Bangladesh Ready Made Garments (RMG) Sector

Bangladesh Ready Made Garments (RMG) Sector
  • World textiles and clothing industry was worth USD 527 billion in 2009 while Bangladesh exported USD 12.75 billion making up 79.33% of its total exports.
  • Bangladesh Export Promotion Bureau forecasts more than USD 16 billion export in this fiscal year and USD 25 billion by 2013.
  • The revised Rules of Origin (RoO) adopted by the European Commission, effective since 1 January 2011, allows Bangladesh to continue enjoying GSP advantages even for the imported primary materials like fabrics.
  • Germany imported more than 11% of total textiles and clothing export from Bangladesh for the period of April – September 2010 and is the largest importer of woven items.
  • Knitwear is the leading export-earner at USD 6.41 billion, followed by woven wear of USD 5.92 billion and textiles and other products of USD 0.42 billion.
  • It is estimated that the RMG sector contributes 11-15% to GDP of Bangladesh adding 38% of value to the industrial sector.
  • Around 4.5 million workers are employed in the textiles and clothing industry of which 80% are women.
  • The success of the export-oriented clothing industry can be attributed to four key factors: (a) quality, (b) price, (c) lead-time and (d) reliability.
  • Key investment opportunities in the sector lie in the Primary Textile Sector to strengthen backward linkages in the garment accessory industry and in exporting Bangladeshi branded apparel.
  • Investments in textile and fashion design training institutes and diversification into manufacture of niche clothing items would provide positive impacts on the sector.

More: Structure of the Textiles & Clothing Industry in Bangladesh

About Kauser Bhuiyan

Mr. Kauser Bhuiyan is a former EU diplomat and Wall-Street professional who gained nearly two decades of professional experience at Accenture, Bloomberg, European Commission and Stein & Partners. He learned professional skills in the areas of Change Management Consulting, International Financial Market, Economic Co-operation and Sustainability Advisory services in Frankfurt, Zurich, London, New York, Brussels, Islamabad and Dhaka. Mr. Bhuiyan can be reached at ask[at]steinsourcing.com