the readymade garment industry in bangladesh: …...readymade garment & textile industry in...

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Faruque Hassan, Senior Vice President, BGMEA CONFERENCE ON SUSTAINABLE SOURCING IN THE GARMENT SECTOR Dhaka, 29 September, 2016 GLOBAL TRENDS IN THE GARMENT SECTOR AND OPPORTUNITIES FOR BANGLADESH: THE DUET OF SUSTAINABILITY & COMPETITIVENESS

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  • Readymade Garment & Textile Industry in Bangladesh

    Faruque Hassan, Senior Vice President, BGMEA

    CONFERENCE ON SUSTAINABLE SOURCING IN THE GARMENT SECTORDhaka, 29 September, 2016

    GLOBAL TRENDS IN THE GARMENT SECTOR AND

    OPPORTUNITIES FOR BANGLADESH:

    THE DUET OF SUSTAINABILITY & COMPETITIVENESS

  • 445

    175

    26 22 18 15 7 6 60

    50

    100

    150

    200

    250

    300

    350

    400

    450

    500

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    lade

    sh

    Viet

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    USA

    WORLD CLOTHING TRADE 2015IN BILLION US DOLLAR

  • ASIA, 40.92%

    ROW, 59.08%

    2000

    ASIA, 62.41%

    ROW, 37.59%

    2015 2025

    ?

    ASIA EMERGING GLOBAL TEXTILE & CLOTHING HUB

    Share of Asia and rest of the world (ROW) in global clothing exports, measured in US$

  • Y-O-Y EXPORT GROWTH% OF MAJOR CLOTHING SUPPLYING COUNTRIES, MEASURED IN US$

    -60.00%

    -40.00%

    -20.00%

    0.00%

    20.00%

    40.00%

    60.00%

    80.00%

    100.00%

    120.00%

    140.00%

    Wor

    ld

    Chin

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    EU (2

    8)

    Bang

    lade

    sh

    Hon

    g Ko

    ng

    Viet

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    a

    Turk

    ey

    Indo

    nesi

    a

    USA

    Cam

    bodi

    a

    Paki

    stan

    2015

    2014

    2013

    2012

    2011

    2010

    2009

    2008

  • 0.12 0.62 2.

    23 4.35 6.

    42

    12.5

    0 17.

    91

    19.0

    9

    21.5

    2 24.4

    9

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    28.0

    90.00

    5.00

    10.00

    15.00

    20.00

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    30.00

    35.00

    40.00

    45.00

    50.00

    1984

    -85

    1989

    -90

    1994

    -95

    1999

    -00

    2004

    -05

    2009

    -10

    2010

    -11

    2011

    -12

    2012

    -13

    2013

    -14

    2014

    -15

    2015

    -16

    Last 10 years compound annual growth rate (CAGR) is 12.43%

    APPAREL EXPORT OF BANGLADESH VALUES IN BILLION US$, FY1985-FY2016

  • Export volume

    1.53 billion

    pieces

    Number of Clothing Factories

    3200 aroundExport

    $28billion

    Exports to

    around 130countries

    4.4 Million workers

    Investment

    $10 billionaround 394 spinning &

    777 textile mills99% accessories made locally

    SNAPSHOT: TEXTILE & CLOTHING INDUSTRY IN BANGLADESH

  • • 1430 textile mills are in operation• capacity of yarn production 2100 million kg• capacity of fabrics production is 2800 million meters• 85% of knitted fabrics demand met locally• Huge potential in non-cotton items• Opportunities for Foreign Investments in textile sector

    PRIMARY TEXTILE SECTOR IN BANGLADESH

  • STRENGTHS

    35 years experience

    Price

    Quality

    Workforce

    Safe

    Green

    Commitment

    Market Access

    Versatility

    Backward Linkage

    WHY BANGLADESH

  • Remediation completed by 63% ACCORD suppliers

    and 57% of ALLIANCE suppliers

    Fit for Operation:

    98.96%

    Inspected factories:

    3746(100%)

    SAFER PRODUCTION IN BANGLADESH

  • A PLATINUM LEED CERTIFIED WASHING FACTORY AT DHAKA

    A PLATINUM LEED CERTIFIED WOVEN FACTORY AT DHAKA

    GLOBAL AWARD WINNER GREEN LANDSCAPING APPAREL FACTORY AT DHAKA

    150 more factories in

    LEED certification

    pipeline

    World’s highest rated knitwear,

    woven, washing and Denim mills

    33 LEED certified factories

    WORLD’S TOP RATED LEED CERTIFIED INDUSTRIAL ESTABLISHMENTS ARE IN BANGLADESH

  • • 70% of the population is under 40 yrs old

    • Large educated and motivated youth

    • High literacy rate (72%) among youths aged 15-24

    • Inspired young, hungry for work and growth

    • 2 million youth entering in job market each year

    • Labor cost advantage• 117 million mobile phone users• 33% internet penetration

    BANGLADESH IS BLESSED WITH HUMAN RESOURCES

  • EU (28) GSP: Duty free access for apparel on 1-stage Rules of Origin.

    Japan GSP: Duty free access for apparel on 1-stage Rules of Origin.

    Canada GSP: Canada provides Zero duty access on 25% value addition requirement

    Switzerland GSP: Duty free access for apparel on 1-stage Rules of Origin.

    Norway GSP: Duty free access for apparel on 1-stage Rules of Origin.

    Australia & New Zealand GSP: Australia & New Zealand provides Zero duty access on 25% value addition requirement (subject to additional 25% sourcing from GSP beneficiary countries)

    China Duty Free: China provides Zero duty access for 60% items under global initiative through WTO, this will be enhanced to 97% products.

    India: Zero duty access to all apparel items under SAFTA.

    Chile: Duty free access for apparel.

    Malaysia, Thailand & South Korea: Provide duty free access to a number of apparel items from Bangladesh.

    MARKET ACCESS FOR BANGLADESH

  • OPPORTUNITIES

    Product & Market

    Diversification

    Technology & Efficiency

    Enhancement

    Developing Professionals

    & Skills

    OUR PRIORITIES

  • BANGLADESH IS GETTING READY

    100 Special Economic Zones in next 15 years

    Enhancing electricity supply to 20,000 MW from 13280MW at present

    LNG terminals being set up to meet demand for gas

    Mega projects on rail, road, sea and airports going on

    The Padma bridge will open a new horizon of opportunities

    Focused drive on Cleaner Production

    PADMA BRIDGE – connecting people to prosperity

  • FY 2009 FY2016

    GDP Growth 5.74% 7.05%Manufacturing Growth 6.68% 10.30%

    Export $15.57 billion $34 billion

    Import $22.51 billion$42.92 billion*Provisional

    Private Investment as % of GDP 19.67% 21.78%

    FDI Inflow (In US$)$960.50Million $2.24 billion

    Per Capita GNI (US$) $676 $1466

    Poverty rate 40% 22.4%

    Remittance $9.69 billion $14.93 billion

    Foreign Exchange reserve $15.57 billion$30.14Billion

    Inflation 8.7% 5.92%

    Bangladesh has become the Lower Middle Income Country from an LDC based on GNI performance

    Vision to graduate to a Middle Income Country by 2021Becoming a Developed Country by 2041

    BANGLADESH ECONOMY STANDING STRONG

  • Responsible Production

    Happy Workfoce

    Ethical Sourcing

    COLLABORATION MODEL FOR WIN-WIN-WIN

  • Thank You !

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