The Bangladesh Garment Industry Explained: Size, Exports, and How It Works

If you have ever checked the label inside a t-shirt, a pair of jeans, or a winter sweater, there is a good chance it said "Made in Bangladesh." The garments industry in Bangladesh is one of the largest apparel manufacturing bases on earth, and it sits behind a huge share of what the world wears.

This guide explains the sector in plain terms: how big it is, what it earns, why it matters to the economy, how it is structured between knit and woven production, and where the factories are. Every number here is tied to a named source and a year, so you can check it and see how current it is.

We are a Dhaka-based sourcing house, so we work inside this industry every day. If you want the short version before you read on: it is large, export-focused, and far more capable than its "cheap basics" reputation suggests.

How big is the garments industry in Bangladesh?

Bangladesh is the world's second-largest apparel exporter, behind China. According to World Trade Organization data for 2024 (reported by Apparel Resources in July 2025), Bangladesh exported apparel worth about 38.48 billion US dollars, giving it roughly a 6.90 percent share of the global apparel market. China led with about 165.24 billion dollars (29.64 percent), and Vietnam sat close behind Bangladesh at about 33.94 billion dollars.

Looking at Bangladesh's own fiscal-year figures, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reports ready-made garment (RMG) exports of about 39.35 billion dollars in FY2024-25, up from about 36.15 billion dollars in FY2023-24. ("RMG" is the standard industry term for factory-produced clothing.)

The sector is also large in human terms. BGMEA states the industry runs on roughly 4,600-plus factory units and engages about 4.1 million workers, the majority of them women. That makes it the country's biggest industrial employer.

Why the industry matters to Bangladesh's economy

Garments are not just one export among many in Bangladesh. They are the export.

• BGMEA's fiscal data shows RMG made up about 81 percent of the country's total export earnings in FY2024-25.
• BGMEA reports the sector contributes around 11.2 percent of national GDP and about 36 percent of manufacturing employment.

That concentration is a strength and a risk at the same time. It has powered decades of growth and lifted millions of women into paid work, but it also leaves the economy heavily dependent on one sector. We cover where the country goes from here in the future of Bangladesh manufacturing.

Knit vs woven: how production is structured

The industry splits into two broad production types, and understanding the difference helps you know what Bangladesh does best.

• Knit covers t-shirts, polos, sweatshirts, leggings, underwear, and jersey basics. The fabric is looped, stretchy, and often made in-house, which gives knit factories strong vertical integration.
• Woven covers shirts, trousers, denim, and outerwear. The fabric is interlaced on looms and is more often imported, which historically made woven a bit more import-dependent.

BGMEA's FY2024-25 breakdown shows knit exports of about 21.16 billion dollars and woven exports of about 18.19 billion dollars, so knitwear is now the larger of the two. Bangladesh is especially strong in high-volume knit basics and in denim, which is one reason so many global denim programs run here.

If you are deciding what to make where, our guides on why global brands manufacture here and how to source clothing from Bangladesh go deeper.

Where the factories are: the main hubs

Garment production clusters around a few areas, mostly near the capital and the main seaport.

• Dhaka and its surroundings (including Gazipur, Savar, and Ashulia) form the largest cluster, with a heavy concentration of knit and woven factories and the industry's head offices.
• Narayanganj, just south of Dhaka, is a long-standing textile and knit center.
• Chattogram (formerly Chittagong) anchors production in the southeast and is home to the country's main seaport, which handles the bulk of export shipments and several export processing zones.

This geography matters for planning. Most finished goods leave through Chattogram port, so lead times and freight both hinge on how smoothly that corridor runs. The concentration around Dhaka also means many factories, fabric mills, accessory makers, and washing and printing units sit close together, which shortens the supply chain and is part of why the country can turn large orders quickly.

How the industry grew to this scale

Bangladesh's garment industry took off in the early 1980s and expanded steadily into the giant it is today. The growth came from a mix of factors: a large, competitively priced workforce, decades of investment in knit and woven capacity, and preferential access to major markets under trade rules for developing economies. Over time the country built deep vertical integration in knitwear (spinning, knitting, dyeing, and sewing within the same groups) and a strong denim base. That accumulated capability, not just low labor cost, is what keeps global brands here.

What the industry is known for (and where it is growing)

Bangladesh built its reputation on high-volume, competitively priced production: basics, knitwear, and denim at scale. That is still the core. But the picture is broadening:

• Higher-value and technical products such as outerwear, lingerie, and activewear are a growing part of the mix.
• Sustainability has become a real differentiator, not just marketing. Bangladesh hosts the world's largest group of LEED-certified green garment factories.
• Compliance and safety improved substantially after the 2013 Rana Plaza disaster, through binding safety programs that inspected thousands of factories against common standards.

For a data-first look at export trends over time, see Bangladesh RMG export statistics and trends.

Frequently asked questions

Is Bangladesh the biggest garment exporter in the world?

No, it is the second-largest apparel exporter. According to WTO data for 2024 (reported by Apparel Resources in July 2025), China is first with about a 29.64 percent global share, and Bangladesh is second with about 6.90 percent.

How much does the garment industry contribute to Bangladesh's economy?

BGMEA reports the sector makes up about 81 percent of the country's export earnings (FY2024-25) and around 11.2 percent of GDP, and it is the largest industrial employer with roughly 4.1 million workers.

How many garment factories are in Bangladesh?

BGMEA states the industry runs on more than 4,600 factory units. The count changes over time as factories open, consolidate, or close, so treat it as an order of magnitude rather than a fixed number.

Does Bangladesh make knit or woven garments?

Both. BGMEA's FY2024-25 figures show knit exports of about 21.16 billion dollars and woven exports of about 18.19 billion dollars, with knitwear being the larger category. The country is particularly strong in knit basics and denim.

Where are most garment factories located?

The largest cluster is in and around Dhaka (Gazipur, Savar, Ashulia), with major centers in Narayanganj and Chattogram. Chattogram hosts the main seaport that handles most export shipments.

How we can help

Understanding the industry is one thing; sourcing from it well is another. We are a Dhaka-based sourcing and export house, and we connect international buyers with verified manufacturers here, then handle vetting, samples, quality control, export documents, customs, and freight, so you deal with one partner instead of a dozen. Whether you need knit basics, denim, or something more technical, we can point you to the right factory and manage the order end to end. Tell us what you need and we will map out how to make it in Bangladesh.