digitalbinos
Introduction
Over the past few decades, Bangladesh has emerged as a global leader in the ready-made garment (RMG) industry, transforming itself into one of the most vital players in the international apparel supply chain. Today, RMG stands as the backbone of Bangladesh’s export economy, driving industrial growth, employment, and foreign exchange earnings.
The Powerhouse of Exports
The RMG sector contributes more than 84% of Bangladesh’s total export earnings, generating over $45 billion in 2024. From fast fashion to high-street retail, garments produced in Bangladesh reach markets across the globe, including the United States, European Union, Canada, Japan, and Australia.
This single sector has helped the country transition from an agrarian economy to an industrial exporter, making Bangladesh the second-largest apparel exporter in the world, just behind China.
Employment and Economic Impact
The industry employs over 4 million workers, with women making up nearly 60% of the workforce. It has played a pivotal role in:
- Reducing poverty
- Promoting gender equality
- Enhancing rural-to-urban migration opportunities
- Creating a vibrant middle class
The multiplier effect of the RMG sector supports countless other industries, from textiles and accessories to logistics and finance.
Competitive Strengths
Bangladesh’s success in RMG is built on several key advantages:
- Cost-Effective Labor: Competitive wages have attracted global buyers.
- Skilled Workforce: Decades of experience in apparel manufacturing.
- Sustainability Leadership: Home to the highest number of green garment factories globally, certified by LEED.
- Compliance and Safety: Significant improvements in workplace safety and labor standards after the 2013 Rana Plaza tragedy.
Challenges on the Horizon
While the sector remains strong, it faces several ongoing and emerging challenges:
- Rising global tariffs, such as the recent 37% U.S. import duty
- Supply chain disruptions and raw material price volatility
- Global competition from countries like Vietnam, India, and Turkey
To stay competitive, Bangladesh is focusing on value addition, high-end product development, digital transformation, and workforce upskilling.
Vision 2030 and Beyond
With a bold vision to reach $100 billion in garment exports by 2030, Bangladesh is working on:
- Expanding market access through trade agreements
- Promoting backward linkage industries
- Boosting sustainability and circular fashion
- Enhancing logistics and infrastructure
This roadmap aims to make Bangladesh not just a volume supplier, but a value-driven and sustainable global fashion partner.
Conclusion
The ready-made garment industry is more than just a sector in Bangladesh—it is a national identity, a driver of socioeconomic transformation, and a symbol of global resilience. As the industry evolves with time, its role as the backbone of Bangladesh’s export economy will only become more significant in shaping the country’s future on the world stage.