Readymade Garment & Textile Industry in Bangladesh · Last 10 years compound annual growth rate...
Transcript of Readymade Garment & Textile Industry in Bangladesh · Last 10 years compound annual growth rate...
Readymade Garment & Textile Industry in Bangladesh
World Textile Conference II, Mumbai
September, 2016
Growth & Great Opportunities
• Asia - the biggest home of textile
• Global clothing exports share:
– China 39.3%
– Bangladesh 5.9%
– Vietnam 4.8%
– India 4.1%
• One of the largest markets having 4.43 billion population
445
175
26 22 18 15 7 6 60
50
100
150
200
250
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450
500
World China Bangladesh Viet Nam India Turkey Indonesia Cambodia USA
WORLD CLOTHING
TRADE 2015
IN BILLION US DOLLAR
SNAPSHOT
0.1
2
0.6
2
2.2
3
4.3
5
6.4
2 12
.50 17
.91
19
.09
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.52
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.49
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.49
28
.09
0.9
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1.9
2
3.4
7
5.7
5 8.6
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.20 2
2.9
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24
.30
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.03
30
.19
31
.21
34
.26
0.00
5.00
10.00
15.00
20.00
25.00
30.00
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45.00
50.00
RMG Export vis-a-vis Total Export Trend of BangladeshValues in Billion US$
RMG EXPORT TOTAL EXPORT Expon. (RMG EXPORT)
Growth of RMG IndustryFY1985-FY2016
RMG Industry at a Glance
Last 10
years
compound
annual
growth
rate
(CAGR) is
12.43%
28.09
31.54
35.40
39.74
44.60
50.07
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
US$ 50 billion vision by 2021 needs 12.25% growth every year
PEOPLE AND
COMMUNITY
SUSTAINABLE
HIGHER VALUE
ADDITION,
FASHION &
DESIGN
DEVELOPMENT
EFFICIENT &
COST
COMPETITIVE
6
Strategies for Leadership
Fit for Operation:
98.96%
Closed:
39
(1.04%)
Inspected factories:
3746
(100%)
Safer Production in Bangladesh
8
Present status:
Potentials:Suits/BlazersLingerieJacketsSwimwears/sports-wear
CategoriesExport
Share%Trousers 28.34%T-shirts 24.69%Sweaters 11.32%woven shirts 8.95%Knitted shirts 3.27%5 categories 76.57%
70% basicStrong in this segment
20% midapproaching
10%top
Opportunities in Product Diversification
Vintage Denim Studio Ltd: LEED Platinum Factory -Certified by US Green Building Council
Genesis Washing Ltd., the first ever Platinum LEED certified washing plant located in Bangladesh
WORLD’S BEST FACTORIES ARE IN
BANGLADESH
Till date 35 projects have been certified by USGBC of which 33 are RMG factories. 11 of them are Platinum certified. More importantly a further 230 LEED projects are registered in USGBC of which around 150 are from RMG sector.
BANGLADESH
APPAREL
AT
A
G
LA
NC
E
A PLATINUM LEED
CERTIFIED WOVEN FACTORY
A PLATINUM LEED CERTIFIED
WASHING FACTORY
Backward Linkage Textile Sector
• 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
The Win-Win Model
Collaboration between buyers and suppliers in – technology up-gradation a
– Improve workers’ skills and efficiency
– resource efficiency and environment friendly production
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 ECONOMY STANDING
STRONG
Bangladesh has
become the Lower
Middle Income
Country from an
LDC based on GNI
performance
Vision to graduate
to a Middle Income
Country by 2021
Becoming a
Developed Country
by 2041
FAVORABLE
FISCAL & NON-
FISCAL POLICIES
Geographic Location
117 MILLION MOBILE
PHONE USERS
33% INTERNET
PENETRATION
DUTY FREE MARKET
ACCESS IN ALMOST
ALL DEVELOPED
COUNTRIES & FEW
DEVELOPING
COUNTRIES
BANGLADESH: THE EMERGING TIGER