Textile production in Bangladesh.

In the heart of Asia, nestled in the northeast of India lies Bangladesh, a country of 148,460 km² with fertile lands and vibrant hopes. With more than 171.2 million inhabitants, Bangladesh is a titan of textile production.

Overview of the textile industry in Bangladesh.

The textile manufacturing market in Bangladesh is competitive and moderately fragmented, with major players such as Ha-Meem Group, Beximco, and Square Textile Ltd. These companies are distinguished by strategies of product innovation, expansion and mergers and acquisitions.
In December 2022, the Asian Development Bank (ADB) provided a €10.8 million loan to Envoy textiles limited to finance energy-efficient spinning machines. This project aims to improve the sustainability of production and create local jobs, with a new spinning unit planned in Jamirdia, Bangladesh.
In March 2022, the American apparel and footwear association (AAFA) signed a memorandum of understanding with the Bangladesh Garment manufacturers and exporters association (BGMEA). This agreement aims to increase Bangladesh's access to the US market, improve purchasing practices and promote sustainability.
These initiatives demonstrate Bangladesh’s commitment to sustainable textile production and strengthen the economic prospects of the sector.

The textile industry of Bangladesh: A vital sector undergoing rapid change and economic expansion.

The textile and clothing sector in Bangladesh plays a central role in the country's economy, contributing over 13% of its gross domestic product (GDP) and generating over 84% of export earnings. This dynamic sector employs 4.4 million workers spread across around 4,500 factories, mainly located around Dhaka. Constant efforts to improve working conditions, particularly after the Rana Plaza tragedy, have led to significant increases in the minimum wage, which has increased by 381% since 2010 to reach 70 euros. However, in the face of inflation, the unions are currently demanding a further increase to 202 euros.
Bangladesh's textile industry is expanding, with an estimated market size of 19.04 billion in 2024, projected to reach 25.25 billion in 2024 by 2029. This growth, estimated at 5.81% per year, is fueled by massive investments, around 15 billion euros in 2024, in the primary textile sector. This sector meets the majority of local demand for yarns for knitted and woven clothing. In addition, ready-to-wear exports increased by 13.4% between July and September 2022, surpassing national targets and reaching 10.27 billion euros in 2024.

Challenges of the textile and clothing sector in Bangladesh.

Despite these successes, Bangladeshi exporters face challenges, including disruptions due to the ongoing war between Russia and Ukraine, affecting shipments and payments from Russia. However, as the world's second largest clothing exporter, Bangladesh continues to strengthen its position in the global market. Continuous improvement in infrastructure and working conditions, as well as investment in innovation and sustainability, positions Bangladesh as an undisputed leader in the textile sector, attracting the attention of investors and business partners to the 'international.

The Bangladeshi textile sector faces major challenges: environmental sustainability, working conditions, global competition, insufficient logistics infrastructure, compliance with international standards and access to global markets. These challenges require innovation and collaboration to ensure sustainable and competitive growth.