Former BGMEA president Faruque Hassan believes Bangladesh’s apparel industry is well-positioned to achieve $100 billion in exports by the end of the decade, provided it sustains growth and adapts to global shifts.
In an interview, Hassan pointed to the country’s green factories, now numbering in the hundreds, as a key advantage. He said these eco-friendly plants meet international environmental standards, enhancing the country’s appeal to buyers who are increasingly focused on sustainable sourcing.
He emphasised the need to diversify into higher-value man-made fibre (MMF) products, strengthen backward linkages through local yarn and fabric, and adopt automation and waste-reduction practices to boost efficiency.
As BGMEA president from 2021 to 2024, Hassan said he helped chart the $100 billion export goal as a strategic roadmap backed by data. From just $5 billion in 2000, Bangladesh’s apparel exports climbed to over $40 billion in 2024, despite challenges. With 12–15% annual growth, he believes the milestone is within reach.
He cautioned against heavy reliance on the EU and US, calling for trade deals to tap Japan, South Korea, Russia, Africa, and the Gulf.
Against the backdrop of imposition of extra tariff on our RMG products by the US government, we thought of talking to the former president of BGMEA Faruque Hassan last week. It was an online based interview, conceptualized by Shahnoor Wahid, Consultant Editor of Times of Bangladesh. Faruque Hassan is also the Chairman, Board of Trustees of BGMEA University of Fashion & Technology (BUFT). He has led BGMEA in many important meetings with the government and various trade bodies at home and abroad.
The following are the excerpts:
What the 20% US Reciprocal Tariff Means for the Industry?
I have closely tracked global trade dynamics, with special attention to Bangladesh’s RMG (ready-made garment) industry, a vital cornerstone of our economy. The reciprocal tariff, introduced in 2025 by the U.S. government, heralded a momentous shift in trade policy. Let me unpack the impact—year by year for 2023, 2024, and 2025 and how Bangladesh can convert this challenge into a strategic advantage.
In 2023 and into early 2024, U.S. tariffs on apparel averaged around 16.5 percent under Most Favoured Nation (MFN) terms. In 2024, Bangladesh exported approximately USD 8.4 billion worth of garments to the U.S. making it a critical market, accounting for about 19 percent of Bangladesh’s total exports.
By April 2025, under President Trump’s “reciprocal tariffs” policy, Bangladesh was initially hit with a steep 37 percent levy reflecting the ratio of the U.S. trade deficit in goods and a prescribed formula bringing effective rates to over 50 percent. Similar tariffs affected other Asian exporters: India faced around 26 percent, Pakistan 29 percent, Vietnam 46 percent, Cambodia 49 percent and Myanmar and Sri Lanka up to 44 percent in some cases.
However, after intense diplomacy, Bangladesh succeeded in lowering the reciprocal tariff to 20 percent in late July 2025, effective from August. This reduction, also secured by Sri Lanka, Vietnam, Pakistan, and Indonesia, contrasts sharply with India’s 50 percent rate. The effective tariff rate (ETR), combining the 20 percent reciprocal tariff with the existing 16.5 percent MFN duty, stands at approximately 36.5 percent.
For context, in 2025, India’s burden assuming a 50 percent reciprocal tariff would amount to a whopping 66.5 percent effective rate, while China stands at about 46.5 percent, subject to ongoing negotiations.
With these facts established, the implications are clear: Although the 2025 tariff regime presents a serious challenge to exporters, Bangladesh’s relatively lower ETR provides a competitive edge. Bangladesh can exploit this advantage by further increasing the use of U.S.-origin cotton in garment production under the new rules, the reciprocal 20 percent tariff is waived on the portion that incorporates at least 20 percent U.S. content. Exporters using 40 percent U.S. cotton enjoy even lower effective tariffs. Cotton-rich products like trousers, knitwear, shirts, sweaters, and underwear offer tangible tariff relief.
Bangladesh’s green factories, now numbering in the hundreds, are a key asset. These eco-friendly factories meet global buyers’ environmental standards and position Bangladesh as a leader in sustainable apparel manufacturing. This strengthens our appeal in the global market amid rising demand for ethical sourcing.
Additional strategic responses include diversifying into higher-value, man-made-fiber (MMF) categories that yield stronger margins; investing in backward linkages to reduce import dependency (e.g., local yarn and fabric); adopting automated and sustainable manufacturing practices; pursuing trade diplomacy such as seeking GSP reinstatement or an FTA, especially as we approach LDC graduation; and expanding market reach into the EU, Japan, and emerging economies in Africa to reduce overreliance on the U.S. Bangladesh held roughly 9.5 percent of the U.S. apparel market (worth around USD 85 billion), and with accelerated implementation of these strategies especially leveraging the tariff differential our share could grow to 14–15 percent by 2030.
