Garments industry of Bangladesh

Last Updated on October 19, 2017 by

Bangladesh’s ready-made garments industry started in the sixties. But in the last decade of the 1970s, this industry continued to grow as an export-oriented sector. Currently, it is the largest export-oriented industrial sector of Bangladesh.

In the garment industry, garment factories refer to the garment production process on a commercial basis. Here, the clothing is not made with certain sizes rather, it is made on a certain scale basis.


Innovation of Garments Industry

In the 1950s, the garment industry developed in Western countries was developed. In 1974 a contract was signed to be called Multi Fiber Agreement (MFA) to control the export of RMG products in developed countries. It is said that this agreement will increase the exported country by 6% every year from the developing countries. In the early eighties, Bangladesh started receiving foreign aid in the RMG sector. During this time some Bangladeshi got free training from a Korean company. At the end of the training, these workers started work in other industries or on their own initiative. Beginning in the early 1980s, Bangladesh’s ready-made garments started to be exported regularly to Europe and America. The initiative of the retired government official Nurul Kader Khan and the country’s garment factory was an auspicious.


Number of Factory

By the year 2016, the number of export-oriented garments industries in Bangladesh is about 4 thousand. Hundreds of new factories are closed every year, and hundreds of factories have stopped being competed in the competition.

Global Market

Bangladesh mainly exports low-priced ready-made garments so that the local price addition rate is very low. By the end of the 20th century, Bangladesh’s garment exports were mainly exported to North America and Europe. Since the beginning of the twentieth century, especially the quota system in 2005, Bangladeshi entrepreneurs continue to try to export ready-made garments in other countries of the world and success is coming.

Since 2005, due to the quota system, Bangladesh enjoys special privileges for garment export. Under the ‘rules of origin’ list as the Developed County, Bangladeshi ready-made garments have access to duty-free or reduced tariffs in the countries of the European Union, Japan, Australia and Canada.



BGMEA is the main institution of Bangladesh’s ready-made garment industry. BKMEA is the name of a different organization for the ready-made garment industry.


Women workers

Bangladesh’s ready-made garment industry’s strategy is to provide quality clothing at a low price to the world market. This is possible because the workers are found in chests. Approximately 70 percent of women’s recruitment workers in Bangladesh’s garment industry.


Compliance Problem

The garment industry of Bangladesh has to face problems due to the creation of non-tariff barriers by imposing supplementary compliance conditions.


Role in the economy of Bangladesh

The garment industry created since the late 1980s has been playing an important role in the economy of Bangladesh. The role of employment generation and the acquisition of foreign currency earning sector increased every year. Foreign investment in Bangladesh’s garment industry started in the late 1980s when export processing zones were established in Chittagong.