South Korean companies see significant investment opportunities in upgrading Bangladesh's ready-made garment (RMG) industry. Bangladesh’s RMG sector, which accounts for around 84 percent of the country's exports and about 10 percent of GDP, is largely dependent on natural fibres with a value-added ratio of approximately 30 percent. There is considerable scope for Bangladesh to move up the value chain, and Korea’s advanced expertise in man-made fibres, technical textiles and industrial automation aligns closely with Bangladesh's strategy to transform its apparel sector. Cooperation could expand significantly in automated sewing equipment, garment and footwear accessories, enabling Bangladeshi manufacturers to improve productivity, diversify products and meet changing global demand.
FAQ
Q: What are the key areas of cooperation between South Korea and Bangladesh in the RMG sector?
A: The key areas of cooperation include product upgrading, process automation and compliance with emerging environmental and regulatory standards.
Q: How can South Korean expertise benefit Bangladesh's RMG industry?
A: South Korean expertise can help Bangladesh shift from natural fibres to man-made fibres and functional materials, increase value addition, and improve energy efficiency and environmental compliance.
Q: What is the current state of Bangladesh's textile machinery market?
A: Bangladesh's textile machinery market is around US$2.1 billion, and investment in modern equipment is gradually recovering as foreign exchange reserves improve.
Q: What role does regulatory compliance play in Bangladesh's RMG industry?
A: Regulatory compliance and environmental sustainability have become increasingly important for Bangladesh's export-oriented garment industry, especially as the European market tightens supply chain requirements.
