Preamble of BGMEA

BGMEA is the apex apparel exporter's trade body of 4425 apparel manufacturing companies of Bangladesh starting its voyage in 1977 with only 12 members. BGMEA is dedicated to establish and promote contracts with foreign buyers', business and trade association, organisation and chambers, research organisations to develop the export base of apparels.
BGMEA also acts as a pressure group to protect the interest of the sector and as promoter of trade negotiation in international market, global trade bodies like WTO, concerned UN agencies like ILO, UNCTAD etc.
BANGLADESH RMG INDUSTRY AT A GLANCE: The RMG sector plays a pivotal role in the economy of Bangladesh. Despite numerous obstacles and constraints, within a very short period, it has attained great importance in terms of contribution to GDP, foreign exchange earnings, and employment.
It has become a colossal industry earning a lion's share of the nation's foreign exchange and providing the nation's women with the largest formal employment opportunity. At present, the sector employs around 2.2 million people of which 80% are women.
In 1981, the RMG sector earned only US $6.4 million from exporting apparels while in 2006 it rose to US $8.9 billion. BGMEA have been relentlessly trying hard in a dynamic mission to compete effectively for augmenting market share in the global apparel world confronting their mission of taking the sector to a height of US $15 billion by the next three years. The growth of the sector has been phenomenal.
Bangladesh has become one of the most favourite destinations of foreign buyers. Currently, RMG accounts for about 75% of the total export earnings of Bangladesh, making it a critical factor in keeping the economy moving and growing.
Table 1 shows the comparative statistics of export earnings of RMG against total export earnings of Bangladesh from the period of 2000-2001 to 2006-2007 (July-May) revealing the dominance of the sector over other sectors.
As global RMG competition rises, the Bangladesh Woven and Knitwear sectors are making efforts to increase their market share and gain a competitive edge in the global market. Producers are continuously striving to increase efficiency, reduce lead times, increase design-response capability and improve overall compliance.
Initiatives are not only designed to jump-start activities and deliver results, but also intended to have long-term sustainable impacts on the holistic growth of the Bangladeshi RMG sector. The growth rate of exports during this period has been significant demonstrating the industry's ability to cope with post MFA market conditions. The bulk of export goes to the US and the EU markets.
COMPARATIVE ADVANTAGES OF THE RMG SECTOR:
-- The industry has achieved profound success in eliminating Child Labour from all levels of the supply chain;
-- The volume of apparel exported from Bangladesh ranked 3rd in the US market and 4th in the EU market;
-- Becoming more proactive regarding compliance issues;
-- Achieving consensus from the political quarters not to disrupt the growth of the sector. RMG exporting firms are exempted from any sort of political programme, hence can stay open during strikes;
-- Having strong backward linkage industry in the Knitwear sector and growing trend in woven sector;
-- Strengthening product development and designing capacity;
-- Duty free quota free entry to New Zealand, Australia, Japan, Canada; and
-- GSP facilities to EU importers.
MISSION & VISION STATEMENT OF BGMEA:
BGMEA has a twofold mission to strengthen and promote the Readymade Garments (RMG) sector and the economy of Bangladesh. Firstly, the fundamental objective of BGMEA is to establish a vigorous business environment for a close and mutually beneficial relationship between the manufacturers, exporters and importers in the process ensuring a steady growth in the foreign exchange earnings of the country.
Secondly, BGMEA is committed to implement all legitimate rights and privileges of garment workers regarding Health, Welfare and Safety. BGMEA also stands to endure child labour free factories, women empowerment, gender equality and other social standards. At the same time, the association seeks to keep the environment clear and unaffected from different pollution.
THE ROLE OF BGMEA IN PROMOTING THE RMG SECTOR:
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has been playing important role in addressing the needs of their members. One of the key functions of BGMEA is to facilitate market access for RMG firms and improve inter-firm cooperation.
CORE FUNCTIONS OF BGMEA ARE AS FOLLOWS:
-- Upholding the interest of the industry by aiding in the legislation of Government policies consistent with the best interest and continued growth of the sector;
