Bangladesh’s readymade garment (RMG) industry must move beyond its decades-old volume-driven business model or risk losing its global competitive edge, former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan warned on Tuesday.
Addressing the BAYLA Future Summit 2026 at Radisson Blu Water Garden Hotel in the capital, he said the country was lagging behind regional competitors in embracing artificial intelligence (AI), automation, and innovation.
He said Vietnam was on course to overtake Bangladesh as the world’s second-largest apparel exporter unless local manufacturers accelerated investment in technology, productivity, and value-added manufacturing.
“The four-and-a-half-decade business model built on labour-intensive, volume-driven manufacturing is undergoing a fundamental shift. The future belongs to value, knowledge, and innovation,” he said.
“Our competitors are well ahead in adopting data analytics, AI, and robotics. We must invest aggressively in technologies that improve productivity, reduce costs, and position us in higher-value market segments.”
Referring to the recent World Trade Organisation (WTO) data, Hassan said Vietnam, Cambodia, and Indonesia had steadily expanded their global market share, while Bangladesh had made little progress.
“By the end of 2026, Vietnam could overtake Bangladesh to become the world’s second-largest apparel exporter. The message is clear – we must adapt now,” he said.
He warned that Bangladesh’s traditional advantage of low-cost labour was gradually disappearing as wages rose and buyers increasingly demanded speed, innovation, sustainability, and product diversification.
Highlighting the industry’s widening skills gap, Hassan said universities were failing to equip graduates with the technical, digital, and managerial capabilities required by modern factories.
“There is a clear mismatch between what our educational institutions teach and what the industry needs,” he said, urging closer collaboration between industry and academia, greater emphasis on technical and vocational education, and investment in future-ready skills.
He also called for faster investment in man-made fibre (MMF), research and development, product design, and market diversification to reduce dependence on basic cotton apparel.
Despite the challenges, Hassan said, Bangladesh had repeatedly demonstrated its ability to reinvent itself.
He noted that the country now had 290 LEED-certified garment factories – the highest number in the world – with around 500 more awaiting certification.
“The future belongs to those who can adapt, collaborate, and lead with purpose,” he said, urging the next generation of entrepreneurs to drive the industry’s transformation through AI, digitalisation, and innovation.
Speaking as the chief guest at the ceremony, State Minister for Primary and Mass Education Bobby Hajjaj stressed the need for stronger collaboration between the government and industry to develop a future-ready workforce.
“We want to produce more skilled merchandisers, engineers, and designers. The industry must identify the skills and professionals it needs at different levels so that relevant training can be integrated into secondary, higher secondary, and university education,” he said.
Hajjaj said industry support would help prepare students with job-ready skills from an early stage, enabling them to enter the workforce more quickly.
“If we work together, you will not only expand your family businesses but also contribute to the country’s economic prosperity. The previous generation built a strong foundation for Bangladesh’s apparel industry, and I believe the next generation can take it even further,” he said.
Assuring entrepreneurs of the government’s support, he said, “If you move forward with this vision, the government of Bangladesh will stand firmly beside you.”
Congratulating all participants, Hajjaj added that although only a few teams received awards, every participant had demonstrated potential and should continue strengthening their skills.
At the event, team Just Wow from North South University won the championship in the BAYLA Future Summit 2026 Business Case Competition, receiving Tk 130,000 in prize money.
Mentored by Lithe Mohiuddin, the team was led by Sarah Mahjabin Rimjhim, with Modhura Kinkini and Souvik Saha Bipro as members.
The three other finalists— Wagyu from the Institute of Business Administration (IBA), University of Dhaka; Vertigo from Independent University, Bangladesh (IUB); and Daijokay from BRAC University – each received Tk 30,000 in recognition of their performance.
The finalists were assessed by a jury comprising BAYLA President Abrar Hossain Sayem, STTI Project Manager Lisa Ramershoven, Global Fashion Brand Sourcing Analyst Shihabuzzaman, and Faruque Hassan.