The ready-made garment industry is the backbone of Bangladesh's economy. It accounts for nearly 85% of the country's total export earnings. Yet the sector is now facing a range of challenges. In a rapidly changing global environment, the era of relying solely on 'cheap labour' to remain competitive is drawing to a close. Bangladesh's graduation from the Least Developed Country (LDC) category in 2026, rising minimum wages for workers and global inflation have added new pressures on the industry.
In the age of the Fourth Industrial Revolution, green factories, robotics, artificial intelligence and AI-driven quality-control systems are no longer luxuries. They are becoming essential to the survival and competitiveness of the industry.
If Bangladesh is to retain its position in the global market, it must adopt a clear and strategic roadmap without delay. One of its most important components must be the expansion of green factories. Converting a conventional factory into a green or environmentally sustainable facility essentially requires compliance with internationally recognised Leadership in Energy and Environmental Design (LEED) standards as well as local environmental laws. The objectives are to conserve energy, reduce carbon emissions and ensure the sustainable use of natural resources.
Bangladesh will also need to implement several other targeted measures to remain competitive in the global market. Its existing workforce must be reskilled and upskilled. Through public-private partnerships (PPPs), specialised training institutes should be established to provide workers with training in robotics, digital pattern-making and the operation of automated machinery.
Bangladesh already has several world-class green factories. Their numbers must increase, with a phased plan to transform all factories into environmentally sustainable facilities. Where necessary, low-interest bank loans should be made available to help small and medium-sized factories make the transition to green manufacturing.
Global brands are increasingly demanding environmentally sustainable garments. Bangladesh should therefore seek to establish itself as a global hub for green manufacturing. Although building a green factory requires substantial initial investment, it can reduce electricity and water consumption by around 30 to 40% over the long term. This, in turn, can make manufacturers more competitive in the global market.
Rising labour costs, pressure on supply chains caused by geopolitical developments and the rapid advancement of artificial intelligence and robotic automation have created new challenges for the sector. At the same time, they have opened up new opportunities. To remain competitive, Bangladesh must move beyond a low-cost, labour-intensive model and transform its garment industry into a technology-driven and environmentally sustainable sector.
The country must also move beyond basic products such as T-shirts and trousers and enter higher-value segments of the market. Alongside cotton, greater emphasis should be placed on man-made fibres such as polyester, nylon and synthetic fabrics. Bangladesh should focus more on high-value products such as sportswear, technical textiles—including fire-resistant clothing and medical gowns—and winter jackets.
One of the biggest problems facing Bangladesh's garment industry today is the shortage of gas and electricity. Many factories have either been forced to shut down or reduce production because of power shortages. To overcome this crisis, the use of solar power must be expanded and factories should be encouraged to install solar panels. At the same time, 100% adoption of Zero Liquid Discharge and Effluent Treatment Plant (ETP) technologies should be ensured to conserve water. Textile waste and garment scraps should not simply be discarded or sold cheaply. They should be recycled into new yarn and fabric.
Another emerging global threat is the rise of robotics and automation. Developed countries are increasingly using automated robots to manufacture garments in locations closer to their major markets through 'near-shoring'. This is challenging the advantage Bangladesh has traditionally enjoyed from its established production base and global supply-chain position. The nature of fast fashion is also changing. Global brands are using artificial intelligence and big data to track rapidly changing fashion trends and respond to them more quickly.
The global market is placing increasing pressure on manufacturers to deliver products in the shortest possible time. Bangladesh must therefore accelerate the adoption of technology-driven machinery. The use of AI-powered 3D design and automated cutting machines should be expanded. This would minimise fabric waste while also allowing manufacturers to produce samples more quickly. Robotic arms and computer-vision technology should be introduced for complex stitching operations and precise quality checks. At the same time, Bangladesh must reduce its dependence on foreign designers by establishing internationally competitive design institutes and research and development centres within the country.
The entire production process—from the import of raw materials to shipment—should be brought under a data-driven supply-chain management system. The use of blockchain technology and Enterprise Resource Planning (ERP) software should be ensured to make this possible.
Greater automation, however, could result in job losses among conventional factory workers. This makes the creation of a skilled and technology-friendly workforce essential. Ordinary machine operators should be trained to operate automated machinery, use computer-aided design systems and carry out maintenance work.
Through a public-private initiative involving the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and government technical education institutions, nationwide 'RMG Skill Development Hubs' should be established.
The industry also needs a new generation of technically skilled managers. Bangladesh should reduce its dependence on foreign professionals in senior management and technical positions by developing qualified local graduates. This would help retain a substantial amount of money within the country that is currently spent on foreign professionals. While technological transformation may eliminate some traditional jobs, it will also create new, higher-income employment opportunities for skilled technicians, machine operators and other technology professionals.
Technological advancement improves product quality while reducing waste. Automation and sustainable transformation are not luxuries for Bangladesh's garment industry. They are central to its struggle for survival and competitiveness. If Bangladesh can move beyond its dependence on cheap labour and combine technological capability with environmental sustainability, it can further consolidate its position among the leading players in the global fashion industry over the coming decade.
'Made in Bangladesh' must be given a new identity in the eyes of the world. Bangladesh should no longer be seen simply as a 'low-cost producer', but as a country capable of producing garments that are safe, sustainable and of high quality. For Bangladesh to remain competitive in the global market, it must now transform itself from a low-cost garment manufacturing base into a technology-driven, environmentally sustainable and high-value apparel manufacturing hub.
Shoyeb Arefin is a columnist. Email: [email protected]
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of The Business Standard.