WELCOME

TO OUR PRESENTATION

Groups Member ID NO NAME131-019-0-145 MD.AMINUL ISLAM(Team

leader)

131-029-0-145 MD.SHARIF ALAM

131-o30-0-145 MD.RASHED

131-036-0-145 MD.ARIFUL ISLAM

131-039-0-145 MD.MOZAMMALE HAQUE

131-05-0-145 SAZZATUL PARVEZ

PRESENTATION ONFuture plan of rmg in Bangladesh

OUTLINE :INTRODUCTIONOBJECTIVE TO STUDYLMITATION OF THE STUDYSTATISTICS OF RMG SECTORRANA PLAZA AND TAZNINSOCIAL IMPACTS OF RMGTHE FUTURE PLANTEXAPP ORGANIZATIONVISION 2021CONCLUSION

INTRODUCTION:# The readymade garments industry acts

as the backbone of our economy and as a catalyst for the development of our country.

# We take pride in the sector that has been fetching billions of dollars as export earning and creating jobs for millions of people in the country.

Objective to study:To evaluate the

economics of rmg sector.

To evaluate the social impacts in terms of

women empowerment, employment.

TO contribute earn foreign courencey

Limitation of study:

Lack of co-operation on sourcing data from some important organization

Available data was poorly updated

The information gap between the data different sources statistical and historical

Methodology of study:

Secondary data analysis forms the basis report

Sources of secondary data: *Literature review *journal

resource *Thesis paper

*Online news *Books and articles

statistics of Rmg sector:

YEAR NUMBER OF GARMENTS

EMPLOYMENT OF MILLION WORKERS

2009-10 5063 3.60

2010-11 5150 3.60

2011-12 5400 4.00

2012-13 5600 4.00

2013-14 4536 4.00

SOURCE : BGMEA

Comparative export on RMG and total export :

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-130

5000

10000

15000

20000

25000

30000

Comparative Statement on Export Of RMG And Total Export Of Bangladesh

Valu

e

Source: Data Source Export Promotion Bureau Compiled by BGMEA

Contribution of national economy:

# The sector contributes 38% of industrial value addition.

# Earns around 78% of total export earning.

# Employs around 4 million workforce of which majority is women.

# Provides 0.2 million job to waste recycle industry related to RMG-sub sector.

#Contributes 10.50% to GDP through RMG sub-sector.

Rana plaza and Taznin: The readymade garments industry acts as the backbone of our

country and develop our country .we take pride that has been fetching billion of dollars as export earning

BUT

Rana plaza Tazneen Fashion

Two major accidents ,the Taznin fires and Rana plaza collapse, have brought the issue of workplace safety and building safety.

SOCIAL IMPACTS OF RMG:

RMG

Employment

Women empowerm

ent

Savings

Child labour

EMPLOYMENT:

2009-10 Factory 2010-11 Factory2011-12 Factory2012-13 Factory

Series 1

3.60 3.60

4.00 4.00

EMPLOYMENT IN (MILLION OF WORKERS)

WOMEN EMPOWERMENT:

Bangladesh India Pakistan Nepal Sri Lanka

90%

34%

10%15%

87%

76%

13%

60%

38%

52%

Female Contrbution in South AsiaPercent of Female Percentage of Total Export

SAVINGS:Regular earning

Workers investments on family pension schemes etc. create savings. 15 years and above had their own bank accounts.

A higher proportion of workers (30 percent) had bank accounts in the EPZ. Women are on average better savers than men.

Women save about 7.6 percent of their otherwise small income.

CHILD LABOUR:In 2000 a second MOU was signed between BGMEA and ILO focused

• A fact-finding survey to determine the extent of child labor in the garment industry;

• The establishment of an education program;• The establishment of a monitoring and verification

system; • The provision of income compensation in the farm of a

monthly stipend of Tk. 300, the equivalent of (at that time) US$ 7ILO 2005 baseline survey on child labor in hazardous

situations found

• The one sector where legal restrictions on use of child labor showed to be successfully forced was the Ready-made Garment industry, while around 532,000 child laborers were working in hazardous situations in other industries.

The future plan:

o The garments industry is in state of crisis .In recent days there have been several reports in the media focusing on the plight of the garment sector;

o Over thousand factory has close down ;o Two hundred thousand women have been made jobless ;o Exports could drop during the current fiscal year by 20% or more;

AND This situation we have to do a plan for save our rmg

sector .some points are given there:

Process of future plan:Enhance chittagon

g port

Direct shipping facility

Workers safety

Image building

promotion

Improved inland

truckling ,rail

Search for new markets

Expansion of exports

to European union

Duty free access to

indian market

Establishment to join

BGMEA/EFB IT

Government should support

Improvd banking system

Simplified and

computerize customs procedures

Complaince with labour

standard codes

Reduction utility

cost

Establishment of

garments villages

Unanimous

resolution political

crisis

Emergency service of

BGMEA/BEPZA

Production of high

value items

Mobilization of NGO

Established of task force by minister

of commerce

Enhance the chittagong port:

o Bangladesh become more competitive by reducing transaction costs.

o The most modern equipment should be used.o Chittagong port should be operate 24 hours in thee shift

thereby ensuring there is no stoppage of work.o The government should within seven days a package of

special measure to increase the efficiency of chittagong port.

