[🇧🇩] Textile & RMG Industry of Bangladesh

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[🇧🇩] Textile & RMG Industry of Bangladesh
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RMG machinery, allied products mega-expo starts Jan 8 in Dhaka
UNB
Published :
Jan 05, 2025 22:34
Updated :
Jan 05, 2025 22:34

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A four-day international trade show on machinery for the garment industry and allied products is set to begin on January 8 in Dhaka.

The mega-exhibition is arranged to showcase the apparel industry's latest technology and garments accessories and packaging.

The event combining different trade shows will be held from January 8-11 at the International Convention City Bashundhara (ICCB) in the capital. It includes the 22nd edition of Garment Technology Show Bangladesh 2025 (GTB 2025) which is also known as International Tradeshow on Apparel Machinery and Allied Products and the 14th edition of International Garment Accessories and Packaging Expo 2025.

The trade shows will be organised jointly with the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) and ASK Trade and Exhibition Pvt Limited. The GAPEXPO will be showcasing products, types of machinery, and raw materials.

Md Shahriar, president of the BGAPMEA, revealed this at a pre-event press conference in the capital on Sunday.

He said that the garments accessories and packaging industry acts as a backward linkage industry for the country's readymade garment (RMG) sector.

He also said that Bangladesh was fully import-dependent for RMG accessories and packaging materials earlier. Currently, over 60 items are produced locally for export-oriented apparel industries and some are also exporting directly.

He also said that to introduce the sector and to find buyers the GAPEXPO plays a crucial role.

In this year's tradeshow, about 500 exhibitors from 25 countries are showcasing the latest technology in terms of machines and software used in every process of production, he added.​
 

RMG exports grew moderately in 2024 despite headwinds

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In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB).

This is due to an increasing demand for clothing with the fall of inflation in major export destinations.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

Exports from the sector grew although many had thought that shipments would be negatively affected by domestic and external challenges.

For instance, garment exports in fact declined by 6.62 percent year-over-year to $2.38 billion in April, which came as a surprise given that the export trend was enjoying positive momentum.

Similarly, garment shipments declined last June by 10.48 percent year-on-year to $2.97 billion after increasing by 1.45 percent in January and 4 percent in March.

In July, apparel exports grew by only 2.89 percent year-on-year to $3.17 billion, as per the EPB data.

However, the exports rebounded strongly from September, growing by 14.61 percent to $3.01 billion that month and by 22.80 percent to $3.29 billion in October.

The trend did not stop there as the garment shipments grew by 16.25 percent to $3.30 billion in November before expanding again by 17.45 percent to $3.77 billion in December.

Exports started rebounding from September as normalcy gradually returned to the industrial zones after the labour unrest ended with factory owners accepting the 18-point demands of garment workers.

Moderate retail sales growth continued in November even as two of the holiday season's busiest shopping days bumped over into December and were not included in the month's totals, according to National Retail Federation (NRF), the largest US retail association.

"November sales increased on top of a strong October and would have been even higher if Thanksgiving Sunday and Cyber Monday hadn't fallen in December," NRF President and CEO Matthew Shay said in a statement.

"Year-over-year gains were solid even as retail prices in many categories are lower this year, showing that consumers are buying more merchandise as the economy continues to grow. We remain confident in our holiday forecast," Shay said.

Total retail sales, excluding automobiles and gasoline, were up 0.15 percent seasonally adjusted month-over-month and up 2.35 percent unadjusted year-over-year in November, according to the Retail Monitor.

That compared with increases of 0.74 percent month-over-month and 4.13 percent year-over-year in October.

In 2023, the garment export sector aimed for $50 billion in 2024 but adjusted expectations to $38.48 billion, marking a 7.23 percent increase from 2023.

The industry confronted challenges like wage protests leading to a 56 percent wage hike, said Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director of Denim Expert.

Even after uncertainties from the national election, there was a 1.45 percent year-on-year growth in garment exports in January, he said.

A 60 percent cut in export incentives, compounded by global economic instability and volatile oil prices, affected consumer behaviour, he said.

Rising energy and transportation costs, along with high bank interest rates, hurt small and medium enterprises, causing closures, he added.

Despite a slight increase in exports in July and August compared to the same months of 2023, the figures for 2024 lagged behind those of 2022.

