Agriculture, as the case in India, has been the backbone of economy and chief source of income for the people of Bangladesh, the country made of villages. Government wants to decrease poverty by getting highest productivity from agriculture and achieve self-reliance in food production. Apart from agriculture, the country is much concerned about the growth of export division. Bangladesh have accelerated and changed her exports substantially from time to time. After Bangladesh came into being, jute and tea were the most export-oriented industries. But with the continual perils of flood, failing jute fibre prices and a considerable decline in world demand, the role of the jute sector to the country’s economy has deteriorated (Spinanger, 1986). After that, focus has been shifted to the function of production sector, especially in garment industry.
The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $5 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry’s continual success; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production.
. Considerable Qualified/keen to learn workforce available at low labour charges. The recommended minimum average wages in The Garment Industry (which include Travelling Allowance, House Rent, Medical Allowance, Maternity Benefit, Festival Bonus and Overtime Benefit) in the units within the Bangladesh Export Processing Zones (BEPZ) are given as below; on the other hand, outside the BEPZ the wages are about 40% lower:
. Energy at low price
. Easily accessible infrastructure like sea road, railroad, river and air communication
. Accessibility of fundamental infrastructure, which is about 3 decade old, mainly established by the Korean, Taiwanese and Hong Kong Chinese industrialists.
. FDI is legally permitted
. Moderately open Economy, particularly in the Export Promotion Zones
. GSP under EBA (Everything But Arms) for Least Developed Country applicable (Duty free to EU)
. Improved GSP advantages under Regional Cumulative
. Looking forward to Duty Free Excess to US, talks are on, and appear to be on hopeful track
. Investment assured under Foreign Private Investment (Promotion and Protection) Act, 1980 which secures all foreign investments in Bangladesh
. OPIC’s (Overseas Private Investment Corporation, USA) insurance and finance agendas operable
. Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which protection and safety measures are available
. Adjudication service of the International Centre for the Settlement of Investment Dispute (ICSID) offered
. Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD & Cellular services
. Weakness of currency against dollar and the condition will persist to help exporters
. Bank interest@ 7% for financing exports
. Convenience of duty free custom bonded w/house
. Readiness of new units to enhance systems and create infrastructure accordant with product growth and fast reactions to circumstances
. Lack of marketing tactics
. The country is deficient in creativity
. Absence of easily on-hand middle management
. A small number of manufacturing methods
. Low acquiescence: there is an international pressure group to compel the local producers and the government to implement social acquiescence. The US GSP may be cancelled and purchasing from US & EU may decrease significantly
. M/c advancement is necessary. The machinery required to assess add on a garment or increase competence are missing in most industries.
. Lack of training organizations for industrial workers, supervisors and managers.
. Autocratic approach of nearly all the investors
. Fewer process units for textiles and garments
. Sluggish backward or forward blending procedure
. Incompetent ports, entry/exit complicated and loading/unloading takes much time
. Speed money culture
. Time-consuming custom clearance
. Unreliable dependability regarding Delivery/QA/Product knowledge
. Communication gap created by incomplete knowledge of English
. Subject to natural calamities
. EU is willing to establish industry in a big way as an option to china particularly for knits, including sweaters
. Bangladesh is included in the Least Developed Countries with which US is committed to enhance export trade
. Sweaters are very economical even with china and is the prospect for Bangladesh
. If skilled technicians are available to instruct, prearranged garment is an option because labour and energy cost are inexpensive.
. Foundation garments for Ladies for the FDI promise is significant because both, the technicians and highly developed machinery are essential for better competence and output
. Japan to be observed, as conventionally they purchase handloom textiles, home furniture and garments. This section can be encouraged and expanded with continued progress in quality
. The exporters have to prepare themselves to harvest the advantages offered by the opportunities.
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