Addressing the Challenges of Bangladesh’s RMG Sector in 2025
Bangladesh’s RMG sector is navigating significant challenges as we move into 2025. A critical issue is the post-COVID workforce shift, which has seen many workers, especially women, transition to other sectors due to rising living costs in Greater Dhaka, the hub of RMG factories. This has led to a severe workforce shortage, hampering production capacity and making it difficult to meet export targets.
Additionally, the sector faces hurdles from inadequate skilled labor and banking sector constraints. Limited financing options and high loan burdens have left many promising projects under debt pressure, diminishing exporters’ bargaining power in the global market. While Bangladesh remains appealing to buyers for its cheap labor, over-reliance on this advantage is no longer sustainable amid increasing global competition.
To address these issues, the RMG sector must prioritize workforce retention by improving wage structures and living conditions for workers. Investments in skill development and automation are essential to enhance productivity and meet evolving demands. Policymakers, including the NBR and banking institutions, need to collaborate with industry leaders to create supportive financial policies that alleviate debt burdens and modernize banking infrastructure.
Balancing affordability for buyers with long-term sustainability for manufacturers is key to maintaining Bangladesh’s leadership in the global apparel market.
Strength of Bangladesh’s RMG sector continues to rely on a few key pillars: affordable labor, back-to-back LC facilities, bonded warehouse systems, and government support. These factors have laid the foundation for our position as a global leader in apparel exports. However, to sustain and grow in this competitive sector, unwavering support from the government is critical.
What truly sets our RMG sector apart is the presence of a dynamic, talented generation of entrepreneurs. These individuals are working tirelessly, turning challenges into opportunities and making the impossible possible. Their innovative approaches, adaptability, and dedication have brought new energy and vision to the industry.
Author – Salauddin Ahmed Head of Operation, Bunon a knowledge centric platform
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Bangladesh’s RMG sector is navigating significant challenges as we move into 2025. A critical issue is the post-COVID workforce shift, which has seen many workers, especially women, transition to other sectors due to rising living costs in Greater Dhaka, the hub of RMG factories. This has led to a severe workforce shortage, hampering production capacity and making it difficult to meet export targets.
Additionally, the sector faces hurdles from inadequate skilled labor and banking sector constraints. Limited financing options and high loan burdens have left many promising projects under debt pressure, diminishing exporters’ bargaining power in the global market. While Bangladesh remains appealing to buyers for its cheap labor, over-reliance on this advantage is no longer sustainable amid increasing global competition.
To address these issues, the RMG sector must prioritize workforce retention by improving wage structures and living conditions for workers. Investments in skill development and automation are essential to enhance productivity and meet evolving demands. Policymakers, including the NBR and banking institutions, need to collaborate with industry leaders to create supportive financial policies that alleviate debt burdens and modernize banking infrastructure.
Balancing affordability for buyers with long-term sustainability for manufacturers is key to maintaining Bangladesh’s leadership in the global apparel market.
Strength of Bangladesh’s RMG sector continues to rely on a few key pillars: affordable labor, back-to-back LC facilities, bonded warehouse systems, and government support. These factors have laid the foundation for our position as a global leader in apparel exports. However, to sustain and grow in this competitive sector, unwavering support from the government is critical.
What truly sets our RMG sector apart is the presence of a dynamic, talented generation of entrepreneurs. These individuals are working tirelessly, turning challenges into opportunities and making the impossible possible. Their innovative approaches, adaptability, and dedication have brought new energy and vision to the industry.
Author – Salauddin Ahmed Head of Operation, Bunon a knowledge centric platform