Rubel also said the outlook for 2025 depends on improved industrial relations and political reforms.

Former BGMEA president Faruque Hassan said garment exports would have been much higher had the challenges not been there. However, he expects 2025 will be a better year as normalcy is returning to the sector.

Exports grew not only in volume, but also value as international retailers' and brands' confidence in Bangladesh has been boosted, and the local currency was devalued, he added.​
 

RMG workers for Eid bonus equal to one month’s wage
United News of Bangladesh . Dhaka 10 January, 2025, 22:43

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Ahead of the Eid-ul-Fitr, to be held at the end of March, garment workers in Dhaka have issued a set of six demands, including a bonus equivalent to one month’s wage, as part of a broader call for fair treatment and improved working conditions.

The demands were voiced by the Dhaka Garment Workers’ Wage Increase Struggle Council during a rally held in front of the National Press Club on Friday.

Speakers at the rally highlighted the mounting pressures caused by skyrocketing living costs, arguing that current wages are inadequate to meet even basic needs.

Prices of essential goods keep rising, but the wages remain unchanged; it’s becoming impossible to survive, said one protester.

Workers accused employers of withholding portions of their salaries, forcing many to take on gruelling work schedules of 14-16 hours a day. Despite the labour law stipulation for double overtime pay, they claim employers routinely fail to comply.

The workers also criticised the widespread delay in salary payments. Under the law, wages are to be disbursed by the 7th of each month, but workers allege this deadline is rarely met. Many also condemned the practice of withholding wages until the night before Eid, calling it ‘illegal and inhumane.’

The garment workers outlined six primary demands: set minimum wages in line with rising market prices, limit workdays to 8 hours and enforce double pay for overtime, provide a bonus equivalent to one month’s wages for Eid-ul-Fitr, ensure salaries are paid by the 7th of every month, abolish the practice of withholding wages until just before Eid, enhance workplace safety, ensure job security, introduce equal pay for female workers, and provide health-friendly meals and night allowances for night shifts.

Speakers at the rally demanded fair treatment, better working conditions, and compliance with existing labour laws.​
 

RMG sector must lead renewable energy push
Speakers tell discussion; call on govt to align policies, set timeline to achieve net zero emissions

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Speakers at a discussion titled “Pathways to a Just Energy Transition: Balancing Sustainability, Equity, and Industry Growth in the RMG Sector,” at The Daily Star Centre in the capital yesterday. Photo: Star

Although not a major carbon-emitting country, Bangladesh can emerge as a global pioneer in carbon reduction as a victim of climate change, experts said at an event yesterday.

They said the RMG sector should lead this effort, given its potential to increase the use of renewable energy in factories. Additionally, they called on the government to align policies and set a timeline to achieve net zero emissions.

The remarks were made during a discussion titled "Pathways to a Just Energy Transition: Balancing Sustainability, Equity, and Industry Growth in the RMG Sector," at The Daily Star Centre in the capital.

The event was jointly organised by The Daily Star and Oxfam.

In his keynote presentation, Dr Mohammad Emran Hasan, head of Climate Justice and Natural Resource Rights (CJNRR), said while Bangladesh contributes minimally to global carbon emissions, it is among the most impacted countries globally.

He said the RMG and textile industries could save approximately 1,159 kilotonnes of oil equivalent (KTOE) of energy annually by adopting energy-efficient machinery and conservation measures.

The overall industrial sector in Bangladesh consumes about 3,740 KTOE per year.

Hasan suggested measures such as introducing Solar PV Systems, Net Metering Policy, energy-efficient machinery and processes, automation and digitalisation, green financing initiatives, and access to green bonds to ensure a just energy transition.

Azad Abul Kalam, manager of Just Energy Transition at ActionAid, said policymakers should prioritise energy sovereignty over energy security.

"If they want energy security, they would plan more energy imports, but if they think about energy sovereignty, they would focus on relying on local resources like gas, solar, and wind," he said.

Azad said the ousted government had showcased the power sector as their greatest success, but the Ukraine war exposed its vulnerabilities.

"During that time, when fuel prices spiked globally, the industries faced the most trouble," he said.

Wasiur Rahman Tonmoy, senior coordinator of capacity development at Manusher Jonno Foundation, said, "We analysed 23 policy papers in Bangladesh's power and energy sector. None of the papers incorporated women's access to energy. Moreover, the rights of marginalised people to energy are also overlooked."

