Assignment On Readymade Garments Activities In BangladeshGeo-101Sec:03

Group Members

Md.Sazzad Hossain(12304068)Mostofa Sadab(12304061)Md.Azimul Islam(12304059)Hesamul Aziz(12104198)

Submitted to Md. Asif Rahman Lecturer of (MNS)

The ready-made garments(RMG) activity in Bangladesh belongs to the secondary economic activity for its feature and nature Now the question might arise that how RMG activity is a secondary economic activity. To give the answer of this question, at first we have to know what secondary economic activity is? Secondary economic activities are those activities by which Homo sapiens conduct economic activities to produce secondary products. It increase the value of the raw materials and it is basically manufacturing activities. RMG activities is a secondary economics activity because it increases the value of the raw materials and it is involves in manufacturing activities.

History of RMG activities in Bangladesh

Present scenario of RMG activitiesAt present we can not think the economy of Bangladesh without RMG activity. It has become one of the major aspect of the economic activity of Bangladesh. The present position of RMG in Bangladesh is Total Industries: 5600Total Worker: Direct:3.7million Indirect: .50million Total Export: 21515.73 million %$ Contribution in GDP: 13%Percentage in total Export: 79.63%

Geographical Location of Garments Activity in Bangladesh

Bangladesh Garment Manufactures & Exporters Association (BGMEA)

BGMEA is the only Management organization for RMG in Bangladesh

Description of BGMEA: BGMEA is being run by a 27-member elected Board of Directors. Four Vice Presidents having important portfolios, along with a secretariat of experienced officials, assist the Board in formulating and executing vital policies and programs of the organization. The president is the highest executive authority of the BGMEA. BGMEA plays a very strong role in leading the industry in concurrence with the government.

Address:

BGMEA Complex, 23/1 Panthapath Link Road, Karwan Bazar, Dhaka-1215 .

Major Activities of BGMEA:BGMEA works to protect and promote the interests of the industry; thus ensuring a sustained growth in the foreign exchange earnings of the country.Maintains liaison with foreign buyers, business associations and chambers.BGMEA has set up a Crisis Management Committee for emergencies.BGMEA brings the opportunities for local manufactures to interact with foreign buyers and form new rapport by arranging different apparel fairs at home and abroad.Organizes trade missions to explore the new markets and to facilitate trade in existing markets and organizes seminars for recommending on key policies.Provides arbitration facilities to the garment workers free of cost.

Reason of developing RMG activities in Bangladesh Bangladesh has a population over 150million.Around half of the population is women. Most of the people lives below the poverty level.The wage of the labor is very low.It has seaport which is needed to export.

Contribution of RMG activities in Bangladesh

It creates job for a huge number of citizen of Bangladesh. *Direct Job 3.7 million *Indirect Job .50 million

Its total share in national export in 2012-2013 is 79.63%.

RMG contributes 13% of the total GDP of Bangladesh.

RMG is playing a vital role in the export sector in Bangladesh. The export of Bangladesh is mainly depend on RMG activity. A large portion of the Export of Bangladesh is run by this activity.

The table is showing how the export of Bangladesh is dependable on RMG activities

Year Total export of BangladeshExport of RMG (in million US$)%of RMG to total export 2009-1016204.6512496.7277.122010-1122924.3817914.4678.152011-1224287.6619089.6978.602012-1327018.2621515.7379.63

Women in RMG activitiesWomen are the main workforce of RMG sector. Almost 70 percent of RMG workforce is women. They are facing hardship and poverty.Most of these women are illiterate or having less than primary level education They come to urban areas in search of work in garment factories for better living conditions.

RMG market of Bangladesh

USA is the largest market of Bangladeshi RMG. Our other large markets are :

EUGermany UK France Spain Italy Canada Netherland Belgium Denmark

Country wise export of RMG product from Bangladesh

Country Name2009-10(Amount in million $US)2010-11(Amount in million $US)2011-12(Amount in million $US)2012-13(Amount in million $US)USA3693.404625.164539.404996.58Germany2000.083130.973398.893678.28UK1260.021759.872130.072448.93Spain521.54849.411071.121218.23EU7190.7510519.8411375.5612564.85

Competitors of Bangladesh

As RMG has a huge global market its very competitive industry also. There are some big global competitors of Bangladesh. The main competitors of Bangladesh are :China India Vietnam Thailand Cambodia Sri Lanka Philippine

Position in the world

Bangladesh is the second largest textile manufacturer in the world where China holds the first position.

Enjoys zero duty access in the European Union, Canada, Australia, Japan, Norway and Switzerland through GSP scheme

Alone Bangladesh meet 17% world demand of Ready made garments .

Challenges of RMG activity

Political uncertainty Labor unrestDistance between the owner and LaborInternational politicsImproving labor qualityRapid fire accidents in the factory

The Area were we can develop

We have to improve the infrastructureWe can form labor union We can increase the facilities for the labor.Reduce political uncertainty Arrangement of easy loan facility Concern about International conspiracy We can make a separate ministry for RMG

Future of RMG activity in Bangladesh

Bangladesh has a very bright future in RMG sector if they Can manage the associated factors.

China is the main competitor of Bangladesh in RMG sector. Now a days the wages of labor is increasing in china . For that reason in future they might have some problem regarding this issue. So we can take this chance

At present we are importing most of the raw materials of this sector. But we can produce it in our own country.

There are many new markets is open in the world such as Brazil, South Africa etc. If we can catch this market that would be very good for this industry.