Government incentives: The Bangladeshi government offers a number of incentives to foreign clothing companies, including tax breaks, duty-free imports of raw materials, and access to low-cost land. These incentives have helped to make Bangladesh a more attractive destination for clothing manufacturers.
Infrastructure: Bangladesh has a well-developed infrastructure that supports the garment industry, including a network of roads, railways, and ports. This makes it easy for clothing companies to transport their products to market.
Skill: Bangladeshi workers are highly skilled in the garment industry, having developed a specialized skillset over decades of experience in producing clothing.
Quotas:Until 2005, the international Multi-Fibre Arrangement restricted clothing exports from developing countries like Bangladesh. Once these restrictions were lifted, Bangladesh rapidly increased its share of the global garment market.
Currency devaluation: The Bangladeshi taka has depreciated significantly in recent years, making it cheaper for foreign clothing companies to buy goods from Bangladesh.
As a result of these factors, Bangladesh has become a major hub for the global clothing industry. The country is estimated to export over $30 billion worth of clothing each year, and it employs over 4 million people in the garment sector.
