Ridan Mehran Mahbub
The Readymade Garment (RMG) industry is one of the most defining pillars of Bangladesh’s modern economy. It transformed the country from a struggling, newly independent nation in the late 1970s into one of the fastest-growing economies in Asia. Today, Bangladesh ranks as the second-largest exporter of garments globally, right after China, supplying the world’s most renowned brands and retailers. The RMG industry accounts for more than 80% of Bangladesh’s exports and makes up around 8% of the country’s GDP. Bangladesh’s transformation into one of the world’s largest apparel manufacturers wasn’t achieved overnight; it was the result of pioneering steps taken by individuals and factories, strategic partnerships, a changing global trade landscape, and the resilience of millions of workers, especially women.
Mohammed Noorul Quader Khan, a freedom fighter and the first Establishment Secretary of the interim government during liberation war, was the pioneer of Bangladesh’s export-oriented RMG industry who founded Desh Garments Ltd in December, 1977. Before the establishment of Desh, a handful of Bangladeshi RMG companies competed in the sector but struggled to export garments. This changed in 1979 when Bangladesh tentatively took its first steps into the global apparel trade by sending a small consignment worth 13 million francs to a Paris-based company. Soon after, the South Korean company Daewoo, reluctant to invest directly in Bangladesh, forged a technical partnership with Desh and agreed to train 126 Desh employees in South Korea for 18 months. There, Desh employees learned how to conduct an assembly-line process. In 1980, Desh’s Chittagong garment factory was the largest in Bangladesh, with 450 machines and 500 employees. As Desh prospered, numerous companies entered the RMG sector. Many of them were started either by ex-Desh employees who were trained in South Korea or by new start-ups that poached Desh employees for their knowledge and expertise. Almost same time, a young Korean entrepreneur named Kihak Sung arrived Chittagong and set up his company at Jahan Mansion in Agrabad. Youngone that started its journey with less than 250 workers, now employs more than 70,000 people and exports annually US$ 1 billion from Bangladesh. Recently, government granted him honorary citizenship of Bangladesh.
Although the Bangladesh government did not realize the potential of the RMG sector in its early stages, in 1982 it began to provide several incentives such as the duty-free import of plant and machinery, cash inducements, and bonded warehouse facilities. By 1988, the number of garment producers reached 664. However, even after the inclusion of hundreds of factories in the industry, the contribution of the RMG sector to total exports of Bangladesh stood at 3.89 percent in 1983–84, which in over three decades shot up to 82.01 percent in 2015–16. So what happened next?
The late 1970s and early 1980s were years of experimentation and rapid expansion for Bangladesh’s RMG industry. It heavily benefited from the Multi-Fibre Arrangement (MFA), which gave developing countries preferential access to Western markets through export quotas. The industry took advantage of a large supply of low-cost labor and government incentives, which allowed it to grow rapidly. By the end of the 1980s, hundreds of factories had been established, and garment exports were growing steadily. This growth was not just economic; it also created opportunities for millions of rural women to join the urban workforce for the first time. Women’s entry into factory jobs reshaped gender roles and contributed to new forms of social and economic empowerment, transforming the societal structure of this traditionally conservative South Asian country.
The 1990s marked the RMG sector’s full integration into the global economy. Exports grew from less than $1 million in the early 1980s to over $1 billion by the mid-1990s. Cities like Dhaka and Chittagong became hubs of production, shipping millions of pieces of clothing to brands from all around the world. However, the 2000s brought new challenges and opportunities for this industry. In 2005, the MFA quota system ended, raising fears that Bangladesh might lose its competitive edge to larger producers like China. Bangladeshi factories adapted remarkably well to this challenge, continuing to attract global buyers like H&M, Zara, Walmart, and Uniqlo by offering large-scale orders at incredibly affordable prices. Investments in complementary industries such as spinning and dyeing further strengthened the supply chains of most factories.
However, it is also important to note that this rapid expansion led to serious issues surrounding worker safety and labor rights. Tragic incidents like the Tazreen Fashions fire in 2012 and the Rana Plaza collapse in 2013 shocked the world. Over 1,100 workers lost their lives in the Rana Plaza disaster, drawing global attention to unsafe working conditions. In response, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety were established, bringing together international brands, labor groups, and the Bangladeshi government to implement stricter factory inspections and improve safety standards.
Despite these challenges, Bangladesh’s RMG industry has proven remarkably resilient. At present, there are over 4,000 RMG factories exporting numerous garment products to all major international markets. According to EPB data, the country’s total export revenue in the fiscal year 2024–25 stood at US$48.28 billion. Domestically, the RMG sector represents 84 percent of Bangladesh’s exports. The achievements of this sector go beyond numbers. Some of the most impressive facts about Bangladesh’s RMG industry show how far it has come. For example, over 150 countries import products made by garment factories in Bangladesh. The world’s top 10 green garment factories are located in Bangladesh, and more than half of the 4.6 million workforce consists of women, many of whom have gained financial independence and new roles in their families and communities. The industry is also embracing technology, with many factories adopting automated sewing lines, digital compliance tools, and energy-efficient systems. Homegrown fashion brands are slowly emerging, allowing Bangladesh not only to produce clothing for foreign countries but also to build its own identity in the fashion industry.
As Bangladesh’s RMG industry continues to evolve, only time will tell what lies ahead. In 2025, around 50 years after its first steps into the garments sector and ironically during the 50th edition of the Apparel Digest, the RMG sector stands at a crossroads. It is facing numerous challenges, such as rising labor costs, productivity pressures, and tariff issues, but it also has the potential to turn around and compete with other countries more effectively. With investments in innovation, the implementation of stronger labor rights and protections, and the embrace of sustainability and technological advancement, it can progress toward an even brighter future. The journey that began with a single stitch has already transformed a nation, and if history is any guide, there’s every reason to be hopeful about the chapters yet to come.
