialisation together with contribution to gross domestic product within a brusk bridge of time. The manufacture plays a fundamental role inwards job generation together with inwards the provision of income to the poor. Nearly ii meg workers 1 straight together with to a greater extent than than 10 meg inhabitants are indirectly associated with the manufacture (Ahmed together with Hossain, 2006). The sector has also played a pregnant role inwards the socio-economic evolution of the country. In such a context, the style together with growth of garments export together with its contribution to total exports together with gross domestic product has been examined the next tabular array shows the position.
Table-3: Growth together with Trend of Garments Exports, together with contribution to gross domestic product (Amounts inwards Million USD)
| Year | Garment Export (Min USD) | Total Export (Min USD) | Share to Total Export inwards % | Share to gross domestic product inwards % |
| 1984-85 1989-90 1994-95 1999-00 2004-05 2005-06 | 116 - 624 (40) 2228 (29) 4349 (14) 6418 (8) 7901 (23) | 934 - 1924 (16) 3473 (13) 5752 (11) 8655 (9) 10526 (22) | 12.42 - 32.43 (21) 64.15 (15) 75.61 (3) 74.15 (-1) 75.06 (1) | - - 5.87- 9.23 (9) 10.63 (3) 12.64 (2) |
It is revealed from the Table 03 that the value of garment exports, portion of garments export to total exports together with contribution to gross domestic product take hold been increased significantly during the flow from 1984-85 to 2005-06. The total garments export inwards 2005-06 is to a greater extent than than 68 times compared to garments exports inwards 1984-85 whereas total country’s export for the same flow has increased past times xi times. In terms of GDP, contribution of garments export is significant; it reaches 12.64 percent of gross domestic product inwards 2005-06 which was solely 5.87 percent inwards 1989-90. It is a clear indication of the contribution to the overall economy. It also plays a pivotal role to promote the evolution of linkage little scale industries. For instance, manufacturing of intermediate production such every bit dyeing, printing, zippers, labels has began to take hold a foothold on express scale together with is expected to grow significantly. Moreover, it has helped the occupation organisation of basling, insurance, shipping, hotel, tourism together with transportation. The sector also has created jobs for nigh ii meg people, of which lxx percent are women who mostly come upwards from rural areas. The sector opened upwards job opportunities for many to a greater extent than individuals through direct together with indirect economical activities, which eventually helps the country’s social development, adult woman empowerment together with poverty alleviation. In such a way the economic scheme of People's Republic of Bangladesh is getting favorably contribution from this industry.
The Ranking of Export inwards U.S.A Comparing to Other inwards 2005
It is noteworthy that fifty-fifty during the high fourth dimension for China, when it entertained an extremely high growth inwards garment exports inwards the foremost one-half of 2005, People's Republic of Bangladesh together with Kingdom of Cambodia maintained a high twenty to 30 percent flat of growth inwards garment exports to the United States. Their growth rates were to a greater extent than oftentimes than non a picayune below that of Bharat during the year. However, they are distinct from Vietnam, whose growth rates were negative during the minute together with 3rd quarters of 2005 together with where positive growth was recovered solely after the renewal of the quantitative restriction scheme on China’s garment exports to the United States. In other words, the steady growth inwards garment exports from People's Republic of Bangladesh together with Kingdom of Cambodia looks robust compared to what occurred inwards China. Garment Exports from People's Republic of Bangladesh (Million US Dollars)
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| Source: MOF (2005). |
Post MFA Scenario inwards People's Republic of Bangladesh
The textile together with clothe industries take hold led industrializatio n at the early on stage of evolution inwards many countries of the world. Most developed countries which take hold lost competitiveness take hold imposed quantitative restrictions on the merchandise inwards textiles together with wearable since the 1950s, although in that location has been progress inwards merchandise liberalization every bit a whole. Over the finally 30 years, international merchandise together with investment inwards the global textile together with garment (T&G) sectors has been influenced past times Multi-Fiber Agreement (MFA) quantitative restrictions (quotas) applied past times the major developed province importers (the United States, the European Union, Canada together with Norway) on T&G exports from (predominantly) developing countries. MFA quotas were negotiated bilaterally together with applied on a discriminatory ground to some exporting countries but non to others, thus differing from province to province inwards both production coverage together with the grade of restrictiveness. In such a context, the Multi-Fiber Arrangement governed the merchandise inwards textiles together with wearable from 1974 to 1994. This organisation was superseded inwards 1995 past times the Agreement on Textiles together with Clothing (ATC) nether the direction of the World Trade Organization (WTO). From 1 Jan 2005 all such quantitative restrictions on the merchandise inwards textiles together with wearable were phased out, together with finally abolished. Historically speaking that every bit per requirement of The ATC, all MFA quotas on T&G products live removed over a ten-year transition flow separate into 3 phases together with ending on 1 Jan 2005, thus finally incorporating international T&G merchandise into full general GATT rules that prohibit discriminatory measures together with telephone telephone for the reduction together with elimination of quantitative restrictions.
