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Garments & Textiles

Garments & Textiles 2017-05-07T06:54:01+00:00

A great adventure begins by finding the right guide

If you wish to set up an operation in Bangladesh, your best contact point is the Office of the Bangladesh Investment Development Authority (BIDA), which operates under the Prime Minister’s office and is the principal government agency for encouraging investment. The BIDA is available to assist you in numerous ways, including:

From spinning to weaving, from knitwear to leisurewear and high street fashions, the textiles and clothing industry is Bangladesh’s biggest export earner with value of over $ 16 bn of exports in 2009-10. Our factories design and produce for the world’s leading brands and retailers. This rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that supports profitable expansion into new strategic markets

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Key Statistics of RMG* Sector

YEAR EXPORT OF RMG
(IN MILLION US$)
TOTAL EXPORT OF BANGLADESH
(IN MILLION US$)
% OF RMG’S TO
TOTAL EXPORT
1983-84 31.57 811.00 3.89
1984-85 116.2 934.43 12.44
1985-86 131.48 819.21 16.05
1986-87 298.67 1076.61 27.74
1987-88 433.92 1231.2 35.24
1988-89 471.09 1291.56 36.47
1989-90 624.16 1923.70 32.45
Data Source Export Promotion Bureau Compiled by BGMEA
YEAR EXPORT OF RMG
(IN MILLION US$)
TOTAL EXPORT OF BANGLADESH
(IN MILLION US$)
% OF RMG’S TO
TOTAL EXPORT
1990-91 866.82 1717.55 50.47
1991-92 1182.57 1993.90 59.31
1992-93 1445.02 2382.89 60.64
1993-94 1555.79 2533.90 61.40
1994-95 2228.35 3472.56 64.17
1995-96 2547.13 3882.42 65.61
1996-97 3001.25 4418.28 67.93
1997-98 3781.94 5161.20 73.28
1998-99 4019.98 5312.86 75.67
1999-00 4349.41 5752.20 75.61
Data Source Export Promotion Bureau Compiled by BGMEA
YEAR EXPORT OF RMG
(IN MILLION US$)
TOTAL EXPORT OF BANGLADESH
(IN MILLION US$)
% OF RMG’S TO
TOTAL EXPORT
2000-01 4859.83 6467.30 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01
2003-04 5686.09 7602.99 74.79
2004-05 6417.67 8654.52 74.15
2005-06 7900.80 10526.16 75.06
2006-07 9211.23 12177.86 75.64
2007-08 10699.80 14110.80 75.83
2008-09 12347.77 15565.19 79.33
2009-10 12496.72 16204.65 77.12
2010-11 (July-Sep) 3971.52 5029.05 78.97
Data Source Export Promotion Bureau Compiled by BGMEA

Employment in RMG Sector

YEAR No. of Garment Factories Employment (in million workers)
2005-06 4,220 2.2
2006-07 4,490 2.4
2007-08 4,743 2.8
2008-09 4,925 3.5
2009-10 5,063 3.6
2010-11 5,150 3.6
Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

Main Apparel Items Exported From Bangladesh (m US$)

Year Shirt Trouser Jacket T-shirt Sweater
2005-06 1,056.69 2,165.25 389.52 1,781.51 1,044.01
2006-07 943.44 2,201.32 1,005.06 2,208.90 1,248.09
2007-08 915.6 2,512.74 1,181.52 2,765.56 1,474.09
2008-09 1000.16 3,007.29 1,299.74 3,065.86 1,858.62
2009-10 993.41 3035.35 1350.43 3145.52 1795.39
Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

Sector Highlights

  • Cost and quality of products that are produced on time, reliably and very competitively with a highly skilled labor force.
  • A unique regional location for expansion into key Eastern and other markets.
  • Favored trading status with the EU and the USA.
  • Clusters of companies providing a local supplier base with real depth in skilled labor, training and technical development facilities.

The phenomenal growth in the ready made garment (RMG) sector in the last decade created many new factories and employment opportunities. Having enjoyed more than 70% of total investments in the manufacturing sector during the first half of the 1990s, RMG and knitwear now account for about 4,825 factories and a workforce of 3.1 m -80% of which are women. This sector now employs over 50% of the industrial workforce and accounts for 79% of the total export earnings of the country. The growing trend in the textile and the garments sector means that Bangladesh is perfectly positioned to appeal to foreign investors.

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Size of Bangladesh Textile Industry

Sub-sector No. of unites Installed machine capacity Production capacity (m) Manpower
Textile spinning 341 7.20 ml. spld0.18 ml. rotor 1,600 kg 400,000
Textile weaving 400 25,000 SL/SLL 1,600 mtr 80,000
Specialized textile and power loom 1,065 23,000 SL/SLL 400 mtr 43,000
Handloom (GF/F) 148,342 498,000 handloom 837 mtr 1,020,000
Knitting, knit dyeing (GF):
(a) Export-oriented 800 12,000 knit/Dy/M 3,600 mtr 300,000
(b) Local market 2,000 5,000 knit/M 500 mtr 24,000
Dyeing and finishing (FF):
(a) Semi-mechanized 180 120 mtr 10,000
(b) Mechanized 130 1,600 mtr 23,000
Export oriented RMG 4,500 475 doz 2,000,000
Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

Investment Opportunities and Government Support

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. Backward linkage is a significant trading opportunity and is supported by a government backed incentive: 15% cash subsidy of the fabric cost to exporters sourcing fabrics locally. Additionally the government has created a highly favorable policy framework for investment in these sectors offering investors the following choices:

  • Establishment of new textile/RMG mill in the private sector
  • Joint ventures with the existing textile/RMG mill
  • Acquisition of public sector textile mills that are being privatised
  • Indirect investment through financial services and/or leasing

Spinning

The government is committed to fostering a strong spinning sector within the economy to support the robust textile and garment industry that has developed. The government is therefore supporting spinners by providing lower tariffs for machinery spares and raw materials, cash incentives, reduced tax rate, and low-cost funding etc.

One Stop Service Center

The BIDA coordinated the establishment of a One-Stop Service Center for

  • Trade License from respective city corporation and local government body are given within 48 hours, assuming all required documents are provided. Bangladesh Investment Development Authority with local government division insures this service.
  • Company registration from Joint Stock Register’s office company registration complete within 48 hours.

  • Registration of Bangladesh Investment Development Authority is complete within a day, assuming all required documents are provided.
  • Electricity connection’s result are given within 10 days after receive the application from BIDA where representative of power development board authority is working.
  • Assistance for Land acquire are supported by BIDA.
  • Environmental certificate are given within 10 days from BIDA where respective officer from Environment Department are working.
  • From Bangladesh Investment Development Authority representative of Titas Gas Authority the result of gas connection are given within 10 days from the date of application received.
  • Foreign loan borrowing application disposed within 30 days assuming all required documents are provided.
  • Tax related complication is taken from BIDA by respective National Board of Revenue officer after getting application from entrepreneur and result are given within 10 days.
  • Online services also provided by BIDA.

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