Overview of Bangladesh Garment Industry

Agriculture, like India, was the backbone of the economy and the source of income for the people of Bangladesh, the villages. The government wants to reduce poverty by achieving the highest productivity in agriculture and achieving self-sufficiency in food production. In addition to agriculture, the country is very concerned about the growth of the export division. Bangladesh has accelerated and has dramatically changed its exports from time to time. Once Bangladesh was established, jute and tea were the most export-oriented industries. But due to the constant flood risk, the lack of jute fiber prices and a significant drop in global demand, the role of the jute industry has deteriorated to the country's economy (Spinanger, 1986). The focus then shifted to the function of the production sector, especially in the clothing industry.

The Bangladeshi apparel industry has been the most important export department and main currency source for the past 25 years. At present, the country produces about $ 5 billion a year by exporting its products. The industry employs about 3 million people, of whom 90% are women. Two non-market elements played a vital role in reinforcing the success of the apparel industry; these elements are: (a) the quotas established under the Multi-Fiber Arrangement1 (MFA) on the United States market; and (b) the specific market for European markets. The whole procedure is closely linked to the trend of relocation of production.

The shift in production in the clothing industry

The global economy is currently driven by the transfer of production, where companies from developed countries draw their attention to developing countries. The new representation focuses on the basic peripheral system of production, a relatively small center of financial, research and development, technology institutes and modernization staff, as well as a peripheral product that is dependent on the production process. Reducing costs and increasing emissions are the main reasons for this disposition. They recognized that the easiest way to get production to a country where labor costs and production costs are lower. As developing countries offer areas that do not involve costs such as environmental degeneration, this practice protects developed countries against environmental and legal issues. Reversing production to the third world has contributed to the expansion of the economies of these nations and to accelerating the economy of developed countries.

The apparel industry is driven by production transfer. The globalization of confectionery production has been started earlier and has expanded more than any other factory. Companies have shifted their blue-collar production from high-paid areas to industrialized countries to low-cost manufacturing regions. Development of the communication system and networking have played a key role in this development. Export-oriented production has been a good result for the Asian and Latin American industrial countries since the 1960s. The first relocation of garment manufacturing came from North America and Western Europe to Japan in the 1950s and early 1960s. However, in 1965 and 1983, Japan changed its attention to more profitable products such as cars, stereos and computers, and so 400,000 workers were rejected by the Japanese textile and clothing industry. During the impact assessment, the second set of clothing sales from Japan to Asian tigers – South Korea, Taiwan, Hong Kong and Singapore – was in the 1970s. But there was no tendency to deliver production. Labor recruitment and trade union activity were in line with the improvement of the Asian tiger economy. The industry saw the third transition from manufacture from the 1980s to the nineties; from Asian tigers to other developing countries – the Philippines, Malaysia, Thailand, Indonesia and especially China. The 1990s were led by the ultimate group of exporters, including Bangladesh, Srilanka, Pakistan and Vietnam. However, China was in the current direction of the shift since less than ten years (after the 1980s) China has emerged from scratch to become the world's most prominent apparel manufacturer and exporter.

Bangladesh Garment Sector and Global Chain

The reason for this transfer is clear in the clothing structure of the apparel industry all over the world. In the United States, hourly wage costs (salaries and benefits, US dollars) are 10.12, but in Bangladesh only 0.30. This difference accelerated world apparel exports from $ 3 billion in 1965, while developing countries accounted for only 14 percent of the total, rose to $ 119 billion in 1991, with developing countries contributing 59 percent. In 1991, the number of employees in Bangladesh's finished product industry was 582,000 and in 1998 reached 1404,000. In the US, however, the 1991 figure showed 1106.0 thousand workers in the clothing sector and in 1998 was 765.8 thousand

The information presented shows that the trend of low wage loading is the most important reason for garment manufacturing in Bangladesh transfer. Practice started at the end of the 1970s when Asian tiger nations sought tactics to avoid the export quota of Western countries. The Bangladeshi clothing units rely mainly on the "tiger" nations of raw materials. Asian tiger nations mediators mediate between textiles in their country of origin where spinning and weaving continue, as well as the Bangladeshi units where the garments are cut, sewn, ironed, and cardboard packed for export. The same representatives of the Tiger nations discover Bangladesh's market in many countries in the north. Large retail companies located in the United States and Western Europe are the largest number of orders for Bangladeshi clothing products. Marks and Spencers (UK) and C & A (Netherlands) are managing capital funds in which the Bangladeshi's capital stands for patience. The shirts made in Bangladesh were sold in the developed countries to five to ten times the import goods.

