Bangladesh RMG Export Industry Overview in 2020
Bangladesh's ready-made garment (RMG) sector is a core pillar of the economy, accounting for 11% of GDP and 84% of total exports. In 2020, global apparel demand fell sharply during the COVID-19 pandemic, and RMG exports fell to about $27.5B, down 17% year-on-year. From the second half of the year, however, exports rebounded quickly and the country confirmed its role again as a major global apparel base.
$27.5B
Export Value
FY2020
-17%
Growth Rate
YoY
4,500+
Factories
BGMEA-registered
4.0M
Employment
Women 80%
2nd
Global Rank
After China
$820M
Korean Imports
Apparel imports
Export Structure and Main Markets
Top Bangladesh RMG Export Destinations (2020)
| Market | Export Value | Share | YoY | Core Products |
|---|---|---|---|---|
| EU | $13B | 47% | -19% | T-shirts, knits |
| United States | $5.2B | 19% | -15% | Trousers, shirts |
| United Kingdom | $2.8B | 10% | -18% | Knitwear |
| Canada | $1.2B | 4% | -12% | Casual wear |
| Japan | $1.0B | 4% | -8% | Uniforms, innerwear |
| South Korea | $0.82B | 3% | -5% | Knits, jersey |
| Australia | $0.6B | 2% | -20% | Outdoor basics |
| India | $0.4B | 1% | -25% | Fast fashion |
RMG Value Chain and Korea's Position
RMG Value Chain
YarnImported from Korea, China, India
Fabrics60% local + imported
AssemblyBangladesh (core)
Final GoodsExported to EU and US
Korean Role in RMG Supply Chain
Synthetic Fiber$150M export
Fabric$80M export
Dyes and Finishing$30M export
Sewing Equipment$20M export
01
COVID Shock and Recovery
During March–May 2020, Bangladesh RMG suppliers experienced about $3.0B in order cancellations and delays. Around one million of the 4.0 million workers were temporarily laid off, and more than 1,000 small factories closed. After easing restrictions from June, exports rebounded, and second-half shipments rose 15% year-on-year.
02
Why Bangladesh Is Competitive
Bangladesh's RMG competitiveness is built on (1) the lowest labor cost at around $95 per month versus China at $350 and Vietnam at $200, (2) duty-free access to the EU through EBA until 2026 LDC graduation, (3) 4 million experienced workers, and (4) a vertically integrated chain from yarn to apparel. Major risks remain: low value addition, limited branding, and social risks such as workplace safety and labor issues.
03
Raw-Material Export Opportunities for Korean Firms
The industry imports about $8.0B in raw materials and intermediates annually. Korea is especially relevant in synthetic fibers (HS54, $150M), synthetic resins (HS39), and dyes (HS32). Higher-value openings lie in performance fabrics for sportswear/outdoor use, moisture-management functional textiles, UV-protective materials, and digital printing technologies.
04
Post-2020 Outlook
After 2020, three trends stand out: (1) global supply-chain reconfiguration under China+1, allowing Bangladesh to maintain momentum, (2) rising ESG requirements from global buyers, pushing LEED-class green factory upgrades, (3) upgrading toward higher-value products such as performance and sportswear, (4) accelerated digitalization through CAD/CAM, automated cutting, and ERP, and (5) preparation for loss of EU preference as LDC graduation approaches, with CEPA-style arrangements increasingly on the agenda.
RMG Export Trend
2018
$30.5B (+11%)
→↓
2019
$33.2B (+9%)
→↓
First Half 2020
-$3.0B (COVID shock)
→↓
Second Half 2020
+15% recovery
→↓
All of 2020
$27.5B (-17%)
→↓
2021 Forecast
$32.0B rebound
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Despite the COVID-19 shock, Bangladesh's RMG industry preserved a $27.5B annual export level and retained a top global ranking in 2020. Korea can play a stronger role as a strategic upstream supplier—especially in synthetic fibers, fabrics, dyes, and digital production technologies—as the country continues structural upgrading from cut-and-sew to higher-value sourcing and manufacturing.
GarmentRMGExportBangladeshTextile
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