The RMG industry in Bangladesh is only thirty years old since the first Garment exporting unit took the first step in clothing export market in 1978. Currently Bangladesh holds 3rd largest garment exporting country in terms of value after China and Turkey. The total earnings from clothing exports were USD 12.6 billion in FY (Financial Year) 2009-10. At present Bangladesh exports RMG to around 90 countries in the world which include USA, Canada, Germany, UK, France, Italy and Turkey. European Union countries and USA are the major destination of Bangladesh RMG export. During the last October to December period of 2010 major importer of Bangladeshi RMG were USA (26%), Germany (18%), France (9%), UK (9%) and Canada (4%). Due to cost advantage over China, export to Japan is increasing in recent times.
RMG products are of two major types: Knit garments and Woven garments. Historically Bangladesh focused on producing Woven garments but in recent times Bangladesh is more successful in Knitwear production as well. Recently Bangladesh has grabbed the position of second largest knitwear exporter in terms of volume in 2010 only behind China. The knitwear and woven garments export volume has grown at 43% and 30% respectively year over year during the October-December period of 2010.
Knitwear sectorâ€™s unique contribution is in the growth and development of the backward linkage industry of the country. Countryâ€™s total backward linkage industry in the RMG sector has almost entirely flourished based on the knitwear industry. Knitwear industry is entirely supporting spinning, fabric and dyeing industry of the country.
â€¢ Knitwear is a near self-sufficient sector in all respect.
â€¢ Local yarn suppliers provide around 75% of the total requirement of the sector.
â€¢ We have almost 250 composite factories.
â€¢ Bangladesh knitwear is exported to 90 countries of the world. EU and USA are the major importer.
â€¢ Capacity is increasing at a good rate to cope with the future demand of this sector.