SWOT Analysis of Garments Industry in Bangladesh 

Md Mahedi Hasan

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The swot analysis of garments industry in Bangladesh are as follows: 

SWOT Analysis of Garments Industry in Bangladesh 
SWOT Analysis of Garments Industry in Bangladesh 


  • More than 30 years of history and experience of garment manufacturing.
  • Large labor force still comparatively expensive compared to competitors
  • Strong backward linkage in knit sector 
  • Resilient and ambitious young entrepreneurs 
  • Huge production capacity 
  • Highest number of green industries and a positive sustainability image
  • Explicit positive change management practices in the factories 
  • Improved worker-management relationship 
  • Support of government as a major export sector.


  • Low productivity 
  • Weak technology management 
  • Low level of skills and capabilities specially in mid-level management
  • Weak backward linkage in woven sector 
  • Longer change over time from style to style compared to competitors
  • Weak industrial engineering, longer lead time 
  • Excessive defects and more reworks, weak quality management 
  • Poor transportation and logistics facility 
  • Sub-standard port facility 
  • High tax rate 
  • High energy price 
  • Market and product knowledge gap 


  • More order flow from China due to changes in global business dynamics
  • Improved image and confidence of foreign buyers 
  • More practice of sustainable solutions 
  • More emphasize on cost control 
  • Huge growth in denim sector 
  • More practice of product development and expanding value-added services
  • Export flow toward non-traditional markets 
  • Increase in the availability of local technology and consulting service-providing agents


  • Over-dependency on foreign raw material 
  • Very low profit margin on basic items 
  • No or very little investment in non-cotton-based fiber and fabric industries
  • Energy crisis and price hike 
  • High worker wage in relation to skill level 
  • Rapid technological growth in competing countries 
  • Sub-standard education and training facilities 
  • Little or no research and development 
  • No proper road map for sustainable development technological change
  • Low FDI and local investment due to bureaucratic and lingering problems

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