Intro

The RMG industry has been playing a vital role in the socio-economic growth of Bangladesh. As it has already engaged nearly 50 million directly to the industry, 80% of the workers are female (BGMEA REPORT, 2014) thus creating equal opportunity. Most over 80% of total exports of Bangladesh is directly and indirectly related to RMG sector. This rapidly growing sector of Bangladesh offers a unique competitive advantage that’s tremendously creating its new market across the world.

Key Statistics of RMG Sector

MEMBERSHIP AND EMPLOYMENT
YEAR NUMBER OF GARMENT FACTORIES EMPLOYMENT IN MILLION WORKERS YEAR NUMBER OF GARMENT FACTORIES EMPLOYMENT IN MILLION WORKERS
1989-90 759 0.34 2003-04 3957 2
1990-91 834 0.4 2004-05 4107 2
1991-92 1163 0.58 2005-06 4220 2.2
1992-93 1537 0.8 2006-07 4490 2.4
1993-94 1839 0.83 2007-08 4743 2.8
1994-95 2182 1.2 2008-09 4925 3.5
1995-96 2353 1.29 2009-10 5063 3.6
1996-97 2503 1.3 2010-11 5150 3.6
1997-98 2726 1.5 2011-12 5400 4
1998-99 2963 1.5 2012-13 5876 4
1999-00 3200 1.6 2013-14 4222 4
2000-01 3480 1.8 2014-15 4296 4
2001-02 3618 1.8 2015-16 4328 4
2002-03 3760 2 2016-17 4482 4

Source: BGMEA

COMPARATIVE STATEMENT ON EXPORT OF RMG AND TOTAL EXPORT OF BANGLADESH
YEAR EXPORT OF RMG (IN MILLION US$) TOTAL EXPORT OF BANGLADESH (IN MILLION US$) % OF RMG’S TO TOTAL EXPORT YEAR EXPORT OF RMG (IN MILLION US$) TOTAL EXPORT OF BANGLADESH (IN MILLION US$) % OF RMG’S TO TOTAL EXPORT
1991-92 1182.57 1993.9 59.31 2004-05 6417.67 8654.52 74.15
1992-93 1445.02 2382.89 60.64 2005-06 7900.8 10526.16 75.06
1993-94 1555.79 2533.9 61.4 2006-07 9211.23 12177.86 75.64
1994-95 2228.35 3472.56 64.17 2007-08 10699.8 14110.8 75.83
1995-96 2547.13 3882.42 65.61 2008-09 12347.77 15565.19 79.33
1996-97 3001.25 4418.28 67.93 2009-10 12496.72 16204.65 77.12
1997-98 3781.94 5161.2 73.28 2010-11 17914.46 22924.38 78.15
1998-99 4019.98 5312.86 75.67 2011-12 19089.73 24301.9 78.55
1999-00 4349.41 5752.2 75.61 2012-13 21515.73 27027.36 79.61
2000-01 4859.83 6467.3 75.14 2013-14 24491.88 30186.62 81.13
2001-02 4583.75 5986.09 76.57 2014-15 25491.4 31208.94 81.68
2002-03 4912.09 6548.44 75.01 2015-16 28094.16 34257.18 82.01
2003-04 5686.09 7602.99 74.79 2016-17 28149.84 34655.92 81.23

Data Source: Export Promotion Bureau Compiled by BGMEA

Sectoral  Advantage

  • Due to availability of man power production cost is lower
  • With a huge attendance of manpower most of whose are highly skilled  the quality of the product is aristocratic
  • Due to rising demand every year the sector is enjoying a steady positive growth
  • Government is providing all kinds of support for the growth of the industry

 

