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Will incentivising subcontractors boost Bangladesh's RMG growth?

20 Dec '25
4 min read
Will incentivising subcontractors boost Bangladesh's RMG growth?
Pic: Shutterstock/zakir1346

Insights

  • Many believe subcontracting units are vital to Bangladesh's apparel growth.
  • Bangladesh Bank has recently authorised export incentives for garments and textile products manufactured and exported through sub-contracting arrangements.
  • The government earlier announced to extend cash incentives to subcontract factories.
  • Previously, only exporters operating in their own factories received such benefits.

Like in other manufacturing destinations, in Bangladesh’s rapidly growing apparel manufacturing landscape, subcontracting is far from an afterthought; in fact, it plays an important role in how the sector operates, expands, and competes globally.

As the country cements its position as the world’s second-largest apparel exporter after China, the strategic use of subcontracted factories remains crucial to its success, according to many industry insiders.

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