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STRUCTURE OF TEXTILE AND GARMENT INDUSTRY IN BANGLADESH

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.