From spinning to weaving, from knitwear to leisurewear and high street fashions, the textiles and clothing industry is the biggest export earner Bangladesh. At present, Bangladesh is the second largest exporter of Ready-made Garment products in the world which exports over 132 Countries. This rapidly growing RMG and Textile Industry of Bangladesh in the country economy offers a unique competitive edge that supports profitable expansion into new strategic markets. RMG and Textiles sector has consistently been the key driver of Bangladesh export for the last few years, covering more than 80% of the total export.
Under Mughal rule, Bengal Subah was a midpoint of the worldwide Muslin and Silk trades during the early 16th to 18th centuries. During the Mughal era, the most important center of cotton production was the Bengal, particularly around its capital city of Dhaka, leading to muslin being called "daka" in distant markets such as Central Asia. Bengal also exported cotton and silk textiles to markets such as Europe, Indonesia and Japan. Bengal produced more than 50% of textiles and around 80% of silks imported by the Dutch from Asia.
In the 1960s, local Bengali entrepreneurs had set up their own large textile and jute factories. Until the liberation of Bangladesh in 1971, the textile sector was primarily part of the process of import substitution industrialization (ISI) to replace imports. Immediately after the liberation war (1971), tea and jute were the most export-oriented sectors. In 1972 the newly formed government enacted the Bangladesh Industrial Enterprises (Nationalization) Order, taking over privately owned textile factories and creating a state-owned enterprise (SOE) called Bangladesh Textile Mills Corporation (BTMC). In 1978, there were only nine "export-oriented" garment manufacturing units. The Bangladeshi government began to realize potential for the industry to flourish and offered development stimulus such as "duty-free import machinery and raw materials, bonded warehouse facilities and cash incentives etc.
World Market Share:
An early report of McKinsey (2011) said, ‘Bangladesh as next hot spot, next China’. As of 2011 Bangladesh was the second largest ready-made garments (RMG) manufacturer after China, by the next five years Bangladesh will become the largest ready-made garments manufacturer. Bangladesh was the sixth largest exporter of apparel in the world after China, the EU, Hong Kong, Turkey and India in 2006. In 2006 Bangladesh's share in the world apparel exports was 2.8%.
But now, China alone holds 41 percent of the total market share. The RMG and Textile Industry of Bangladesh is in the second position with a market share of 6.4 percent. But since China is slowly moving away from garments industry, there is an opportunity to capture the market China occupies and over the years Bangladesh has the possibility take up a bigger portion of the global market if the key challenges are solved. Bangladesh exports a wide range of apparel products in North America, Europe, Asian and countries in many other geographic regions.
This sector is not only contributing to the national economy but also working on human development. It contributes significantly to GDP, women endorsement, reduction of child labor, gender equality and reduction of infant mortality. In Bangladesh there are more than 4.5 million people, working in around 6000 garments factories and approximately 80% people of them are female. The importance of the textile industry in the economy of Bangladesh is very high. The growing trend in the textile and the RMG sector means that Bangladesh is favorably positioned to appeal to foreign investors.
Top Green Factories in the World:
Envoy Textiles, Remi Holdings and Plummy Fashions of Bangladesh have become world’s top Green environment friendly RMG factories in the world. The top three factories has succeeded keeping pace with the growing demand of Green factories across the world. These RMG factories received Top LEED certificates. This achievement has taken the RGM (ready-made garments) industry of the country to a new height.
The LEED certification (Leadership in Energy and Environmental Design) provide by the US Green Building Council (USGBC). Green Textiles has a certified international recognition. Certificate awarded after fulfilling some criteria’s and requirements. Lots of environment-friendly green factories have been established in the country. These factories fulfill buyer’s demands with the best compliance standards of the world. Now more than 150 factories are being readied as environment-friendly ones. That will increase confidence of buyers in our clothing industries.
Behind the Success:
The dramatic growth of RMG sector is due to RMG entrepreneurs, Bangladesh Textile Mills Corporation (BTMC), BGMEA (Bangladesh Garments Manufacturers and Exporters Association), BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association), BTMA (Bangladesh Textile Mills Association), Government support, GSP facility, low labor cost, women workforce, effective and efficient worker etc.
Generally, the export products can be categorized into two major categories- Woven and Knitwear. These two categories include a wide range of products but the key products which take up the majority of the product mix are denim, shirts, trousers, sweaters etc. According to a recent BGMEA research, there is huge demand for the items on the global market where Bangladesh has less portion of share.
The report said that the entrepreneurs could focus on the items for value addition and diversification within the sector in next five and 10 years. The products include cotton made babies’ garments, women’s or girls’ briefs and panties, men’s or boys’ underpants, and trousers, women’s or girls’ blouses, shirt, brassieres, t-shirts, singlet, men’s or boys’ anoraks, women’s or girls’ jackets and blazers of synthetic, men’s or boys’ overcoats, of man-made fibers and full-length or knee-length stockings, socks and other hosiery.
The phenomenal growth in the readymade garment (RMG) sector in the last decade created many new factories and employment opportunities. Yet, even with these challenges ahead, as global trade picks up in the coming years, demand for Bangladeshi garments is also expected to increase, thereby prompting much-needed economic growth for the developing state. Enormous investment opportunities exist in this sector. In the RMG industry demand for fabric significantly exceeds local supply and so is currently being met by imports. There may be investment opportunities in RMG and Textile Industry of bangladesh:
- Carding Cloth
- Silk Reeling Unit
- Jeans, Cotton Casuals & Shirts
- Implantable Surgical Suture (Biomedical Textile)
- Acrylic Blanket for Warming Human Coverage Purpose
- Viscous Rayon
- Readymade Garments (T-Shirt)
- Sanitary Napkins
- Jeans Manufacturing Unit