RMG Industry in Bangladesh: Insights & Trends, Challenges, and Opportunities for Growth

Introduction 

Bangladesh’s garment industry is a cornerstone of its economy, contributing approximately 80% of the country’s export earnings and employing millions of people, primarily women. Here’s an analysis of the key trends, challenges, and opportunities in this sector:

Bangladesh’s Ready-Made Garment (RMG) industry is the backbone of its economy, contributing approximately 80% of the country’s export earnings and employing over 4 million workers, predominantly women. As the second-largest apparel exporter globally, after China, Bangladesh has cemented its position as a key player in the global textile and clothing market. However, the industry is at a crossroads, facing both challenges and opportunities as it adapts to evolving global trends.

Historical Evolution of the RMG Industry

The RMG sector’s journey began in the 1960s with Reaz Garments, which marked the inception of garment manufacturing in Bangladesh. The industry gained momentum in the late 1970s when pioneers like Noorul Quader Khan established Desh Garments, the country’s first 100% export-oriented factory. By the 1980s, the government’s policy of duty-free machinery imports and the establishment of Export Processing Zones (EPZs) fueled rapid growth.

From just nine factories in the 1970s, the industry expanded to over 4,500 factories by 2023, with exports growing from a few million dollars to $31.45 billion in FY 2020-2021. Despite setbacks like the Rana Plaza tragedy in 2013, which exposed safety and labor issues, the industry rebounded through rigorous remediation efforts, including the Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety. Today, Bangladesh boasts the highest number of LEED-certified green factories globally, reflecting its commitment to sustainability.

Summary of Bangladesh Garment Industry Statistics

Global Position:

• Bangladesh is the 2nd largest clothing exporter globally, after China.

• Over 4,500 garment factories operate, mostly around Dhaka.

Employment:

• Employs 3.6–4.2 million workers, with 85% being women.

• Many workers face long hours (12–14 hours/day), low wages ($68/month), and abuse.

Economic Contribution:

• Contributes 80% of Bangladesh’s export earnings and 20% of GDP ($19 billion annually).

• Drives 6% average annual economic growth since 2007.

• Export Markets:

• 61% of exports go to Europe, 21% to the U.S., and 15% to emerging markets (China, Japan, Brazil, Australia).

• Record exports: $46.99 billion in 2023.

Labor Challenges:

• 75% of women workers report verbal abuse, and 50% report physical abuse.

• Only 17 of 72 companies have pledged transparency on worker conditions.

Production Capacity:

• 8.7 million spindles, 30,000 looms, and 500,000 handlooms operate in the industry.

• Domestic cotton production is rising, but 6.2 million bales of cotton are imported annually.

• Sustainability and Support Industries:

• Generates 200,000 jobs in waste recycling and supports 1.5 million in related industries.

Sources:

• The Asia Foundation: Factory count, employment, economic growth, and export earnings.

• World Finance: Export earnings and market distribution.

• World Bank Group: GDP contribution and worker demographics.

• U.S. Department of Agriculture: Cotton imports and production.

• National Public Radio: Minimum wage and transparency pledges.

• War on Want: Worker abuse and production challenges.

• Textile Today: Foreign investment, labor unrest, and safety inspections.

• Oxfam: Manufacturing employment and value-added distribution.

• Ritsumei: Export growth and market diversification.

• World Integrated Trade Solution: Export revenues by country.

• Fashion to Apparel: Production capacity and support industries.

For more details, visit:

https://www.bgmea.com.bd/page/AboutGarmentsIndustry

https://bida.gov.bd/readymade-garments

https://www.statista.com/statistics/987683/bangladesh-garment-share-total-exports/

https://dekkoisho.com/blog/bangladesh-garment-industry-statistics-trends-analysis/

Export Value of RMG in Bangladesh (2014–2023)

Key Insights:

• Steady Growth (2014–2019): Exports grew consistently, reaching $34.13 billion in 2019.

• COVID-19 Impact (2020): A sharp decline to $27.95 billion due to global disruptions.

• Post-Pandemic Recovery (2021–2023): Exports rebounded strongly, hitting $46.99 billion in 2023.

• Record High (2023): The highest export value in Bangladesh’s RMG history.

Source:

Statista: Bangladesh Export Value of Garments (2014–2023)

10 Best Readymade Garment Manufacturers in Bangladesh.

There are over four thousand garment factories, and many of them have significant participation in the overall economy. Here are the 10 Best Readymade Garments Manufacturers in Bangladesh.

