Accessories eye $5b direct export in three years
Its direct exports double over three years
Bangladesh's garment and other accessories industry is emerging as a formidable export powerhouse, with direct exports doubling over the last three years and stakeholders projecting a rise to $5 billion within the next three years if policy barriers are removed.
According to the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), the sector contributed $7.45 billion to national exports in the 2024-25 fiscal year. While the majority of this consists of "deemed exports" (supplies to the local RMG sector), direct exports reached $1.6 billion.
From import reliance to global ambition
Two decades ago, the Bangladeshi garment industry was almost entirely dependent on imported accessories. Today, through investments totalling approximately Tk40,000 crore, the sector has achieved nearly 100% supply capacity for the local export-oriented industries, employing over 7,00,000 people across 2,000 functional units.
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"With the removal of a few policy hurdles, we can achieve $5 billion in direct exports not only for garments but also for pharmaceuticals, agriculture, footwear and other industries within three years," Md Shahriar, president of BGAPMEA, told TBS.
The global fashion accessories market, valued at $720 billion in 2023, is expected to hit $1,502 billion by 2033. Industry insiders believe Bangladesh is perfectly positioned to capture this growth as manufacturing hubs shift away from China.
As China moves toward high-tech manufacturing and away from basic items, foreign investors are flocking to Bangladesh. In the last two years alone, at least eight Chinese firms, including Baida Industrial, YiXin Bangladesh, and Tianhui Button, have proposed or initiated investments in Export Processing Zones (EPZs).
Over the past three years, nearly 300 new accessories companies have entered the Bangladeshi market, BGAPMEA estimates.
Local firms are also expanding rapidly. RSS Thread and Accessories Limited has doubled its production in three years, now manufacturing 35 types of accessories. The firm has been nominated by the Spanish retail giant Inditex Group to supply its 200+ Bangladeshi garment manufacturers.
Technological evolution
The sector is undergoing a digital transformation to meet international compliance standards. Over 100 factories are now prepared to invest in Radio Frequency Identification (RFID) technology for automated tracking and inventory management.
Innovative products such as "Digital Product Passports" (DPP) are already being manufactured locally. RSS Thread and Accessories produces specialised chips for labels that store comprehensive supply-chain data, a requirement for new European Union initiatives.
"Through these chips, buyers can verify where a product was made and what materials were used," said Sheikh Zulfikar Ali, group director of RSS Thread. "We have also introduced data-metrics systems and invisible coding to prevent counterfeiting, ensuring brand authenticity."
Policy challenges
Despite its progress, entrepreneurs say the sector faces significant policy challenges, including discriminatory export incentives and high import taxes on raw materials. Md Shahriar said the accessories sector has never received cash incentives, unlike other export industries.
He also pointed out that importing paper below 300 GSM attracts import taxes ranging from 58% to 83%, making it difficult to produce competitively priced products. In addition, exporters face various customs-related hurdles.
Former BGAPMEA president Rafez Alam Chowdhury said the sector continues to suffer from policy discrimination, warning that without targeted support, Bangladesh may fail to fully capitalise on the growing global demand for packaging and accessories products.
Abdul Kader Khan, managing director of Khan Accessories and a former BGAPMEA president, noted that political uncertainty over the past year has dampened investment inflows. He expressed optimism that investment would accelerate once stability returns following the formation of a new government.