The quota scheme nether the MFA has distorted international T&G merchandise together with has resulted inwards global welfare losses since quota limits on the exports of selective producers take hold prevented an allotment of resources to the most efficient T&G producers together with prevented prices inwards quota protected developed province markets from falling. Competitive exporting countries with comparative advantages inwards T&G production take hold been restrained from expanding nether the MFA quota system, piece relatively uncompetitive producers take hold enjoyed guaranteed marketplace access (up to the quota limit) to developed province markets (Spinanger, 1999). In such a context, in that location was serious concern that depression income countries, such every bit Bangladesh, Kingdom of Cambodia together with the like, which relied heavily on the garment industry, would endure from the groovy contest expected to live triggered past times the consummate liberalization of merchandise inwards textiles together with wearable from the outset of 2005. From the many corners it was predicted that Red People's Republic of China would expand its exports together with Bharat would follow, together with that the other relatively little exporters would suffered seriously from the contest of these ii giants. However, it turned out that some garment-exporting Least Developed Countries (LDCs), such every bit Bangladesh, Kingdom of Cambodia together with Haiti, faired real good throughout the yr 2005. In this context, an endeavour has been made to examine the export information of selected countries during MFA together with post MFA to US together with European Union markets inwards social club to assess the indicative touching on of post MFA scenario inwards People's Republic of Bangladesh every bit good every bit other largest garments exporters. The next Tables demo the film inwards this regard.
Table-4: Exports of Knit together with Woven Garments to the USA
Source: U.S. Department of Commerce, Bureau of Census cited inwards Yamagata, 2006
Table-5: Exports of Knit together with Woven Garments to the European Union
Source: Eurostat cited inwards Yamagata, 2006.
Tables four together with 5 demo the trends inwards garment exports to the USA together with European Union from the 5 largest garment exporters together with the ii leading exporters with the LDCs, People's Republic of Bangladesh together with Cambodia. It was revealed that Red People's Republic of China together with Bharat expanded garment exports to the US together with EU, the world’s ii largest markets. Along with Red People's Republic of China together with India, People's Republic of Bangladesh together with Kingdom of Cambodia take hold also increased their exports to the USA during 2005 past times to a greater extent than than twenty percent. Though their garment exports to the European Union declined betwixt 2004 together with 2005, the drops were non significant; together with the growth inwards the same figures past times to a greater extent than than 30 percent betwixt 2003 together with 2004 surpassed the spend upwards inwards 2005 (Table 5). As a whole, the amount of garment exports to the ii largest markets grew past times 2.54 percent for People's Republic of Bangladesh together with past times 11.06 percent for Kingdom of Cambodia inwards 2005. Since the US together with European Union are going to live imposing novel restrictions on textile together with garment imports from Red People's Republic of China for at to the lowest degree a duad of years, exports from that province volition tedious down, making room for the remaining garment exporters to increment growth. Thus, the prospects for People's Republic of Bangladesh to choke on expanding its garment exports are encouraging.
