Friday, July 27, 2012

Garments and Bangladesh

Garments factories in Bangladesh manufacture and design some of the world’s foremost brands in clothing and garments. Bangladesh presents a exclusive spirited edge when it comes to the clothing industry. Whether it is leisure wear or knits or spinning or weaving, the textile and garment industry of Bangladesh is by far its biggest export industry. The monetary value earned through exports by this industry was from $ 16 billion on the 2009-10 fiscal years.

Garments Worker

The Sector Highlights:
•    A positive trading status with the US and EU
•    A pleasant location for extension into the Eastern market and some other markets
•    High superiority products are produced on time
•    Highly skilled and dependable labor force
•    Large number of companies who provide a base for suppliers
•    This base has intensity in skilled labor and scientific abilities
There are a number of really feasible reasons to invest in this market. The growing insists for yarn is one of the reasons and profitable incentive correspondence are another important reason to invest.There has been considerable growth in the ready made garments sector from the last decade. This has induced the creation of a lot of new factories and more employment opportunities as well. RMG and knitwear currently account for closely 5,000 factories and comprises roughly 3.1 percent of the total workforce. It is important to note that 80 percent of this workforce constitutes women. Favorable trading rank:The fact that Bangladesh has trade agreements with 28 countries is one of the reasons it has such that a nice access to global markets. They are a really important supplier of ready made garments to North America and Europe. Bangladesh is anticipated to primarytain its tariff charge less access to the EU and Canada.
Historically, Bangladesh depended on imported fabrics and yarns and they have shaped about only 10 percent of the sell abroad quality cloth that has been utilized by the garment industry. There are great opportunities to set up composite textile industries that combine the three: textiles, garments and yarn.
Bangladesh authorities ropes of late associated with ready-to-wear garments staff member the particular earnings modification have previously obtained impact, the staff anticipate that this earnings increase 75% throughout 12,. Although labor privileges party thinks the newest salary nonetheless can’t keep associated with climb basic of just living expenditure, they believe that is in the direction of for that critical improvement in which Bangladesh ready-to-wear clothes worker fights pertaining to ft. in order to distribute a living wage.
Bangladesh authorities supports these days of ready-to-wear clothing staff member the fastidious wage modification have already taken influence, the staff assumes the earnings increase 75% within December. The job legal rights group believes the modern earnings nonetheless cannot keep involving rise basic of just living outlay, they think this can be in the direction of for your critical progress that Bangladesh ready-to-wear outfits employee spats for base in order to distribute an income.

Working in garments

Even in case Bangladesh ready-to-wear clothes producer and exporter connection destined to are not capable to stand brand new income framework recently, begins displaying brand-new national intercourse starting wage. This specific earnings modification will be the change reaching with this 6 the end of the a few months, years-es.
According towards the brand new deal, via from December A single, within the ready-to-wear clothes manufacturing facility nearly all the worker of the low level ― ready-to-wear outfits assistant, should be able to get corresponding to USD Forty three presently, wage modification is actually some over the last years-es for that very first time associated with earnings realignment. The Bangladesh Garment Manufacturers and Exporters Association are the apex trade body that represents the export oriented woven, knit and sweater garment manufacturers and exporters of the country. Ready made Garment is the leading sector of Bangladesh in terms of employment, production and foreign swap earnings. Ready made garment alone earned about 78% of the yearly foreign exchange earning of the country. About 3.6 million people are employed in the garment sector. The enlargement rate of RMG export was over 20% per over the last two decades.The Ready Made Garments industry has been the main source of growth in the export market of Bangladesh. It is also the foremost sector in employment generation.The direct contribution to national GDP from RMG is about 11 percent – comparatively small – but the industry plays a key role in employment to poorer areas of Bangladesh.The export-oriented RMG sector in Bangladesh started its journey in the late 1970s as a small non-traditional export sector. The RMG “boom” in Bangladesh began in the early 1990s, when free market oriented government policies and a variety of incentives to RMG producers first enabled entrepreneurs to invest widely in the sector. Throughout the 1990s, the RMG industry grew steadily, from 759 RMG factories at the start of the decade to 2,726 by 1998.
In September of 2008, the number of RMG factories in Bangladesh stood at 4,740, according to Bangladesh Garment Manufacturers and Exporters Association. After a few decades it became the major export revenue earning sector, employing the greatest portion of human resources working in the industrial sector of the country.

