the readymade garment industry in bangladesh: …...readymade garment & textile industry in...
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Readymade Garment & Textile Industry in Bangladesh
Faruque Hassan, Senior Vice President, BGMEA
CONFERENCE ON SUSTAINABLE SOURCING IN THE GARMENT SECTORDhaka, 29 September, 2016
GLOBAL TRENDS IN THE GARMENT SECTOR AND
OPPORTUNITIES FOR BANGLADESH:
THE DUET OF SUSTAINABILITY & COMPETITIVENESS
445
175
26 22 18 15 7 6 60
50
100
150
200
250
300
350
400
450
500
Wor
ld
Chin
a
Bang
lade
sh
Viet
Nam
Indi
a
Turk
ey
Indo
nesia
Cam
bodi
a
USA
WORLD CLOTHING TRADE 2015IN BILLION US DOLLAR
ASIA, 40.92%
ROW, 59.08%
2000
ASIA, 62.41%
ROW, 37.59%
2015 2025
?
ASIA EMERGING GLOBAL TEXTILE & CLOTHING HUB
Share of Asia and rest of the world (ROW) in global clothing exports, measured in US$
Y-O-Y EXPORT GROWTH% OF MAJOR CLOTHING SUPPLYING COUNTRIES, MEASURED IN US$
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
Wor
ld
Chin
a
EU (2
8)
Bang
lade
sh
Hon
g Ko
ng
Viet
Nam
Indi
a
Turk
ey
Indo
nesi
a
USA
Cam
bodi
a
Paki
stan
2015
2014
2013
2012
2011
2010
2009
2008
0.12 0.62 2.
23 4.35 6.
42
12.5
0 17.9
1
19.0
9
21.5
2 24.4
9
25.4
9
28.0
90.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
1984
-85
1989
-90
1994
-95
1999
-00
2004
-05
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
Last 10 years compound annual growth rate (CAGR) is 12.43%
APPAREL EXPORT OF BANGLADESH VALUES IN BILLION US$, FY1985-FY2016
Export volume
1.53 billion
pieces
Number of Clothing Factories
3200 around
Export
$28billion
Exports to
around 130countries
4.4 Million workers
Investment
$10 billionaround 394 spinning &
777 textile mills
99% accessories made locally
SNAPSHOT: TEXTILE & CLOTHING INDUSTRY IN BANGLADESH
• 1430 textile mills are in operation• capacity of yarn production 2100 million kg• capacity of fabrics production is 2800 million meters• 85% of knitted fabrics demand met locally• Huge potential in non-cotton items• Opportunities for Foreign Investments in textile sector
PRIMARY TEXTILE SECTOR IN BANGLADESH
STRENGTHS
35 years experience
Price
Quality
Workforce
Safe
Green
Commitment
Market Access
Versatility
Backward Linkage
WHY BANGLADESH
Remediation completed by 63% ACCORD suppliers
and 57% of ALLIANCE suppliers
Fit for Operation:
98.96%
Inspected factories:
3746(100%)
SAFER PRODUCTION IN BANGLADESH
A PLATINUM LEED CERTIFIED WASHING FACTORY AT DHAKA
A PLATINUM LEED CERTIFIED WOVEN FACTORY AT DHAKA
GLOBAL AWARD WINNER GREEN LANDSCAPING APPAREL FACTORY AT DHAKA
150 more factories in
LEED certification
pipeline
World’s highest rated knitwear,
woven, washing and Denim mills
33 LEED certified factories
WORLD’S TOP RATED LEED CERTIFIED INDUSTRIAL ESTABLISHMENTS ARE IN BANGLADESH
• 70% of the population is under 40 yrs old
• Large educated and motivated youth
• High literacy rate (72%) among youths aged 15-24
• Inspired young, hungry for work and growth
• 2 million youth entering in job market each year
• Labor cost advantage• 117 million mobile phone users• 33% internet penetration
BANGLADESH IS BLESSED WITH HUMAN RESOURCES
EU (28) GSP: Duty free access for apparel on 1-stage Rules of Origin.
Japan GSP: Duty free access for apparel on 1-stage Rules of Origin.
Canada GSP: Canada provides Zero duty access on 25% value addition requirement
Switzerland GSP: Duty free access for apparel on 1-stage Rules of Origin.
Norway GSP: Duty free access for apparel on 1-stage Rules of Origin.
Australia & New Zealand GSP: Australia & New Zealand provides Zero duty access on 25% value addition requirement (subject to additional 25% sourcing from GSP beneficiary countries)
China Duty Free: China provides Zero duty access for 60% items under global initiative through WTO, this will be enhanced to 97% products.
India: Zero duty access to all apparel items under SAFTA.
Chile: Duty free access for apparel.
Malaysia, Thailand & South Korea: Provide duty free access to a number of apparel items from Bangladesh.
MARKET ACCESS FOR BANGLADESH
OPPORTUNITIES
Product & Market
Diversification
Technology & Efficiency
Enhancement
Developing Professionals
& Skills
OUR PRIORITIES
BANGLADESH IS GETTING READY
100 Special Economic Zones in next 15 years
Enhancing electricity supply to 20,000 MW from 13280MW at present
LNG terminals being set up to meet demand for gas
Mega projects on rail, road, sea and airports going on
The Padma bridge will open a new horizon of opportunities
Focused drive on Cleaner Production
PADMA BRIDGE – connecting people to prosperity
FY 2009 FY2016
GDP Growth 5.74% 7.05%Manufacturing Growth 6.68% 10.30%
Export $15.57 billion $34 billion
Import $22.51 billion$42.92 billion*Provisional
Private Investment as % of GDP 19.67% 21.78%
FDI Inflow (In US$)$960.50Million $2.24 billion
Per Capita GNI (US$) $676 $1466
Poverty rate 40% 22.4%
Remittance $9.69 billion $14.93 billion
Foreign Exchange reserve $15.57 billion$30.14Billion
Inflation 8.7% 5.92%
Bangladesh has become the Lower Middle Income Country from an LDC based on GNI performance
Vision to graduate to a Middle Income Country by 2021Becoming a Developed Country by 2041
BANGLADESH ECONOMY STANDING STRONG
Responsible Production
Happy Workfoce
Ethical Sourcing
COLLABORATION MODEL FOR WIN-WIN-WIN
Thank You !