The Evolution and Impact of the Apparel and Textile Industry in Bangladesh
September 23, 2022
THE RISE OF APPAREL AND TEXTILE INDUSTRY IN BANGLADESH
Bangladesh has again become the 2nd largest apparel exporter in the world. It accounts for more than 3% of exports and is growing rapidly. Though Vietnam did overtake the title for a few months, Bangladesh has regained its place by having a reliable garments factory in Bangladesh. These are simply the result of proper planning and hard work. This is how reliable garment factories in Bangladesh are created.
What makes Bangladesh the garment manufacturer hub so popular? How did Bangladesh still manage to be in the top 3 after all the challenges they faced?
In this article, we will highlight a few factors that will answer these questions.
Sustainable supply chain model in the apparel industry
Leading Garment Factories in Bangladesh maintain a sustainable supply chain model in the apparel industry. By minimizing environmental impact through recycling materials. Such as plastic bottles and other waste such as paper for paper towels. Also by utilizing local resources such as bamboo and jute to produce clothing domestically. This has created jobs within the country while reducing global carbon emissions.
Infrastructure development in Bangladesh
Bangladesh is emphasizing the improvement of its roads, power supply, and port infrastructure. The government plans to construct a floating terminal at the Chittagong Port. It also plans to simplify container transit for better services.
The abundance of cheap raw materials and labors
Bangladesh has a lot of resources that are used in the production of various apparel items. The country has a large workforce as it is densely populated. It is also abundant in natural gas, electricity, and water resources. Due to these advantages, Bangladesh can produce textile products at less cost. The low production cost makes it possible to sell their products at lower prices.
The dedicated labor force in Bangladesh is the major cause of the textile industry’s growth. To meet the deadline, they worked longer hours. As a result, the country’s per capita income and people’s living conditions have increased in recent years.
Rise in global demand for Bangladeshi garment products
This definitely is good news for woven garments manufacturers in Bangladesh. Demand mostly raised for knitwear and woven garments. The exports increased 13% year on year to $31.5 billion in 2020/21. Thanks to a 21% increase in overseas sales of knitwear items like t-shirts and sweaters according to the Export Promotion Bureau.
High-quality standards for products
Bangladesh has an excellent reputation as a renowned manufacturing powerhouse. Manufacturers implement robust quality control processes at every stage of the process. This is one of the ways to preserve such high manufacturing standards.
Favorable trade policy for the garment industry
The Bangladeshi government has established a unique apparel policy for the country. Such as low tariffs and there is a 5% monetary incentive for Bangladeshi exporters. For inspiring them to sell to traditional markets such as the United States, Germany, and Canada.
The policy provides several incentives to attract foreign buyers to the apparel industry. It helps to keep the growing demand stable. Which will also help promote the country’s development and growth.
In conclusion, Industrialization is the key factor for Bangladesh’s economic progress. It has a tremendous impact on the monetary structures. Bangladesh’s textile industry goes all the way back over 500 years. With its long history, it is one of the oldest and most successful enterprises. Furthermore, yarn and fabric production has advanced significantly in recent years. With its potential, they can also be leading in the near future.