All You Need to Know About the Garment Industry in Bangladesh

When you think of the term “manufacturing hub”, the first country that comes to your mind could be China, India or Bangladesh. These countries have easy availability of raw materials, the abundance of cheap and skilled labor, the favorable climatic conditions. These are the vital reasons why several multinational companies choose Asia sourcing over other continents, to outsource products, goods, and services. While China still holds the highest position in the manufacturing industries, some of the other South-East Asian countries are also emerging as strong contenders in this field.
Garment Industry in Bangladesh
One of the most famous manufacturing countries in Asia is Bangladesh. Bangladesh is well-known for being the second-largest exporter of ready-made garments and clothing all over the world, after China. Many famous worldwide companies are conducting Bangladesh sourcing in different sectors, particularly in the case of clothes and apparel which amounts to almost 20% of the country’s GDP. 81% of the exports of Bangladesh are generated by the apparel industry which provides employment to around 20 million people, and is also the major driving force of the Bangladesh economy.
Benefits of Investing in Bangladesh
Bangladesh has attracted global attention due to the reasonable price rates of the garments and products being manufactured in the country. There are various reasons that have led to the global popularity of the Bangladesh clothing industry. These can be attributed to being the primary advantages or benefits that the investors get by investing in Bangladesh. Some of these benefits are:
Quick Returns
The garment industry of Bangladesh offers the quickest returns to the investors. This is the only sector in Bangladesh that provides returns to the investors within 3–5 years. There is also great scope for growth and development in the clothing industry of Bangladesh, accounting for 8% of the global export of apparel and clothing. It may soon outshine China’s clothing industry because of the rising cost of production and wages in China.
Availability of Labours
One of the most important factors that have led to the growth of the industries in Bangladesh, amongst all the other countries included under Asia sourcing, is the availability of a large body of cheap and skilled labor. The minimum average wages in Bangladesh is much lower than that in Vietnam, China, or other Asian countries, attracting more foreign investment.
Advantage of Duty-Free Trade
Being the Least Developed Country, Bangladesh has decreased tariff rates, and duty-free trade access to more than 50 of the developed and developing nations of the world, among which are the European Union, the USA, Japan, Switzerland, etc.
Adoption and Use of New Technology
With the investment of major worldwide retail brands in Bangladesh, the country has adopted and put into use some of the most sophisticated technologies to ensure the superior quality of their products. Thus, it is home to the most sophisticated and advanced appeal manufacturing industries to cater to all types of international customers.
Besides Bangladesh sourcing, a huge amount of products and services are being sourced from other Asian countries like India, Philippines, Vietnam, Thailand, Malaysia, and Indonesia today.