Bangladesh overtakes Bharat inwards RMG exports
Bangladesh has overtaken Bharat inwards readymade garment exports despite the recent setbacks it received similar instances of edifice collapses together with burn at manufacturing units, says a study past times Exim Bank.
Between Jan together with Oct 2013, readymade shipments past times Indian exporters to the US grew 6.3 per cent to $3.2 billion, piece the same past times People's Republic of Bangladesh jumped 11.4 per cent at $4.9 billion, the premier export finance means said, reports The Economic Times.
“In the absence of latest data, imports past times the US are a real practiced benchmark of understanding the latest trends. People's Republic of Bangladesh has been aggressively pushing the garment exports together with has made a slew of policy changes to facilitate those,” Exim Bank Chief General Manager Prahalathan Iyer told PTI.
Bangladesh’s garment exports increased from $6.8 billion inwards 2005 to $19.9 billion inwards 2012, recording a compounded annual growth charge per unit of measurement (CAGR) of 16.6 per cent. During the same period, India’s outward shipments rose from $8.7 billion to $13.8 billion, a CAGR of merely 6.8 per cent.
Iyer together with his colleagues conducted a study, which revealed that People's Republic of Bangladesh offers sops similar uninterrupted mightiness together with a priority at the Chittagong port for shipment. “They take hold to take hold it real seriously every bit the garment exports contribute eighty per cent of Bangladesh’s total export earnings.”
Asked if recent events similar a spate of fires together with collapse of garment factories, which led to some anxiety over security norms at these units with the Western retailers sourcing goods from the country’s eastern neighbour, is favourable for India, Iyer replied inwards the negative.
He said inwards Oct 2013, because of these incidents, in that location was a slowdown inwards Bangladeshi garment exports, which grew solely 3 per cent. But initial trends dot out to a robust growth of over 41 per cent inwards November, suggesting a salubrious bounce dorsum past times the fundamental sector.
Iyer said many of the sourcing companies take hold Southern Asia offices situated inwards India, but they source garments from either People's Republic of Bangladesh or Sri Lanka.
High Profitability on Average
The similarity is inwards the high average profitability of the export-oriented garment business. This observation is based on ii firm-level surveys conducted past times the Institute of Developing Economies (IDE) inwards cooperation with inquiry institutes inwards People's Republic of Bangladesh together with Kingdom of Cambodia (Fukunishi et al., 2006; Yamagata, 2006b).
Figure 5. Distribution of Firms past times Profit-to-Sales Ratio: People's Republic of Bangladesh
No. of firms
Figures are diagrams depicting the ii information sets which are comprised of 222 sample firms for People's Republic of Bangladesh together with 164 sample firms for Cambodia. Details on the information for People's Republic of Bangladesh tin live found inwards Fukunishi et al. (2003), together with for Cambodia, inwards Yamagata (2006b). Both diagrams are histograms of the sample firms past times profit-to-sales ratio.9 It is evident fromFigure 5 that in that location were many firms with considerably high profit-to-sales ratios inwards People's Republic of Bangladesh inwards 2003. Most of the sample firms exhibit profit-to-sales ratios every bit high every bit 30 to 50 percent. There happened to live no sample firms recording negative profits inwards this information set.
Now Influenza A virus subtype H5N1 Days The Structure of Textile Industry of People's Republic of Bangladesh
Source: 2008 People's Republic of Bangladesh Textile MIlls Association
Conclusion
Bangladeshi Garment Industry is the largest industrial sector of the country. Though the history of Readymade Garment Industry is non older 1 but Bangladeshi wearable occupation organisation has a golden history. Probably it started from the Mughal historic flow inwards the Indian subcontinent through Dhakai Musline. It had global reputation every bit good every bit demandable marketplace about the globe especially inwards the European market.
