Department of Fashion Design and Technology

Department of Fashion Design and Technology
Course Title: Garments Manufacturing Technology- 1
Course Code: IE1008
An Assignment
ON
Present Situation of Readymade Garments Industry In
Bangladesh
Submitted By Submitted To
Sanjida Afrin Joti Hafsana Yasmin
ID:2222401004 Course Instructor
Semester:4th Department Of Fdt
Batch:30 Uttara University

Introduction To Readymade Garments Industry In Bangladesh
Readymade garment is the leading industry in Bangladesh.Ready-made garments are mass-
produced finished textile products of the clothing industry. They are made from many different
fabrics and yarns. At present, the industry consists of over four thousand factories. RMG exports
from Bangladesh includes a wide variety of knitwear & woven garments products such as shirts,
trousers, T Shirt, denim, jackets, sweaters, etc. The economy of Bangladesh is significantly
dependent on agriculture. But it’s great news for the country that, (RMG) sector of Bangladesh
has raised as the biggest earner of foreign currency. This sector creates about 4.2 million
employment opportunities and contributes significantly to the GDP. Readymade garments
(RMG) of Bangladesh is powered by young, urbanizing, workers, where most of them are
women.
History Of RMG Industry
RMG industry is the mass produced finished garments. The apparel industry of Bangladesh
started its journey in the 1980s and has come to the position it is in today. The late NuroolQuader
Khan was the pioneer of the readymade garment industry in Bangladesh. He had a vision of how
to transform the country. In 1978, he sent 130 trainees to South Korea where they learned how to
produce readymade garments. With those trainees, he set up the first factory "Desh Garments" to
produce garments for export. At the same time, the late Akhter Mohammad Musa of Bond
Garments, the late Mohammad Reazuddin of Reaz Garments, In the earlier stage, Riaz Garments
of Mohammad Reaz Uddin started its business with some tailoring shop in the name of Riaz
store. Later, the name turned into Riaz Garments from Riaz store in 1973, and from 1978 the
company started exporting products in the abroad by exporting 1 million pieces of shirts in the
South Korean Company named “Olanda”. “Desh Garments” is another pioneer of the
Bangladesh RMG sector. In 1979, Desh Garments started a joint project with the South Korean
company “Daiyuu”. RMG industry is now the single biggest export eager for Bangladesh and
second largest exporter in the world. At present there are about 5000 garment industries in the
country.
Importance of RMG sector in Bangladesh
The readymade garments sector of Bangladesh plays a significant role in the countries
economical growth. Also, this sector creates a lot of employment opportunities for around 4.2
million Bangladeshis, especially for women from low-income families.
With roughly 4,000 factories employing around four million workers, Bangladesh's readymade
garment (RMG) sector plays a critical role in the country's economy, paying for more than 83
percent of total exports and providing approximately 16 percent of GDP.
Role of RMG Sector in Bangladesh:

There are lots of role RMG sector in Bangladesh. The garments sector of Bangladesh most of the
worker is women. At least 80% women workers are working in this sector. Therefore, the
contributions of women workers are very important. Anyway, in brief the important roles are-
Economic Role:
Bangladesh is a fertile field for RMG sector. It has brought revolutionary to its economy
contributing about 81% to its total foreign income which was 3.89% in 1980-81. Therefore,
RMG sector in Bangladesh acts as the vertebral column of our economy.
Solving Unemployment Problem:

Bangladesh is one of the most densely populated countries in the world. With the increase of
population employment opportunities is not creating accordingly. So a large number of its
population is to remain jobless. But the growth of RMG sector have created job opportunities for
more than 6 million people directly and about 30 million more indirectly.
Development of other Key Sectors of Economy:

The RMG sector stimulates the development other key sectors of economy and contributes to
launce of some business firms like Bank, Insurance, Transport, Logistic, Communication
process, buying house, liaison office, money laundering etc.
International Relation:
RMG sector helps Bangladesh to make international relationships among the other countries in
the world. Bangladesh exports garments to different nations of the world such as U.S.A, UK,
Germany, France and other E.U countries which make a better international relationship among
the nations.
Overview of RMG industry in Bangladesh
Industry overview
 1980-85 there were 632 factories
 1999 the number increased to about 2900
 2005-2020 the number is now 5000 plus
Workers overview
 2015 there were more than 4 million RMG workers
 2020 there are more 4.2 million RMG workers
 1.8 million workers are male, and 2.5 million are female
Export overview
2005- 2010
 RMG sectors export earnings 4.8 billion USD
2011-2012
2015-2016
2020-2021
Present situation of readymade garments industry in Bangladesh
Bangladesh is the second largest importer of apparel in the world after China, boasting over
3,500 garment factories whose goods are sold to 167 countries. Bangladesh bagged the second
position again in the global apparel export market in 2021 after it was pushed back in third
position by Vietnam in 2020. there are various types of garments are manufactured in
Bangladesh, but all the ready-made garments are classified into two broad categories, where one
is woven products and another one is knitted products. Woven products include Shirts, Pants,
and Trousers. On the other hand, the knitted product includes T-Shirts, Polo Shirts,
Undergarments, Socks, Stockings, and Sweaters. Woven garments still dominate the export
earnings of the country. From the BGMEA website, it’s seen that Day by day knitted items
production is increasing at a considerable rate and now about 40% export earnings have been
achieved from knitted products
.The ready-made garment sector accounts for 84% of total exports. The garment industry is key
to the overall economy. It accounted for about 9.3% of GDP in the fiscal year through June 2022.
The sector also made up 82% of total exports last calendar year, earning $45.7 billion, an amount
exceeding the country's FX reserves of $34 billion at the end of 2022. RMG exports from
Bangladesh were 3.37 per cent higher than the target of $34.102 billion for July-March 2023, as
per EPB data. Exports of knitwear (Chapter 61) increased by 11.78 per cent to $19.137 billion in
July-March 2023, as against exports of $17.119 billion during the same months of the previous
fiscal
What Will the RMG Industry Look Like in 2023?
In 2023, the face of the RMG industry will look drastically different. The changing landscape of
the sector will mean more opportunities for Bangladeshi garment manufacturers to take
advantage of. With the growth of automation, there will be an increased demand for locally
sourced fabrics and materials, allowing Bangladesh to further solidify its status as a leading
producer and supplier of ready-made garments. Additionally, better technology and improved
sustainability practices will lead to collaborations between local producers, global retailers, and
tech giants to create better products and services. All in all, Bangladesh is set to be well-
positioned in 2023 with a thriving apparel industry at its disposal.
Conclusion
What will the RMG industry look like in 2023? That’s a question that’s difficult to answer with
any certainty, but we can make some educated guesses. For starters, it’s likely that Bangladesh
will continue to be a leading exporter of ready-made garments to the United States and Europe.
Employment in the industry is expected to stay strong, and Bangladesh will likely remain one of
the lowest-cost producers of garments in the world.

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Department of Fashion Design and Technology

Course Title: Garments Manufacturing Technology- 1

Course Code: IE1008

Sanjida Afrin Joti Hafsana Yasmin

ID:2222401004 Course Instructor

Semester:4th Department Of Fdt

Batch:30 Uttara University

Role of RMG Sector in Bangladesh:

Solving Unemployment Problem:

Development of other Key Sectors of Economy:

 RMG sectors export earnings 4.8 billion USD

 RMG sectors export earnings 19.08 billion USD

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