Bangladesh has become one of the world’s most important sources for ready-made garments (RMG). Over the past few decades, it has transformed itself from a small, agriculture-based economy to a powerful force in the global textile and apparel market. Today, Bangladesh is the second-largest exporter of garments in the world, just after China.
International buyers from Europe, North America, and beyond continue to choose Bangladesh because of a unique mix of advantages—affordable production, skilled labour, quick turnaround times, trade privileges, and a growing focus on sustainability and compliance. This article explores the key factors behind Bangladesh’s competitive edge and why buyers should seriously consider it as their sourcing destination.
1. Low Production Costs: Price Advantage that Drives Demand
One of the main reasons buyers prefer Bangladesh is the cost of production. Labour wages in Bangladesh are among the lowest in the world. Though the minimum wage has increased over the years to ensure better conditions for workers, it still remains much lower compared to other garment-producing countries like China, Vietnam, or Turkey.
But low cost doesn’t mean poor quality. Many Bangladeshi factories have managed to deliver excellent quality products at affordable prices, giving brands the ability to maintain both margins and standards.
In addition to labour, costs of land, utilities, and raw materials are also relatively low, especially for large-scale manufacturers operating inside Export Processing Zones (EPZs).
2. Skilled and Efficient Workforce
Bangladesh’s garment sector employs over 4 million workers, most of whom are women. These workers are highly experienced in tasks like cutting, sewing, dyeing, finishing, and quality control. Generations of families have worked in garments, passing on knowledge and building expertise.
Many factories now offer in-house training programmes to improve skills and increase productivity. In addition, institutions such as the BGMEA University of Fashion and Technology (BUFT) and other technical institutes are helping create a new generation of professionals who are trained in design, merchandising, and production planning.
This combination of experience and education makes the workforce not only skilled but also adaptable to global fashion trends and technical requirements.
3. Strong Backward Linkage Industries
Another important advantage is Bangladesh’s growing backward linkage. This refers to local industries that support garment production, such as fabric mills, dyeing houses, and accessories suppliers.
In the knitwear segment, more than 80% of fabrics are sourced locally, reducing lead times and costs. Bangladesh is also expanding its woven fabric production capabilities. The country has a strong supply chain for zippers, buttons, labels, cartons, and packaging materials—all necessary for garment exports.
This self-reliance helps manufacturers respond to orders more quickly and with greater flexibility. Buyers benefit from shorter lead times, especially for repeat or quick-turn orders.
4. Preferential Trade Agreements and Market Access
Bangladesh enjoys duty-free and quota-free access to many major global markets through trade agreements and schemes.
For example:
- European Union: Duty-free access under the Everything But Arms (EBA) initiative.
- Canada, Australia, Japan, and other countries also offer preferential market access to Bangladeshi products.
These trade advantages allow foreign buyers to save 10-12% in import duties, which is a major factor in deciding sourcing locations.
Although Bangladesh is scheduled to graduate from the UN’s Least Developed Country (LDC) list by 2026, the government is actively working with trade bodies and international partners to ensure a smooth transition and continued trade benefits.
5. Modern Infrastructure and Export Processing Zones (EPZs)
The country has made strong progress in improving its infrastructure, especially for export activities. New roads, bridges, highways, and port facilities have made it easier to transport goods.
Key export zones include:
- Dhaka EPZ
- Chittagong EPZ
- Karnaphuli EPZ
- Adamjee EPZ
Factories in these zones enjoy special support from the Bangladesh Export Processing Zones Authority (BEPZA), including faster customs clearance, tax benefits, and stable utility services. These EPZs are also safer and more compliant than many independent factories.
The Port of Chittagong, the main sea gateway for exports, has also undergone upgrades to handle larger cargo volumes. A new deep-sea port is under construction in Matarbari, which will further improve export logistics.
6. Compliance and Workplace Safety Improvements
Since the Rana Plaza tragedy in 2013, Bangladesh has made remarkable efforts to improve factory safety and compliance. International platforms such as Accord on Fire and Building Safety and Alliance for Bangladesh Worker Safety worked closely with the government and industry leaders.
Today, over 90% of export-oriented garment factories have been inspected and upgraded. Many now follow international audit standards, including:
- WRAP (Worldwide Responsible Accredited Production)
- BSCI (Business Social Compliance Initiative)
- SEDEX (Supplier Ethical Data Exchange)
- ISO Certifications
Factories are also offering childcare centres, medical clinics, canteens, and rest areas. Many have formed worker participation committees to improve transparency and communication. This focus on worker rights and safe working conditions builds long-term trust between buyers and suppliers.
7. Green and Sustainable Manufacturing
Bangladesh is emerging as a global leader in green garment manufacturing. The country has the highest number of LEED-certified green garment factories in the world, according to the U.S. Green Building Council.
These eco-friendly factories reduce water use, recycle waste, use solar power, and follow energy-efficient practices. Many buyers are now prioritising orders from these certified green factories.
This growing focus on sustainability helps brands meet their environmental targets and builds a positive image with conscious consumers.
8. Quick Turnaround Times & Flexible Order Sizes
Thanks to strong local sourcing, skilled labour, and experience, Bangladeshi factories offer fast lead times, even for large orders. Many factories are now equipped for fast fashion demands, offering deliveries within 30-45 days.
In recent years, manufacturers have become more flexible in accepting smaller Minimum Order Quantities (MOQs), which helps startups and mid-sized brands to test new designs or collections.
Digitalisation is also helping improve speed and communication. Platforms like Virtual Showrooms, 3D sampling, and cloud-based merchandising are being adopted by modern suppliers.
9. Strong Industry Associations and Government Support
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) play a key role in industry development.
These associations:
- Advocate for better trade policies
- Organise training and compliance workshops
- Offer market intelligence and research
- Facilitate global exhibitions and trade fairs
Meanwhile, the government offers tax holidays, export incentives, and financial support for green factory development, new technologies, and worker welfare.
This strong public-private partnership ensures that the industry remains competitive and forward-looking.
10. Proven Track Record with Global Brands
Bangladesh has long-standing relationships with some of the world’s biggest clothing brands:
- H&M
- Zara (Inditex)
- Primark
- C&A
- Marks & Spencer
- Gap
- Decathlon
- Target
The fact that these companies source billions of dollars’ worth of garments every year from Bangladesh is proof of the country’s reliability and performance.
Buyers trust Bangladesh because of its ability to deliver large volumes, consistent quality, and on-time shipments.
Conclusion
Bangladesh’s rise in the global garment industry is not a temporary trend—it is the result of a powerful combination of cost efficiency, skilled labour, strong trade links, improved infrastructure, and a serious commitment to compliance and sustainability.
While challenges remain—such as political instability or infrastructure delays—the industry has shown resilience and continuous improvement. For buyers looking for a sourcing destination that offers quality, affordability, and responsibility, Bangladesh is a competitive and trustworthy choice.
As the industry moves toward more sustainable, tech-driven, and ethical practices, Bangladesh is not just keeping pace—it is leading the way.