List Of 10 Best Readymade Garments (RMG) Manufacturer Companies In Bangladesh

• Ha-meem Group
• Beximco Apparels Limited
• Square Fashions Ltd.
• DBL Group
• Epyllion Group
• Standard Group
• Asian Apparels Limited
• Akij Textile Mills Ltd
• Ananta Group
• Pakiza Group

1. Ha-meem Group

Ha-meem Group is a Bangladeshi apparel manufacturing company and a leading supplier of readymade garments and denim fabric globally. Currently, they have 26 garment factories, 300 production lines, and seven washing plants across the country. This prominent company has one of the most resourceful production facilities in Bangladesh, and they produce some of the trendy, fashionable denim and garments products in the world.

Over the years, the Ha-meem group has worked with the biggest names in the fashion industry like – ZARA, GAP, H&M, JCPenney, etc. This company has been in the textile business since 1984, and currently, they have around 50,000 workers. The major products of this garment company are Denim Jeans, Men’s Shirts, Dress Pants, Jackets Facility, and others.

2. Beximco Apparels Limited

Beximco Apparels Ltd. started its commercial production in March 1985 under the name of Comtrade Apparels Ltd., a Swiss company. Later in 1997, the Beximco group took complete control of this company and renamed it Beximco Apparels Ltd (BAL). BAL is a 100% export-oriented garments manufacturing company that produces woven fabric garments like men’s dresses, casual shirts, and ladies’ blouses (tops and bottoms).

Beximco Apparels Limited is run by a group of specialists seeking to produce high-quality clothing using a full-proof quality control system from fabric sourcing to the final product. Currently, this garment employs 870+ employees and a production capacity of 8000 pcs per day, and it primarily exports its garment products to the USA, Canada, and European countries. 

3. Square Fashions Ltd.

Square Fashions Ltd is also a pretty big name in producing a wide range of readymade knit apparel like Polo Shirts, T-Shirts, Tank tops, Trousers, Hooded jackets & cardigans, Undergarments, and Kid’s Wear. They produce garment items from circular knit fabrics. The company was established in 1997, and now they have two garment units and two fabric units. This company believes in sustainable goals and preserving the biological establishment of nature.

That’s why they are promised to maintain an environment-friendly workplace for their more than 13000 workers. It’s notable to mention that this company was awarded “Best Workers’ Friendly Knitwear Industry” in Bangladesh. SFL is a sister concern of the Square group, and its garment units can produce more than 100000 pcs per day, and fabric units have a production rate of 39.5 tons of fabric per day. Some of their clients are – PUMA, G-Star, TOMMY HILFIGER, Timberland, etc.

4. DBL Group

Established in 1991, DBL Group was a family business with the name of Dulal Brothers Limited. Over the years, this company evolved and became one of Bangladesh’s most pertinent textile and clothing companies. They are also recognized in the country as a knitwear firm. There are currently 35,000 people working for this company. They sell various garment products to influential clothing brands around the world like H&M, Walmart-George, Puma, Esprit, etc.

They are well-known for having high-quality production facilities to make clothes. This garment company can produce 13 million pcs per month with a ratio of 40% for women, 40% for kids, and 20% for men.

5. Epyllion Group

Established in 1994, Epyllion Group is one of Bangladesh’s largest garment companies as a manufacturer and exporter of Knit apparel, which has a solid backward linkage to knit garments, textiles, wet processing, and clothing-accessory products. With a state-of-the-art, vertically integrated garment production facility, customers can expect seamless service from this company. Several well-known clothing brands from Europe, USA, and Australia have entrusted this company with their garment manufacturing needs.

Currently, they have more than 20,000 employees, and this company has a production capacity of 50000 kg/day for knitting, 45,000 kg/day for dyeing, and more. With 84% of total production, their biggest export region is Europe.

6. Standard Group

Standard Group holds the prestige of being one of the longest-running and respected garment manufacturers in Bangladesh. The garment company has its in-house piece of clothing washing, printing, weaving, attire configuration, article of clothing testing, and different embellishment creation offices. Established in 1984, the Standard Group today has 19 factories across the country and generates around $418 million annually.

This organization has developed significantly in both size and client base throughout the years. Currently, more than 40,000 employees are working in this company and they can produce 150,000 pieces per day. With the most thorough and specialized assembling framework and the second biggest After Effects (washing) plan, this company is well known around the world for Shirts and Sweaters.

7. Asian Apparels Limited

Asian Apparels Limited is one of the leading garment manufacturers in Bangladesh. They started their journey in 1992, and since then, they have been continuously expanding their territories. In 2002 they acquired a production facility for Priyam garments, and in 2004 they set up a production facility in Chittagong. They have a dynamic group of experts who compromise on the quality of their products and promise timely shipment.

Currently, they have 30,000 employees working in 16 production facilities and 3 washing units. Thai garment has some big clients like H&M, Walmart, Carter’s, JCPenney, etc., and it has a yearly average revenue of around $280 million. 

