Key Takeaways
- In 2022, Bangladesh's ready-made garments (RMG) sector exported goods worth $43.65 billion, accounting for 83.8% of the country's total exports.
- RMG exports to the EU reached $22.5 billion in 2022, representing 52% of total apparel exports.
- Knitwear exports surged to $18.9 billion in 2022, up 12% from previous year.
- The apparel industry produced 1.2 billion pieces of garments in FY2022-23, with knitwear comprising 45% of total production.
- Annual production capacity of RMG factories stands at 3 billion garments per year as of 2023.
- There are 4,500 RMG factories operational in Bangladesh as of 2023.
- Bangladesh employed over 4.4 million workers in the RMG sector as of 2023, with 80% being female workers.
- Female workforce in apparel sector grew by 2.5% annually from 2018-2023, reaching 3.5 million women.
- Average monthly wage for RMG workers increased to BDT 12,500 in 2023 after minimum wage hike.
- The RMG sector contributed 11.6% to Bangladesh's GDP in FY2022-23.
- RMG industry generated $5.2 billion in foreign exchange reserves contribution in FY2022-23.
- RMG sector's backward linkage industries contribute 25% to total fabric needs locally.
- Post-Rana Plaza, over 90% of RMG factories achieved full compliance with safety standards by 2023 under the Accord and Alliance.
- 150 RMG factories were remediated for fire safety under the Alliance initiative by 2022.
- Labor unrest incidents dropped by 70% since 2019 due to better grievance mechanisms.
Bangladesh's massive apparel industry is an export powerhouse employing millions.
Economic Impact
- The RMG sector contributed 11.6% to Bangladesh's GDP in FY2022-23.
- RMG industry generated $5.2 billion in foreign exchange reserves contribution in FY2022-23.
- RMG sector's backward linkage industries contribute 25% to total fabric needs locally.
- Tax revenue from RMG sector was BDT 1.2 trillion in FY2022-23.
- RMG contributes to 55% of industrial exports value.
- Value addition in RMG increased to 65% from 50% in 2015.
- RMG sector FDI inflows reached $1.5 billion in 2022-23.
- RMG export remittances support 40% of national trade deficit.
- Corporate tax from apparel firms: BDT 800 billion in FY23.
- RMG multiplier effect creates 10 million indirect jobs.
- VAT collection from RMG: BDT 400 billion FY23.
- RMG sector's share in manufacturing GDP: 52%.
- Export incentives utilization: 90% of eligible RMG firms.
- RMG investment in automation: $500M since 2020.
- RMG export growth target met at 7% for FY24.
- RMG sector remittances outflow for imports: $20B annually.
- RMG contribution to poverty reduction: 25 million benefited.
- Bonded warehouse utilization saves $1B duties annually.
- RMG tech parks host 200 firms with $300M investment.
- RMG export diversity: 150 buyer countries.
- Duty drawback claims processed: $2.5B annually.
- RMG sector export target FY24: $50B.
Economic Impact Interpretation
Employment Statistics
- Bangladesh employed over 4.4 million workers in the RMG sector as of 2023, with 80% being female workers.
- Female workforce in apparel sector grew by 2.5% annually from 2018-2023, reaching 3.5 million women.
- Average monthly wage for RMG workers increased to BDT 12,500 in 2023 after minimum wage hike.
- Youth employment (18-25 years) in RMG constitutes 45% of total workforce.
- Skill training programs reached 500,000 RMG workers since 2018.
- Turnover time for RMG workers reduced from 15% to 8% post-2020 reforms.
- 60% of RMG workers covered by provident fund schemes in 2023.
- Apprenticeship programs trained 100,000 workers in 2022.
- Migrant worker returnees reintegrated: 50,000 in RMG post-COVID.
- Overtime hours capped at 2/day for 95% workers legally.
- Unionization rate in RMG: 10% of factories by 2023.
- Disability-inclusive employment: 1% quota met in 500 factories.
- Night shift workers: 20% of workforce with enhanced security.
- Health insurance coverage: 30% RMG workers via EPF.
- Vocational training centers: 50 dedicated to RMG skills.
- Maternity leave compliance: 100% in Accord factories.
- Digital payroll systems in 80% factories.
- Anti-harassment committees in 95% factories.
- Worker satisfaction surveys: 75% positive in 2023.
- Grievance redressal time: under 7 days in 90% cases.
- Leadership roles for women: 15% in management.
- Sick leave utilization: 5 days average/year.
- Productivity per worker: 120 garments/month.
