Industrialization of the Ready-Made Garment in Bangladesh Essay

1620 Words7 Pages
Context: The readymade garments (RMG) industry of Bangladesh has been growing constantly from 1990s. The country is prominent in exporting high quality apparels at low cost. As a result the foreign exchange earnings, industrialization, GDP improved within a short span of time. The contribution of RMG in the GDP is almost 15%. In 2012-13, almost 80% of the total exports of that year came from exporting apparels of approximately $21515.73 billion. Inspite of the postponement of the MultiFibre Agreement (MFA) quota system in the United States from 2004, the RMG exports of Bangladesh has experienced a high-rise since then. Both small and large firms are expanding their export network and improving production capacities and export apparels to…show more content…
Context: The readymade garments (RMG) industry of Bangladesh has been growing constantly from 1990s. The country is prominent in exporting high quality apparels at low cost. As a result the foreign exchange earnings, industrialization, GDP improved within a short span of time. The contribution of RMG in the GDP is almost 15%. In 2012-13, almost 80% of the total exports of that year came from exporting apparels of approximately $21515.73 billion. Inspite of the postponement of the MultiFibre Agreement (MFA) quota system in the United States from 2004, the RMG exports of Bangladesh has experienced a high-rise since then. Both small and large firms are expanding their export network and improving production capacities and export apparels to the famous international brands like H&M, Li & Fung, Tom Tailor, Levis, Gap, Texco, OBS, Pierre Cardin, Neck & Neck etc. However, the garments industry is feared to become infirm because of recent unfortunate events like the factory of ‘Rana Plaza’ collapse on April 24, 2013 and fire in the ‘Tajrin garments’ in late 2012 killed almost 1300 workers in total. These incidents made the importers and the foreign investors rethink the future of their operation at the same time raised the issue of workplace safety and proper remuneration of the garments labors. Operating Model of RMG Industry: USA, UK, Germany, France, Spain, Turkey, Japan, Australia etc. Importers Readymade garments, mainly of two types: Knit products (Sweaters, socks,
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