Bangladesh: Sourcing & Manufacturing

Costs, Production Timelines, Product Quality, Order Quantities, and Sourcing Strategies.

Bangladesh Manufacturing Summary

Bangladesh remains classified as a developing country with a land area roughly equivalent to the U.S. state of Iowa. Its manufacturing sector, led by the garment industry, has experienced one of the fastest rates of growth worldwide over the past decade, regularly achieving double digit annual export increases. Since 2010 the country has held the position of the world’s second largest apparel exporter, surpassed only by China.

Bangladesh stands out as a global leader in sustainable manufacturing, boasting more than 230 LEED-certified factories (the most widely used green building certification system in the world) 92 of which have earned Platinum status, and 6 facilities ranked in the world’s top 10 most environmentally advanced.

Although labor rates in Bangladesh rank among the lowest in Asia, material expenses can be very high because up to 99% of certain raw materials (like cotton) are imported from China and India. Those elevated input costs can erode Bangladesh’s overall cost advantage. Factories often require a minimum production run of 2,000 units per style, and (from our personal experience) even producers who initially agree to smaller orders may revert to higher quantities once production begins, creating serious hurdles for smaller U.S. brands testing new product lines.

For established soft-goods brands able to place medium to large orders, Bangladesh can still deliver significant savings. However, those gains must be balanced against longer lead times caused by imported materials, and a World Bank “ease of doing business” score that ranks among the lowest in Asia. Frequent weather disruptions, unreliable power supply and chronic port congestion add further complexity.

Companies seeking manufacturing partners in Bangladesh can begin their search on the Export Promotion Bureau’s online trade portal at epb.gov.bd, which allows filtering of registered manufacturers by product category.

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Bangladesh Manufacturing: Advantages & Risks

Advantages:

  • Commitment to Sustainability: Bangladesh stands out as a global leader in sustainable manufacturing, boasting more than 230 LEED-certified factories, 92 of which have earned Platinum status, and 6 ranked in the world’s top 10 most environmentally advanced factories.
  • Exception Apparel & Soft Goods Expertise : As the world’s second-largest apparel exporter, Bangladesh’s 4 million garment workers have developed highly specialized skills in knit and woven garments that are celebrated for their quality.
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Risks:

  • Extreme Flooding & Cyclones: Bangladesh scores very high on hazard exposure (8.2/10) with over 1,155 factories at risk of seasonal floods.
  • Poor Infrastructure: More than 90% of Bangladesh’s exports move through the Chittagong port, which suffers chronic congestion, strike-induced shutdowns, and capacity constraints, resulting in unpredictable delays and elevated logistics costs.
  • Raw Materials Import Dependancy: Up to 99% of certain raw materials (like cotton) are imported from China and India. Those elevated input costs can erode Bangladesh’s overall cost advantage.
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Top 5 Product Specialties (in order)

  1. Apparel
  2. Home Textiles
  3. Footwear
  4. Leather Goods
  5. Furniture & Home Goods

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Key Data Points

  • Average Costs:
    • Labor: Very Low
    • Materials: High‍
  • Average Production Timelines: ~60-90 Days‍
  • Typical Order Quantities (MOQ): ~2500-5000 Units‍
  • Skilled Labor/ Quality Score: B+‍
  • Overall Ease of Business Score: D
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Klugonyx Score: 5/10

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