HomeTextileBangladesh RMG sector under pressure from rising costs, trade risks, and global...

Bangladesh RMG sector under pressure from rising costs, trade risks, and global disruptions

Bangladesh’s readymade garment (RMG) industry is facing intensifying pressure from global trade shifts, rising production costs, and geopolitical disruptions, industry leaders warned at the Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG) 2026.

Speakers highlighted risks from LDC graduation, urging swift progress on a free trade agreement (FTA) with the European Union to secure stable market access. They cautioned that new EU sustainability regulations will significantly increase compliance burdens on manufacturers, particularly smaller factories.

Ongoing Middle East tensions and supply chain disruptions are also expected to impact export orders, while high interest rates, energy insecurity, and dependence on imported raw materials continue to strain operations.

Industry experts stressed the need for structural reforms, improved infrastructure, and diversified financing options to maintain competitiveness. They also called for shared responsibility among buyers, government, and manufacturers to manage rising compliance and production costs.

The four-day expo featured around 900 exhibitors from 28 countries, showcasing innovations across the textile and apparel value chain.

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