weighted score 4.4 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Bangladesh
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Bangladesh as a sourcing destination.
Labour cost competitiveness
9
Among the world's cheapest manufacturing labour. Minimum garment wage ~USD 113/month (2023 revision). Primary cost advantage for basic assembly and cut-make-trim garments.
Supply base depth
5
Deep in garments (world #2 exporter, ~$47B). Very narrow outside RMG — limited leather, jute, seafood. No meaningful electronics, chemicals, or machinery capability.
Logistics & infrastructure
3
Chittagong port chronically congested with limited berth depth. Road and rail networks underdeveloped. Matarbari deep-sea port under construction but years from completion.
Workforce skills
4
Large semi-skilled labour pool for garment assembly. Technical and engineering skills limited. English proficiency moderate in management tiers but low on factory floors.
Scalability
6
Garment sector can scale rapidly within existing factory clusters. Scalability outside garments is severely constrained by infrastructure and supply base limitations.
Ease of doing business
2
Bureaucratic complexity, corruption (CPI 25), land acquisition challenges, and unreliable power supply. Regulatory environment difficult for foreign investors outside export processing zones.
Trade access & tariffs
2
EU EBA duty-free access as LDC — but graduation expected 2026–2029. No major FTAs beyond EBA. US GSP suspended since 2013 over labour rights concerns.
Sustainability baseline
2
Among the world's most climate-vulnerable nations. Annual flooding threatens supply chain continuity. ESG audit infrastructure improving post-Accord but coverage remains uneven.
Innovation & IP
8
Minimal R&D investment. Negligible patent output. Innovation limited to garment process improvements. No co-development or proprietary manufacturing capability at scale.
Quality standards
3
Garment quality acceptable for mass-market fast fashion. Higher-end quality consistency remains a challenge. Food safety standards in seafood sector variable. Third-party audit infrastructure improving.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Bangladesh offers among the world's cheapest manufacturing labour. Minimum wages for garment workers were raised to approximately USD 113/month in late 2023 — still substantially below Vietnam, India, and China. This wage floor is the primary driver of Bangladesh's dominance in basic garment assembly.
- Demographic advantage
- Population of approximately 170 million with a young median age (~28 years). Large labour pool available for labour-intensive manufacturing. Rural-to-urban migration continues to supply Dhaka and Chittagong factory clusters.
- Productivity considerations
- Labour productivity per worker remains lower than Vietnam and China. Higher defect rates and longer lead times partially offset the raw wage advantage. Buyers must factor total cost of ownership including rework, compliance auditing, and longer shipping times.
Supply Base & Infrastructure
Supply Base & Infrastructure
- Garment dominance
- Bangladesh is the world's #2 garment exporter (~$47B annually), behind only China. The ready-made garment (RMG) sector accounts for over 80% of export earnings. Supply base depth in cut-make-trim garments is globally competitive.
- Port infrastructure
- Chittagong port handles ~90% of Bangladesh's trade but suffers chronic congestion, limited berth depth, and slow container turnaround times. The planned Matarbari deep-sea port aims to address capacity constraints but is years from full operation.
- Beyond garments
- Supply base outside garments is narrow. Leather goods, jute products, and shrimp/seafood are secondary export categories. Electronics, chemicals, and machinery manufacturing capability is minimal. Buyers seeking multi-category sourcing will find limited options.
Trade Access & Sustainability
Trade Access & Sustainability
- EU EBA access
- As a Least Developed Country, Bangladesh benefits from the EU Everything But Arms (EBA) scheme — duty-free, quota-free access for all products except arms. LDC graduation is expected around 2026–2029, after which a three-year transition period applies before standard GSP or GSP+ tariffs take effect.
- Rana Plaza legacy
- The 2013 Rana Plaza collapse (1,134 deaths) triggered the Bangladesh Accord on Fire and Building Safety, now the International Accord. This has driven measurable improvements in structural and fire safety across signatory factories, though compliance gaps remain outside the Accord's scope.
- Innovation & IP
- R&D investment is minimal. Patent filings are negligible by global standards. Innovation capability is concentrated in garment process improvements rather than product innovation. Buyers requiring co-development or proprietary manufacturing processes will find limited local capacity.