Bangladesh is a major developing country in the South East Asia region with a fast-growing economy. It is a top contender among sourcing destinations and attracts investors from all parts of the world. Bangladesh sourcing has become integral for businesses in the apparel manufacturing sector as the country is the second biggest Asian apparel manufacturer. But, it offers even more opportunities for business owners and sourcing companies who are willing to explore the economy.

Bangladesh has witnessed significant economic growth in the past few decades. It is now one of the top sourcing and procurement destinations in Asia, due to massive infrastructural development progress. First-world businesses can reap the benefits of choosing suppliers in Bangladesh and its neighboring countries. Hiring a sourcing company is the best approach to finding the right suppliers in the country. So what does the country offer to emerge businesses? Read on to gain some insight into sourcing from this country.


A Detailed Look into Bangladesh Sourcing

Bangladesh is most well recognized as the hub of apparel manufacturing and exports to countries around the world. Low garment prices and high availability makes it a preferred destination for top international fashion brands. Bangladesh aims to raise exports at a fast rate to gain a greater market share in the next decade. Reduced costs have ensured that the country maintained its position as a leading exporter even during Covid times. Foreign investment has fuelled the economy and led to radical infrastructure developments. Bangladesh sourcing is one of the best options currently for any business aiming to create sustainable apparel sourcing processes.

Businesses can take advantage of the low tariffs in Bangladesh, along with the technological developments being embraced by the country’s suppliers. The value and quality you get are better compared to most SEA sourcing countries. Exports from Bangladesh keep growing every year in apparel and other sectors as well. The country’s vast workforce now follows stringent security measures across all manufacturing and supply chain aspects, in line with the Covid-related requirements. It has resumed export operations almost at full strength following the Covid setback.


A Major Player in the Apparel Industry

Statistics from recent years point out that Bangladesh is second only to China in terms of apparel exports. The country handles almost 7% of global exports of apparel and is also a major player in the footwear sphere. In the past few years, exports from Bangladesh have gone up while those from China have reduced. This can be attributed to better rates and terms provided by suppliers in the country. Exports in the apparel sector amount to more than one-fifth of the GDP of Bangladesh, and is a major source of employment for millions. The country’s economic growth will help it become a major player in domains outside of apparel and textiles.

However, businesses across different industry verticals currently have a variety of options for Bangladesh sourcing. Take a look at some of the key advantages of sourcing to this country below.


The Main Advantages of Bangladesh Sourcing

  1. Access to Cheap Labor – Bangladesh has a large population and a very large pool of both skilled and unskilled workers. This makes it a favored destination for sourcing companies around the world. Your sourcing projects will always have access to affordable labor in Bangladesh and suppliers rarely face manpower issues. The wage rates in the country are also quite low and can lead to significant savings for businesses from developed countries. Sourcing from Bangladesh is more affordable than China and other leading Asian markets.
  2. A Resource-Rich Country – Bangladesh is rich in both natural and other resources. The country’s location, geology, and year-round climate are factors contributing to its resource-richness. Bangladesh has an abundance of natural resources including many crops and cash crops such as tobacco, tea, sugarcane, jute, and spices. The country is a leading exporter of products across many categories to its neighbors. Resource-richness ensures favorable economic conditions and the ability to handle voluminous sourcing demands.
  3. Nation With an Industrial Background – Bangladesh has a strong industrial base across many domains. A large chunk of its population is employed across the service sector. The country’s most major industries include metal fabrication, leather goods, pharmaceuticals, petroleum, fertilizers, iron foundries, cement, and ceramic. The tea, oil, sugar, salt, and tobacco industries are also prominent parts of its economy. The industrial background of Bangladesh helps to propel sourcing operations for businesses around the world. Exploring Bangladesh sourcing options can lead your business on a path of profitability.

  4. Large Selection of Reliable Suppliers – Supplier quality and reliability are major factors that influence the results businesses can expect. Many well-known sourcing suppliers in Bangladesh can meet and exceed the expectations of businesses. A reputed sourcing agency can create a shortlist of the leading suppliers in Bangladesh and negotiate terms with the best ones. The right supplier can deliver the required expertise to meet the fundamental requirements of any business investing in sourcing operations.
  5. Experience High-Cost Reductions – Bangladesh is one of the fastest-growing economies in Asia, but still, one that facilitates significant cost savings. Many businesses rely heavily on this marketplace for fulfilling their product sourcing requirements. Bangladesh provides affordable labor, energy, raw material expenses along with low overhead and logistical costs. The country is well connected through its ports, and offers affordability in all aspects of the supply chain. Bangladesh sourcing has emerged as a more practical and cost-effective option for businesses that are keen on accelerating cost savings for your business. The value offered by this marketplace cannot be matched by others easily especially in the apparel sector.


Sourcing agencies across the globe are opening up to the possibilities provided by suppliers in Bangladesh and some of its neighbors. In terms of sustainability and ongoing cost reductions, the country offers a great host of benefits. Many businesses are choosing Bangladesh over more well-known sourcing destinations like China and Vietnam.

Get in touch with a leading sourcing company to create a custom sourcing strategy.

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