By Tasnim Tabara Madhurza
The Ready-Made Garment (RMG) sector is often heralded as the backbone of Bangladesh’s economy, representing a significant driver of growth and a key source of employment for millions. Since early 1980s,MG has transformed Bangladesh into one of the world’s largest attires exporters, ranking second only to China.Bangladesh’s RMG sector highlights impressive achievements but currently it faces substantial vulnerabilities that are the rapidly create impact on global market negatively.
The roots of Bangladesh’s garment industry can be traced back to the 1970s, a period when the country was grappling with the aftermath of its Liberation War and the challenges of establishing a stable economy. In the early stages, the industry was primarily focused on meeting domestic demand, with limited international exposure. The RMG sector, which accounts for over 80 per cent of Bangladesh’s total export earnings and contributes approximately 11 per cent to the nation’s GDP, has been hit hard. In 2020, the RMG sector accounted for approximately 84% of the total export earnings of Bangladesh, underscoring its pivotal role in the national economy.
Moreover, RMG sector has also played a significant role in poverty relieve, upgrade millions from insolvency through employment opportunities.In a statistics,RMG sector directly employs 4.2 million people of whom approximately 60% are women and indirectly supports as many as 40 million Bangladeshis.
In 2023, the nation’s apparel exports totaled an amazing $47.5 billion, which accounted for more than 86% of the total export revenue generated by the textile and apparel industries combined. According to RMG Bangladesh,the RMG business employs 4.22 million people across more than 290,000 registered manufacturing units, with a high percentage of women (41 percent), and this number has increased at a rate of roughly 7% over time. However, RMG achievements lie significant vulnerabilities that pose challenges to its long-term sustainability and ethical standing. The supply chain reflects the dual nature of Bangladesh’s RMG sector, exploring its strengths as a global leader while also acknowledging the systemic issues. Bangladesh is home to thousands of garment factories, making it one of the largest producers of clothing worldwide. The sheer volume of production capacity enables the country to supply garments on a massive scale. In 2021, Bangladesh exported garments worth over $31 billion, showcasing its pivotal role in global supply chains. The ability to churn out vast quantities of apparel has made Bangladesh a favored destination for international brands seeking to fulfill consumer demands swiftly.
It is noteable that labor rights remain a argumentative issue in the RMG sector. Reports of unsafe working conditions, long hours, and inadequate wages continue to surface.While brands may influence the cost-effective nature of Bangladeshi labor, they must also purchase. An important concern facing the RMG industry is the growing awareness of environmental issues. One of the biggest pollutants in the world is the fashion sector, and customers are calling for more environmentally friendly practices. Bangladeshi manufacturers are frequently criticized for their effects on the environment, especially with regard to waste management and water use. In order to stay competitive, Bangladeshi companies will need to implement greener technologies and practices as global brands seek for sustainable procurement.
The RMG has been heavily affected by a severe gas shortage since June 2024, leading to a significant drop in production. The gas crisis in Bangladesh has caused a drastic reduction in production, with some factories operating at less than 30 percent capacity and others closing down temporarily. As Bangladesh is second of the world’s largest suppliers of garments, this reduction has created bottlenecks in the global supply chain. This disruption is largely due to damage sustained by one of the two floating LNG terminals in the Bay of Bengal, exacerbated by Cyclone Remal.
Although Bangladesh’s garment industry has grown remarkably, there have been difficulties along the way. Concerns including environmental sustainability, worker safety, and labor rights have drawn criticism and attention to the industry.Concerns over labor rights and working conditions have been highlighted by Bangladesh’s garment industry’s explosive growth. Events like the 2013 collapse of the Rana Plaza, which killed more than 1,000 garment workers, brought attention to the need for higher safety regulations and better worker welfare. Since then, there has been a rise in awareness and efforts to solve these challenges as a result of international pressure and lobbying.
Bangladesh is now a leader in the fashion sector thanks to a network of strategic alliances visible in its RMG supply chain. Bangladesh’s RMG supply chain has been successful in part because of its advantageous location. The nation benefits from a logistical advantage due to its proximity to important marine routes and raw material sources. It makes distribution and production easier. Due to its closeness to the supply channels, the nation has an advantage over other nations by saving time and money. The highly qualified staff is also well-trained. They give the nation access to the vital human resources that push the RMG sector ahead.
The Writer is a Member of Social Research Group (SRG) and an undergraduate Student of Public Administration, Comilla University. This is a work in progress.