Female garments worker

In this sector, the factories have to maintain rigorous quality control over their product and safety measures for their workers. This includes like safe drinking water, medical facilities, and fire safety procedures. Additionally, in some factories there are rows of sound systems throughout the assembly lines of workers, from which music is played during the working hours to reduce the monotony of their labor.
Bangladesh for the first time has left Pakistan behind in exports as the former has surpassed an unprecedented mark of $24.3 billion during last fiscal year as compared to $23.6 billion figures registered on account of Pakistan’s exports.Exports of Dhaka, which remained historically lesser than the same of Pakistan, have now recorded the jump this year despite the challenges like inflation in the major importing market of Europe and other domestic issues. Though the total export figure of Bangladesh was still lesser than its fixed target of over $26 billion, it continued growth as compared to Pakistan’s exports, which declined by 4.71 per cent, as compared to last year’s figure of $24.8 billion. On the other hand, Dhaka succeeded to cross previous figure of $22.92 billion to $24.3 billion this year.
Both countries are largely based on textile exports and whenever there is a change in demand, supply and price of textile made ups in international market, total exports of the two countries accordingly.
According to experts, Bangladesh, comparatively relying more on textile garments, is enjoying the zero rated facility and tariff concession in global market specially EU because of its status as Least Developed Country
On the other hand, Pakistani products are facing high duties in the said markets. However, despite having at least 40 per cent share of non-textile item, Pakistani exports could not maintain the increasing trend after July to June 2010-2011 when Islamabad had pushed its exports from $19.3 billion to $24.8 billion with the increase of over $5 billion.During 2008-2009, 2009-2010, 2010-2011, Dhaka’s exports were recorded as $15.54 billion, $16.17 billion and $22.982 billion respectively. On the other hand, Pakistani exports during the said financial years were $17.69 billion, $19.29 billion and $24.81 billion, respectively showing an increase of 2 to 3 billion over the exports recorded by formerly East Pakistan.However, Bangladesh’s exports rose 5.9 per cent in the year ended June despite demand for garments from key Western markets remained waned. But the fresh increase was still nearly 8.4 per cent short of a target of $26.5 billion originally set by Dhaka.
Pakistan, which had also fixed export target of $26 billion keeping in view last year’s growth, remained much far away from the target. Bangladesh’s economy and exports have been boosted recently by a dramatic shift in global garment orders from China to lower-cost Bangladesh. Ready made garment sales for the fiscal year rose 6.56 per cent from a year ago to $19 billion.According to the Bangladesh knitted garment manufacturing and Export Association statistics, Bangladesh in 2010 to 7700000000 80000000 pieces of knitted garments total export volume, beyond the 7700000000 Turkey 40000000, in terms of number, has become the world’s second largest knitted garment manufacturing country.

Nice working Environment

During the second world war has entered the clothing market in Turkey, due to the high cost of labor and less receiving low order, so that the country exports 6900000000 of total amount 2000 Wanda card money ($1 72 against the Dhaka dollar about), on the amount, still exceed 6100000000 90000000 Dhaka dollars in Bangladesh.
Although Turkey as Bangladesh as the clothing market rival, but due to economic growth performance is good, has also become an important export market of Bangladesh garment.2009 accounting year, Bangladesh to Turkey garment export growth of 65%, 100000000 $8000000, that Turkey began to take safety precautions, the Bangladesh garments import product compulsory levy 27% protective tariffs.
The other entered the Turkey clothing market countries including India, Malaysia, still in Vietnam and Indonesia. As the total export volume or value of exports from mainland China in terms of total, knitted garments are ranked first.Because although the wage inflation and other factors and gradually lost competitive advantage, but at present still firmly in the world clothing market 50%Even so, BKMEA representatives still in Bangladesh market potential is great confidence, and said Bangladesh by 90 time enter the knitted garments market, annual achievement make a spurt of progress.Instead of growth being spurred by domestic demand, the rise of the RMG industry in Bangladesh can be ascribed to growing demand in developed countries for cheap apparel. Having said this, one should not forget that there was a small domestic garments industry in the – then East Pakistan (now Bangladesh) during the sixties which catered to the demand for apparel in the – then West Pakistan. The Mercury shirts, a company located in Karachi, sourced a few consignments of shirts during 1965-68 made by some tailoring outfits operating in Dhaka, and then exported these to some European countries. There were a few tailoring groups in Dhaka who made a small quantity of export-quantity shirts and children’s wear on specific orders. They received orders from
and supplied to Karachi-based firms 18. However, there was little investment in this industry during those days because of the very limited size of the domestic market. It was the global trend of relocation of production of garments from high-wage to low-wage countries, together with the bilateral MFA Quota system, that acted as the main driving force for the emergence and subsequent growth of the RMG industry in Bangladesh. Supportive government policies also played an important contributory role in this regard.
As noted earlier, it was the state trading agency, the The first consignment of private sector export of garments from Bangladesh took place in 1977-78 when M/S. Reaz Garments Ltd. exported men’s shirts worth 13 million French Franc to a Paris-based firm. At that time, there were only 9 export-oriented RMG units in Bangladesh. Along with Desh Garments, some other apparel-producing enterprises were set up in 1979, bringing the total number of firms in the industry to 22. By 1980, the number of firms in the industry
increased to 47, but total RMG export from Bangladesh was less than US $ 1 million . Despite the small export volume in the initial years, by the early eighties, the export-oriented RMG industry was well on its way to a historic place in the annals of industrial development in Bangladesh.

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