Submitted:
04 June 2025
Posted:
04 June 2025
You are already at the latest version
Abstract
Keywords:
1. Introduction
2. Materials and Method
2.1. Materials
2.2. Research Method
- o This study is developed from both a qualitative and quantitative point of view.
- o It is a descriptive study.
- o Microsoft Word and Excel have been used to interpret the gathered data.
- o Calculating and comparing data using mathematical formulas.
2.3. Method of Data Collection
- o Literature review
- o Case studies
- o Journals
- o Research articles
- o Online news and survey report
- o Newspaper
- o Different internship reports
- o Books and articles
- o Thesis paper
- o BGMEA annual reports and files
3. Results And Discussion
3.1. Growth of Factories in RMG Industry
- o 1st period (1990-2001)
- o 2nd period (2001-2012)
- o 3rd period (2012-2023)
| Year | Number of garment factories |
| 1990-1991 | 834 |
| 1991-1992 | 1163 |
| 1992-1993 | 1537 |
| 1993-1994 | 1839 |
| 1994-1995 | 2182 |
| 1995-1996 | 2353 |
| 1996-1997 | 2503 |
| 1998-1999 | 2726 |
| 1999-2000 | 2963 |
| 2000-2001 | 3200 |
| 2001-2002 | 3480 |
| 2002-2003 | 3618 |
| 2003-2004 | 3760 |
| 2004-2005 | 3957 |
| 2005-2006 | 4107 |
| 2006-2007 | 4220 |
| 2007-2008 | 4490 |
| 2008-2009 | 4743 |
| 2009-2010 | 4925 |
| 2010-2011 | 5150 |
| 2011-2012 | 5400 |
| Year | Number of garment factories |
| 2012-2013 | 5876 |
| 2013-2014 | 4222 |
| 2014-2015 | 4296 |
| 2015-2016 | 4328 |
| 2016-2017 | 4482 |
| 2017-2018 | 4560 |
| 2018-2019 | 4621 |
| 2019-2020 | 4620 |
| 2020-2021 | 4576 |
| 2021-2022 | 4580 |
| 2022-2023 | 4790 |
3.2. The Number of Workers in Garment Factories:
| Year | Employment of workers (in million) |
| 1990-1991 | 0.402 |
| 1995-1996 | 1.290 |
| 1996-2000 | 1.603 |
| 2000-2001 | 1.800 |
| Year | Employment of workers (in million) |
| 2005-2006 | 2.200 |
| 2009-2010 | 3.500 |
| 2010-2011 | 3.600 |
| 2011-2012 | 3.600 |
| Year | Employment of workers (in million) |
| 2012-2013 | 4.000 |
| 2013-2014 | 4.000 |
| 2014-2015 | 4.000 |
| 2015-2016 | 4.000 |
| 2016-2017 | 4.000 |
| 2017-2018 | 4.000 |
| 2018-2019 | 4.200 |
| 2019-2020 | 5.000 |
| 2020-2021 | 4.100 |
| 2021-2022 | 4.200 |
| 2022-2023 | 4.300 |

3.3. Export Analysis:
3.3.1. 1st Period (1990-2001):
| Year | Export of RMG | Total Export of Bangladesh | % of RMG’s to Total Export |
| 1990-91 | 866.82 | 1717.55 | 50.47 |
| 1991-92 | 1182.57 | 1993.90 | 59.31 |
| 1992-93 | 1445.02 | 2382.89 | 60.64 |
| 1993-94 | 1555.79 | 2533.90 | 61.40 |
| 1994-95 | 2228.35 | 3472.56 | 64.17 |
| 1995-96 | 2547.13 | 3882.42 | 65.61 |
| 1996-97 | 3001.25 | 4418.28 | 67.93 |
| 1997-98 | 3781.94 | 5161.20 | 73.28 |
| 1998-99 | 4019.98 | 5312.86 | 75.67 |
| 1999-00 | 4349.41 | 5752.20 | 75.61 |
| 2000-01 | 4859.83 | 6467.30 | 75.14 |