In sum, while the 20 percent reciprocal tariff introduced in 2025 poses real challenges, it is also a clarion call for innovation. Through astute diplomacy, diversification, and value-chain strengthening, Bangladesh can transform tariff adversity into competitive advantage and position itself as an increasingly attractive sourcing hub in an era of protectionism.
The Trump administration has imposed additional tariffs for all countries and almost all products. This will cause the product prices to go up significantly, inflation to rise further resulting in consumers buying less overall. Apparel orders from Bangladesh and all other countries will reduce since consumption in the US market will reduce significantly for the rising costs. We have to work hard to hold on to the same export we did last year – but it may not be easy. We have to reduce wastage and increase efficiency and productivity in our factories. There are products that we do not specialize in, but China and India do – We have to focus on these and try to take some of that market share.
During your tenure as BGMEA president, you set the vision of achieving USD 100 Billion in apparel exports by 2030. Do you still believe it’s achievable?
Yes, I firmly believe the vision of achieving USD 100 billion in apparel exports by 2030 is still within reach. Ambitious, certainly, but realistic with the right strategies and national alignment.
When I served as President of BGMEA from 2021 to 2024, this goal was set not as an aspirational slogan but as a strategic roadmap, backed by data and a clear understanding of Bangladesh’s evolving position in the global apparel value chain. From just $5 billion in exports in 2000, Bangladesh reached over $40 billion by 2024, despite significant external and internal challenges. This growth trajectory, if sustained at a compound annual growth rate (CAGR) of 12–15%, can indeed bring us to the $100 billion mark by the end of the decade. When the target was defined in 2022, Bangladesh held around 7.8% of the global apparel market, valued at approximately $560 billion.
We had seen a 36% growth in FY 2021-22 alone, largely driven by post-pandemic shifts in sourcing from China and strong performance in our key markets the EU and the US, which account for nearly 80% of our exports.
However, the path forward is not without obstacles. In 2025, our exporters face headwinds like the US reciprocal tariff, elevated logistics and energy costs due to ongoing geopolitical tensions, and the uncertainties surrounding Bangladesh’s graduation from LDC status in 2026, which could impact duty-free access in key markets. In addition, global economic uncertainties and rising competition from Vietnam, Cambodia, Egypt, and Ethiopia, many of whom enjoy free trade agreements (FTAs) add pressure.
But there is a silver lining. For instance, despite the tariffs, Bangladesh’s apparel exports to the US grew 21.6% in the first five months of 2025, and we are now the largest supplier of T-shirts to the US. We are also the largest in exporting Denim goods to the USA. Even though we are 2nd largest in terms of value of export to the European Union, in terms of quantity we are the largest.
In knitwear –we are largest in both value and quantity. In UK –we are largest both in terms of value and quality. This reflects not only resilience but also the confidence global buyers have in our capacity, compliance, and competitive pricing.
To reach the $100 billion target, we need to act decisively across five key areas:
Product Diversification: Currently, 72% of our exports are cotton-based. Yet globally, man-made fiber (MMF) and performance wear are the fastest-growing segments. If we can shift the MMF share from the current 28% to 50%, it could add $20–30 billion in exports. Backward integration, particularly in polyester, viscose, and technical textiles, must be incentivized through policy, investment, and infrastructure support.
Green Manufacturing & Sustainability: Bangladesh is already a global leader in green manufacturing, with over 200 LEED-certified green factories, including 13 of the world’s top 20. This is a game-changer. With the EU Green Deal and growing pressure from global brands for traceable, ethical, and sustainable sourcing, our green factories position us well to command premium pricing and long-term partnerships. Going forward, adopting circularity, recycled materials, and net-zero strategies will be critical to staying competitive.
Technology & Innovation: To stay ahead, we must embrace Industry 4.0 automation, AI, IoT, and blockchain for both efficiency and transparency. Digitalization can increase productivity by up to 30% while ensuring traceability, which is now a non-negotiable for many global buyers. BGMEA’s Innovation Centre and partnerships with institutions like BUFT are already paving the way for this transformation.
