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Textile:
Sector
Highlights:
-
The fastest growing
industry in Bangladesh with RMG accounting
for more than 75% of total exports.
-
Bangladesh is best
placed in the region for textiles and
garments because of cheap labor and
trade status with the EU.
-
Government incentives
for the spinning and weaving industries
include a 15% cash subsidy of the fabric
cost to exporters sourcing fabrics locally.
-
There is a huge fabric
demand supply gap in the RMG industry
which is being me by imports. Thus the
potential for backward linkage industry
is enormous.
RMG
and Backward Linkage :
The phenomenal growth in
RMG was experienced in the last decade.
With about 2,600 factories and a workforce
of 1.4 million, RMG jointly with knitwear
accounted for more than 70% of total investments
in the manufacturing sector during the first
half of the 1990's.
Exhibit: Growth of RMG
Exports from Bangladesh (1980-81 to 1999-2000)
In million US$
The growing trend in textile sector presents
itself particularly appealing to the foreign
investors.
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