| Year | Woven | Knit | Total RMG |
|---|---|---|---|
| 1992-1993 | 1240.48 | 204.54 | 1445.02 |
| 1993-1994 | 1291.65 | 264.14 | 1555.79 |
| 1994-1995 | 1835.09 | 393.26 | 2228.35 |
| 1995-1996 | 1948.81 | 598.32 | 2547.13 |
| 1996-1997 | 2237.95 | 763.30 | 3001.25 |
| 1997-1998 | 2844.43 | 937.51 | 3781.94 |
| 1998-1999 | 2984.96 | 1035.02 | 4019.98 |
| 1999-2000 | 3081.19 | 1268.22 | 4349.41 |
| 2000-2001 | 3364.32 | 1495.51 | 4859.83 |

| YEAR | SHIRTS | TROUSERS | JACKETS | T-SHIRT | SWEATER |
|---|---|---|---|---|---|
| 1993- 1994 |
805.34 | 80.56 | 126.85 | 225.9 | |
| 1994- 1995 |
791.20 | 101.23 | 146.83 | 232.24 | |
| 1995- 1996 |
807.66 | 112.02 | 171.73 | 366.36 | 70.41 |
| 1996- 1997 |
759.57 | 230.98 | 309.21 | 391.21 | 196.6 |
| 1997- 1998 |
961.13 | 333.28 | 467.19 | 388.5 | 296.29 |
| 1998- 1999 |
1043.11 | 394.85 | 393.44 | 471.88 | 271.7 |
| 1999- 2000 |
1021.17 | 484.06 | 439.77 | 563.58 | 325.07 |
| 2000- 2001 |
1073.59 | 656.33 | 573.74 | 597.42 | 476.87 |
3.3.2. 2nd Period (2000-2012)
| Year | Export of RMG | Total Export of Bangladesh | % of RMG’s to Total Export |
| 2001-02 | 4583.75 | 5986.09 | 76.57 |
| 2002-03 | 4912.09 | 6548.44 | 75.01 |
| 2003-04 | 5686.09 | 7602.99 | 74.79 |
| 2004-05 | 6417.67 | 8654.52 | 74.15 |
| 2005-06 | 7900.80 | 10526.16 | 75.06 |
| 2006-07 | 9211.23 | 12177.86 | 75.64 |
| 2007-08 | 10699.80 | 14110.80 | 75.83 |
| 2008-09 | 12347.77 | 15565.19 | 79.33 |
| 2009-10 | 12496.72 | 16204.65 | 77.12 |
| 2010-11 | 17914.46 | 22924.38 | 78.15 |
| 2011-12 | 19089.73 | 24301.90 | 78.55 |

| Year | Woven | Knit | Total RMG |
|---|---|---|---|
| 2001-2002 | 3258.27 | 1458.93 | 4583.75 |
| 2002-2003 | 3258.27 | 1653. 82 | 4912.09 |
| 2003-2004 | 3538.07 | 2148.02 | 5686.09 |
| 2004-2005 | 3598.20 | 2819.47 | 6417.67 |
| 2005-2006 | 4083.82 | 3816.98 | 7900.80 |
| 2006-2007 | 4657.63 | 4553.60 | 9211.23 |
| 2007-2008 | 5167.28 | 5532.52 | 10699.80 |
| 2008-2009 | 5918.51 | 6429.26 | 12347.77 |
| 2009-2010 | 6013.43 | 6483.29 | 12496.72 |
| 2010-2011 | 8432.40 | 9482.06 | 17914.46 |
| 2011-2012 | 9603.34 | 9486.39 | 19089.73 |

