In the complicated drapery of international trade and commerce, few stories rival the remarkable journey of Bangladesh’s Ready-Made Garments (RMG) sector. Over the last century, the textile and apparel revolution has reshaped the economic destinies of nations, and Bangladesh has emerged not just as a participant but as a major protagonist in this narrative. Despite facing myriad challenges, both domestic and international, the RMG sector in Bangladesh stands tall as the second-largest apparel exporter, a testament to its resilience, adaptability, and sustained triumphs.
The course of Bangladesh’s RMG sector has been marked by challenges that would have daunted less determined players. The Multi-Fibre Arrangements (MFA) imposed by the USA and Europe to restrict exports posed a significant hurdle. The phasing out of the MFA in 2005 through the Agreement on Textiles and Clothing (ATC) opened the floodgates to global competition. Skepticism about Bangladesh’s ability to compete was widespread, yet the nation not only weathered the storm but emerged as the top gainer in the post-MFA era.
The post-MFA era was a critical juncture, exposing Bangladesh to unprecedented global competition. Despite initial doubts about its competitiveness due to poor infrastructure and backward linkage industry, Bangladesh defied expectations. From 1990 to 2008, it climbed the ranks to become the seventh-largest apparel supplier globally, outpacing even industry giants like China and Vietnam.
Several factors contributed to this monumental success. Bangladesh’s RMG industry-maintained price competitiveness globally, capitalizing on duty-free and quota-free access to key markets such as the US, Europe, Australia, and Japan. The government’s strategic investments in infrastructure, coupled with policy measures like bonded warehouse facilities and duty drawback incentives, created an environment conducive to industry growth. The combination of lower international prices, a cost-effective labor force, and effective policy measures enabled the garment industry to navigate through turbulent times in the global economy.
As the winds of the 5th industrial revolution began to blow, Bangladesh’s RMG sector didn’t merely weather the storm; it embraced it. Technological advancements became the catalyst for enhanced productivity and global competitiveness. Business intelligence tools, 3D designs, automation, and blockchain technology found their way into the sector, transforming traditional practices.
Nanobubble technology, a groundbreaking innovation, was introduced in dyeing processes to significantly reduce water waste, addressing environmental concerns. The industry’s adoption of blockchain technology not only streamlined supply chain processes but also enhanced traceability, fostering responsible sourcing practices. Hazardous practices in denim finishing were replaced by laser technology, prioritizing the safety and well-being of workers. The sector’s ability to adapt to new technologies not only ensured its survival but positioned it as a leader in sustainable and responsible manufacturing practices.
In the wake of the tragic Rana Plaza incident in 2013, the RMG sector in Bangladesh underwent a seismic shift towards sustainability. Over the last decade, the country has transformed into a global hub for green manufacturing. A staggering 200 factories are now LEED certified by the United States Green Building Council (USGBC), with 13 out of the top 15 LEED green factories worldwide located in Bangladesh.
Sustainability, which now accounts for 83% of total export revenue, has become a cornerstone of the industry’s identity. Bangladesh has taken bold steps towards embracing green bonds, funneling funds into environmental projects. With 73 platinum-graded LEED certified factories, the highest globally, the RMG sector in Bangladesh is poised to lead the charge in creating a sustainable industry, setting an example for others to follow.
The recent global pandemic tested the mettle of industries worldwide, and Bangladesh’s RMG sector emerged not only unscathed but as a significant contributor to the country’s economy. The sheer size and resilience of the sector were evident as it navigated the challenges posed by the pandemic with remarkable fortitude. The ability to adapt to changing circumstances, coupled with a commitment to the well-being of its workforce, allowed the sector to not just survive but thrive in the face of adversity.
The story of Bangladesh’s RMG sector is a saga of success, an odyssey marked by triumphs over adversity and a relentless pursuit of excellence. From historical challenges to technological innovations and a steadfast commitment to sustainability, the sector’s journey epitomizes the spirit of resilience and adaptability. As Bangladesh’s RMG sector continues to evolve, it stands not just as an economic powerhouse but as a global leader in responsible and sustainable apparel manufacturing. In an ever-changing world, the sector’s ability to navigate challenges and embrace opportunities positions it as a beacon of inspiration for industries worldwide, proving that true success is not just about survival but about thriving against all odds.
