International fashion brands that continue to view Bangladesh primarily as a low-cost sourcing hub are overlooking advancements in compliance, sustainability, circularity and manufacturing capability in the country, a new report has suggested.
The report, entitled The Sourcing Times: Bangladesh, was written by journalist Brooke Roberts-Islam and commissioned by trims manufacturer Harnest Label Industries. It draws on contributions from key players in Bangladesh’s manufacturing sector, including Urmi Group, Maruhisa, Harnest and Viyellatex Group, as well as the International Labour Organization (ILO).
‘Not kept up’
The report suggests that the way fashion brands buy from Bangladesh has ‘not kept up’ with the country they are buying from, and that sourcing decisions based solely on free-on-board (FOB) pricing overlook how the market has developed.
“Bangladesh is the first country in Asia to adopt all 10 fundamental ILO conventions, sending a really important signal that there is a respect for international standards,” commented Max Tuñon, ILO country director in Bangladesh.
Elsewhere, Jeremy Levin, head of a new D-FTAS green financing fund looking to deploy $50 million to SMEs in Bangladesh, added, “Quality, sustainability, and delivery are priorities of the top-tier of Bangladeshi industry players.”
Garment exports
Ready-made garment exports from Bangladesh reached $38.82 billion in 2025, however the country’s manufacturing sector continues to face challenges.
According to figures from the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), around 260 textile factories closed and approximately 220,000 jobs were lost during the 18 months leading up to the end of last year.
As the report notes, however, international buyers are beginning to recognise the value of suppliers that meet higher environmental and social standards, with many willing to pay higher prices for verified compliance.
“Too much of the conversation about Bangladesh still reduces the country to a single FOB price,” commented Assef Shaikh, CEO of Harnest. “That is a narrow view of a sector we work in every day – and one that has changed considerably on compliance, capability and materials over the past decade.”
“As a manufacturer here, we see progress that rarely reaches the brands buying from us. We felt an evidence-based account was overdue – told through the people building the sector.” Read more here.