| YEAR | SHIRTS | TROUSERS | JACKETS | T-SHIRT | SWEATER |
|---|---|---|---|---|---|
| 2001- 2002 |
871.21 | 636.61 | 412.34 | 546.28 | 517.83 |
| 2002- 2003 |
1019.87 | 643.66 | 464.51 | 642.62 | 578.37 |
| 2003- 2004 |
1116.57 | 1334.85 | 364.77 | 1062.1 | 616.31 |
| 2004- 2005 |
1053.34 | 1667.72 | 430.28 | 1349.71 | 893.12 |
| 2005- 2006 |
1056.69 | 2165.25 | 389.52 | 1781.51 | 1044.01 |
| 2006- 2007 |
943.44 | 2201.32 | 1005.06 | 2208.9 | 1248.09 |
| 2007- 2008 |
915.6 | 2512.74 | 1181.52 | 2765.56 | 1474.09 |
| 2008- 2009 |
1000.16 | 3007.29 | 1299.74 | 3065.86 | 1858.62 |
| 2009- 2010 |
993.41 | 3035.35 | 1350.43 | 3145.52 | 1795.39 |
3.3.2. 3rd Period (2010-2020).
| Year | Export of RMG | Total Export of Bangladesh | % of RMG’s to Total Export |
| 2012-13 | 21515.73 | 27027.36 | 79.61 |
| 2013-14 | 24491.88 | 30186.62 | 81.13 |
| 2014-15 | 25491.40 | 31208.94 | 81.68 |
| 2015-16 | 28094.16 | 34257.18 | 82.01 |
| 2016-17 | 28149.84 | 34655.90 | 81.23 |
| 2017-18 | 30614.76 | 36668.17 | 83.49 |
| 2018-19 | 34133.27 | 40535.04 | 84.21 |
| 2019-20 | 27949.19 | 33674.09 | 83.00 |
| 2020-21 | 31456.73 | 38758.31 | 81.16 |
| 2021-22 | 42613.15 | 52082.66 | 81.82 |
| 2022-23 | 46991.61 | 55558.77 | 84.58 |

| Year | Woven | Knit | Total RMG | |
| 2012-2013 | 11039.85 | 10475.88 | 21515.73 | |
| 2013-2014 | 12442.07 | 12049.81 | 24491.88 | |
| 2014-2015 | 13064.61 | 12426.79 | 25491.40 | |
| 2015-2016 | 14738.74 | 13355.42 | 28094.16 | |
| 2016-2017 | 14392.59 | 13757.25 | 28149.84 | |
| 2017-2018 | 15426.25 | 15188.51 | 30614.76 | |
| 2018-2019 | 17244.73 | 16888.54 | 34133.27 | |
| 2019-2020 | 14041.19 | 13908.00 | 27949.19 | |
| 2020-2021 | 14496.70 | 16960.03 | 31456.73 | |
| 2021-2022 | 19398.84 | 23214.32 | 42613.16 | |
| 2022-2023 | 21253.41 | 25738.20 | 46991.61 |

| YEAR | SHIRTS | TROUSERS | JACKETS | T-SHIRT | SWEATER |
|---|---|---|---|---|---|
| 2009- 2010 |
1073.59 | 656.33 | 573.74 | 597.42 | 476.87 |
| 2010- 2011 |
871.21 | 636.61 | 412.34 | 546.28 | 517.83 |
| 2011- 2012 |
1019.87 | 643.66 | 464.51 | 642.62 | 578.37 |
| 2012- 2013 |
1116.57 | 1334.85 | 364.77 | 1062.1 | 616.31 |
| 2013- 2014 |
1053.34 | 1667.72 | 430.28 | 1349.71 | 893.12 |
| 2014- 2015 |
1056.69 | 2165.25 | 389.52 | 1781.51 | 1044.01 |
| 2015- 2016 |
943.44 | 2201.32 | 1005.06 | 2208.9 | 1248.09 |
| 2016- 2017 |
915.6 | 2512.74 | 1181.52 | 2765.56 | 1474.09 |
| 2017- 2018 |
1000.16 | 3007.29 | 1299.74 | 3065.86 | 1858.62 |
| 2018- 2019 |
993.41 | 3035.35 | 1350.43 | 3145.52 | 1795.39 |
| 2019- 2020 |
1783.14 | 5447.13 | 3514.21 | 5614.00 | 3597.68 |
| 2020- 2021 |
2048.4 | 10681.52 | 4083.65 | 7239.74 | 4051.83 |
| 2021- 2022 |
2765.91 | 14507.50 | 5571.138 | 9857.54 | 5640.45 |
| 2022- 2023 |
3650.12 | 14953.30 | 6019.429 | 10862.52 | 5942.47 |
3.4. Impacts of Garment Industry Focus in Bangladesh:
3.4.1. Macro Contribution to GDP:
| Year | 2012- 2013 |
2013- 2014 |
2015- 2016 |
2017- 2018 |
2019- 2020 |
2020- 2021 |
2021- 2022 |
2022- 2023 |
| Contribution to GDP in % |
16.56 | 14.17 | 12.69 | 11.17 | 11.2 | 7.66 | 9.25 | 10.35 |