After industrial revolution inwards the due west they were busy with technological advancement & started outsourcing of ready made garments to reckon upwards their daily demands. Many LDC's took that take chances & started ready made garment export at that markets. As an LDC People's Republic of Bangladesh took this take chances enjoyed quota & other facilities of them. Thus ready made garment manufacture started to contribute inwards our economic scheme from belatedly eighties (1977).
The history of the garment manufacture dates dorsum to 1977 when the foremost consignment was exported to together with so West Federal Republic of Federal Republic of Germany past times Jewel Garments. The publish of units, however, remained a meager 46 until the destination of 1983. From a humble outset the sector has thus made phenomenal growth over the finally ii decades, the publish of units growing to about 4500. The RMG manufacture achievement is noteworthy, peculiarly for a province plagued with poor resources endowments together with adverse weather condition for industrialization. Exports increased from around 32 meg US dollars inwards 1983/84 to 1.4 billion dollars inwards 1992/93. In 1987/88, the RMG export portion surpassed that of raw jute together with allied products. The figure farther rose to 5.7 billion dollars inwards 2003/04, representing a contribution of nigh 75 percent of the country's total export earnings inwards that year. The job generated past times the sector is estimated to live about 1.5 meg workers.
Several factors occupation organisation human relationship for the outstanding successes of the RMG manufacture inwards Bangladesh. At the same fourth dimension this manufacture had faced & till facing many problems also. These problems & prospects of RMG manufacture inwards People's Republic of Bangladesh is my topic to uncovering out every bit good every bit to create critical analysis on these.
Here I utilisation information from dissimilar sources like, BGMEA, BKMEA, CPD, World Bank, UNDP, Lmd Journal Published past times Australian National University, CIA Report, ADB, Bureau of Economic Research - University of Dhaka, The University of Chicago Press & many other sources stated inwards reference section.
References:
Table-4: Exports of Knit together with Woven Garments to the USA
| Rank | Origin | Amount (Million US$) | Rate of Change (%) | |||
| 2003 | 2004 | 2005 | 2003-04 | 2004-05 | ||
| 1 2 3 4 5 6 | China Mexico Hong Kong India Indonesia Bangladesh | 8,690 7,098 3,732 2,056 2,155 1,759 | 10,723 6,845 3,878 2,277 2,402 1,872 | 16,808 6,230 3,523 3,058 2,882 2,268 | 23.39 -3.56 3.93 10.74 11.47 6.45 | 56.75 -8.98 -9.16 34.29 19.99 21.15 |
Table-5: Exports of Knit together with Woven Garments to the European Union
| Rank | Origin | Amount (Million US$) | Rate of Change (%) | |||
| 2003 | 2004 | 2005 | 2003-04 | 2004-05 | ||
| 1 2 3 4 5 19 | All Countries China Turkey Bangladesh Romania India Cambodia | 56,918 10,913 8,112 3,471 4,124 2,599 475 | 65,552 13,714 9,348 4,578 4,572 3,020 643 | 69,642 20,334 9,790 4,346 4,285 3,988 587 | 15.17 25.66 15.24 31.90 10.87 16.23 35.27 | 6.24 48.27 4.72 -5.08 -6.28 32.02 -8.77 |
Tables four together with 5 demo the trends inwards garment exports to the USA together with European Union from the 5 largest garment exporters together with the ii leading exporters with the LDCs, People's Republic of Bangladesh together with Cambodia. It was revealed that Red People's Republic of China together with Bharat expanded garment exports to the US together with EU, the world’s ii largest markets. Along with Red People's Republic of China together with India, People's Republic of Bangladesh together with Kingdom of Cambodia take hold also increased their exports to the USA during 2005 past times to a greater extent than than twenty percent. Though their garment exports to the European Union declined betwixt 2004 together with 2005, the drops were non significant; together with the growth inwards the same figures past times to a greater extent than than 30 percent betwixt 2003 together with 2004 surpassed the spend upwards inwards 2005 (Table 5). As a whole, the amount of garment exports to the ii largest markets grew past times 2.54 percent for People's Republic of Bangladesh together with past times 11.06 percent for Kingdom of Cambodia inwards 2005. Since the US together with European Union are going to live imposing novel restrictions on textile together with garment imports from Red People's Republic of China for at to the lowest degree a duad of years, exports from that province volition tedious down, making room for the remaining garment exporters to increment growth. Thus, the prospects for People's Republic of Bangladesh to choke on expanding its garment exports are encouraging.
