group work

INTRODUCTION ABOUT BANGLADESH AND TEXTILE
INDUSTRY IN BANGLADESH


OVERVIEW OF BANGLADESH
Located in the continent of Asia, Bangladesh is:
- the 96th largest nation in the world with a total area of 143,998 square
kilometers.
- the 43rd largest economy in the world in nominal terms, and 30nd
largest by PPP, that has been largely driven by its exports of ready made
garments (RMG), remittances and the domestic agricultural sector


RMG in the Economy
With about $28.669 billion exports in 2017,
Textile and Apparel sector is the most vital
industrial sector in the country;


Most of o RMG is exported to the
European Union with 14734.69 Mil
US$. The second biggest client is
USA and third one in Canada with
3929.4 Mil US $ and 713.01 Mil
US$ respectively.

Source: Export Promotion Bureau of Bangladesh



Annual growth of textile export

50

40

30

20

Bangladesh
China

10

0
2005

-10

-20

2006

2007

2008

2009

2010

2011

2012


BANGLADESH’S TEXTILE INDUSTRY DURING THE 2008
GLOBAL REGRESSION


Labor cost

The cost of production in Bangladesh garments industry is considered to be one of the lowest


Supply input

Bangladesh developed as a high volume supply market with about 4822 RMG factories about 4.0 million workers with the total workforce of 74 million
Indonesia has 2450 factories, Vietnam 2000,Cambodia 260


Not being China
Many importers in the West have grown cau
tious about becoming too dependent upon
China from imports of specific goods from far that
if there was disruption, economic or other, their
supply chains would be decimated unless they
had an alterative source of supply

Application of Porter’s Diamond:
Case study of Textile Industry in Bangladesh


Determinants of National Competitiveness Advantage: Porter’s
Diamond



industry?

What are the basic and advanced factors of production that are



contributing to the industry?






How national management ideology contribute to the

Do domestic rivalries influence on the industry

How are they contributing?

Are there any suppliers or related industries to the industry?
How they contribute to the industry?




What is the characteristics of demand in the home country?
How do they affect on production of garment industry?


Application of Porter’s Diamond:
Case study of Textile Industry in Bangladesh


1. Factor Endowment

High volume mass production

Cheap Labor
of RMG items


1. Factor Endowment


2. Demand Conditions


3. Related and Supporting Industries


4. Firm Strategy, Structure and Rivalry

1978: 9 Export-oriented garment companies

500 firms mainly contribute to export directly (Acevedo, L. Robertson, G& Raymond, 2012)

5600 garment factories around the country (BGMEA office site, 2013)