Kamruzzaman Bablu :
Despite maintaining impressive operational stability, with 99.76 per cent of the 2,093 BGMEA member factories active as of 31 December 2024, Bangladesh’s ready-made garment (RMG) sector-the world’s second-largest exporter in the industry – is poised to recover from recent setbacks and reach new heights of success in the coming years. However, 2024 posed significant challenges, though it also offered opportunities for growth, insiders report.
The year brought a mix of hurdles and opportunities, particularly in terms of political instability, environmental disruptions, and global economic pressures, all of which tested the industry’s resilience. Strategic shifts and policy reforms, however, opened new avenues for growth.
Bangladesh’s textile and apparel industry has shown remarkable resilience in the face of adversity. Despite the challenges of 2024, the industry remains poised to take advantage of emerging opportunities. According to insiders, the political unrest of previous years not only disrupted production schedules – causing temporary factory closures and delayed shipments -but also affected the confidence of international buyers, who value consistency and reliability in their sourcing partners.
“As Bangladesh enters 2025, our apparel industry stands at a crossroads. On one hand, the challenges of 2024 have highlighted the need for structural reforms and strategic planning.
On the other hand, the sector is well-positioned to leverage its strengths-cost competitiveness, skilled labour, and a robust production base – to navigate these challenges and seize new opportunities,” Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The New Nation on Tuesday.
Hatem emphasised that key priorities for 2025 include improving energy infrastructure to ensure uninterrupted production, particularly during peak seasons. He also advocated for investments in renewable energy sources, such as solar and wind power, which could reduce dependency on fossil fuels and align with global sustainability goals.
“Reducing source tax and simplifying export documentation processes can ease the financial and administrative burden on manufacturers. Additionally, providing financial support for small and medium enterprises (SMEs) in the RMG sector can foster innovation and capacity building,” Hatem added.
The BGMEA has also stressed the importance of sustainability and ethical practices to gain prominence with international buyers, who increasingly prioritise suppliers that adhere to environmental and social governance (ESG) principles. Adopting green technologies and sustainable manufacturing practices can enhance the industry’s reputation, attract premium buyers, and secure long-term contracts.
Additionally, the BKMEA has highlighted the need to address infrastructural bottlenecks. Poor logistics and transportation networks often delay shipments, increasing costs and reducing competitiveness. The BKMEA has called for significant investments in infrastructure to create a more conducive business environment.
Industry leaders also urged the government to reconsider certain measures, such as the proposed 400 per cent fine for documentation errors, which they fear could lead to increased harassment of exporters.
Instead, stakeholders have recommended extending cash incentives on export receipts until 2032 to support the sector’s post-LDC graduation transition. Such incentives would provide financial stability and encourage manufacturers to invest in diversification and innovation.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has consistently advocated for government support to ensure a stable supply of energy. Reliable access to gas and electricity is crucial for maintaining production efficiency and meeting export deadlines.
Looking ahead to 2025, suppliers stressed that diversification will play a key role in driving industry growth. Traditionally reliant on cotton-based apparel, Bangladesh is now pivoting towards MMF (man-made fibre) products to capture this emerging market. However, significant investments in technology, training, and supply chain optimisation will be required to fully capitalise on this opportunity.
“Diversifying export markets and product offerings will be another strategic focus. While traditional markets like the US and the EU remain important, exploring non-traditional markets in Asia, Africa, and South America could open new avenues for growth. Similarly, expanding into high-value product segments, such as activewear and technical textiles, could enhance the industry’s competitiveness,” said Engr. Mohammad Mezbah Uddin, Head of Marketing & Merchandising at Kimberley Design.
“Enhancing labour rights and working conditions will remain a priority. Ensuring fair wages, safe workplaces, and compliance with international labour standards can improve the industry’s image and attract buyers who prioritise ethical sourcing,” he added.
A further challenge emerged with the revision of the country’s RMG export earnings, which were adjusted from $47.38 billion to $35.88 billion-a stark $11.5 billion correction for 2023. This discrepancy highlighted the critical need for data accuracy and reliability, as such errors can undermine the industry’s credibility and hinder strategic decision-making.
Mezbah Uddin also mentioned that policies promoting sustainable practices, such as tax incentives for eco-friendly production facilities and funding for green projects, could position Bangladesh as a leader in sustainable apparel manufacturing. Bangladesh already boasts 233 LEED-certified factories, with 93 Platinum-rated and 126 Gold-rated, showcasing the growing emphasis on sustainable practices.
In 2025, Consist Apparels Limited became the first RMG factory in Bangladesh to receive Platinum LEED certification with 84 points from the US Green Building Council (USGBC).
