Bangladesh is already a beneficiary of the supply chain shift away from China. It now wants a bigger slice of the pie.
Even before the COVID-19 lockdowns crippled China’s manufacturing sector, Bangladesh has been a rising star in the garment manufacturing sector.
Bangladesh’s rise was primary due to rising labor costs in China pre-dating Trump’s presidency.
The cost difference is large — the average monthly salary of a worker in Bangladesh is $120 or less than one-fifth the $670 a factory worker takes home in the South China manufacturing hub of Guangzhou, Mostafiz Uddin, the owner of Bangladeshi apparel manufacturer Denim Expert, told Insider.
“Moreover, rising material costs is pushing apparel companies to look for alternative destinations like Bangladesh where production prices are comparatively low,” Uddin said.
Despite a high profile building collapse that killed at least 1,132 people in April 2013 and dented Bangladesh work safety reputation, its garment manufacturing industry is a key pillar of Bangladesh’s economy, accounting for nearly 85% of shipments or over $42 billion of the country’s exports in 2021. The country is also the world’s second-largest garments exporter, after China.
Bangladesh is now working to attracting investments beyond the garment sector, and is working to attract more investments into other sectors including pharmaceuticals and agriculture processing.
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