Korean Firms Eye Investment in Bangladesh's RMG Sector Modernization
South Korean companies are targeting significant investments in the enhancement of Bangladesh's ready-made garment industry. The focus on man-made fibres and automated technologies aims to elevate Bangladesh's global competitiveness and value addition.
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Investment from South Korean firms in Bangladesh's ready-made garment (RMG) industry is projected to grow, with a focus on man-made fibres, automated sewing equipment, and functional textiles. Currently, the RMG sector comprises approximately 84% of Bangladesh's exports and 10% of its GDP, yet relies heavily on natural fibres, yielding a value-added ratio of about 30%.
KOTRA's Deputy Director, Lee Sung-hoon (Daniel Lee), highlighted potential cooperation areas that include product upgrading, process automation, and alignment with emerging environmental regulations. The textile machinery market in Bangladesh, valued at around US$2.1 billion, is gradually recovering, with Korean machinery being highly regarded for quality and cost-effectiveness.
With the conclusion of the Korea-Bangladesh Comprehensive Economic Partnership Agreement (CEPA), the framework for expanded trade and investment is strengthening. Continued regulatory reforms will be essential to sustain this momentum.
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