Introduction
The Bangladeshi apparel industry has grown from humble beginnings into one of the largest clothing exporters in the world. With low production costs, skilled labor, and strong international partnerships, Bangladesh has become a go-to destination for global fashion brands. From T-shirts and jeans to high-fashion garments, this South Asian nation supplies clothing to top retailers across Europe, North America, and Asia.
But the story of Bangladesh’s apparel sector is about more than exports. It’s about economic growth, job creation, women’s empowerment, and global trade. It’s also about overcoming challenges—from worker safety to environmental concerns—and adapting to a fast-changing global market.
This article will explore the history, structure, key strengths, challenges, and future of the Bangladeshi apparel industry.
A Brief History
The Early Years
The modern garment industry in Bangladesh began in the late 1970s. At the time, the country was still recovering from the effects of the 1971 war of independence. The economy was largely based on agriculture, and job opportunities in cities were limited.
The breakthrough came in 1978, when Desh Garments Ltd. partnered with a South Korean company, Daewoo. This joint venture trained Bangladeshi workers in modern apparel manufacturing, laying the groundwork for what would become a major industry. Many of the trainees later opened their own factories, multiplying the industry’s growth.
The 1980s and 1990s: Rapid Growth
Throughout the 1980s and 1990s, the ready-made garment (RMG) sector expanded rapidly. Several factors contributed to this:
- Quota System: Under the Multi-Fibre Arrangement (MFA), Western countries placed quotas on clothing imports from big producers like China. Bangladesh, being new to the market, got favorable access.
- Low Labor Costs: Wages in Bangladesh were among the lowest in the world, which attracted global buyers looking to cut costs.
- Export-Oriented Policies: The Bangladeshi government supported exports by offering tax breaks, duty-free imports of raw materials, and back-to-back letters of credit.
By the year 2000, Bangladesh had become a key player in the global apparel trade.
The Structure of the Industry
Types of Factories
The industry is made up of several types of factories:
- Export-Oriented Units: These make up the bulk of the sector. They produce for international brands and retailers.
- Subcontracting Units: These smaller factories do not deal directly with buyers. Instead, they take overflow work from larger factories.
- Local Market Units: These cater to domestic demand, though they form a small portion of the industry.
Products
The Bangladeshi apparel sector produces a wide range of garments, including:
- T-shirts, polo shirts, and tank tops
- Shirts and blouses
- Jeans, trousers, and leggings
- Jackets, coats, and hoodies
- Dresses and skirts
- Underwear and lingerie
- Sportswear and athleisure
- Uniforms and workwear
Bangladesh is especially known for knitwear and denim.
Major Export Markets
The largest buyers of Bangladeshi clothing include:
- European Union: Especially Germany, Spain, France, and the Netherlands
- United States
- United Kingdom
- Canada
- Australia
- Japan
Key Strengths of the Industry
1. Competitive Pricing
Bangladesh offers some of the lowest manufacturing costs in the world. Labor is inexpensive, and production efficiency has improved in recent years. As a result, global brands can keep prices low while maintaining decent margins.
2. Skilled Workforce
The country has millions of workers experienced in garment production. Most are women who specialize in stitching, cutting, finishing, and quality control. With regular training and experience, Bangladeshi workers deliver high-quality output.
3. Capacity and Scalability
With over 4,000 factories, Bangladesh can handle both small and large orders. Many facilities are vertically integrated, meaning they manage the entire process—from spinning and knitting to dyeing, printing, and stitching.
4. Sustainability Improvements
Bangladesh now has more green garment factories than any other country. As of 2025, over 200 factories are LEED-certified by the U.S. Green Building Council. This focus on sustainability has improved the country’s image in global markets.
5. Strong Backward Linkage
Bangladesh has built a strong backward linkage, especially in knitwear and denim. Local textile mills produce yarn, fabrics, and accessories, which shortens lead time and reduces dependence on imports.
6. Government and Industry Support
The government and trade associations such as BGMEA (Bangladesh Garment Manufacturers and Exporters Association) and BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) play a strong role. They offer training, negotiate with buyers, and help factories meet compliance standards.
Economic Impact
Employment
The apparel industry directly employs over 4.4 million workers, about 60–65% of whom are women. This has played a key role in poverty reduction and women’s empowerment.
