Bangladesh’s ready-made garments industry remains one of the strongest pillars of the country’s economy. In 2026, the sector is facing both opportunities and challenges. On one side, apparel exports showed a strong rebound in April. On the other side, global demand pressure, energy shortages, higher freight costs, and buyer order reductions continue to create uncertainty for manufacturers.
According to Export Promotion Bureau data reported by BSS, Bangladesh’s total export earnings crossed $4 billion in April 2026, with apparel exports rising 31.21% year-on-year, from $2.39 billion in April 2025 to $3.14 billion in April 2026. During July–April of FY 2025–26, the apparel sector earned $31.72 billion, though this was still 2.82% lower than the same period of the previous fiscal year.
The industry is also seeing a shift in global market position. Bangladesh ranked second in garment exports to the United States during January–February 2026, overtaking China, while Vietnam held the top position. This shows Bangladesh’s continued competitiveness in the global apparel supply chain, even though US apparel imports declined overall during the period.
However, exporters are still under pressure. Reports indicate that Western buyers may reduce apparel orders by up to 10% because of unsold inventories and lower consumer demand. Local factories are also dealing with energy shortages, rising transport costs, higher raw material import expenses, and increased freight charges.
To support struggling businesses, Bangladesh Bank announced a 600 billion taka stimulus package in May 2026. The package aims to restart closed factories, support export-oriented industries, and create around 250,000 jobs, with garments identified as a priority sector because it accounts for more than 80% of Bangladesh’s export earnings.
Sustainability and innovation are also becoming major focus areas. BGMEA has recently highlighted the importance of sustainability, innovation, faster National Single Window implementation, worker health, and circular apparel industry collaboration for the future growth of the sector.
At the same time, worker welfare remains an important issue. The Fair Labor Association noted that Bangladesh’s garment sector minimum wage was updated to BDT 12,500 in December 2023, but also stated that wages still fall short of living wage estimates for Dhaka. This means future growth must balance export competitiveness with better wages, safer workplaces, and responsible buyer practices.