Bangladesh’s RMG Sector: The Way Forward.
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14 Aug 2025
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8:00 am
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Hotel Sheraton
The American Chamber of Commerce in Bangladesh (AmCham) held an AmCham Breakfast
Meeting on “Bangladesh’s RMG Sector: The Way Forward.” on August 14, 2025, at the Sheraton Dhaka. Mr. Mahmud Hasan Khan, President, BGMEA, along with Mr. Faisal Samad, Director, BGMEA attended the Breakfast Meeting.
The AmCham President, 𝐌𝐫. 𝐒𝐲𝐞𝐝 𝐄𝐫𝐬𝐡𝐚𝐝 𝐀𝐡𝐦𝐞𝐝, mentioned in his welcome remarks that 80% of Bangladesh’s total export earnings come from the RMG sector, which alone contributes 10.5% to the national GDP. He noted that the Government’s export target of US $63.5 billion for FY 2025–26 is inspiring, but emphasized that achieving this goal will require a clear strategy and concrete actions. He also highlighted several key challenges currently facing the sector, including energy supply and cost, logistics constraints, labor conditions, administrative and regulatory bottlenecks, and the need to enhance productivity through automation and innovation.
Mr. A. H. M. Ahsan, Chairperson, Bangladesh Competition Commission, emphasized vertical diversification within the RMG sector, moving from low to high value production to build export resilience. With the US tariff hike and upcoming LDC graduation, he called the situation a wake-up call for enhancing productivity and competitiveness to withstand future trade challenges and maintain global market access.
Mr. Mahmud Hasan Khan, President of BGMEA, highlighted energy shortages as a major challenge for RMG growth, particularly for gas-dependent backward linkage industries, with only two FSRUs (Floating Storage and Regasification Unit) currently operational. He urged infrastructure expansion and criticized the abrupt cancellation of 54 LOIs, calling for renegotiation to protect investor confidence. While welcoming the Merchant Power Purchase Agreement for solar energy, he cited land scarcity as a barrier. He also emphasized the weak state of mid- and low-tier factories, many lacking basic productivity metrics, leading to closures and unrest. With fewer than 3,000 of BGMEA’s 7,100 members still exporting, the association is stepping up support to boost efficiency and ensure sector resilience.
Mr. Md. Anwar Hossain, Vice Chairman of EPB, highlighted policy reforms, including a proposed bank-backed bond facility to support partial exporters, enabling duty-free imports with bank guarantees. Strengthened US-Bangladesh ties offer new export opportunities, while a new “$100 Billion RMG Export Cell” will streamline coordination on energy, banking, and tax issues with BGMEA, BKMEA, and others. With enhanced collaboration and sector diversification, he believes Bangladesh can reach $100 billion in exports by 2027–2028.
Other participants highlighted key challenges in Bangladesh’s export sector, including energy insecurity, lack of major global sportswear brands, and weak backward linkages. They emphasized the need for policy coherence, automation, green manufacturing, solar energy, and logistics upgrades. High costs, tight liquidity, and weak risk governance were also raised, with calls for stronger collaboration, skills development, and actionable roadmaps to boost productivity, attract investment, and drive sustainable growth beyond RMG.
Mr. Gazi AKM Fazlul Haque, Director General (Investment Ecosystem), Bangladesh Investment Development Authority and Mr. Mohammad Naziur Rahman Miah, First Secretary (Customs: Export & Bond), National Board of Revenue also contributed to the dialogue. Mr. Paul Frost, Commercial Counselor, US Embassy, and Ms. Leena Khan, Labor Attaché, US Embassy were also present in the dialogue.
AmCham Treasurer, Mr. Al-Mamun M Rashel, AmCham members from the RMG Sector, Economists, Academicians, and other relevant stakeholders were also present in the dialogue.
The dialogue concluded with a call to foster more such discussions where key challenges can be openly raised and considered by relevant ministries and regulatory bodies. These platforms are essential for bridging the gap between government institutions and businesses, enabling all stakeholders to work collaboratively toward practical, coordinated solutions. After the presentation and remarks, attendees shared their challenges and suggestions for policy alignment in the Bangladesh’s RMG sector.
In the end, Mr. ASM Mainuddin Monem offered the vote of thanks.
