Trade Information of RMG Sector in Bangladesh

Number of Garments of Bangladesh

Earlier Bangladesh was the least developing country but in 2019 we step forward to place our footprint as a developing country and to keep this status we have to wait for another three to four years with continued economic growth. Here we will discuss the trade information of the RMG section in Bangladesh and how it is growing over the years. In the past, our country’s economy was dependent on agricultural activities but right now we are doing good for both the service and manufacturing industry. One of the high growth industries is the garments industry where every year new companies with the hand of entrepreneurs joining in this industry. Although in 2012 to 2013 there was a decline in the number of garments industry because of the inability to meet compliance-related issues and not getting enough orders from foreign buyers. But after 2013 we have positive growth in a number of garments industry in the total apparel basket. This is because the garments business is profitable and we can provide a highly competitive price to the international market just because we have less production cost of labor cost. The most important thing is with the increase in the number of garments industries there is also creating employment opportunities, especially for women workers. This actually boosting our economy because women are contributing to their family income, which is ensuring a better life for the poor. From the BGMEA report a historical chart is given below:

Trade Information of RMG Sector in Bangladesh

Number of Employment of Bangladesh Garments Industry

RMG is the biggest export-oriented industry and earns 65% foreign currency. The apparel industry not only producing garments for export purposes but also here in Bangladesh we have a huge market for a large population. RMB sector is contributing a huge value to our GDP through creating employment, earning foreign currencies, and also creating skilled manpower through training and development. Here in Bangladesh, there are about 4 million people directly engaged with this industry activity directly on the other hand one core people of the total country are engaged with his activities. Being it is the main source of earning foreign currency and labor-oriented industry for which this project development and increasing day by day. As per BGMEA report, historical chart is given below:

Export Contribution of RMG in Bangladesh

In the past, we used to produce garments at home or local tailors, but because of the demand for Bangladeshi garments around the world, especially in the European market. Entrepreneurs took the opportunity of demand for garments items in the world market. The industrial setup had been made and we are now one of the top garment manufacturers.  Earlier we used to export golden fiber but now apparel export is leading from the front line of export basket. Total export contribution with a significant value by the RMB sector. A historical improvement is shown below as per the BGMEA report:

Impact of RMG in GDP of Bangladesh

Gross Domestic Product (GDP) monetary value increases in Bangladesh with times as well as RGM share is increasing. In the RMG Sector 95% of woven & 90% of knit exports are directed to foreign trade markets. In the fiscal year 1984, RMG export was 0.16% over GDP. After 10 years in 1994 it became 4.60%, after 20 years in 2004 it became 10.05% & finally in the recent 2018(Nominal) RMG export % over GDP is 10.71%. So, the last 35 years overall average RMG share % in GDP was 8.35 % which is incredible.

RMG sector passes so many ups & downs, finally reaches the present condition. In accordance to global changes, Bangladesh RMG sector needs to improve technologically, need to modify traditional methods, enhance marketing strategy & business policy, ensuring standard safety & compliance policy, Precise costing & planning, use supply chain strategy, business process excellence technology, training & implementation, research & development, Multiskilled management systems, practicing TQM, LEAN, etc. Directly or indirectly RMG sector is related to so many economical & social sectors, so it is really an important field to focus on for the government. This sector has a vision with objectives to support the sustainable growth of the pioneer industry of emerging economies & to create employment opportunities to strengthen the macro-economic position. It is expected that the Bangladesh RMG sector will reach 50 billion $ by 2021 & around 6 million workforces will be employed in this sector. Bangladesh also focused on greening the RMG sector by different strategies & projects.

From the ancient stage to today’s modern world, from tree leaves to long gowns, from body covering to a fashion show, the dramatic improvement brings revolutionary changes. After 1971, Bangladesh also runs fast to become one of the most influential developing countries. Not only the number of rich people increases but also the garment sector reaches such a level where it’s completing leading export countries. Hopefully, despite so many hindrances, the Bangladesh garments sector will reach a leading level very soon & will be one of the top RMG export-oriented country.

Written by
Sharmin Akther Diba
Industrial & Production Engineer
Email: [email protected]

Linkedin: Sharmin Akther Diba