The Readymade garments (RMG) sector in Bangladesh is a remarkable testament to resilience, innovation, and economic transformation. Over the past five decades, the industry has evolved from a humble beginning to becoming a global powerhouse, significantly shaping the nation’s economic and social landscape. Today, Bangladesh stands as the second-largest exporter of garments worldwide, and the RMG sector continues to be a cornerstone of its development. Since a very early era of Bangladesh's birth, the ready-made garments sector was constructed in a remarkable way. However, throughout the era, it had prominent evaluation, and through time, the progress of the Bangladeshi RMG sector reached a significant level.
To evaluate the rise of the Bangladeshi ready-made garments sector, first of all, we have to start from the very beginning, which is laying out the foundation in the 1970s. The main industrial sector in East Pakistan (now Bangladesh) was mostly concentrated on jute in the 1970s, with minimal involvement in textiles and clothing. With an agrarian economy, the newly created Bangladesh faced an economic crisis after gaining independence in 1971. The RMG sector officially began in the late 1970s when Desh Garments, along with Daewoo of South Korea, brought improved production techniques, worker training, and technology into Bangladesh by training a number of Bangladeshi persons in Korea.
In the 1980s, the time was about building or creating the outline of the plan for gradual growth of the sector. Nonetheless, due to the Multi-Fibre Arrangement (MFA), which gave export quotas to developing nations, there was slow growth in the 1980s. But because of the MFA, and being allocated quotas, Bangladesh was able to make a name for itself in international markets, especially in North America. The value of clothing exports was $31.57 million by 1983. Low labor costs gave this new industry a competitive edge and drew in foreign buyers. Also, two key policy decisions, namely the back-to-back letter of credit and bonded warehouse facility, made many entrepreneurs go into the industry with relatively low start-up capital.
In the 1990s, there was a rapid expansion of the RMG sector. In the 1990s, Bangladesh's economy was anchored on the RMG sector, and exports of clothing accounted for 75% of overall export revenue. On a significant note, millions of women were empowered by the industry, which changed societal conventions and advanced gender equality. As demand increased, Bangladesh increased its global presence by taking advantage of the MFA quota system.
Following this, in the 2000s, the MFA expiration in 2005 sparked concerns about losing market share to bigger producers like China and India. But Bangladesh adjusted by increasing output, broadening its range of products, and following global labor laws. During this adaptation and diversification era, the industry strengthened its position in international markets by branching out into higher-value goods like suits and jeans, which led Bangladesh into a self-dependent zone in terms of individuality and quality.
Since then, Bangladesh's RMG sector has faced challenges and undergone many reforms. The most tragic incidents for the RMG sector were the Rana Plaza collapse and the Tazreen Fashion fire. These events highlighted unsafe working conditions to the world. Consequently, they sparked critical reforms. The Alliance for Bangladesh Worker Safety and the Accord on Fire and Building Safety are two initiatives that have significantly improved worker safety and factory compliance standards. Despite these obstacles, Bangladesh rose to prominence in environmentally friendly clothing production, with some of its factories being named among the greenest in the world.
After overcoming versatile challenges, adaptation, and diversification, the 2020s posed a new challenge for Bangladesh—the global pandemic. The COVID-19 epidemic caused short-term setbacks by disrupting global supply networks. Nevertheless, the RMG industry showed incredible resilience, rebounding by the end of 2020. It employed about 4 million people, mostly women, and contributed 80% of Bangladesh's export revenue by 2021. The sector prioritized sustainability, adopting water-efficient processes, circular fashion, automation, and exploring new markets.
Today, Bangladesh remains the second-largest garment exporter globally. Its RMG sector is recognized for embracing eco-friendly practices and green manufacturing, with many factories achieving international certifications. While challenges persist, including rising labor costs and competition from emerging markets like Vietnam and Ethiopia, the sector's focus on diversification, innovation, and ethical practices positions it for sustained growth.
The path of Bangladesh's RMG sector is a tale of determination and advancement. From its early start in the 1970s to its present status as a worldwide leader, the industry has not only fueled economic expansion but also encouraged social change. As it progresses, the RMG industry remains crucial to Bangladesh's growth, aiming for enhanced sustainability, worker well-being, and international competitiveness. Its journey serves as a motivator, demonstrating how an emerging country can gain recognition worldwide through thoughtful innovation and resolve.