3.4.2. Current Scenario of the Garment Industry (Fiscal Year 2022- 2023) Bangladesh:
- Overall Exports in FY 2022-23 (July 2022 - June 2023): Bangladesh's total export earnings reached a record high of $55.56 billion in FY 2022-23.
- RMG Exports in FY 2022-23: The Ready-Made Garment (RMG) sector, which is the main driver of Bangladesh's exports, contributed $47.38 billion to the total export earnings in FY 2022-23, also a record high. This translates to 84.58% of the country's total exports.
| Month | Total export | RMG export |
|---|---|---|
| January 2023 | 5.72 billion | 4.97 billion |
| March 2023 | 4.64 billion | 3.89 billion |
| May 2023 | 4.85 billion | 4.05 billion |
| July 2023 | 3.95 billion | 3.95 billion |
| September 2023 | 4.31 billion | 1.24 billion |
| November 2023 | 4.78 billion | 4.05 billion |
| January 2024 | 5.72 billion | 4.97 billion |
3.4.3. Major Competitors:
| Country | Global market share |
| China | 36 |
| Bangladesh | 7.9 |
| Vietnam | 6.4 |
| India | 4.8 |
| Turkey | 3.2 |
| Cambodia | 1.8 |

3.4.4. Reasons Behind Closure of RMG Factory:
- Recent Events:
- Long term problems:
- Solution:
- Bangladesh garment industry threat:
- o Following the points below will reduce the threat to some extent
- o Political instability of the country.
- o Increase in cost of raw materials.
- o Environmental pollution is a threat to survival.
- o Labor discontent in RMG factories.
- o Ability to hold the market for long term future.
- o Financial assistance.
- The opportunity of RMG Sector in Bangladesh:
- o Vast labor force,
- o Skilled human resources,
- o Technological upgrades,
- o Government supports for textile and clothing,
- o Special economic/export processing zones,
- o Creation of textile and clothing villages,
- o The incentive for use of local inputs,
- o Duty reduction for the import of inputs/machines,
- o Income tax reduction,
3.5. Discussion:
3.5.1. Comparison of Growth of Garment Factories Within 3 Period:
- 1st Period:
- 2nd Period:
- 3rd Period:

3.5.2. Comparison of Growth of Export Within 3 Period:

3.6. The RMG Sector's GDP Has Been Decreasing Recently. The Reasons Behind This Are Briefly Discussed Below.
- Infrastructure:
- Raw materials:
- ○
- The high cost of raw materials and their quick price fluctuations.
- ○
- The reliance on imports is regarded as a big risk
- ○
- This strategy may be hampered by a lack of efficiency and risk-takers
- Economic and political instability:
- The biggest challenge in Bangladesh is corruption.
- Investing in the RMG sector is hampered by high interest rates.
- Sourcing from Bangladesh carries the greatest risk of political turmoil and strikes.
- Low Pay:
- A low wage reduces an employee's productivity.
- Employees are concentrating more of their efforts on the foreign nation. We are losing skilled workers as a result.
- Untrained laborers:
- Because the majority of women engaged in the apparel industry lack skills, the quality of their products frequently declines.
- Unsuitable workplace conditions:
- By taking advantage of the workers' ignorance and poverty, the owners made them labor in hazardous and unhealthy environments with inadequate ventilation and a worker population that exceeded the capacity of the factory floor.
- The majority of our nation's clothing factories lack the bare necessities, despite the fact that our garment workers toil day and night to earn the majority of our nation's foreign cash.
- Absence of managerial expertise:
- Insufficient marketing strategies, a dearth of readily available middle management, a limited number of manufacturing techniques, and inadequate training for employees, managers, and supervisors
- Slow backward or forward blending process, inept ports, difficult access and exit, lengthy loading and unloading times, etc.
- Insufficient for loan:
- The industry is frequently hampered by things like late or inadequate loans, unstable electricity, delays in receiving supplies, poor communication, tax issues, etc.
- Safety problem:
- Machine layout is often staggered
- No provision for emergency lighting
- Doors, opening along escape routes are not fire resistance
- Lack of proper exit route
- Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air.
3.7. Problems Surrounding Readymade Garments Sector:
- ➢ Machine layout is often staggered.
- ➢ Lack of signage for escape route.
- ➢ No provision for emergency lighting.
- ➢ Doors, opening along escape routes, are not fire resistant.
- ➢ Fire exit or emergency staircase lacks proper maintenance.
- ➢ Lack of proper exit route to reach the place of safety proper. Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air.
3.8. Challenges of RMG Sector in Bangladesh
3.9. Contribution of RMG Sector in Bangladesh:
- RMG sectors contribution to export:
- Economic contribution:
- Other contributions:
3.10. The Issue of Bangladesh's RMG Sector's Compliance and Sustainability:
3.10.1. Factors That Need to Be Considered to Achieve Sustainability in Global Market:
- Political aspects
- ➢ To what extent is the political climate stable?
- ➢ Will laws governing or taxing the business be impacted by government policy?
- ➢ What is the government's stance on the ethics of marketing?
- ➢ What economic policies does the government implement?
- ➢ What is the government's position on religion and culture?
- Economic factors:
- ➢ Interest rates
- ➢ Inflation rate
- ➢ And per-capita employment
- ➢ Long-term economic outlooks, including GDP per capita and other metrics.
- Socio-cultural factors:
- Technological factors
- ➢ Does technology allow for products and services to be made more cheaply and to a better standard of quality?
- ➢ Do the technologies offer consumers and business more innovative products and services such as internet banking, new generation mobile, telephones etc.
- ➢ How is distribution changed by new technologies e.g., books via internet, flight tickets, auctions etc.
- ➢ Does technology offer companies a new way to communicate with consumers e.g., banners, Customer Relationship Management (CRM) etc.
3.11. SWOT Analysis of Bangladesh Apparel Industries:
3.11.1. Strength:
- Strength of Bangladeshi Garments Industry:
- ➢ Less labor cost
- ➢ Energy at relatively lesser price
- ➢ Freely accessible infrastructure like railway, plan, river and route.
- ➢ Has great number of pre-export financing organizations for guidance
- ➢ Reasonably open economy, particularly in the Export Processing Zone
- ➢ Several associations like BGMEA BKMEA and BEPZA etc. to build the tight collaboration with various Connected organization.
- ➢ Duty Lee access to some of the Ingest market of the world like ELI, USA
- ➢ Thinness of currency opposed to dollar euro helping exporters to earn subtle profit.
- ➢ Convince of duty free custom bonded warehouses.
