History of Bangladesh Textile & Apparel Sector &Strength & Weakness of textile & Apparel

sector

Total Textile Process at a Glance

History of Apparel Industry in Bangladesh :

In 1971 Firstly process of import substitution industrialization to replace import & particularly the ready made sector.

In 1972 formed new govt. private owned textile factories are creating a state - owned enterprise called BTMC

In 1975 - 76 BTMC never managed to match pre-1971 output & that is fiscal year &

lost money

In 1980 – 85 percent the textile industry

are assets.

In 1982 new industry policy & Export processing zone

are created

HISTORY OF export-oriented readymade garment (RMG) industry :

There are only 9 export oriented manufacturing industry in 1978 , such

as Reaz gmts. Paris gmts. Jewel gmts. &

Boishaki gmts.

Reaz gmts establish in 1960. But in1973 it

changed it’s name to Reaz gmts Ltd & started to

export by selling 10000 pcs of shirt to France, valued 13 million franc in 1978.

That was first direct export of apparel.

Desh gmts.Ltd first joint venture in Bangladesh , technical & marketing

collaboration with S.Korean Daewoo

corporation , established in 1979 . First 100%

export oriented company .

History of export In 1980, Youngone (49%) and Trexim (51% equity) formed

a company named younone Bangladesh exported first consignment of padded and nonpadded jackets to sweden in dec 1980. It had trained 120 operators including 3 women in S. Korea Went to the production in 1980.

Apparel Industry in Bangladesh Till to the end of 1982, there were only 47 garment manufacturing units. Break through occurred in 1984-85 when numbers of garment factories increased to 587.

In 1999, there were 2900 garment factory in the country. Average growth rate of garment export is 22%. Now, the numbers of garment manufacturing units in Bangladesh is 5500.

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History of Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is a "powerful lobby" group with 4,000 members who "account for four of every five dollars earned from exports. Twenty-five MPs have investments in the textile industry. The BGMEA inspects non-complying textile factories. Following the fatal fire in November 2012 at a Dhaka garment factory where 112 workers were killed, "BGMEA sent inspectors to some of its members’ factories. Four buildings had structural flaws or violated construction or labour laws. The factories, owned by Atiqul Islam, BGMEA president, Atiqul Islam among others. There were no prosecutions. who had warned the owner of building was unsafe but he ignored them and the factories stayed open. Workers said they had been pressed to show up because orders were overdue. 846 garment traders were also registered with BGMEA in 2009 although legally they are not obligated to do so.

History of Education in textile sector :

'Bangladesh University of Textiles (BUTex)' is the only public university specializing in textile engineering in Bangladesh. It was graduated from college in full flagged university on 22 December 2010 by an ordinance of Education Ministry and has a glorious history starting as a weaving school under British colonial rule in 1921. Now the University offers graduation courses in Textile Engineering, Textile Management & Fashion design. 'Khulna University of Engineering and Technology (KUET)' is also going to start B.Sc. in Textile Engineering for session 2012–2013.

Analysis Strength :

Competitive price advantage due to cheap labor and Governmental Assistance . Skilled Human Resource , Duty and Quota free access and GSP in EU.

Integrated Supply Chain, Specially in Knitwear International Image of a reliable supplier of basic Products.

Analysis Opportunities :

• Potential for higher value addition by developing backward linkage. Reduce lead time by developing infra structure of transportation, faster custom clearance, strong backward linkage . Improved image by adapting environmental and social standards .

• Diversifying apparel product switching from basic product to fashionable product. May get preferential access in USA and Canadian market in near future.

Analysis Weakness :

• Weak Structure, in particular production efficiency, product development, marketing skill, customer service, controlling, planning, management skill, technical know how Producing mainly basic products.

• Heavily depend on importing woven fabrics, low value addition Poor image of adapting international and Corporate social standards Political, Social and worker unrest.

• Main Reason of the Weakness of trade union movement of garment sector in

Bangladesh are: • 1. Disunity and division of organizations. • 2. Unlimited and long working hours.• 3. Absence of Job security. • 4. Migration from factory to factory. • 5. Absence of weekly holiday and other holidays. • 6. Majority of women. • 7. State policy.• 8. Elite class ownership. • 9. Low wage. • 10. Unemployment of the country.• 11. Building structure is not good.• 12. No unity in Worker.• 13. No special training & proper education in the female worker.

Reasons Of The Weakness Of Trade Union Movement In Bangladesh :

Conclusion• The export of ready-made garments (RMG) increased from $USD

3.5 million in 1981 to $USD 10.7 billion in 2007. Apparel exports grew, but initially, the ready-made garments RMG industry was not adequately supported by the growth up and down the domestic supply chain (e.g., spinning, weaving, knitting, fabric processing, and the accessories industries).

• From 1995 to 2005 the WTO Agreement on Textiles and Clothing (ATC) was in effect, wherein more industrialized countries consented to export fewer textiles while less industrialized countries enjoyed increased quotas for exporting their textiles. Throughout the 10-year agreement, Bangladesh’s economy benefited from quota-free access to European markets and desirable quotas for the American and Canadian markets.