As one of the most favoured locations for the production of clothing, Bangladesh has recently attracted the attention of western clothing brand owners and merchants who are increasingly focusing on Asia as their main customer base. One of Asia’s main production hubs today is Bangladesh’s fashion sector. Bangladesh has moved up to second place in the world in regards to manufacturing and exporting high-quality clothing, following China.

Bangladesh is home to numerous world-class, top garment factories. This is considered as the main reason why marketers select Bangladesh as the most fruitful nation to get garments from. Besides providing Bangladeshi clothing manufacturers with low-cost country sourcing opportunities, high-quality clothing keeps people warm in the winter and makes them feel comfortable in the summer. Some of the critical elements that influence firms’ decisions to select Bangladesh as a trustworthy location for garment sourcing include social adherence, the concentration of environment-conscious businesses, world-class security, labour regulations, tenacious entrepreneurship, and a hard-working population.

Bangladesh has become a popular location for international apparel manufacturers and merchants thanks to improvements in security, conformity, and the Covid recovery scenario. It still has a great deal of promise as a manufacturing powerhouse, despite the tremendous changes that COVID has caused in the manufacturing industry internationally. Bangladesh continues to play an important role in the worldwide sourcing of fashion thanks to its low labour costs and significant exports of ready-made clothing. Although Bangladesh’s manufacturing sector has grown over the past 10 years, it continues to struggle with issues related to the global pandemic as well as earlier issues.

What are the Benefits of Sourcing Apparel from Bangladesh?

It is widely acknowledged that Bangladesh’s fashion and textile industries have a bright future. The source of the nation’s riches is the export of textiles and ready-made clothing to Asia, which generates a sizable portion of the nation’s foreign exchange earnings. In particular the manufacturing sector, Bangladesh has a lot of room for growth. In addition to having keen consumers in industrialised countries and strong labour standards, the area also gains from duty-free purchasing.

Some of the biggest industries in the world are now based in Bangladesh. The sector is booming and a wide variety of goods are becoming more readily available thanks to local manufacturing knowledge honed over decades and a skilled labour force. The following list of 11 factors demonstrates the top Benefits of Sourcing Apparel from Bangladesh:

Quick Returns

The main determinant of Bangladesh being the most sought-after location for sourcing apparel is the investors’ access to quick returns in this market. Only this industry in the nation offers returns in the span of three to five years. In contrast to enterprises or sectors in other countries, the proportion of the return on investment is high. Aside from that, the industry offers tremendous growth potential due to its ranking as the second-largest exporter of garments worldwide.

Bangladesh enables up to 100% foreign ownership, particularly in the Economic Zones. The investor also has the option to withdraw their invested capital, which is further transferable along with their entire profit. Additionally, investors are granted a 100% tax break for up to 10 years in the nation. Tax holidays are increasingly frequently granted by local governments as an incentive for foreign direct investment in addition to being frequently given to lower sales taxes. Furthermore, the Bangladesh Economic Zone Authority claims that there is no limit on foreign direct investment and that the nation permits the complete return of cash and dividends.

Commitment and Quality

Bangladesh’s reputation for producing high-quality apparel and the commitment of its suppliers and employees are other additional factors that impact the decision to get garments from that country. A good image of on-time delivery exists in the Bangladesh clothing industry. The quality of the products is also guaranteed to marketers by them. As a result, Bangladesh has gained the trust of major companies in the international market.

A substantial number of successful businessmen reside in Bangladesh, which is another plus. They have a forward-thinking mindset and are dependable and strong. The administrative chores associated with sourcing clothing from Bangladesh can be handled by administrative staff, who can be hired to conduct the sourcing activities. Online employees employed by Bangladeshi sourcing firms can carry out a variety of administrative tasks to support foreign businesses. 

Low- Manufacturing Wages and Abundant Workforce 

Bangladeshi apparel sourcing companies have a relatively superior and more devoted workforce than those in other Asian nations. Bangladesh’s high population is a blessing in this regard as it creates the opportunity for a substantial amount of human resources. Bangladesh still has a very low cost of labour when relative to other Asian nations, notwithstanding the recent increase in the minimum wage. Bangladesh should unquestionably be considered a viable option for sourcing by importers trying to lower their production costs.

Tenacious Labourforce

Bangladeshi sourcing companies have a relatively superior and more devoted workforce than those in other Asian nations. Primarily, the expectations of the organisations are met by the diligent workers in Bangladesh’s garment industry. A considerable percentage of the Bangladesh labour force is familiar with progressive techniques for making garments and has accessibility to the most modern innovations in this industry. Businesses that decide to source their apparel from Bangladesh stand to benefit greatly from this attribute.

Bangladesh’s youth are a lively group of people. For business owners considering Bangladesh as a location for garment sourcing, this country’s lively younger generation is becoming advantageous. The exploding population of Bangladesh is a benefit in this regard because the garment sector there is heavily reliant on human capital.

World-class Safety and Policies

Since the working conditions for production workers in Bangladesh are among the best in the world, it is one of the top nations for low-cost sourcing. It is now easy to discover businesses that follow international standards thanks to both international and national laws. For other clothing-sourcing companies, Bangladesh’s safety situation and policies serve as a model. Currently, they aim to mimic Bangladesh’s safety precautions. The reliability of Bangladesh’s workplace is demonstrated by this. The safety requirements for the employees and workplace have also been raised in Bangladesh. Also, the majority of Bangladesh’s low-cost garment manufacturers have been investigated and linked to the country’s strict construction codes regarding both power and fire safety. The transparency and authenticity of Bangladesh’s garment industry workplace safety standards can be felt by seeing the inspection proofs on open websites.