Direct shipping facility:

BSC and other shipping companies should operate a twice weekly service to koria, Taiwan and Hong kong to speed up the movement of fabrics from these countries to Bangladesh.

Workers safety:

Ensuring workplace safety at all garment factories is a gigantic task and will take time to accomplish. But we believe the government of Bangladesh, BGMEA and BKMEA, with the support of global brands and international development partners, will be able to ensure the safety of the RMG industry and maintain the momentum of socio-economic development in the country.

IMPROVED INLAND TRUCKLING,RAIL:

Various measures should be taken to improve movement of trucks between Chittagong and Dhaka.

The import of new cargo trucks should be made duty free.

Railway wagon capacity should be increased and improved.

SEARCH FOR NEW MARKETS:

we are dependent mainly on two markets namely the EU and North America (the US and Canada). Though we reduced our dependency on these two markets from 93% to 85% in last five years (From fiscal 2009-10 to 2013-14)

The Nordic countries, Central Asia, Africa, the Middle East are some of the places a serious effort can be made to carve out a niche for Bangladesh garments.

President BGMEA can lead a delegation in some of these countries.

EXPANSION OF EXPORT TO EUROPE:

There is a lot of potential to expand exports to Italy, Germany, Britain and France, who are the principal importers in Europe.

Special efforts should be made to persuade the EU to relax its rules of origin.

All our Ambassadors and High Commissioners should be instructed to give the search for new markets.

DUTY FREE ACESS TO INDIAN MARKET:

The government should make a special effort to persuade the Indian government to extend duty free access to all ready made garments from Bangladesh.

Every effort should be made to get India to implement this commitment within the next hundred days.

Duty free access to the Indian market will open up tremendous opportunities for Bangladesh.

ESTABLISHMENT TO JOIN BGMEA/EFB IT:

BGMEA and EPB should jointly set up an IT unit, which should also be able to undertake research work.

BGMEA’s web page should be interactive and should serve to market worldwide.

The IT/ research cell should monitor world wide developments in the garment sector.

IMPROVED BANKING SYSTEM:

Bangladesh Bank should meet periodically with local Banks to monitor developments in the RMG sector.

Local Bank should encourage to reduce their charges of LCs

UNANIMOUS HARTALS AND POLITICS:

The government and opposition should join hands to adopt a unanimous resolution in parliament agreeing to an indefinite moratorium on all hartals, as well as on all student politics.

REDUCTION UTILITY COST:

Government must closely monitor not only labor costs but also utility charges in all the neighbouring countries, Bangladesh must remain competitive.

If necessary RMG factories may be given electricity and water at subsidized rates. Telephone charges for overseas calls from Bangladesh are today among the highest in the world.

These charges should be reduced substantialy.

Similarly government must ensure a steady supply of power to all RMG factories.

TEXAPP ORAGANIZATION:

TEXAPP Bangladesh 2014 - Bangladesh Textile & Apparel Forum, which is expected to bring together Bangladesh’s textile and apparel industry leaders and machinery importers of Bangladesh under one roof, will be held from September 3, 2014, in Dhaka.

The event, being organized on the sidelines of the 15th TexTech Bangladesh 2014 International Expo, will discuss several issues related to the Bangladesh apparel industry and also deliberate on how to further take the industry forward in the coming years.

Bangladesh Textile & Apparel Forum is expected to set the stage for the Bangladeshi textile and apparel industry & machinery importer leaders to focus, discuss, decide and set goals for the future of the exports of their industry from Bangladesh to the world.

Based on the discussions held at TEXAPP Bangladesh 2014, ‘VISION 2021’ will be launched to further take the country’s textile and clothing industry forward in the coming years.

VISION 2021:

It is really a matter of great interest to many – how the economy of Bangladesh continues to grow at a steady pace, sometimes even when rowing against the tide.

Now we envision Bangladesh achieving the middle-income country status by 2021.

We firmly believe that our dream will come true within the stipulated time and the RMG industry will certainly play a crucial role in materialising the dream.

CONCLUSION: It is important that the new

government convey a clear impression to helping the RMG sector to save the backbone of the Bangladesh economy.

we hope that success will require good team work and co-ordination within the government .

REFERENCE:

1)Online Internet.2)BGMEA website3)Global trade info4)Texapp

organization.5)Mckinwey

company.6)Textile

magazine.bd7)Dhaka tribune.8)Google image.

THANK You