As Bangladesh’s readymade garment (RMG) sector prepares for its graduation from least developed country (LDC) status in 2026, industry leaders anticipate compliance and sustainability demands from international buyers to become the primary challenges in 2025. Entrepreneurs highlight the need for significant investments to meet stricter eco-friendly production and ethical labor standards.
Former BGMEA Vice President Abdullah Hil Rakib noted ongoing labour unrests and energy supply issues as critical concerns, urging the Government to ensure stability and improve the business environment. He expressed optimism for growth, citing a potential shift of business from China and recovery in developed markets.
The RMG industry faced a tumultuous 2024, marked by a 60 per cent reduction in export incentives and rising production costs, which led to factory closures and job losses. With over 4 million workers engaged in the sector, experts warn that increased competition from emerging markets and evolving compliance requirements could threaten Bangladesh’s market share.
Industry leaders call for Government support, emphasising the need for energy security, banking stability, and streamlined regulatory processes to navigate the challenges ahead.