-- Supporting training institutes that offer technical training to marginalised unskilled workers;
-- Protecting the interests of the employers, employees and other stakeholders;
-- Promoting sustainable practices on critical compliance issues (good labour, environmental and social practice);
-- Promoting and developing the RMG market outreach through liaisons with foreign buyers, business associations and chambers;
-- Providing foreign buyers with all necessary information regarding all issues concerned with the RMG sector;
-- Acting as a networking platform for local manufacturers to interact with foreign buyers and increasing market exposure through participation in local and international apparel fairs;
-- Making provisions for skill development training for all working children removed from the BGMEA factories;
-- Enhancing dialogue and information flow between members by publishing monthly newsletters, issuing circulars plus hosting Dhaka's first B2B web portal which directly links exporters and buyers around the world; and
-- Taking part in trade negotiations for the sector in order to secure favourable market access and GSP benefits.
BGMEA'S ACCOMPLISHMENTS:
BGMEA is working relentlessly from its inception for the development of RMG sector. Following are the major accomplishments of BGMEA:
-- Child Labour Elimination
BGMEA has effectively responded to the international requirement of elimination of child labour from the RMG sector of Bangladesh. The joint BGMEA/ILO/UNICEF survey identifying under-age workers in the Bangladeshi RMG firms was completed in 1995. A total 10,546 child workers were identified. The underage workers were removed from factories and rehabilitated in training centers and schools.
The first school for the underage workers was set up in 1996. Another 353 schools were set up by 1998. To date, a total of 9743 displaced under-aged workers have been enrolled in these schools. Seven of these schools have introduced skill-training activities.
COMPLIANCE ISSUE:
One of the core objectives of BGMEA is to promote sustainable practices on critical compliance issues (labour, environment, and social) by facilitating dialogue and information flow amongst the stakeholders and members. The association's ultimate goal is to reach a unified Code of Conduct (COC). To achieve this goal BGMEA has set up Social Compliance Cells to monitor and address compliance related issues amongst its members.
BGMEA has launched a programme for SA8000/WRAP compliance by all its member units to face new challenges of liberalisation and globalisation. Aggressive initiates are being pursued by BGMEA to highlight the positive link between improved labour conditions, increased productivity and competitiveness.
GROUP INSURANCE AND HEALTH-CARE MEASURES FOR WORKERS:
BGMEA realises that increasing the compatibility between a woman's home and work environment is important to increasing overall productivity. BGMEA has taken initiatives of them through a number of programmes. A clear instance of such a move is the initiation of Group Insurance Policy for the garment workers on 7th May 2002 with Jiban Bima Corporation. Under this policy, a garment unit needs to pay annually of Tk. 7500 per year, and this policy will cover maximum 20 claims of deceased workers for the unit.
Under this scheme, the heir will get Tk 100 thousand against group insurance claim. Over this insurance activity, BGMEA has now signed an agreement with ALICO on May 28, 2007. Side by side, the issue of Health Care has received great priority in our concern. BGMEA provides primary healthcare and free medicines at its Medical Centers in Dhaka, Chittagong, and Narayanganj.
In view of this demand, BGMEA has already established 10 medical centers to provide primary health care, free medicine and advocacy services on reproductive health issues and HIV-AIDS. From July 1994 to May 2007, about 746000 patients have received such facilities from these health centers. Now, we are on the way to build a 10 storied modern hospital at Mirpur to facilitate the health care programme for the extended number of garment labours contributing to this boosting sector.
FIRE SAFETY AND PREVENTION:
To ensure adherence to Fire Prevention and Fire Safety, the Safety Measures Cell at BGMEA has implemented a number of programs to ensure workplace safety for the workers and management personnel of its member units. The Cell is operated by a set of experienced retired officials from the Directorate of Fire Service & Civil Defence.
MARKET PROMOTION:
BGMEA undertakes various activities to promote Bangladeshi garments in foreign markets. BGMEA sends members for participation of Single Country Apparel Fair in Australia, EU, Russia, Japan and USA in order to find out the possibilities of expansion of market for Bangladesh RMG.
