STRUCTURE OF TEXTILE AND GARMENT INDUSTRY IN BANGLADESH

Mohammed Ziaul  Haider

doi:10.53808/KUS.2008.9.1.0740-PS

Authors

Mohammed Ziaul Haider Economics Discipline, Khulna University, Khulna 9208, Bangladesh

DOI:

https://doi.org/10.53808/KUS.2008.9.1.0740-PS

Keywords:

Textile, garment, industry, structure, domestic sector, export sector

Abstract

This study discovers a clear separation between the domestic and export sectors of the Bangladesh textile and garment industry within the industry structure. The existence of such a dual structure is notable. Both of the domestic and export sectors consist of almost similar networks and stages, but they differ from each other in raw material usage, product types, product quality, manufacturing technology, manufacturers, marketers, and target customers. The domestic sector structure is less visible, unorganized, and mostly informal. But, the export sector structure is formal and organized. The export sector is more vulnerable to external threats compared to the domestic sector. The dependency on tailoring system, mass use of traditional garments, use of local ingredients, and manufacturing lower quality cheap garment products characterizes the domestic sector structure of the industry. The domestic sector has to depend partly on foreign raw materials and intermediate goods, but local enterprises perform almost all the tasks of the production and marketing networks. In contrast, the export sector is totally dependent on foreign raw materials. The foreign enterprises also control the marketing of the export sector’s products. Moreover, the export sector mostly depends on foreign parties for the tasks of intermediate good and export networks. However, the manufacturing network related tasks of the sector are accomplished by the domestic firms.

Downloads

Download data is not yet available.

References

Absar, S.S. 2001. Women’s voice: conditions, concerns and needs of garment workers in Bangladesh. pp. 132-140. In: Paul-Majumder, P. and Sen, B. (eds.). Growth of Garment Industry in Bangladesh: Economic and Social Dimensions. Bangladesh Institute of Development Studies (BIDS), Dhaka.

Afsar, R. 2001. Female labour migration and urban adaptation. pp. 106-131. In: Paul-Majumder, P. and Sen, B. (eds.). Growth of Garment Industry in Bangladesh: Economic and Social Dimensions. Bangladesh Institute of Development Studies (BIDS), Dhaka.

Ahmed, K.H. 2002. Backward Linkage to Ready Made Garments: Bangladesh Perspective. Academic Press and Publishers Limited, Dhaka.

Anon. 2004. Textiles and apparel: Assessment of the competitiveness of certain foreign suppliers to the U.S. market. USITC Publication, No. 3671, United States International Trade Commission (USITC), Washington, D.C.

Anon. 2005. Value chain analysis for the ready-made garment sector in Bangladesh. Report for German Technical Cooperation (Deutsche Gesellschaft für Technische Zusammenarbeit [GTZ]), Corporate Solution (CS), Bad Nauheim.

Appelbaum, R.P. and Gereffi, G. 1994. Power and profits in the apparel commodity chain. pp. 42-62. In: Bonacich, E.; Cheng, L.; Chinchilla, N.; Hamilton, N. and Ong, P. (eds.). Global Production - The Apparel Industry in the Pacific Rim. Temple University Press, Philadelphia, PA.

Bhattacharya, D. 2000. Emergence and growth of the RMG sector in Bangladesh. pp. 303-321. In: Huq, M. and Love, J. (eds.). Strategies for Industrialization: The Case of Bangladesh. University Press Limited (UPL), Dhaka.

Bhattacharya, D. and Rahman, M. 2001. Bangladesh’s apparel sector: growth trends and the post-MFA challenges. pp. 2-26. In: Paul-Majumder, P. and Sen, B. (eds.). Growth of Garment Industry in Bangladesh: Economic and Social Dimensions. Bangladesh Institute of Development Studies (BIDS), Dhaka.

Chandler, A.D. 1962. Strategy and Structure: Chapters in the History of Industrial Enterprise. Massachusetts Institute of Technology (MIT) Press, Cambridge.

Dowlah, C.A.F. 1998. The consequences of the GATT Uruguay round for the textile and garments sector in Bangladesh. GTZ/DCCI Business Advisory Services Research Report, Deutsche Gesellschaft für Technische Zusammenarbeit [GTZ] GmbH/Dhaka Chamber of Commerce & Industry (GTZ/DCCI), Dhaka.