8. Akij Textile Mills Ltd

One of Bangladesh’s leading manufacturers of yarn-dyed and solid-dyed fabrics is Akij Textile Mills Ltd., a part of the Akij Group, which is one of Bangladesh’s largest businesses. ATML is promised to keep up with global trends and needs in fabrics and technology. This garment manufacturer has been in the business since 1998 and has high-quality manufacturing facilities to meet the high standards of different consumers.

The company uses the most up-to-date technologies and equipment in all of its processes to make products that meet customers’ needs. ATML has a daily production capacity of over 44 tons and more than 1,600 skilled and trained people are working here.

9. Ananta Group

Ananta Group began its journey in Bangladesh in 1992. This group of companies has a vast amount of experience and aid in Bangladesh’s garments industry. Ananta Group is known as one of the biggest and most export-focused companies that make clothes and leather goods. More than 16000 people are working in different units of this company. Ananta has six companies and more than 4,200 modern machines that can make more than 1.8 million pieces of clothing every month.

These clothes are then shipped to other countries like the USA, UK, Germany, etc. The main business of Ananta Group Bangladesh is ready-made woven clothing and leather goods. The Group belongs to BGMEA. Gap Inc., H&M, George, Tema, Next, New Look, C&A, JM&A, Miles, and Morrison are some of its biggest clients. Ananta Group has an associate company in the USA named Bimpex Limited Inc.

10. Pakiza Group

Established in 1982, Pakiza Group is doing well both in Bangladesh and abroad, thanks to its two-sided division of textiles (Spinning, Weaving, Dyeing, and Printing). You’ll find everything from printed fabrics, Lungees, and Bedsheets, to the most luxurious printed fabrics in their product lineup. This garment company’s growth rate is so high, which has made the Pakiza logo known to millions of people at home and abroad, and it is a big tribute to our use of the latest technology.

This garment is prone to follow the strict guideline of global textile production and environmental laws set by international regulations. They have an experienced workforce of more than 10,000 workers.

Role of BGMEA in RMG Industry

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) plays a pivotal role in the growth, development, and sustainability of the Ready-Made Garment (RMG) industry in Bangladesh. Here’s an overview of its key roles and contributions:

1. Advocacy and Policy Influence

• Represents the Industry: BGMEA acts as the voice of the RMG sector, advocating for the interests of garment manufacturers and exporters at the national and international levels.
• Policy Formulation: Works with the government to develop policies that support the growth of the RMG industry, such as tax incentives, export subsidies, and trade agreements.
• Trade Negotiations: Engages in bilateral and multilateral trade negotiations to secure better market access for Bangladeshi garments in key export destinations like the EU, USA, and Canada.

2. Ensuring Compliance and Sustainability

• Promoting Ethical Practices: BGMEA ensures that member factories comply with international labor and safety standards, such as the Accord and Alliance agreements following the Rana Plaza tragedy.
• Sustainability Initiatives: Promotes environmentally sustainable practices, including green factory certifications and waste management programs.
• Worker Welfare: Advocates for better wages, working conditions, and social compliance for garment workers.

3. Skill Development and Training

• Capacity Building: Provides training programs for workers and management to enhance productivity, efficiency, and compliance with global standards.
• Technical Education: Collaborates with institutions to offer technical education and skill development programs for workers.

4. Market Diversification and Branding

• Export Promotion: Actively promotes Bangladeshi garments in international markets through trade fairs, exhibitions, and buyer-seller meetings.
• Branding Bangladesh: Works to improve the global image of Bangladesh as a reliable and ethical sourcing destination for garments.

5. Crisis Management and Support

• COVID-19 Response: During the pandemic, BGMEA played a crucial role in negotiating with buyers to minimize order cancellations and ensure payment to factories.
• Disaster Relief: Provides support to workers and factories affected by natural disasters or other crises.

6. Research and Development

• Data Collection: Publishes industry statistics, trends, and forecasts to help stakeholders make informed decisions.
• Innovation: Encourages the adoption of new technologies and practices to improve productivity and competitiveness.

7. Worker Welfare and Social Responsibility

• Health and Safety: Promotes workplace safety and health programs for workers.
• Education and Housing: Supports initiatives for worker education, childcare, and housing facilities.
• Gender Equality: Advocates for the rights and empowerment of women, who make up the majority of the workforce.

8. Environmental Initiatives

• Green Factories: Encourages the construction of LEED-certified green factories, making Bangladesh a global leader in sustainable garment production.
• Waste Management: Promotes recycling and waste reduction initiatives to minimize the environmental impact of the industry.