Bangladesh overtakes Bharat inwards RMG exports
Bangladesh has overtaken Bharat inwards readymade garment exports despite the recent setbacks it received similar instances of edifice collapses together with burn at manufacturing units, says a study past times Exim Bank.
Between Jan together with Oct 2013, readymade shipments past times Indian exporters to the US grew 6.3 per cent to $3.2 billion, piece the same past times People's Republic of Bangladesh jumped 11.4 per cent at $4.9 billion, the premier export finance means said, reports The Economic Times.
“In the absence of latest data, imports past times the US are a real practiced benchmark of understanding the latest trends. People's Republic of Bangladesh has been aggressively pushing the garment exports together with has made a slew of policy changes to facilitate those,” Exim Bank Chief General Manager Prahalathan Iyer told PTI.
Bangladesh’s garment exports increased from $6.8 billion inwards 2005 to $19.9 billion inwards 2012, recording a compounded annual growth charge per unit of measurement (CAGR) of 16.6 per cent. During the same period, India’s outward shipments rose from $8.7 billion to $13.8 billion, a CAGR of merely 6.8 per cent.
Iyer together with his colleagues conducted a study, which revealed that People's Republic of Bangladesh offers sops similar uninterrupted mightiness together with a priority at the Chittagong port for shipment. “They take hold to take hold it real seriously every bit the garment exports contribute eighty per cent of Bangladesh’s total export earnings.”
Asked if recent events similar a spate of fires together with collapse of garment factories, which led to some anxiety over security norms at these units with the Western retailers sourcing goods from the country’s eastern neighbour, is favourable for India, Iyer replied inwards the negative.
He said inwards Oct 2013, because of these incidents, in that location was a slowdown inwards Bangladeshi garment exports, which grew solely 3 per cent. But initial trends dot out to a robust growth of over 41 per cent inwards November, suggesting a salubrious bounce dorsum past times the fundamental sector.
Iyer said many of the sourcing companies take hold Southern Asia offices situated inwards India, but they source garments from either People's Republic of Bangladesh or Sri Lanka.
High Profitability on Average
The similarity is inwards the high average profitability of the export-oriented garment business. This observation is based on ii firm-level surveys conducted past times the Institute of Developing Economies (IDE) inwards cooperation with inquiry institutes inwards People's Republic of Bangladesh together with Kingdom of Cambodia (Fukunishi et al., 2006; Yamagata, 2006b).