Gereffi, G. 2002. The international competitiveness of Asian economies in the apparel commodity chain. Education for Rural Development (ERD) Working Paper Series, No. 5, Asian Development Bank, Philippines.

Gereffi, G. and Memedovic, O. 2003. The global apparel value chain: What prospects for upgrading by developing countries? UNIDO Sectoral Studies Series, United Nations Industrial Development Organization (UNIDO), Vienna.

Gonzales, A. 2002. Promoting sustainable trade in textiles and clothing. Expert Panel on Trade and Sustainable Development (EPTSD) Dialogue Report, World Wildlife Fund (WWF; currently named World Wide Fund for Nature), Gland.

Goto, K. 2002. Coordinating risks and creating value: The challenges for Vietnamese textile and garment industry. NEU-JICA Discussion Paper, No. 5, National Economics University and Japan International Cooperation Agency (NEU-JICA), Tokyo.

Grumiau, S. 2000. Garments “Made in Bangladesh”. The social reality behind the label. Report Prepared for ICFTU, Centre for Social Research on Multinational Corporations, International Confederation of Free Trade Unions (ICFTU), Brussels, Belgium.

Haider, M.Z. 2006a. Export performance of Bangladesh textile and garment industry in major international markets. The Keizai Gaku (Journal of Graduate School of Economics and Management, Tohoku University, Sendai, Japan), 68(1): 83-99.

Haider, M.Z. 2006b. Case study research on four garment firms of Bangladesh. TERG (Tohoku Economics Research Group) Discussion Paper, No. 206, Graduate School of Economics and Management, Tohoku University, Sendai, Japan.

Jabbar, S.J.K. 2006. Ready made garment sector in Bangladesh: A study from the employers’ perspective. Draft Report Prepared for ILO, International Labour Organization (ILO), Geneva, Switzerland.

Kabeer, N. 2000. The Power to Choose: Bangladeshi Women and Labour Market Decisions in London and Dhaka. W W Norton & Co Inc., Verso, London.

Kibria, N. 2001. Becoming a garments worker: The mobilization of women into the garment factories of Bangladesh. pp. 64-90. In: Sobhan, R. and Khundker, N. (eds.). Globalization and Gender: Changing Patterns of Women’s Employment in Bangladesh. University Press Limited (UPL), Dhaka.

Mainuddin, K. 2000. Case of the garment industry of Dhaka, Bangladesh. The World Bank Background Series, World Bank, Washington, D.C.

Nath, N.C. 2001. External competitiveness of ready-made garments industry of Bangladesh: Analysis of status and strategies. pp. 45-66. In: Paul-Majumder, P. and Sen, B. (eds.). Growth of Garment Industry in Bangladesh: Economic and Social Dimensions. Bangladesh Institute of Development Studies (BIDS), Dhaka.

Paul-Majumder, P. 1996. Health impact of women’s wage employment: A case study of the garment industry of Bangladesh. The Bangladesh Development Studies, 24(1-2): 59-102.

Rahman, R.I. 2001. Industrialization in a labour surplus economy: The apparel sector in Bangladesh. pp. 27-44. In: Paul-Majumder, P. and Sen, B. (eds.). Growth of Garment Industry in Bangladesh: Economic and Social Dimensions. Bangladesh Institute of Development Studies (BIDS), Dhaka.

Ramaswamy, K.V. and Gereffi, G. 2000. India’s apparel exports: The challenge of global markets. The Developing Economies, 38(2): 186-210.

Stuart-Smith, K. and Shefali, M.K. 2003. Study report on post-MFA strategy for the RMG workers in Bangladesh. NUK Study Report, Nari Uddug Kendra (NUK; Centre for Women's Initiatives), Dhaka.

Zohir, S.C. 2001a. Social impact of the growth of garment industry in Bangladesh. The Bangladesh Development Studies, 27(4): 41-75.

Zohir, S.C. 2001b. Social dimensions of the growth of garment industry in Bangladesh: 1990-97. pp. 76-105. In: Paul-Majumder, P. and Sen, B. (eds.). Growth of Garment Industry in Bangladesh: Economic and Social Dimensions. Bangladesh Institute of Development Studies (BIDS), Dhaka.