VALUE OF TOTAL APPAREL EXPORT
(Fiscal Year Basis)
YEAR TOTAL APPAREL EXPORT IN MN.US$ YEAR TOTAL APPAREL EXPORT IN MN.US$
WOVEN KNIT TOTAL WOVEN KNIT TOTAL
1993-1994 1291.65 264.14 1555.79 2005-2006 4083.82 3816.98 7900.8
1994-1995 1835.09 393.26 2228.35 2006-2007 4657.63 4553.6 9211.23
1995-1996 1948.81 598.32 2547.13 2007-2008 5167.28 5532.52 10699.8
1996-1997 2237.95 763.3 3001.25 2008-2009 5918.51 6429.26 12347.77
1997-1998 2844.43 937.51 3781.94 2009-2010 6013.43 6483.29 12496.72
1998-1999 2984.96 1035.02 4019.98 2010-2011 8432.4 9482.06 17914.46
1999-2000 3081.19 1268.22 4349.41 2011-2012 9603.34 9486.39 19089.73
2000-2001 3364.32 1495.51 4859.83 2012-2013 11039.85 10475.88 21515.73
2001-2002 3124.82 1458.93 4583.75 2013-2014 12442.07 12049.81 24491.88
2002-2003 3258.27 1653.82 4912.09 2014-2015 13064.61 12426.79 25491.4
2003-2004 3538.07 2148.02 5686.09 2015-2016 14738.74 13355.42 28094.16
2004-2005 3598.2 2819.47 6417.67 2016-2017 14392.59 13757.25 28149.84

Investment Opportunities and Government Support

  • The government has decided to bring all RMG and exporting industries under the Labour Ministry’s central fund from which a worker or their children will get BDT 3 lakh from it in case of grave injuries or death at their workplace.
  • In case of any injury or death outside the workplace, a worker or their heirs will get BDT 2 lakh from the fund, which was solely created to provide financial support to the families of the workers.
  • A major initiative to map all apparel factory in Bangladesh was launched. The project called ‘Digital RMG Factory Mapping in Bangladesh’ (DRFM-B) is the first ever of its kind to attempt to digitally map the entire garment sector in Bangladesh and marks a transformative industry shift toward more transparency
  • The major industrial sector of the country is increasingly adopting the green industrial approach. The apparel sector is currently championing green industrialization in conformity with the changes in the recent global manufacturing business.

