Recent reports published in several national newspapers have painted a deeply concerning picture of Bangladesh's readymade garment (RMG) industry, the country's main driver of economic growth.
According to data from the World Trade Organization (WTO), Bangladesh has long held the position of the world's second-largest garment exporter. However, that hard-earned status is now under serious threat.
During the 2025–26 fiscal year, Bangladesh's RMG exports declined to $38.70 billion, while its closest competitor, Vietnam, surpassed $44 billion in exports and has set a target of $47–48 billion for the current year.
It is not only Vietnam that is strengthening its position in the global apparel market; countries such as India, Cambodia, Indonesia, and Pakistan are also steadily expanding their market share.
The root causes of Bangladesh's decline are largely domestic and structural. Newspaper reports indicate that more than 500 factories have permanently shut down over the past two years. Severe shortages of gas and electricity have drastically reduced industrial production capacity.
As a result, nearly 150,000 workers in the garment sector alone have lost their jobs. This rising unemployment poses a significant threat to both social and economic stability. Export earnings remained negative in 10 of the 12 months of the recently concluded fiscal year.
Overall merchandise exports have declined, while new export orders have fallen alarmingly. According to the Bangladesh Bureau of Statistics (BBS), industrial growth has slowed to just 2.86%, dragging down overall GDP growth.
To rescue the country's leading export sector from this severe crisis, the government must adopt a series of bold and effective measures.
First, ensuring an adequate and uninterrupted supply of gas and electricity is essential to keeping factories operational. If necessary, the government should facilitate imports of alternative energy sources.
Second, the approximately 150,000 displaced workers must be rehabilitated, while ensuring that existing workers receive their outstanding wages and benefits. Maintaining law and order and industrial stability through constructive dialogue between employers and workers should be one of the government's top priorities.
Third, special financial support packages should be introduced to help struggling factories survive. These should include lower bank lending rates, loan restructuring facilities, and tax incentives.
Fourth, Bangladesh must intensify its diplomatic efforts to retain its share of the global apparel market and attract new export orders. In particular, negotiations with key trading partners should be accelerated to preserve duty-free market access.
Fifth, logistics capacity at Chattogram Port, as well as at land and air ports across the country, must be strengthened to prevent delays in cargo handling and shipment. Customs clearance procedures for imported raw materials should also be simplified and made free from corruption.
In addition to these measures, several longer-term reforms deserve serious consideration. Bangladesh should reduce its heavy dependence on cotton-based garments by expanding the production and export of synthetic or non-cotton apparel.
It should also diversify its export destinations instead of relying primarily on the United States and European markets, with greater emphasis on emerging markets in Asia, Latin America, and the Middle East.
At the same time, maintaining international buyers' confidence will require ensuring factory safety, fair wages, and workers' trade union rights. Greater investment in worker training and technology-driven production, including automation, can also help reduce waste and improve productivity.
It is important to remember that the ready-made garment industry is not merely a source of foreign exchange earnings. It supports the livelihoods of millions of people and has played a transformative role in women's economic empowerment in Bangladesh.
If this industry is allowed to deteriorate, the country's broader economy could collapse like a house of cards. Therefore, it is imperative that the government acts without delay, adopting far-sighted and decisive policies to overcome the crisis and safeguard the future of Bangladesh's most vital export sector.
