Bangladesh is one of the most populated countries in the world. This poses perpetual challenges in ensuring food security, education, decent jobs, and healthcare systems.
Swisscontact is an independent foundation for international development cooperation. Founded in 1959 by leading Swiss companies, it promotes skills development and entrepreneurship for sustainable economic growth in developing and emerging countries.
Recently, Textile Focus had an insightful conversation with Mr. Helal Hussain, Country Director of Swisscontact Bangladesh. He discussed Bangladesh’s economic growth, the RMG sector, Swisscontact’s activities in the country, and several other important issues.
Read the full conversation below –
Textile Focus: How do you see the economic growth of Bangladesh? Specially in the RMG sector?
Helal Hussain: “On balance, Bangladesh’s Ready-Made Garment sector is likely to remain a central pillar of the country’s economic growth over the next five to ten years. However, the pace and quality of that growth will largely depend on how effectively the sector addresses some emerging risks and structural challenges.
On the positive side, several trends present strong opportunities for continued expansion. First, we’re seeing encouraging signs of diversification up the value chain, as more factories move beyond basic garment production toward higher-value items, design integration, and functional or technical textiles — which can significantly increase margins.
Second, the push for sustainability and green factories is giving Bangladesh a competitive advantage. The country already leads globally in the number of LEED-certified green factories, and this commitment to environmental and social compliance continues to strengthen buyer confidence.
Third, there is growing potential in developing backward linkages, such as local production of raw materials, accessories, and dyeing or washing facilities, which can reduce dependency on imports and improve cost efficiency.
Additionally, supporting SME development within the value chain — through better access to finance, technology, and skills — can enhance overall supply chain resilience. And finally, policy stability remains crucial; maintaining favorable tax structures, reliable energy supply, and clear trade regulations will help sustain Bangladesh’s global competitiveness.
That said, several risks could slow or disrupt this growth trajectory. Rising costs — particularly energy and wages — may erode competitiveness if not managed carefully. Global demand shocks, such as recessions in key export markets or increased protectionism, could affect orders. Moreover, rising compliance costs related to labor and environmental standards could strain smaller factories that are slow to adapt. Persistent infrastructure bottlenecks — including port congestion and unreliable power supply — remain a concern, while currency fluctuations and inflation can further pressure profit margins.
In summary, I would say Bangladesh’s RMG growth is sustainable — but conditionally. The sector must continue evolving: investing in sustainability, strengthening local supply chains, maintaining cost competitiveness, and moving toward higher-value production. Bangladesh has already proven its resilience, and with the right policies and private-sector adaptation, the RMG industry can continue to drive exports, employment, and overall economic growth in the years ahead.”
Textile Focus: How Does Swisscontact Support the Bangladesh RMG Sector?
Helal Hussain: The RMG sector will continue to be the central to Bangladesh’s economic future, and our work is focused on helping the industry remain competitive and sustainable in an evolving global market.
We work closely with both international brands and local factories to help them take practical steps toward becoming greener and more efficient. This involves supporting factories to develop their own green transition roadmaps, with clear targets on energy efficiency, water and waste management, and cleaner production processes.
However, sustainability is not only about technology or infrastructure. We also support factories to establish in-house training systems so that workers and supervisors can continuously upgrade their skills related to green and efficient production. We believe that environmental performance and workforce development must go hand in hand; one cannot be achieved without the other.
Another important part of our work focuses on building local expertise. For many years, factories in Bangladesh have relied heavily on international consultants for environmental and efficiency-related services. Swisscontact is helping to develop a new generation of Bangladeshi green consultants who can offer affordable, high-quality services within the country. This not only makes the sector’s transformation more sustainable but also strengthens local ownership and capacity.
While our primary focus is on the garment sector, we are also expanding our engagement into related industries such as textiles and leather goods, as many of the challenges and opportunities—such as energy management, waste reduction, and skills upgrading—are shared across these sectors.
What truly defines our approach is the emphasis on collaboration with the private sector. We work directly with market actors to identify where the private sector can drive change, and then we help to remove the barriers that stand in the way. Our goal is very concrete: to support businesses in protecting livelihoods, safeguarding export markets, and promoting equity and the right to decent work for all workers involved in the value chain.
In essence, Swisscontact’s role is to help Bangladesh’s RMG sector transform sustainability from a compliance requirement into a strategic advantage—one that strengthens business performance, builds resilience, and ensures lasting social impact.”
Textile Focus: .How many development projects are on-going in RMG sector implemented by Swisscontact?
Helal Hussain: “At the moment, Swisscontact is implementing three major initiatives in the RMG sector — PROGRESS, BYETS, and InSPIRE — each addressing a different but interconnected part of the industry’s transformation.
Through PROGRESS, we are helping factories take tangible steps toward a greener future — improving energy and resource efficiency, managing water and waste more responsibly, and strengthening in-house training so workers can develop the green skills that the sector increasingly demands.
BYETS, on the other hand, focuses on the people entering industry. It equips young women and men with practical, market-relevant skills and links them to employment opportunities in the RMG and related sectors. The idea is to make the workforce more adaptable, future-ready, and inclusive.
And then we have InSPIRE, which takes a different approach through a challenge fund mechanism. It encourages private-sector innovation by co-financing ideas that make the skills system more responsive to industry needs — whether that means new training models, improved career services, or technologies that connect youth with decent jobs.
Together, these three initiatives really complement one another — PROGRESS works at the factory and systems level to promote sustainability, BYETS focuses on employability and workforce development, and InSPIRE acts as a catalyst for innovation and private-sector investment in skills. Collectively, they are helping the RMG sector in Bangladesh become not only more competitive, but also more inclusive and resilient.”
Textile Focus: What is your upcoming plan that add value to the RMG sector?
Helal Hussain: Looking ahead, Swisscontact plans to deepen its engagement in Bangladesh’s RMG sector by focusing on areas that will strengthen its long-term competitiveness and sustainability. One of our key priorities is to develop the local service and advisory market — building the capacity of Bangladeshi experts and firms so that factories can access high-quality advisory services locally, at an affordable cost. This will not only make sustainability support more accessible but also create new employment opportunities within the service ecosystem itself.
We also see enormous potential in bridging the gap between industry and academia. By fostering stronger collaboration, we hope to promote research, innovation, and higher education pathways that equip future professionals with the skills the industry truly needs.
Another area of focus is building stronger international linkages. We aim to facilitate B2B connections between international investors, technology providers, and Bangladeshi businesses that are actively pursuing sustainable growth. These partnerships can bring in fresh ideas, capital, and innovation — helping Bangladesh’s RMG sector move further up the global value chain.
In essence, our upcoming strategy is about creating a more connected, capable, and competitive ecosystem — where local expertise drives global relevance.”