Additional Key Stats

Bangladesh’s RMG Export to World (FY 14-15, FY15-16 & FY16-17)
Value in Million US$
Woven Knit Total
EU Countries 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2014-15 2015-16 2016-17
Austria 21.29 22.51 24.89 28.98 28.07 27.88 50.27 50.58 52.77
Belgium 345.09 398.63 364.82 427.13 436.7 388.34 772.22 835.33 753.16
Bulgaria 0.11 0.1 0.43 0.7 1.21 1.5 0.81 1.31 1.94
Denmark 193.1 223.58 229.67 438.63 419.08 442.17 631.73 642.66 671.84
Finland 7.34 6.51 4.95 24.3 22.87 24.21 31.64 29.38 29.16
France 627.46 701.63 714.34 990.05 1012.68 1050.3 1617.51 1714.31 1764.64
Germany 1,808.47 2013.14 2320.25 2,530.29 2639.99 2814.77 4338.76 4653.13 5135.01
Greece 5.91 5.96 7.89 18.28 20.71 23.49 24.19 26.66 31.39
Italy 480.99 478.59 477.97 762.34 799.48 870.61 1243.33 1278.07 1348.58
Ireland 86.66 78.66 73.03 137.44 123.09 84.19 224.11 201.75 157.22
Netherlands 276.25 313.42 381.81 350.33 346.13 432.53 626.58 659.55 814.34
Portugal 10.32 14.92 22.35 29.61 37.99 45.26 39.92 52.9 67.61
Romania 4.58 3.99 3.94 7.06 6.53 9.9 11.63 10.52 13.84
Spain 730.67 831.64 828.09 895.13 1032.4 1050.65 1625.8 1864.04 1878.74
Sweden 135.31 159.04 183.42 277.16 278.17 309.3 412.47 437.21 492.72
U.K. 1,437.16 1839.69 1637.55 1,466.41 1684.09 1668.95 2903.57 3523.78 3306.5
Cyprus 0.53 0.52 0.26 1.97 1.35 1.39 2.51 1.87 1.65
Czech Republic 78.91 347.3 264.24 48.12 67.07 83.23 127.03 414.37 347.47
Estonia 0.47 0 0.17 0.47 1.03 1.33 0.94 1.03 1.5
Hungary 0.46 0.36 0.52 5.14 3.5 2.21 5.61 3.86 2.73
Latvia 1.54 0.5 0.1 3.12 2.33 1.11 4.66 2.84 1.21
Lithuania 0.2 0.14 0.54 0.62 1.02 1.59 0.81 1.15 2.12
Malta 2.86 2.66 1.26 1.69 5.06 2.38 4.56 7.72 3.64
Poland 219.71 239.17 260.02 328.53 377.1 460.07 548.24 616.27 720.1
Slovakia 28.82 32.91 33.02 42.09 41.75 45.25 70.91 74.66 78.27
Slovenia 9.67 11.42 15.47 21.19 23.18 41.21 30.86 34.6 56.68
Croatia 5.44 4.96 6.02 10.49 8.82 9.76 15.93 13.79 15.78
Sub-Total (EU) 6519.33 7731.96 7857.02 8847.28 9421.4 9893.58 15366.6 17153.36 17750.6
EU % of World 49.9 52.46 54.59 71.2 70.54 71.92 60.28 61.06 63.06
Growth% 7.27 18.6 1.62 1.9 6.49 5.01 4.11 11.63 3.48
USA 3,970.98 4228.62 3901.94 1,317.14 1396.3 1302.06 5288.12 5624.92 5204.01
% of USA 30.39 28.69 27.11 10.6 10.45 9.46 20.74 20.02 18.49
Growth% 0.7 6.49 -7.73 9.96 6.01 -6.75 2.85 6.37 -7.48
Canada 544.99 575.71 541.49 383.77 422.73 404.81 928.76 998.44 946.3
% of Canada 4.17 3.91 3.76 3.09 3.17 2.94 3.64 3.55 3.36
Growth% -2.13 5.64 -5.94 -13.78 10.15 -4.24 -7.31 7.5 -5.22
Non-Traditional Markets
Australia 187.5 229.31 210.47 346.13 406.97 371.55 533.63 636.27 582.02
Brazil 82.21 58.39 48.38 104.23 61.81 51.43 186.44 120.2 99.81
Chile 12.8 19.81 25.68 20.44 26.08 33.19 33.24 45.89 58.87
China 163.14 197.78 221.77 141.8 143.44 169.82 304.94 341.22 391.6
India 81.93 102.17 92.36 22.32 34.25 37.45 104.25 136.42 129.81
Japan 372.77 391.43 345.43 279.78 383.04 399.04 652.55 774.47 744.48
Korea Rep. 93.22 110.16 86.7 63.14 76 78.13 156.36 186.16 164.83
Mexico 52.88 63.63 55.38 76.01 85.19 69.46 128.89 148.82 124.84
Russia 84.71 109.96 172.03 129.68 139.2 207.38 214.39 249.16 379.41
South Africa 37.27 36.69 29.13 29.27 30.18 28.86 66.54 66.87 57.98
Turkey 360.63 342.85 289.05 127.45 117.45 92.32 488.08 460.29 381.37
Other Countries 500.25 540.3 515.76 538.35 611.37 618.16 1038.61 1151.67 1133.92
Sub-Total (Non-Trad.) 2029.31 2202.46 2092.14 1878.61 2114.99 2156.79 3907.92 4317.46 4248.93
% of Non-Traditional 15.53 14.94 14.54 15.12 15.84 15.68 15.33 15.37 15.09
% Growth of Non- Traditional 8.87 8.53 -5.01 8.93 12.58 1.98 8.9 10.48 -1.59
GRAND TOTAL 13064.61 14738.74 14392.59 12426.79 13355.42 13757.25 25491.4 28094.17 28149.84
% Growth 5 12.81 -2.35 3.13 7.47 3.01 4.08 10.21 0.2

RMG and Backward Linkages

Backward linkage means the use by one firm or industry of produced inputs from another firm or industry (Alan V Deardorff, 2001). Backward linkage acts as a dynamic part in RMG sector of Bangladesh. The success of the RMG sector mostly relies on how commendably RMG sector linkages may operate. Although only a few amount of value addition is made to RMG products which is nearly 30% of overall raw materials of RMG sector, more or less than 70% raw materials are imported for RMG sector to make finished product. Bangladesh government is working on development of this backward linkage to reduce the production cost of the products as well as developing the high quality products out of it.