Bangladesh’s Textile and Garment Industry

Bangladesh is one of Asia’s fastest-growing economies. Its textile and garment industry is the most important sector, serving as the main source of foreign exchange and employment.

Key Statistics (2024–2025)

• Jobs: In 2024, the industry created 5.6 million jobs (1.6 million in textiles and 4 million in garments).
• Exports: For the 2024/25 fiscal year, exports reached $42.4 billion USD, accounting for 87.8% of the country’s total exports.
• Global Rank: In 2024, Bangladesh became the world’s second-largest garment exporter.

Reasons for Success

The industry has grown due to government policies that encourage foreign investment and support private business. Other advantages include:

• Low labor costs.
• A vertically integrated supply chain.
• Tax-free access to markets like the EU, Canada, and Australia.
• Support from global brands (e.g., GAP, H&M, Levi’s, and ZARA), especially in improving building safety standards after the 2013 Rana Plaza tragedy.

Future Outlook and Challenges

Goals

The industry has set an ambitious goal to reach $100 billion USD in garment exports by the 2029/30 fiscal year.

Challenges to Overcome

To reach this goal, the industry must address several issues:

• Low efficiency and resource shortages.
• Unstable power and gas supplies.
• Poor transportation and port services.
• Currency fluctuations and shrinking profit margins.
• Over-reliance on foreign technology and talent.

The “LDC” Transition

In November 2026, Bangladesh is scheduled to graduate from “Least Developed Country” (LDC) status to a “Middle-Income Country.” This change means that unless new trade deals are made, import taxes on Bangladesh’s products in major markets will increase by an average of 6.7%.

***Photo Reference:https://www.ifc.org/en/stories/2010/bangladesh-garment-industry ***