Figure 5. Distribution of Firms past times Profit-to-Sales Ratio: People's Republic of Bangladesh
No. of firms
 |
| Profit-to-Sales Ratio |
Now Influenza A virus subtype H5N1 Days The Structure of Textile Industry of People's Republic of Bangladesh
| Sub Sector | No. of Units | Installed Machine Capacity | Production Capacity(In Mill.) |
| | | | |
| Yarn Manufacturing Mill (Spinning) (a) Private - BTMA (b) Public - BTMC Silk Manufacturing Mill: 01 Synthetic Yarn Manufacturing Mill: 12 Acrylic Yarn Manufacturing Mill: 09 Wool Manufacturing Mill: 02 | 301 23 | 6.32 Mill. Spindle 0.45 Mill. Spindle 0.218 Mill. Spindle | 1,300 Kgs. 40 Kgs |
| Total | 324 | | 1340 Kg. |
| Weaving (Large Mill) Private Sector | 420 | 25000 Shuttleless/ Shuttle Loom | 1,400 M. Mtr. |
| Spl. Textiles & Powerloom: Private Sector | 1,065 | 23000 Shuttleless/ Shuttle Loom | 300 M. Mtr. |
| Total | 1485 | 48000 Shuttleless/ Shuttle Loom | 1700 M. Mtr. |
| Handloom (GF/F) | 148342 | 498000 Handloom | 837.00 M. Mtr. |
| Knitting, Knit Dyeing (GF) (a) Export Oriented (b) Local Market | 800 2000 | 12000 Knit/Knit Dyeing / Machine 5000 Knit/Knit Dyeing /Machine | 3600 M. Mtr. 500 M. Mtr. |
| | | | |
| Total | 2800 | 17000 Knit/Knit Dyeing / Machine | 4100 M. Mtr. |
| | | | |
| Wet Processing Industry Knitting, Knit Dyeing (GF) | | | |
| | | | |
| (a) Export Oriented (b) Local Market | 1000 2000 | 14000 Knit/Dyeing Machine 5000 Knitting Machine | 3600 M. Mtr. 500 M. Mtr. |
| | | | |
| Total | 3000 | 19000 Knit/Dyeing Machine | 4100 M. Mtr. |
| | | | |
| Dyeing & Finishing (GF) | | | |
| | | | |
| (a) Semi - Machinized (b) Machinized | 180 130 | | 1200 M. Mtr. 1600 M. Mtr. |
| | | | |
| Total | 310 | | 2800 M. Mtr. |
| | | | |
| Export Oriented RMG | 4500 | | 475 Dozens |
Conclusion
Bangladeshi Garment Industry is the largest industrial sector of the country. Though the history of Readymade Garment Industry is non older 1 but Bangladeshi wearable occupation organisation has a golden history. Probably it started from the Mughal historic flow inwards the Indian subcontinent through Dhakai Musline. It had global reputation every bit good every bit demandable marketplace about the globe especially inwards the European market.
After industrial revolution inwards the due west they were busy with technological advancement & started outsourcing of ready made garments to reckon upwards their daily demands. Many LDC's took that take chances & started ready made garment export at that markets. As an LDC People's Republic of Bangladesh took this take chances enjoyed quota & other facilities of them. Thus ready made garment manufacture started to contribute inwards our economic scheme from belatedly eighties (1977).
The history of the garment manufacture dates dorsum to 1977 when the foremost consignment was exported to together with so West Federal Republic of Federal Republic of Germany past times Jewel Garments. The publish of units, however, remained a meager 46 until the destination of 1983. From a humble outset the sector has thus made phenomenal growth over the finally ii decades, the publish of units growing to about 4500. The RMG manufacture achievement is noteworthy, peculiarly for a province plagued with poor resources endowments together with adverse weather condition for industrialization. Exports increased from around 32 meg US dollars inwards 1983/84 to 1.4 billion dollars inwards 1992/93. In 1987/88, the RMG export portion surpassed that of raw jute together with allied products. The figure farther rose to 5.7 billion dollars inwards 2003/04, representing a contribution of nigh 75 percent of the country's total export earnings inwards that year. The job generated past times the sector is estimated to live about 1.5 meg workers.
Several factors occupation organisation human relationship for the outstanding successes of the RMG manufacture inwards Bangladesh. At the same fourth dimension this manufacture had faced & till facing many problems also. These problems & prospects of RMG manufacture inwards People's Republic of Bangladesh is my topic to uncovering out every bit good every bit to create critical analysis on these.
Here I utilisation information from dissimilar sources like, BGMEA, BKMEA, CPD, World Bank, UNDP, Lmd Journal Published past times Australian National University, CIA Report, ADB, Bureau of Economic Research - University of Dhaka, The University of Chicago Press & many other sources stated inwards reference section.
References:
- Garments & Technology By M. A. Kashem
- http://www.icmab.org.bd/component/option,com_docman/task,doc_download/gid,33/Itemid,93/
- Bangladesh Garment manufacturers & Export Association (BGMEA).
- Bangladesh Garments Industry.
- http://www.apparel.com.bd/?p=4273