They also organise annual Exhibition, Bangladesh Apparel & Textile Exposition (BATEXPO) in the fall of every year in Dhaka to attract international buyers to the first thrust industry of Bangladesh. The annual BATEXPO brings together all garment industries, accessories manufacturers, textile merchants, embroidery specialists, international and national buyers, and buying houses, under one roof.
ENVIRONMENTAL STANDARDS:
A key component of the Social Compliance Initiative is to create awareness on the importance of integration between environment and development by promoting cleaner production methods in the RMG sector. BGMEA is working closely with the Department of Environment to prevent, control and abate environmental pollution.
HUMAN RESOURCES DEVELOPMENT:
Another key mission of BGMEA is to develop Human Resources for RMG sector of Bangladesh to face the challenges of Globalisation. In order to keep up with the latest fashion trends, and to secure a competitive position in the global market, the BGMEA set up the BIFT in 1999, affiliated with the National University, Bangladesh in 2001.
The BIFT offers academic honours such as Bachelor of Science and diploma degrees in product designing and development, design and technology, apparel merchandising, fashion design and technology, and courses relevant to the needs of the RMG sector. There is also MBA degree in international business and apparel merchandising. In addition to the formal academic courses, the BIFT students regularly participate in various fashion shows and fashion events.
GARMENT INDUSTRIAL PARK:
The Government of Bangladesh patronises the clustering policy for different industries. Recently Government of Bangladesh has taken initiative to establish a Garment Industrial Park at Bausia in Gazaria upazila of Munshiganj District. There will be 390 plots in the garment village scheduled to be completed in next three years.
DEVELOPMENT IN CHITTAGONG PORT:
The Chittagong Port is the principal seaport of Bangladesh handling about 85% of imports and 80% of exports. Over the past months port administration has improved significantly due to measures taken by the port authority. The turn-around has come down 3 days from 11 days. There is no longer waiting of Vessels in the outer Anchorage. In the past, the holding capacity was 16,397 TEUs and now it has increased to 22,000 containers. Now cargo operation is conducted 24 hours in a day, 7 days in a week.
Green Channel has also been introduced. 45 RMG industries are enjoying Green Channel facilities by onward delivery of containers of Tax Free raw materials to their own factories. The Port authority has now taken initiatives to locate containers by sending SMS. Private Sector Participation has been invited in Port Operation. Standard security system has been introduced in Jetty and Anchorage of Chittagong Port, which is widely visited by International Watch agencies with remarkable positive impression. Express power supply of PDB ad standby generator guaranteed uninterrupted power supply round the clock thereby increased the productivity of the port.
CONCLUSION:
Although the RMG sector has shown strong performance since its inception in the early eighties, but Entrepreneurs are not complacent. It remains ready to face any challenge. The government, development partners, trade unions, buyers and other stakeholders are giving their utmost cooperation in taking the sector further forward. Much potential remain to be realised. Bangladesh extends a welcoming hand to potential buyers & investors and looks forward to make it their best business destination.

=============================================================

Table 1: Comparative Statistics on Export Earnings of RMG

& Total Export Earnings:

=============================================================

Fiscal Year      Export of RMG   Total Export     % of RMG to

                 (in Million US$ of Bangladesh   Total Export

                                (in Million US$)

=============================================================

(July-May)

-------------------------------------------------------------

2000-2001           4853.83         6467.30             75.14

2001-2002           4583.75         5986.09             76.57

2002-2003           4912.09         6548.44             75.01

2003-2004           5686.09         7602.99             74.79

2004-2005           6417.67         8654.52             74.15

2005-2006           7900.80        10526.16             75.06

2006-2007           8249.99        10958.62             75.28

=============================================================