Why Are Clothing Brands Choosing some countries such as Bangladesh and India for their Factories? A Closer Look at Wastewater Regulations and Costs

In recent years, many global clothing brands have moved their production to countries like Bangladesh and India and others . While lower labor costs are an obvious factor, another major reason is the less stringent environmental regulations, especially regarding wastewater treatment from textile dyeing processes. This significantly lowers production costs compared to countries with high environmental standards, like the UAE and Europe.

The Problem with Textile Wastewater

The textile industry is notorious for being water-intensive and for generating large amounts of toxic wastewater. Dyeing fabrics involves the use of harmful chemicals, heavy metals, and dyes that are not only hard to remove but can cause severe environmental damage if released untreated.

In countries with strict environmental regulations, such as Europe or the UAE, textile factories are required to use advanced effluent treatment plants (ETPs) to treat wastewater. This ensures that harmful substances are removed before the water is discharged back into the environment. Naturally, installing and maintaining these treatment systems is expensive, and companies operating in these regions face higher production costs as a result.

In contrast, in countries like Bangladesh and India, regulations around wastewater treatment are not as strictly enforced. While laws exist, they are often poorly implemented. A study from Bangladesh revealed that only a fraction of the country’s factories actually operate fully functional ETPs, and many of them only run these systems during inspections.

. The result is that rivers near industrial zones are heavily polluted with untreated wastewater, affecting both the environment and local communities. Despite these issues, the lack of enforcement allows factories to save significantly on costs, making these countries attractive to global brands.

Case Study: ACS Textiles in Bangladesh

One striking example comes from ACS Textiles, one of the biggest textile factories in Bangladesh. While this factory has invested in an ETP, many of the factories around it haven’t, which allows them to undercut costs dramatically. Factories discharging untreated wastewater are not only causing environmental damage but also putting pressure on those factories that are trying to comply with environmental standards.

Moreover, a recent study highlighted that textile factories in Bangladesh are a major source of PFAS (per- and polyfluoroalkyl substances), also known as "forever chemicals." These chemicals, which are used to make fabrics water- and stain-resistant, have been found in dangerous concentrations in rivers and tap water near textile hubs. This has raised serious concerns about the health impacts on local populations, as PFAS are linked to long-term health risks such as cancer and liver damage.

The Trade-Off Between Cost and Sustainability

So, why do brands continue to set up factories in these countries? It all comes down to cost. While the upfront investment in proper wastewater treatment is significant, avoiding these costs keeps production prices low, allowing brands to maintain higher profit margins or offer more competitively priced products. This cost advantage makes Bangladesh and India attractive manufacturing hubs.

However, this is not without its challenges. The environmental damage is significant and will have long-term consequences for both the industry and local communities. Brands are starting to face growing pressure from international bodies and consumers to adopt more sustainable practices. Yet, the allure of reduced costs in countries with relaxed regulations remains strong.

The global textile industry is at a crossroads—brands must weigh the short-term benefits of reduced costs against the long-term environmental damage and their corporate responsibility to adopt sustainable practices.

Ahmed Khaled

Certified Maintenance & Reliability Professional (CMRP)

Water and Wastewater Treatment Expert