The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) - supporting Bangladesh Ready Made Garments industry | Knowledge Hub | Circle Economy Foundation
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Business case
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) - supporting Bangladesh Ready Made Garments industry
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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is one of the largest trade associations in the country representing the readymade garment industry, particularly the woven garments, knitwear and sweater sub-sectors with equal importance.

Problem

After the independence in 1971, Bangladesh was one of poorest countries in the world. No major industries were developed in Bangladesh, when it was known as East Pakistan, due to discriminatory attitude and policies of the government of the then West Pakistan. So, rebuilding the war-ravaged country with limited resources appeared to be the biggest challenge. The industry that has been making crucial contribution to rebuilding the country and its economy is none other than the readymade garment (RMG) industry which is now the single biggest export earner for Bangladesh. The sector accounts for 83% of total export earnings of the country with value of over $27.9 billion of exports in 2019-20 financial year. .

Solution

BGMEA is dedicated to promote and facilitate the apparel industry through policy advocacy to the government, services to members, ensuring workers’ rights and social compliance at factories. BGMEA collaborates with local and international stakeholders, including brands and development partners to pave the way for development of Bangladesh apparel industry. Currently, BGMEA has around four thousand registered garment factories. BGMEA member factories account for 100% woven garment exports of the country and more than 95% of sweater exports, while around half of the light knitwear exports are made by them.

DECARBONIZATION

According to IPCC (Intergovernmental Panel on Climate Change) 5th Annual report Bangladesh is one of the most vulnerable country to climate change. But ironically, Bangladesh is also one of the lowest carbon emitters of the world. But still understanding the importance of climate change BGMEA has signed the UN fashion industry charter for Climate Action with UNFCCC as a supporting organization to reduce GHGs emission in the industry by 30% within 2030.

WELLBEING & SAFETY

As part of its CSR activities, BGMEA runs 12 Health Centers that provides healthcare facilities and medicines to more than 60,000 garment workers per year free of cost. The annual expenditure of these centers is around USD 3,00,000 which is funded by BGMEA’s own resources. Besides, for RMG workers, a full-fledged hospital is operational in Chittagong, and a 100-bed hospital in Dhaka is under construction. The hospital will provide all kinds of outdoor and indoor healthcare facilities to garment workers free of cost or at heavily subsidized charges.

With the suppport of the Government of Bangladesh and development partners, BGMEA has been implementing different skill development programs including STEP and SEIP for garment employees and workers through several training centers across the country. The tranied people are placed for jobs in garment factories. 

Outcome

Bangladesh RMG industry is the 2nd largest apparel exporter of the world. More than 150 countries import ready-made garments from Bangladesh.

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