The Korean company, the native private clothing industry, the Desh Company, Daewoo is an important example of an international clothing chain, one of the reasons for expanding the clothing industry in Brazil. Daewoo Corporation, as part of its global policy in South Korea, has been interested in Bangladesh when Kim Woo-Choong's chairman offered the Bangladesh government a joint venture involving tire, leather, cement and clothing factories. The Desh-Daewoo association was crucial to achieving a significant scenario in global clothing markets when import reform took place on this market after signing MFA in 1974. Daewoo, the South Korean clothing exporter, sought for nations that hardly used their quotas. As a result of the quota limitation of Macao's financial support to the Republic of Korea, Daewoo's exports have become limited. Bangladesh as the LDC has obtained the chance without export without restriction, and therefore Daewoo is concerned about Bangladesh's use. The purpose of this need is to allow Bangladesh to rely on Daewoo to import raw materials, but at Daewoo, Bangladesh would gain market share. When the President of Daewoo showed interest in Bangladesh, the president of the country contacted the president of Desh Company, a former civil servant seeking more entrepreneurial activity.

In order to meet the wish, Daewoo signed a cooperation agreement with Desh Ruha for five years. The contract includes the purchase of technical training, machines and fabrics, the establishment and marketing of the facility, for a given sales commission at Desh during the contract period. Daewoo also provided Desh's staff with extensive practical training in the work environment of a multinational company. Daewoo has worked hard for Desh for the purchase of machinery and textiles. Some Daewoo technicians arrived in Bangladesh to set up the Desh plant. The outcome of the merger of Desh-Daewoo was important. In the first six years of its business, ie 1980/81 to 86/87, the value of Desh exports rose by 90% on an annual basis, averaging over $ 5 million between 1986 and 87

It was claimed that the Desh-Daewoo Federation a major element in Bangladesh's overall apparel export industry. After getting in touch with Daewoo's brands and marketing network, overseas customers continued to buy clothing from the company, regardless of their origin. Of the opening trainees, most of the Desh Company has been set up several times to set up their own competing garment companies, has been developed as a means of moving knowledge through the entire clothing sector.

It is essential to identify the outputs of a production process from high salaries to low-income countries for both developing and advanced nations. It is a wonderful fact that the majority of the nations of the Third World are now heading towards industrialization. In this process, workers work in an unfavorable working environment – minimum wage, unhealthy workplace, lack of security, job security, forced labor, etc.

The path of globalization is full of developing countries. Relocating relatively mobile, blue-collar manufacturing from industrialized countries to developing countries may, in certain circumstances, have a problematic impact on social life if, through effective planning and lack of negotiation between the governments and / or organizations of international organizations and the host nation, inter-city migration and a short stay. Another negative result is that growth in employment and / or income is not expected to be sufficiently large and extensive to reduce inequality. Concerning the negative results of the manufacturing industry's shift to employment in developed countries, we realize that the relatively large imports of developing countries in the relatively blue-collar industries result in unavoidable losses in employment. It is believed that the development of Southeast trade over the past few decades has been one of the reasons for the impoverishment of North North American employment.

After all employees who work under unfavorable conditions, they will bear the burden. Work can be underestimated in the Bangladeshi clothing sector. In the Bangladeshi clothing industry, a terrible working environment has emerged.

A survey shows that 90 percent of clothing workers have been ill or sick in the month before the interviews. Headache, anemia, fever, chest, stomach, eye and ear pain, cough and coldness, diarrhea, dizziness, urinary tract infection and reproductive health problems were more common illnesses. Clothing factories have given employees various bonuses for work. To explore the relationship between these diseases and industrial threats, the health status of workers has been examined before and after clothing. At the end of the study, about 75 percent of the clothing workers were in good health before joining the clothing factory. The cause of the decline in health is the industrial threats, the lack of working environment and the lack of staff, the rigid conditions of clothing employment, work pressure and low wages. The various workplace threats and their health impact forced employees to join the factory within a few months; the average service time was only 4 years

The clothing sector is a bad reputation for fires that are said to have claimed more than 200 lives in the last two years, though exact numbers are difficult to find. The lack of workplace safety was a shocking example of the fire in November 2000, where nearly 50 workers lost their lives in Narsingdi as the doors were closed.

From the above analysis of the work space of the clothing sector, it can be stated that the world of third world nations, especially Bangladeshi, is reminded of the working environment of the first world in the early development of clothing industries. In many developing countries (inevitably) in textile and clothing, developing countries are relocated to employment in countries established in Europe in the 19th century and in North America. The bad handling of clothing workers in the American clothing factory development period is mostly the same as in the Bangladeshi apparel industry. We can say that the XXI. Are People in the Century of Third World Nations Clerical Staff? Sweatshop's return?