Worker Safety and Conformance

Bangladesh’s textile industries have made outstanding advances in defending rights for workers and prioritising their safety. Bangladesh’s garment sector has seen an increase in the minimum wage it pays its employees. The labour code in Bangladesh has undergone two revisions and now grants workers total flexibility.

Manufacturing Hub of Green Factories

The abundance of manufacturers that adhere to government-imposed environmental standards and take precautions to ensure they have no adverse way to affect the environment is another appealing aspect that attracts businesses to Bangladesh as a supplier for their garments. Nowadays, businesses are eager to transition to a more ecologically responsible method of operation. 

It is commonly recognised that the garments industry is “extremely hostile” to the climate. Bangladesh, one of the biggest producers of textiles and apparel in the world, has made tremendous progress towards adopting environmentally friendly production methods. According to various research reports, Bangladesh is a centre for eco-friendly manufacturing and has the most green clothing factories that are certified worldwide.  The nation’s standing abroad has substantially increased thanks to this effort towards a greener world. 

Duty-Free Advantage

For garment exports, Bangladesh has duty-free access to markets or lower tariff rates, which includes the European Union, its top export market. Around 52 nations offer duty-free entry to Bangladesh. Bangladesh is confident that it would continue to have duty-free transportation to most of the major export markets even if it anticipates leaving the LDC title soon. Also, Bangladesh’s exporters are given monetary incentives to sell their products to established markets like the US, Germany, and Canada.

Technological Adoption

Digitalization and technical development have become increasingly prevalent in Bangladesh’s manufacturing sector as the country enters a fourth wave of industrialization. Bangladesh has drawn a number of significant international retail brands, and the technological and quality standards and practices have also permeated Bangladesh’s processes for producing clothing. Even in the aftermath of a global pandemic, the manufacturing sector in Bangladesh has grown more competitive due to the entry of such brands. Additionally, Bangladeshi exporters and manufacturers have developed first-rate vertical capabilities that, until recently, were only available from China, which aids multinational brands in ensuring better cooperation and accountability in their distribution networks.

Infrastructure

Bangladesh has been making significant improvements to its infrastructure to make doing business easier for exporters. The nation places a strong emphasis on improving its ports, electrical supplies, and highways. To make it easier for the transportation of cargo, the nation’s government is constructing a floating port at the outer harbour of the Chittagong Port. They are also pushing for the creation of more inland container depots (ICDs). Local exporters will benefit from time savings in addition to avoiding traffic and accelerating deliveries. 

Moreover, efforts are being made to expand the Chittagong Port’s capacity, which handles 90% of all shipments of clothing products leaving the nation. According to reports, the nation is also collaborating with nations like China and others to build a single lengthy route that will connect all of Southeast Asia to Dhaka. There are also plans for overhead highways. In addition to this, Bangladesh is concentrating on improving its water transportation infrastructure.

Development of Industrial Zones

As much as Bangladesh is inclined to offer investment from abroad, a multitude of investment prospects are coming out of the fresh tract that the government has opened up for ‘industrialisation’. By the year 2030, BEZA plans to have 100 Public and Private Economic Zones (EZs) across the nation, the bulk of which will be home to companies producing clothing. An interesting point is that factory manufacturing has already started in a lot of private economic zones. Incentives for investors include tax exemptions on capital gains from the shares being transferred as well as duty-free importation of raw resources, foreign loans that comply with the law, foreign currency deposits, and a host of other advantages for both domestic and joint venture industries.

Bangladesh has a lot of room for expansion, particularly in the industrial industry. The region benefits from duty-free shopping, decent working conditions, rapid technical advancement, and ready consumers in industrialised nations. Bangladesh’s role in the global supply chain has significantly changed as a result of the pandemic. Bangladesh still has a lot of promise as a manufacturing hub, despite the huge shifts in the sector that have occurred across the globe.

Summary

The world’s second-largest exporter of garments after China, Bangladesh is home to a number of well-known fashion labels. Due to Bangladesh’s current status as one of the most searched garment manufacturing hubs, western clothing brand owners and merchants are increasingly focusing on Asia as their main customer market. Bangladesh is going to stabilise this business for fashion goods with rising productivity, improved infrastructure, increasing utilisation technology, competence in contractors, high labour safety, etc.

To make the apparel sector safer and more lucrative, Bangladeshi manufacturers are increasingly focusing on increasing internal efficiency through the use of new technologies, new sourcing techniques, and higher safety regulations. The accessibility of qualified labour, lower-cost utility services, the ease of duty-free custom bonded warehouses, enhanced GSP benefits under regional cumulative, more straightforward tariff restrictions, conformance with global standards on social compliance requirements, an easily available infrastructure, and many other factors are additional factors driving top retailers’ interest in Bangladeshi clothing. Ultimately, Bangladesh is a lucrative location for sourcing garments and the manufacturing sector is showing promise of positive expansion.

Frequently Asked Questions (FAQs)

What is the main reason for buying clothing in Bangladesh?

As a result of the low cost of production, retail companies travel to the nation to find producers.

How much money is made in Bangladesh’s apparel industry annually?

More than $22 billion in sales are produced annually in Bangladesh’s garment industry.

What position does Bangladesh’s apparel industry hold in the global economy?

Bangladesh is the world’s second-largest exporter of ready-made garments with 700 plus clothing manufacturers.

Why use Bangladesh as a source of clothing?

Bangladesh is a sought-after area for clothing sourcing due to the elevated safety, better pay, affordable sourcing possibilities, high-quality apparel, compliance, and the Covid recovery circumstance.