Bangladesh is battling to keep its position as the world's second-largest exporter of clothing. It is facing tough competition from Cambodia, Vietnam, Myanmar and now African countries like Ethiopia.

Competitive pressure has sparked consolidation. The number of factories has fallen by 22 per cent in the last five years. Those who have survived are expanding overseas and aiming to go public. In the year ending June, Bangladesh’s garment exports were up 8.8 per cent and account for 83.5 per cent of the country's total exports. The country has also increased its share of global clothing exports to 6.3 per cent in 2016 from four per cent in 2010.

But labor costs are rising across Asia and Bangladesh is no exception. Factories in Bangladesh have grown in a haphazard fashion, some even operating on the upper floors of office or residential buildings. Western apparel makers feel more secure buying from countries like China and Vietnam, where manufacturing is better planned and organized.

Price pressure is intense. Western customers are demanding that prices be kept under control. Since the Rana Plaza disaster, western brands will not buy from Bangladesh’s suppliers unless they are certified to be in compliance with stringent fire and building safety regulations.