The first answer that comes to mind upon reading the headline is “cheap labor,” but there's much more to it than that. Bangladesh has always been at the top, alongside China, Vietnam, India, and Turkey, when it comes to outsourcing clothing manufacturing and sourcing. This success wouldn’t be possible without the dedication of the best apparel sourcing companies in Bangladesh, driving the industry forward.

Competing with such giants is a big deal. When you look at the GDP rankings by country according to Worldometer, China holds the second position right behind the U.S., India is in fifth place, and Turkey ranks 18th. Bangladesh, despite being in the 32nd position, remains neck and neck with these countries when it comes to garment exports.

So, how is Bangladesh competing so well in this cutthroat industry? Why is it still a top choice? Let's take a look at some of the reasons that might surprise you about this small but fierce country.

Cost-Effective Labor

High population density, lower cost of living, and other factors have lowered the average wages of workers from all industries in Bangladesh. The country offers necessities such as food, transportation, and housing at a comparatively lower price than the West. This allows them to have one of the most competitive labor costs in the world. Clothing manufacturers employ millions of workers and produce garments at lower prices without compromising on quality. This makes it highly attractive for buyers in the West seeking cost-effective sourcing for their clothing businesses. 

Highly Skilled Workforce

With all those years in the game, the workforce is bound to become highly specialized. Bangladesh’s garment workers' expertise and efficiency are unmatched anywhere. Over time, factories have become stricter, employing skilled professionals and training them in stitchwork, sourcing the right accessories and textiles, managing floor operations, and ensuring quality control so that all products meet international standards.

The craftsmanship and ability to quickly adapt to new technologies and machinery set this workforce apart from all others. Workers in this industry understand what "Made in Bangladesh" represents on a global scale and work hard to maintain that reputation, never letting anything stain their image.

Years of Experience 

Reaz Garments was established in 1960 as a small tailoring outfit shop named Reaz Store in Dhaka. It served domestic markets for about 15 years, and in 1973, it changed its name to Reaz Garments Ltd. and expanded its operations into the export market. On July 28, 1978, Reazuddin exported 10,000 pieces of clothing to the French buyer Holander France, a consignment worth 13 million French Francs. Thus, history was made.

In 1979, another milestone was set by Desh Garments Ltd., the first 100% export-oriented company. It was established as a joint venture with Daewoo of South Korea. From that moment forward, Bangladesh’s garment industry has been growing consistently. The number of factories in the RMG industry has quadrupled over the last three decades, and the industry is not looking back.

Range and Innovation

The garments industry in Bangladesh can produce high-end luxury garments as well as casual everyday wear. The industry has exported denim, woven, and knitwear products for decades and can meet the needs of any market. The country continues investing in technology and automation to maximize production and make logistics more efficient. Its focus on innovation without compromising quality is what makes it stand out in 2025.

Despite the lockdown and other political and economic turmoil, the garments industry has withstood challenges and come out on top thanks to its ability to not put all its eggs in one basket. Its robust infrastructure is becoming stronger with smart business decisions.

Large Production Capacity

Bangladesh has thousands of factories across the country dedicated to manufacturing and exporting clothes. The large production capacity and vertical integration allow them to create everything from raw materials to finished garments and handle orders of any size. As a result, production demands are easily met.

The country has developed its garment infrastructure by importing world-class machinery from abroad and improving cargo transportation, making it more convenient and cost-effective over the years. Now, they can export more quickly and efficiently, meeting tight deadlines.

Maintaining International Standards

Bangladesh's garment industry has taken strict measures and precautions after the Tazreen Fashions fire and the Rana Plaza collapse. These two incidents shook the industry to the core, leading to the implementation of regulatory measures to ensure that no disaster of that scale ever happens again. International labor, safety, and environmental standards are now imposed in all factories. Initiatives like Accord and Alliance for Worker Safety have improved factory working conditions over the years to ensure compliance at all levels of production.

Sustainability is also becoming a core value for many apparel sourcing companies in Bangladesh. Many factories are certified by LEED (Leadership in Energy and Environmental Design) and other globally recognized organizations. Across these facilities, eco-friendly practices are being adopted, including biological conservation, regulated production quotas, the use of sustainable materials, and water-saving techniques.

Conclusion

According to the Export Promotion Bureau, ready-made garment exports reached $38.48 billion in 2024, up from $35.89 billion in 2023 (EPB). This rise is a sign that the RMG industry in Bangladesh is showing no signs of slowing down.

Businesses seeking to partner with an apparel sourcing company in 2025 must look to Bangladesh to enjoy competitive pricing on bulk orders. Some factories have no MOQ, so small batches can also be made, which is perfect for smaller businesses. There's no fear of unethical practices or environmental destruction. Certified and compliant factories are available for long-term partnerships that benefit both the manufacturers in Bangladesh and importers abroad.