TheReady-Made Garments (RMG) industry acts as a catalyst for the entire development of Bangladesh. It does not exaggerate in any way if anyone strongly assumes that this sector provides the single source of growth in Bangladesh’s rapidly developing economy. The “Made in Bangladesh” tag has also brought glory for the country, making it a prestigious brand across the world. Bangladesh maintains a strong position in Ready-Made Garments (RMG) export market. Obviously, it’s a kind of development revolution in this sector.
According to the latest report of Export Promotion Bureau (EPB) of Bangladesh, Ready-Made Garment sector has generated 2 thousand 813 Crores BDT (28.13 billion USD) in export of different countries in 11 months (July-May) of the current financial year. Exporters expect the export of this sector to exceed 3 Thousand Crores BDT (30 Billion USD) by the end of this fiscal year.
Bangladesh has continued to increase export revenues, largely on the basis of the RMG sector. Currently, Bangladesh is in the second position of the world in RMG export industry. China is in the first place. The distance between the export earning of the two countries is 116 Billion US Dollars.
Financial analysts believe that the excellent new pace of US and EU economy enhance and create a very positive impression on RMG export earning as because they are the main marketplace of this sector. Besides, Former Governor of Bangladesh Bank and renowned economist Mohammed Farashuddin said, the dollar’s expansion against the Taka contributed to keeping the growth of export earnings.
According to the Bangladesh Bank data, in the last one year, the dollar has increased by more than 4 percent against the value of Taka. In which it has increased by 3 percent in the last six months. Opinion is expressed by The Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Mr. Faruk Hasan that this trend of export earnings growth will continue at the end of the last month (June) of the fiscal year. He said, “Owners have invested a lot of money in the development of factories. They have sacrificed a lot. Over 80 percent of the factories have already come under advanced work environment (Compliance). As result, buyers are also very satisfied. We are getting positive feedbacks. Although overall exports increased by 6 percent, the export of garments increased by 10 percent as well. This year, the export of garments will exceed 30 billion dollars.”
A very noticeable fact is during the current financial year (July-May period) 83.4 percent of the export earnings came from Ready-Made Garments sector. Therein the export of Knitwear sector products generates 1 Thousand and 394 Billion US Dollars and Woven sector amounted 1 Thousand and 419 Billion US Dollars. During the 11-month period, exports increased by 11.48 percent in Knitwear and 8.15 percent in Woven sector.
This information is a clear indication of the rapid prosperity of RMG sector in Bangladesh. To tackle the sudden disaster which occurred just some years ago and the heroic comeback was not that easy for Bangladesh. This journey meets the optimum success only because of the Adept governance, Perfect sincerity of the owners, and obviously the tireless toil of the Workers.
About The Author
Mirza Rakib Hasan
AristoTex Garments International
Business Consultant (South Asia)
International Corporate Association of Professionals (InCAP)