GDP and Exports
- Apparel makes up over 80% of Bangladesh’s total exports.
- In the fiscal year 2023–24, the RMG sector earned over $47 billion in export revenue.
- The sector contributes around 11–12% of the national GDP.
Women Empowerment
The industry has opened up economic opportunities for women, especially in rural areas. Female workers now contribute to their families, gain financial independence, and have more say in household decisions.
Challenges Facing the Industry
1. Worker Safety and Labor Rights
After the Rana Plaza collapse in 2013, which killed over 1,100 people, the world turned its attention to working conditions in Bangladesh. Major buyers and local groups launched programs like the Accord on Fire and Building Safety and Alliance for Worker Safety.
While conditions have improved, challenges remain:
- Some small factories still lack proper safety measures.
- Workers demand fair wages, union rights, and better working conditions.
- Wages remain low despite inflation.
2. Compliance Pressure
Buyers now demand high levels of social and environmental compliance, including:
- No child labor
- Proper waste management
- Health and safety standards
- Transparent audits
Smaller factories often struggle to meet these demands.
3. Infrastructure Problems
Power outages, poor roads, and port congestion slow down production and shipping. The government is working on infrastructure projects like the Padma Bridge and Dhaka Elevated Expressway, but improvements take time.
4. Global Competition
Bangladesh faces stiff competition from:
- Vietnam – known for better productivity and FTAs with major markets.
- India – with a strong textile base.
- Cambodia and Myanmar – offering low labor costs.
- Turkey and China – providing high-tech, fast fashion.
To stay competitive, Bangladesh must move beyond price and focus on quality, speed, and innovation.
5. Lack of Product Diversification
Most factories focus on basic items like T-shirts and jeans. High-value products—such as suits, lingerie, sportswear, and outerwear—are less common. This limits Bangladesh’s growth in premium markets.
Sustainability and Green Initiatives
The industry has taken steps toward becoming more eco-friendly:
- LEED-Certified Factories: Over 200 are certified, and many more are in the pipeline.
- Water Recycling: Factories are investing in ETPs (Effluent Treatment Plants) to clean wastewater.
- Solar Energy: Several factories now use solar panels to cut energy costs.
- Eco-Friendly Dyes: There’s a push for non-toxic chemicals in dyeing and printing.
Global buyers are encouraging these changes through green sourcing policies.
Post-COVID Recovery
The COVID-19 pandemic hit the apparel industry hard in 2020–2021. Orders were canceled, factories shut down, and workers lost jobs. However, recovery has been strong:
- Exports rebounded by 2022 and continued to grow in 2023 and 2024.
- Many factories have diversified into PPE (Personal Protective Equipment), masks, and medical garments.
- Digitalization and automation have increased to reduce disruptions.
The Future of the Industry
To remain a global leader, the Bangladeshi apparel sector must evolve. Key focus areas include:
1. Product Diversification
Bangladesh must move into value-added segments like:
- Fashion design and branding
- Technical wear (e.g., fire-resistant, water-proof clothing)
- Sportswear and yoga apparel
- Kidswear and intimate wear
2. Market Diversification
Beyond the U.S. and EU, there is growth potential in:
- China
- India
- Russia
- Latin America
- Middle East
Trade deals and promotional campaigns can help tap into these markets.
3. Digitalization
Factories are starting to adopt Industry 4.0 technologies:
- AI-based production planning
- Automated cutting and sewing
- Online order tracking
- 3D sampling and virtual prototyping
Digital tools can cut costs, reduce lead time, and improve quality.
4. Human Capital Development
Investing in worker education, technical training, and management skills is vital. Bangladesh must create a knowledge-based workforce, not just a labor-intensive one.
5. Branding “Made in Bangladesh”
The country needs a stronger global image. “Made in Bangladesh” must become a mark of quality, sustainability, and ethical production—not just low cost.
The Bangladeshi apparel industry is a cornerstone of the country’s economy and a symbol of resilience. It has transformed lives, lifted millions out of poverty, and placed Bangladesh on the global trade map.
While challenges remain—such as worker rights, competition, and sustainability—the industry has shown it can adapt and grow. With continued investment, innovation, and cooperation between government, businesses, and workers, the future looks promising.
Bangladesh doesn’t just make clothes—it weaves opportunity, empowerment, and hope into every stitch.