Case 24: Overview of Sunghwa Moolsan's Custom OEM Partner Search
Sunghwa Moolsan, a Korean consumer and industrial goods company, asked KOTRA Dhaka to identify suitable OEM partners in Bangladesh. Bangladesh is the world's second-largest garment exporter and already has strong OEM capabilities in apparel and textiles. In recent years, its contract manufacturing base has also expanded quickly into non-apparel segments such as leather goods, bags, footwear, and household products. With labor costs roughly 30% to 50% lower than in China or Vietnam, the country is increasingly attractive for Korean companies seeking lower manufacturing costs through outsourced production.
Bangladesh's OEM Manufacturing Environment
Bangladesh's OEM ecosystem developed first around ready-made garments and now includes more than 4,500 apparel factories. That capability is gradually spreading into adjacent sectors, including bags, shoes, leather goods, household items, and light industrial products. The minimum monthly wage of about USD 113 in 2025 remains one of the lowest labor-cost benchmarks in Asia, making wage competitiveness a core part of the country's manufacturing appeal.
| OEM Segment | Factory Count | Exports | Labor Cost Level | Use by Korean Firms |
|---|---|---|---|---|
| Apparel (RMG) | 4,500+ | $38B | From $113/month | High (widely used) |
| Leather and Bags | 300+ | $1.2B | From $110/month | Medium (growing) |
| Footwear | 200+ | $800M | From $110/month | Low (opportunity area) |
| Household Goods | 150+ | $300M | From $105/month | Low (needs market development) |
| Light Industry and Plastics | 500+ | $500M | From $100/month | Medium (select users) |