Bangladesh RMG Productivity vs Other Asian Countries

In the high-stakes world of global garment manufacturing, productivity is king. For Bangladesh—the second-largest exporter of ready-made garments (RMG) globally—competing effectively means not just producing more, but doing it smarter and faster. As markets shift toward agile and sustainable production, understanding RMG productivity Bangladesh relative to other Asian countries like Vietnam, India, and Cambodia is crucial for growth, policy reform, and strategic investment.

RMG Productivity Bangladesh: A Comparative Snapshot

Productivity in RMG is typically measured by output per worker per hour, efficiency rates, and turnaround times. Bangladesh has made remarkable progress over the past decade, but still lags behind some Asian counterparts in overall efficiency.

According to data from the International Labour Organization (ILO) and BGMEA:

• Bangladesh’s average labor productivity in RMG stands at around 40%–45%.
• Vietnam, by comparison, exceeds 60% in many factories, aided by higher automation and technical training.
• India shows diverse productivity levels, with export-focused clusters like Tiruppur and Noida reaching 55%–60% on average.
• Cambodia has productivity similar to Bangladesh, but benefits from smaller, more flexible production runs.

Bangladesh excels in cost competitiveness, scale, and delivery volume. However, lower productivity per worker means longer lead times and reduced agility—key drawbacks in a fast-moving fashion market.

Factors Affecting Productivity in Bangladesh’s RMG Sector

Multiple factors influence the productivity performance of Bangladesh’s RMG factories:

• Skill Levels: Many operators lack formal technical training, resulting in inconsistent quality and slower production cycles.
• Technology Adoption: Automation and digital tools are still limited to larger factories. Many SMEs rely heavily on manual processes.
• Line Management: Inefficient workflow design and lack of data-driven production planning reduce overall line efficiency.
• Worker Welfare: Poor working conditions, excessive overtime, and inadequate rest negatively impact focus and output.
• Compliance Overload: Frequent audits and shifting buyer requirements divert resources from productivity-enhancing investments.

Addressing these root causes is critical to achieving parity with higher-performing nations like Vietnam or Indonesia.

How Other Asian Countries Boost RMG Productivity

Countries like Vietnam and China have achieved higher productivity by investing heavily in:

• Technical Education: Training centers, vocational institutes, and partnerships with universities produce a skilled workforce.
• Lean Manufacturing: Adoption of lean tools, such as 5S, Kanban, and value stream mapping, improves efficiency and reduces waste.
• Automation: Widespread use of automated cutting, sewing, and finishing equipment enhances output and quality.
• Cluster Development: Specialized industrial parks with shared logistics, training, and compliance support enable economies of scale.

Bangladesh has started to follow suit with new industrial zones like the BEPZA Economic Zone and the World Bank-backed Competitiveness Improvement Project. These aim to introduce technology, training, and sustainable infrastructure to lift productivity benchmarks.

Steps Bangladesh Can Take to Close the Productivity Gap

Improving RMG productivity in Bangladesh requires a coordinated effort across stakeholders:

• Upskilling Programs: Expand initiatives like the National Skills Development Authority (NSDA) and SEIP to train workers and mid-level managers in modern production practices.
• Digital Factory Management: Encourage adoption of ERP, MES (Manufacturing Execution Systems), and real-time dashboards to track efficiency metrics.
• Worker Wellbeing: Invest in healthcare, rest areas, and safe working conditions to improve focus and reduce absenteeism.
• Incentives for Automation: Offer tax breaks or low-interest loans to SMEs investing in productivity-enhancing technologies.
• Research & Benchmarking: Collaborate with industry think tanks to track performance and share best practices across factories.

Buyer support is also essential. Brands must recognize that long-term partnerships and shared investments in capacity building yield better productivity and quality outcomes.

Wikipedia offers background on Bangladesh’s textile and RMG journey.

Improving RMG productivity Bangladesh is a strategic imperative—not just to compete with other Asian exporters, but to ensure sustainable growth for millions who power this critical industry.

FAQs

How does Bangladesh’s RMG productivity compare to Vietnam or India?

Bangladesh’s productivity is lower, averaging 40%–45%, compared to 60%+ in Vietnam and 55%–60% in key Indian regions.

What factors reduce productivity in Bangladeshi factories?

Skill gaps, lack of automation, inefficient line setups, and poor worker welfare are key limiting factors.

Can small factories improve productivity too?

Yes, with training, lean tools, and basic digital solutions, SMEs can significantly enhance output without major capital investment.

Do buyers support productivity improvements?

Many global buyers now co-invest in factory upgrades and skill-building to ensure sustainable sourcing.

What role does technology play in boosting productivity?

Automation, ERP systems, and production analytics help optimize workflow, reduce waste, and increase throughput.