Market Diversification & Trade Diplomacy: Overdependence on the EU and US makes us vulnerable. Markets like Japan, South Korea, India, China, Malaysia, the Gulf, and Africa hold untapped potential. Exports to these non-traditional markets are still under 10%. Post-LDC graduation, signing FTAs and PTAs with these regions must become a priority to retain competitiveness.
Human Capital Development: The future of our RMG industry lies in high-skill, value-added manufacturing. Reskilling and upskilling of our 4 million-strong workforce particularly in design, technical know-how, and advanced manufacturing are essential. Stronger academia-industry partnerships and vocational training programs will ensure a future-ready workforce.
Of course, this vision will not materialize without enabling government support improving logistics, port efficiency, stable energy supply, easing FDI policies, and ensuring political stability, particularly during the post-election transition.
In sum, the $100 billion target remains bold but absolutely achievable. We have the scale, resilience, and now global recognition as a compliant, sustainable, and reliable sourcing destination. If we maintain our momentum, align policies with private sector needs, and continue investing in innovation and green growth, Bangladesh can not only achieve this goal but set a new global standard for ethical and sustainable apparel manufacturing.
As Chairman of BGMEA University of Fashion & Technology (BUFT), What is your perspective on bridging the gap between industry and academia?
I see the industry-academia bridge not as a luxury, but as a necessity for the long-term competitiveness and innovation of Bangladesh’s apparel sector. At BUFT, which was founded in 2012 precisely with this mission, we’ve worked diligently to ensure our graduates are not just educated, but industry-ready. As both a former BGMEA President and now Chairman of BUFT, I believe this alignment is the foundation for driving sustainable growth, workforce transformation, and global competitiveness. The apparel industry is evolving rapidly, shaped by automation, sustainability imperatives, and shifting buyer expectations. Yet, many universities still operate in silos, disconnected from the real-time needs of manufacturers, buyers, and global supply chains. This gap results in graduates who may be academically strong but underprepared for the fast-paced, technology-driven realities of the modern RMG sector. That’s why BUFT has focused on embedding practical learning into the core of our academic programs. Our close to 100% graduate employment rate is a reflection of that commitment. Real industry-academia synergy is where innovation happens. Academia brings research, critical thinking, and long-term vision, while the industry provides market insights, production challenges and evolving standards. Together, they drive progress whether in sustainable materials, digital design, or AI-integrated manufacturing.
We’ve taken concrete steps to institutionalize this partnership. In July 2025, we signed an MoU with GarmentTechBD to promote technology transfer and innovation workshops. Our collaboration with Hohenstein Institute Bangladesh, initiated in 2024, gives students access to world-class labs and quality certification training. Strategic partnerships with leading companies like Shin Shin Group and Epyllion Group have enabled co-designed curricula, internships, and guest lectures, ensuring students are trained in real-world merchandising and production systems.
Internationally, BUFT has built strong academic collaborations with institutions such as NIFT in India, HKRITA in Hong Kong, University of Borås in Sweden, Goethe-Institut in Germany, and Wuhan Textile University in China. These alliances facilitate joint research, faculty exchange, and global exposure for our students. In June 2025, we also launched a digital skills development program with NetCom Learning Bangladesh, supported by BUFT LEO Club, aimed at future-proofing our graduates in areas like digital marketing, data analysis, and fashion tech.
At BUFT, industry engagement isn’t an extracurricular activity; it’s embedded in the curriculum. Internships in production floors are mandatory, and students regularly apply their knowledge from CAD labs, pattern design, and language training to factory projects. We host fashion showcases, innovation fairs, and academic-industry dialogues, creating a continuous learning loop between the classroom and the market.
From a macro perspective, this bridge is vital to achieving Bangladesh’s $100 billion export target by 2030. We need a pipeline of skilled professionals’ engineers, designers, merchandisers, and compliance officers who understand both sustainability and efficiency.
BUFT currently graduates with over 1,000 students each year, many of whom are already working in leadership positions across global brands like H&M, Zara, Marks & Spencer, and Uniqlo.
Of course, challenges persist. Curriculum reform can face inertia, research funding is limited, and collaboration needs to be scaled nationwide. Government incentives for joint R&D, more industry-funded scholarships, and enhanced public-private partnerships will be crucial in overcoming these hurdles. At BUFT, we already offer merit-based tuition waivers and are advocating for more structured industry involvement in shaping academic priorities.
In essence, the future of our apparel industry and of Bangladesh’s global competitiveness depends on how well we integrate knowledge and execution. The stronger this bridge becomes, the faster we move from being a volume-based manufacturing hub to a value-driven innovation powerhouse.