Employment Statistics Interpretation
Export Performance
- In 2022, Bangladesh's ready-made garments (RMG) sector exported goods worth $43.65 billion, accounting for 83.8% of the country's total exports.
- RMG exports to the EU reached $22.5 billion in 2022, representing 52% of total apparel exports.
- Knitwear exports surged to $18.9 billion in 2022, up 12% from previous year.
- US market share for Bangladesh RMG was $9.8 billion in 2022, 23% of total exports.
- RMG exports grew 6.7% YoY to $31.5 billion in first 10 months of FY2023-24.
- Canada imported $3.2 billion worth of apparel from Bangladesh in 2022.
- Japan RMG imports from Bangladesh: $1.9 billion in FY2022.
- Australia apparel imports from BD: $1.1 billion in 2022.
- Germany imported 12% of its apparel from Bangladesh ($2.8B) in 2022.
- India RMG imports from BD grew 15% to $0.8B in 2022.
- Spain RMG imports: $1.4 billion from Bangladesh 2022.
- Netherlands apparel from BD: $1.2B in 2022.
- UK RMG imports from BD: $4.1B in 2022.
- France RMG from BD: $1.7B in 2022.
- Italy apparel imports BD: $1.0B 2022.
- Belgium RMG imports: $0.9B from BD 2022.
- Sweden RMG from BD: $0.7B 2022.
- Denmark imports $0.6B apparel from BD 2022.
- Norway RMG imports: $0.5B 2022.
- Finland apparel from BD: $0.4B 2022.
- Austria RMG imports: $0.3B 2022.
- Switzerland imports $0.8B apparel BD 2022.
- Ireland RMG from BD: $0.6B 2022.
Export Performance Interpretation
Industry Challenges and Reforms
- Post-Rana Plaza, over 90% of RMG factories achieved full compliance with safety standards by 2023 under the Accord and Alliance.
- 150 RMG factories were remediated for fire safety under the Alliance initiative by 2022.
- Labor unrest incidents dropped by 70% since 2019 due to better grievance mechanisms.
- 100% of Accord-inspected factories compliant with electrical safety by 2023.
- Structural safety certifications issued to 95% of factories under RMG Sustainability Council.
- Child labor in RMG reduced to under 0.1% through monitoring programs.
- Fire drills conducted in 98% of factories annually since 2019.
- Gender-based violence complaints resolved in 85% cases via hotlines.
- 2,500 factories joined LEED green building certification drive.
- Boiler explosion incidents fell 90% since 2015 audits.
- Wastewater treatment plants in 70% large factories.
- Chemical safety compliance: 85% factories certified.
- Energy audits completed in 1,200 factories for efficiency.
- ZDHC conformance in 60% factories for zero discharge.
- Solar power adoption: 10% factory energy from renewables.
- Biodiversity initiatives in 200 factory vicinities.
- Water usage reduced 30% per garment via recycling.
- Carbon footprint audits in 500 factories.
- Waste recycling rate: 40% in compliant factories.
- Organic cotton usage up 20% to 50,000 tons.
- Energy-efficient machinery in 50% factories.
- Fairtrade certified RMG products: 10 factories.
Industry Challenges and Reforms Interpretation
Production and Output
- The apparel industry produced 1.2 billion pieces of garments in FY2022-23, with knitwear comprising 45% of total production.
- Annual production capacity of RMG factories stands at 3 billion garments per year as of 2023.
- There are 4,500 RMG factories operational in Bangladesh as of 2023.
- Woven garments production reached 650 million pieces in FY2022-23.
- Spinning capacity increased to 15 million spindles by 2023.
- Denim production hit 150 million pieces annually in 2023.
- Sweater exports totaled $5.4 billion in 2022.
- Activewear production capacity: 200 million units/year.
- Home textiles linked to RMG produced 500,000 tons yarn/year.
- Synthetic yarn production: 1.5 million tons annually.
- Sportswear output: 100 million garments in FY23.
- T-shirt production: 400 million units/year.
- Polo shirt exports: $2.5B annually.
- Trouser production: 300 million pairs/year.
- Jacket production: 150 million units annually.
- Shirt production: 250 million pieces/year.
- Shorts production: 80 million units/year.
- Underwear production: 120 million sets/year.
- Legwear production: 90 million pieces/year.
- Hoodie production: 70 million units/year.
- Blouse production: 200 million pieces/year.
- Skirt production: 50 million units/year.
- Dress production: 100 million units/year.
Production and Output Interpretation
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