Key Achievements:

• Bangladesh is home to 160+ LEED-certified green garment factories, the highest in the world.
• BGMEA has helped the RMG industry achieve $46.99 billion in exports in 2023, making it the 2nd largest exporter of garments globally.
• Played a critical role in improving factory safety and labor standards post-Rana Plaza

Key Trends Shaping the RMG Industry

1. Sustainability and Green Manufacturing
   Bangladesh has emerged as a global leader in sustainable garment production, with over 180 LEED-certified factories. International buyers are increasingly prioritizing eco-friendly practices, pushing manufacturers to adopt green technologies and reduce their environmental footprint.
2. Shift to Value-Added Products
   While the industry initially focused on basic garments like t-shirts and trousers, there is a growing shift toward high-value products such as denim, activewear, and outerwear. This diversification is helping Bangladesh capture a larger share of premium markets in the US and EU.
3. Digital Transformation and Industry 4.0
   The adoption of AI, IoT, and automation is transforming production processes, enhancing efficiency, and reducing lead times. Digital supply chain solutions are also improving transparency and traceability, which are critical for meeting buyer demands.
4. Geopolitical Shifts in Sourcing
   The “China+1” strategy adopted by global brands is benefiting Bangladesh, as buyers seek to diversify their supply chains. With its low labor costs and established manufacturing base, Bangladesh is well-positioned to capitalize on this trend.
5. Labor Upskilling and Workforce Development
   The industry is investing in upskilling its workforce to meet the demand for specialized production. Initiatives by organizations like the BGMEA University of Fashion and Technology are helping bridge the skills gap, particularly in mid-level management.

Challenges Facing Bangladesh’s RMG Industry

1. Labor Rights and Working Conditions

• Many workers experience low wages, long hours, and poor conditions.
• 75% of women workers face verbal abuse, while 50% report physical abuse.
• Despite workplace safety improvements, more reforms are needed.

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Solution: Implementing HR consultancy services can help improve worker conditions, compliance, and labor rights. Explore HR Consultancy for the RMG Industry

2. Global Competition

• Vietnam, India, and Cambodia are strong competitors in the global textile market.
• Rising labor costs and production expenses impact Bangladesh’s competitiveness.

Solution: Adopting AI-driven HR solutions can optimize workforce management, improving efficiency and cost-effectiveness. Learn more about AI-driven HR for Garment Manufacturers.

3. Supply Chain Disruptions

• Dependence on imported raw materials like cotton leads to global price fluctuations.
• Shipping delays and trade disruptions impact timely deliveries.

4. Sustainability and Environmental Concerns

• Many factories lack proper waste management systems.
• Water pollution from textile dyeing remains a major issue.

5. Need for Digital Transformation

• The industry lags in automation and AI adoption.
• Lack of investment in smart factories and digital solutions reduces efficiency.

Solution: Automating payroll, WPPF, and compliance management can streamline RMG operations. Discover Efficient WPPF and Payroll Services

Opportunities for Growth in RMG Industry 

1. Expanding Export Markets
   While traditional markets like the US and EU remain dominant, emerging markets such as Japan, Canada, and India offer significant growth potential. Diversifying export destinations can reduce dependency on a few key markets.
2. Technological Advancements
   Investments in automation, AI, and smart manufacturing can enhance productivity and reduce costs. These technologies also enable faster response times to changing fashion trends.
3. Sustainability Initiatives
   With global demand for ethical and eco-friendly fashion on the rise, Bangladesh has an opportunity to lead in sustainable production and circular fashion. Innovations in recycling, water management, and eco-friendly materials can drive long-term success.
4. Niche and High-Value Products
   Focusing on high-margin categories like denim, activewear, and sportswear can help Bangladesh move up the value chain and capture a larger share of premium markets.
5. Post-Pandemic Digital Transformation
   The COVID-19 pandemic accelerated the shift to e-commerce and digital supply chains. Adopting flexible, on-demand production strategies can align the industry with the fast-fashion and online retail trends.
6. Trade Agreements and Government Support
   Preferential trade agreements like the EU’s Generalized System of Preferences (GSP) provide a competitive edge. Continued government support through policies and incentives will be critical for sustaining growth.

Future Outlook in RMG Industry 

The RMG industry in Bangladesh is poised for robust growth, with exports projected to reach $60 billion by 2025. The dual focus on high-value products and sustainability will be key to maintaining competitiveness in the global market. As the industry embraces automation and smart manufacturing, it will be better equipped to address rising labor costs and supply chain challenges.

Moreover, the China+1 sourcing trend presents a significant opportunity for Bangladesh to capture a larger share of the global garment market. With its expanding middle class and growing domestic demand for affordable fashion, the industry is well-positioned for both global and local growth.

Conclusion

Bangladesh’s RMG industry stands at a pivotal moment, with immense potential to strengthen its global position. The sector can keep growing and being strong by tackling problems like sustainability, labor, and infrastructure and taking advantage of chances in technology, market diversification, and high-value production. Stakeholders must collaborate to drive innovation, uphold ethical practices, and adapt to the evolving demands of the global fashion industry.

As the world moves toward a more sustainable and digitally-driven future, Bangladesh’s RMG sector has the opportunity to not only sustain its leadership but also set new benchmarks for the global garment industry.