3.11.2. Weakness:
- Weakness of Bangladeshi Garments Industry:
- ➢ Longer lead time.
- ➢ Lack of marketing tactics
- ➢ Weak infrastructure
- ➢ Lack of sea port capacity
- ➢ Political instability
- ➢ Small number of manufacturing methods.
- ➢ Petty number of products viamety
- ➢ Lack of among organizations for industrial workers. Supervisors and managers
- ➢ Autocratic approach of nearly all the investors
- ➢ Absence of easily on hand addle management
- ➢ Fewer process unit of textile and garments
- ➢ Speed money cutline
- ➢ Time consumming custom clearance
- ➢ Subject to natural climate
- ➢ Incomplete port entry exit complicated and leading unloading takes much time
- ➢ Communication gap created by the lack of English knowledge.
3.12. Opportunities of Bangladeshi Garments Industry:
- ➢ The EU is willing to establish industries in a big way as an option for Cluna particularly for knits, including sweaters
- ➢ Bangladesh is included in the least developed countries with whach the US is conmatted to enluatuor export trade
- ➢ Chittagong port is going to be handed over foreign operators, which will make the port service faster.
- ➢ Bangladesh is gaining in political stability.
3.12.1. Threats of Bangladesh Garments Industry:
- ➢ Political unrest situation of the country.
- ➢ Rise of price of raw materials.
- ➢ Environmental pollution is a threat for survival.
- ➢ Labor unrest in RMG factories.
- ➢ Capability to hold the market for the long-term future.
- ➢ Financial supports.
3.12.2. Five Forces to the Ready-Made Garment (RMG) Sector in Bangladesh:
- 1)
- New Entrants into an established Market:
- 2)
- Dealing Power of Suppliers:
- 3)
- Dealing Power of Buyers:
- 4)
- Threat of Alternative:
- 5)
- Competitive Conflict:
- 6)
- Brand Differentiation:
4. Conclusion:
References
- U. Barua and M. A. Ansary, “Workplace safety in Bangladesh ready-made garment sector: 3 years after the Rana Plaza collapse,” International Journal of Occupational Safety and Ergonomics, vol. 23, no. 4, pp. 578–583, Nov. 2016. [CrossRef]
- M. H. Uddin, A. A. Rahman, and M. R. Razzak, “Sustainable supply chain management practices, dynamic capabilities and competitive advantage: Evidence from Bangladesh ready-made garments industry,” Business Strategy & Development, vol. 6, no. 2, pp. 176–188, Jan. 2023. [CrossRef]
- F. Alamgir and S. B. Banerjee, “Contested compliance regimes in global production networks: Insights from the Bangladesh garment industry,” Human Relations, vol. 72, no. 2, pp. 272–297, Mar. 2018. [CrossRef]
- J. Bair, J. Blasi, and M. Anner, “The Political Economy of Private and Public Regulation in Post-Rana Plaza Bangladesh,” ILR Review, vol. 73, no. 4, pp. 969–994, Jun. 2020. [CrossRef]
- M. Ali, S. M. Rahman, and G. F. Frederico, “Capability components of supply chain resilience for readymade garments (RMG) sector in Bangladesh during COVID-19,” Modern Supply Chain Research and Applications, vol. 3, no. 2, pp. 127–144, Apr. 2021. [CrossRef]
- S. Hasan, G. Khan, M. R. Hoque, F. Hassan, and N. Ahmed, “Lean practices in the Bangladeshi ready-made garments industry and global significance,” International Journal of Logistics Research and Applications, vol. 25, no. 3, pp. 309–327, Nov. 2020. [CrossRef]
- Z. H. Munim, M. Mohammadi, M. H. Shakil, and S. M. Ali, “Assessing measures implemented by export-oriented RMG firms in an emerging economy during COVID-19,” Computers & industrial engineering, vol. 165, no. 2, p. 107963, Jan. 2022. [CrossRef]
- M. A. Islam, A. Hunt, C. W. Chong, A. H. Jantan, and H. Hashim, “Exploring challenges and solutions in applying green human resource management practices for the sustainable workplace in the ready-made garment industry in Bangladesh,” Business Strategy & Development, vol. 3, no. 3, pp. 332–343, Dec. 2019. [CrossRef]
- Sarkar, L. Qian, and A. K. Peau, “Overview of green business practices within the Bangladeshi RMG industry: competitiveness and sustainable development perspective.,” Environmental Science and Pollution Research, vol. 27, no. 18, pp. 22888–22901, Apr. 2020. [CrossRef]
- M. M. Billah, S. S. Alam, M. Masukujjaman, M. H. Ali, Z. K. M. Makhbul, and M. F. M. Salleh, “Effects of Internet of Things, supply chain collaboration and ethical sensitivity on sustainable performance: moderating effect of supply chain dynamism,” Journal of Enterprise Information Management, vol. 36, no. 5, pp. 1270–1295, Jun. 2023. [CrossRef]
- M. Al Amin and R. Baldacci, “QFD-based optimization model for mitigating sustainable supply chain management adoption challenges for Bangladeshi RMG industries,” Journal of Cleaner Production, vol. 472, p. 143460, Aug. 2024. [CrossRef]
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2025 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).