A survey of Bangladesh’s ready-made garment (RMG) industry leaders reveals that the energy crisis is expected to be the biggest challenge in the next three years, especially as the country approaches its LDC graduation in November 2026. Currently, customs hassles and high utility costs are the most pressing issues. In the post-LDC period, concerns include low pricing from global fashion brands compared to competitors.
The survey, featured in the Economic Intelligence Bangladesh (EIB) publication, includes insights from 20 leading RMG enterprises employing 250,000 workers. The industry is focusing on adopting AI, automation, and environmental sustainability, with 220 factories earning LEED certification by June 2024.
Competition from Vietnam and India is a concern, particularly due to their shorter lead times and responsiveness to fashion trends. The EU due diligence law also poses challenges. To ensure future success, 60% of respondents advocate for tax breaks and subsidies for new technology adoption. Despite increasing automation, 55% of leaders believe that technology will not replace the need for labor.
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