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Welcome
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Introduction
Textiles have been an extremely important part of Bangladesh's
economy for a very long time.
Major Markets
Bangladesh was the sixth-largest exporter of apparel in the
world after China, the EU, Hong Kong, Turkey, and India
in 2006. That year, Bangladesh's share in world apparel
exports was 2.8%.
The US was the largest single market with US$3.23 billion
in exports, a 30% share in 2007. Today, the US remains the
largest market for Bangladesh's woven garments taking
US$2.42 billion, a 47% share of Bangladesh's total woven
exports.
The European Union remains the largest regional
destination-Bangladesh exported US$5.36 billion in
apparel; 50% of their total apparel exports. The EU took a
61% share of Bangladeshi knitwear with US$3.36 billion
exports.
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Competitive Advantage
The Government declared the textile as a thrust sector that led to introduce a
support system for the textile industry. The support system included Fiscal
Benefits, Financial Benefits and Institutional Support.
Gas burned energy cost in Bangladesh is less than two cents/KWH in compared to
9.33, 6.72 and 7.84 cents/KWH in India, Pakistan and China, respectively.
Thailand $1.00 /h
Per hour labor costs are –
Vietnam $0.40 /h
China $0.89 /h
India $0.43 /h
Pakistan $0.41 /h
Bangladesh $0.22 /h
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Government initiatives
Three institutional arrangements were introduced:
A task force was formed, chaired by the Commerce Minister, to coordinate the
efforts of the various government ministries and agencies and private sector
organizations;
A Core Group was also set up and chaired by the Commerce Secretary to
implement the decisions of the task force; and
Problems
Infrastructure bottlenecks,
Weak governance,
Insufficient financing,
Inadequate labor quality,
Low FDI,
Trade regime that has an anti-export
bias,
Energy crisis,
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Problems
Costly accessories and
Lower labor productivity etc.
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Policy Decision: Govt. policy basically sustained the textile growth. The Govt.
policy of liberalization of the economy encouraged private sector investments. The
Government declared the textile as a thrust sector that led to introduce a support
system for the textile industry. The support system included Fiscal Benefits,
Financial Benefits and Institutional Support.
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Two of the most important resources, labor and power are abundant and cheap in
Bangladesh. In comparison to its competitors, India, Pakistan and China. Bangladesh
has an advantage of cheaper labor and lower energy cost.
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Bangladeshi spinners do not use U.S. and Brazilian cotton because of higher price.
Bangladesh should reduce its dependency on Uzbec cotton and should search for some
others sources. India, Pakistan and East or West Africa fulfill a portion of our demand.
** RMG exports nearly doubled in last five years-from $6.4 billion in FY05 to $12.5 billion in FY10.
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**The estimated investment required would be around $7 billion over the next five years.
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Bangladesh has taken some steps (e.g. removing infrastructural bottlenecks, building
additional supply capacity, use of cost reduction strategy) to face the new challenges.
Organize annual Exhibition
Workers, owners and the government have responsibilities to maintain Social
Environment.
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