In a sense, Western companies are guilty of the garment sector because of the pitiful working environment. Developed nations want more profits and therefore force developing countries to cut production costs. To survive in competition, most developing countries choose immoral practices. By introducing unbreakable conditions in the business world, the world economy has left few alternatives for developing countries.

The right time for decision making

There are two alternatives to the challenges of a competitive world that is triggered by the constant pressure from the global clothing chain. Competition can continue with the adoption of timed working methods or immoral practices. But it is uncertain how long they can stay. With regard to the Bangladeshi clothing industry, we can say that this is the right time to follow a competitiveness policy that improves quality. If MFA opportunities are eliminated, can competitiveness be maintained through low-wage female labor or further decline in female wages? Maybe not. Because labor costs are so low that in case of such wages the employee can not maintain a family of two. Increasing the efficiency of female workers is the only solution for increased competition. Proper education and thorough training can help to achieve these positive results. In order to determine the dominance of the global market, Bangladesh needs to eliminate the low-wage and low-emission complex of the clothing industry. Bangladesh can increase the workforce's performance through continuous training, improved technology and better working environment. Bangladesh needs to plan a strategy that promotes skills development, accelerates technology transfer and improves worker productivity.

Another method is to accept the best system or ethics course. Companies responding to increased competition emphasize quality, customer response, fair practices for workers must be the most innovative practice. We believe that we are now in the race to improve the quality of cost reduction policy. Workplace change efforts have changed over time: humanity in the 1960s, job satisfaction and performance in the 1970s, quality and competitiveness in the 1980s. It is necessary for a company to pursue a competition policy that improves quality, flexibility, innovation and customer service. If you rely on low cost to reduce workers' wages and other services, they will lose the commitment of the workers to work.

Power

. Significant Qualified / willing to study the labor available at low labor costs. In the Bangladesh Export Processing Zones (BEPZ), the recommended minimum average wages (including travel allowance, housing, medical care, maternity allowance, festival bonus and overtime) are given below; on the other hand, wages are 40% lower than BEPZ:

. Energy at Low Prices

. Easy access to infrastructure such as sea, rail, river and air communication

. The availability of basic infrastructure, about 3 decades, mainly created by Chinese craftsmen from Korea, Taiwan and Hong Kong

. FDI is legally permitted

. Medium-sized open economy, especially Export Promotion Zones

. GSP is the EBA (without any weapon) for the least developed countries (EU-free)

. Improved GSP Benefits in Regional Cumulative

. Expecting Duty Free Excess over the United States, negotiations are taking place and appear to be on a hopeful track

. The 1980 Guarantee of Foreign Private Investment (Promotion and Protection) Act, which provides foreign investment in Bangladesh

. OPIC (Overseas Private Investment Corporation, United States) Insurance and Financing Programs

. Bangladesh is a member of the Multilateral Investment Guarantee Agency (MIGA), which provides security and security measures

. The International Center for Investments Disputes Center (ICSID) has offered court proceedings

. Excellent telecommunication network for email, internet, fax, ISD, NWD and mobile services

. The weakness of the currency against the dollar and the state continue to support exporters

. Banking Interest @ 7% for Export Financing

. Duty-free custom knit house

. The ability of new units to enhance systems and create infrastructure with product growth and rapid response to conditions

Weakness

. Lack of Marketing Tactics

. The country is incomplete in creativity

. Lack of easy to manage middle management

. Few Production Methods

. Low acceptance: there is an international pressure group to force local producers and the government to implement social inclusion. US GSP can be discontinued and purchases from the United States and the EU can be significantly reduced

. M / c progress is required. Most industries lack the ability to evaluate the addition of garments or to increase their competence.

. Lack of training organizations for industrial workers, supervisors and managers

. Autocratic approach of almost every investor

. Less processing unit for textiles and clothing

. Slow backward or forward blending process

. No harsher ports, entry / exit complicated and loading and unloading takes a lot of time

. Speed ​​Money Culture

. Time-consuming customs clearance

. Unreliable reliability with regard to delivery / QA / product knowledge

. Communication gap created by incomplete knowledge of English

. Depending on natural disasters

Opportunity

. The EU is willing to create a large part of the industry, especially for aprons, including sweaters

. Bangladesh is listed in the least-developed countries with which the United States is committed to strengthening export trade

. Sweaters are still very economical with China and Bangladesh's outlook

. If skilled technicians are at your disposal, prepared laundry is an option as labor and energy costs are inexpensive.

. Ladies' FDI promise of foundation clothing is significant as both technicians and advanced machines are essential for better competency and performance

. You should pay attention to Japan as you normally buy handmade textiles, household furniture and clothes. This section can be encouraged and expanded by continuous quality improvement

Threat

. Exporters must be prepared to harvest the benefits offered by the opportunities.

Source by sbobet