Bangladesh Garments Industry History: From Nothing to Global Power

In the heart of South Asia, where rivers flow endlessly and the monsoon skies paint vivid landscapes, Bangladesh has stitched together a story of resilience, transformation, and triumph. What was once a struggling economy dependent on jute and agriculture, has today become the second largest garment exporter in the world. The Bangladesh garments industry, born from sheer necessity and ambition, is not just an economic miracle but a human story — of determination, sweat, innovation, and global relevance.

How the Bangladesh Garments Industry Began

The Bangladesh garments industry began modestly in the late 1970s, following independence in 1971. Facing an economic void and high unemployment, entrepreneurs sought ways to tap into global demand for affordable apparel. The breakthrough came in 1978 with the establishment of Desh Garments in collaboration with South Korea’s Daewoo Corporation. This joint venture laid the foundation for knowledge transfer, training, and modern manufacturing practices that would empower thousands of Bangladeshi workers.

By the 1980s, the industry started to gain momentum. With low labor costs and a growing workforce, foreign buyers began to take interest. Export Processing Zones (EPZs) were developed to facilitate international trade, providing tax incentives and infrastructure to attract global brands.

The sector’s expansion was further accelerated by the Multi-Fiber Arrangement (MFA), a global trade policy that imposed quotas on textile exports from established countries, pushing buyers to source from emerging markets like Bangladesh. The result was an explosion in growth and a steady rise in exports throughout the 1990s and early 2000s.

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Evolution into a Global Apparel Powerhouse

Today, Bangladesh is a global apparel giant, second only to China in terms of garment exports. The growth of the Bangladesh garments industry has been powered by a combination of factors: an abundant labor force, policy support, international collaborations, and a focus on quality improvement.

As of 2024, the industry employs over 4 million workers, with more than 80% being women. This labor-intensive sector contributes nearly 84% to the country’s total exports and around 12% of its GDP. Major global brands — including H&M, Zara, Gap, Walmart, and Uniqlo — source heavily from Bangladesh, thanks to its competitive pricing and evolving sustainability practices.

Post-2013, after the Rana Plaza tragedy, the industry undertook significant reforms in factory safety and worker rights. Initiatives like the Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety brought about structural upgrades, better inspection standards, and enhanced transparency.

The introduction of green garment factories has further helped the nation stand out globally. As of now, Bangladesh hosts the highest number of LEED-certified green garment factories in the world, showcasing its commitment to sustainable manufacturing.

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Key Milestones in the Journey

1978: Foundation of Desh Garments

The first joint venture marks the beginning of modern apparel manufacturing in Bangladesh.

1983-1990: Export Boom

Due to MFA quota opportunities, Bangladesh’s apparel exports rise significantly.

2004: Post-MFA Adaptation

Despite the phase-out of the MFA, Bangladesh sustains growth through quality improvement and buyer confidence.

2013: Rana Plaza Tragedy

A dark chapter that led to transformative reforms in factory safety and compliance.

2020s: Green Revolution

Bangladesh emerges as a leader in sustainable garment manufacturing.

Economic Impact and Social Transformation

The Bangladesh garments industry has had a profound socio-economic impact. It has lifted millions out of poverty, empowered rural women by providing financial independence, and spurred urban development. Cities like Dhaka, Chattogram, and Gazipur have evolved into industrial hubs, attracting both domestic and foreign investment.

Despite challenges — such as rising production costs, global competition, and supply chain disruptions — the sector remains resilient. Digitization, automation, and upskilling initiatives are enabling the workforce to adapt and sustain competitiveness.

Challenges and Opportunities Ahead

While the Bangladesh garments industry has come a long way, it faces critical challenges. Issues like low wages, political instability, infrastructure bottlenecks, and environmental concerns continue to press. However, these also present opportunities for reform and innovation.

Strategies to enhance product diversification, increase value addition, and explore new markets in Africa, Latin America, and the Middle East are being explored. Continued focus on compliance, environmental standards, and digital integration will define the future trajectory of this vital industry.

FAQs

When did the Bangladesh garments industry start?

The industry began in the late 1970s, with Desh Garments being the first major factory established in collaboration with Daewoo Corporation.

Why is Bangladesh a leading garment exporter?

Bangladesh benefits from low labor costs, a large workforce, favorable trade policies, and global buyer trust built over decades of consistent quality and compliance.

What impact did the Rana Plaza collapse have?

The 2013 tragedy led to sweeping safety reforms, improved worker rights, and stricter compliance in the garment sector.

How many workers are employed in the industry?

As of 2024, more than 4 million people are employed in Bangladesh’s garment sector, with over 80% being women.

What are green garment factories in Bangladesh?

These are environmentally sustainable factories certified by LEED standards, and Bangladesh now has the highest number globally.