SWOT Analysis of Textile Industry in Bangladesh

The textile and clothing industries provide the single source of growth in Bangladesh’s rapidly developing economy. The market-based economy of Bangladesh is the 42nd largest in the world in nominal terms, and 31st largest by purchasing power parity; it is classified among the Next Eleven emerging market middle income economies and a Frontier market. According to the IMF, Bangladesh's economy is the second fastest growing major economy of 2016, with a rate of 7.1%. Dhaka and Chittagong are the principal financial centers of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange. The financial sector of Bangladesh is the second largest in the subcontinent.

swot of Textile industry of Bangladesh
Fig: Textile industry of Bangladesh
SWOT Analysis of Textile Industry in Bangladesh:

  1. Low labor cost.
  2. Energy at comparatively lower price.
  3. Easily accessible infrastructure like Highway, Railway, River and sea, Air communication.
  4. Wide range port facilities.
  5. FDI is legally permitted.
  6. Accessibility of fundamental infrastructure. This is about three decade old. Mainly established by Korean, Taiwanese, and Hong Kong Chinese industrialists.
  7. Moderately open economy, practically in the Export Promotion Zones.
  8. GSP under EBA (Everything but Arms) least developed country applicable (Duty free to EU).
  9. Improved GSP advantages under Regional Cumulative.
  10. Looking forward to duty free excess to US. Talks are on, and appear to be on hopeful track.
  11. Investment assured under foreign private investment (Promotion and Protection) Act. 1980 which secures all foreign investments in Bangladesh.
  12. OPIC’s (Overseas Private Investment Corporation, USA) insurance and finance agendas operable.
  13. Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which protection and safety measures are available.
  14. Adjudication service of the International Centre for settlement of investment Dispute (ICSID) offered.
  15. Excellent Tele-communication network.
  16. Bank interest rate single digit for financing exports.
  17. Convenience of duty free custom bonded warehouse.
  1. Long lead time.
  2. Lack of marketing tactics
  3. The country is deficient in creatively
  4. Absence of easily on-hand middle management
  5. A small number of manufacturing methods
  6. Low acquiescence: there is an international pressure group to compel the local producers and the government to implement social acquiescence. The US GSP may be cancelled and purchasing from US & EU may decrease significantly.
  7. The machinery required to assess add on a garment or increase competence are missing in most industries
  8. Lack of training organizations for industrials workers supervisor and managers.
  9. Autocratic approach of nearly all the investors.
  10. Fewer process units for textiles and garments.
  11. Sluggish backward or forward blending procedure.
  12. Incompetent posts. Entry/exit complicated and loading/unloading takes much time.
  13. Speed money culture.
  14. Time consuming custom clearance.
  15. Unreliable dependability regarding delivery/QA/product knowledge.
  16. Communication gap created by incomplete knowledge of English.
  17. Subject to natural calamities.
  1. EU is willing to establish industry in a big way as an option to china particularly for knit, including sweaters.
  2. Bangladesh is included in the least developed countries with which US is committed to enhance export trade.
  3. If skilled technicians are available to instruct, prearranged garment is an option because labor and energy cost are inexpensive.
  4. Foundation garments for ladies for better competence and output.
  5. Japan to be observed, as conventionally they purchase handloom textiles. Home furniture and garments. This section can be encouraged and expanded with continued progress in quality.
  6. Chittagong port is going to be handed over to the foreign operator, which will make the port’s service much faster , it will also reduce lead time as well as total cost will be decreased. 77
  7. Bangladesh is going to gain its political stability, which will make foreign trade much smoother and will foreign buyers will be more convinced.
  1. China is a most likely the biggest threat for Bangladesh as this country has relatively high labor productivity and applies more capital intensive modern technology and it has less lead time because of its relative advantages in getting locally available raw materials like fabrics, various RMG accessories.
  2. China has also relatively better infrastructural facilities like energy supply, transportation and communication system.
  3. Some African and Caribbean countries have enjoyed Zero-tariff facility under AOA act. (Agreement on Agriculture) that helps them to be more competitive relative to Bangladesh.
Bangladesh is a developing country which in the recent past has been experiencing better development growth. In the textile sectors Bangladesh made spectacular progress. Soon after liberation of Bangladesh former infamous foreign minister of USA Henry Kissinger labeled Bangladesh as ‘international basket case.’ But today it is proved that we are not ‘basket case’. Bangladesh made very well in achieving millennium development goals, we meet almost all of the goals of MGD. If democracy continues and we can sustain our growth, within very short time we will emerge as a developed country.


  1. https://www.slideshare.net
  2. https://www.wikipedia.org
  3. https://www.investopedia.com
Author of This Article: 

Md. Saidur Rahman,
B.Sc Engineer (Textile) PAU,
PGD in Textile Management BUTex, MBA (HRM & MIS) JnU,
Sr. Manager (Production), SIM Fabrics Ltd. Sister Concern of SIM Group.
E-mail: saidur_2000@yahoo.com

Sharing Knowledge: Students, teachers and professionals can publish your article here. It is a platform to express your knowledge throughout the world. For details: Submit Article


Mazharul Islam Kiron is a textile consultant and researcher on online business promotion. He is working with one European textile machinery company as a country agent. He is also a contributor of Wikipedia.

Let's Get Connected: LinkedIn | Facebook | Email: textilelearners@gmail.com

Back To Top