They Will Move If Services Are Available
In the World Bank, we recently did a report titled Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges. For this study, we did a survey of 1,000 garment firms to get their perspectives on the drivers and obstacles to urban competitiveness. I report below some key findings from the survey presented in the growth report.
Dhaka City is still the most productive location for garment firms in Bangladesh. Access to markets and a relatively better quality of power supply are Dhaka city’s main comparative advantages. Dhaka has the best-performing city locations for access to skilled labor and power supply––the two factors garment firms’ value most when deciding on location––proximity to suppliers, sub-contractors, machine-repair technicians and support businesses.
Dhaka is falling behind other locations in accessibility and, for some firms, Dhaka city’s costs have started outweighing opportunities. Dhaka is the worst-performing location for urban mobility and access to the highway. Firms in the city also are disadvantaged in access to the port and airport, compared to those located in Chittagong city. Both firms and workers located in Dhaka also struggle with limited availability and high prices of land and housing.


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