Shahriar Ahmed Chowdhury, head of the Centre for Energy Research at United International University, said there were misalignments in government plans for the power and energy sector.

"Local experts were not involved in the process; the planning was injected. Foreign experts introduced unproven technologies into those papers," he said. He said transmission and distribution systems are still not ready to handle solar energy.

Sohanur Rahman, executive coordinator at YouthNet Global, stressed the importance of capacity-building for a green transition.

"As zero carbonisation is one of the major goals of the chief adviser, it is time for Bangladesh to take the lead. We need initiatives to develop green skills and jobs, especially for youths and women," he said.

He also called for mass public consultations and worker-level input in future plans.

Former BGMEA president Faruque Hassan said there are inefficiencies in industrial energy use. "Industries are wasting around 28 percent of their energy. SREDA has initiated energy audits, but these efforts need to expand. Energy-saving technologies can help industries save energy and reduce dependence on imported fuel," he said.

Oxfam Country Director Ashish Damle highlighted global shifts back to fossil fuels, which could impact Bangladesh.

"Bangladesh needs a strong policy commitment. This is the right time to collaborate with the most affected countries and demonstrate leadership," he said.

Dr Munjurul Hannan Khan, executive director of NACOM, pointed out the lack of inter-departmental collaboration.

"Policies from the environment ministry are ignored by the energy ministry and vice versa. We also lack a specific timeline for achieving net-zero targets," he said.

He urged the government to remove taxes on renewable energy.

Shariful Islam, Oxfam's head of Influencing, Communication, Advocacy and Media, conducted the discussion.

Among others, Helvetas Bangladesh's Mohammad Mahmudul Hasan, Laudes Bangladesh's programme manager Faiza Tuba, journalist Mahfuzur Rahman Mishu, and The Daily Star's in-charge of NGOs and Foreign Missions Tanjim Ferdous spoke.​
 

RMG sector: A catalyst for Bangladesh’s energy transition

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While Bangladesh is not a significant contributor to global carbon emissions, it is one of the most vulnerable countries to the impacts of climate change. This paradox presents a unique opportunity for the nation to position itself as a global leader in climate action. Experts at a recent event in Dhaka highlighted the potential for Bangladesh to pioneer efforts in carbon reduction, with the ready-made garment (RMG) sector as a central player in this transformation.

The discussion, organised by The Daily Star and Oxfam, emphasised the RMG industry's ability to adopt renewable energy and energy-efficient technologies. This sector alone could save approximately 1,159 kilotonnes of oil equivalent (KTOE) of energy annually, a substantial portion of the 3,740 KTOE consumed by Bangladesh's industrial sector. Initiatives such as solar photovoltaic systems, net metering policies, and green financing are crucial to achieving these goals.

The shift towards renewable energy and sustainability in Bangladesh, however, requires more than just industry-level initiatives. Policymakers must prioritise energy sovereignty over energy security, as highlighted in the report titled, "RMG sector must lead renewable energy push", published on January 14. Focussing on domestic resources like solar, wind, and gas can reduce dependence on volatile global energy markets, a lesson underscored by the economic fallout from the Ukraine war.

While the government has made some strides in addressing energy inefficiencies, a lack of inter-departmental collaboration and the absence of a clear timeline for achieving net-zero emissions remain critical barriers. Experts pointed out that local expertise is often sidelined in favour of foreign consultants, leading to misaligned energy policies and untested technological solutions. The government must integrate local knowledge into its planning and execution processes to ensure long-term success.

Equity in the energy transition also emerged as a pressing concern. Analysis of existing policy frameworks revealed significant gaps in addressing the needs of women and marginalised groups. A just energy transition must be inclusive, incorporating the voices of those most affected by energy policies, particularly workers and local communities.

The global shift back to fossil fuels poses additional challenges for Bangladesh. However, this moment presents an opportunity for the country to collaborate with other climate-affected nations and advocate for stronger international commitments to sustainability. Removing taxes on renewable energy technologies and expanding energy audits across industries are necessary steps to drive this transition.

The RMG sector's leadership in adopting green technologies could serve as a model for other industries. As one of the largest contributors to Bangladesh's economy, this sector holds the potential to inspire a broader national commitment to climate action. Bangladesh's vulnerability to climate change should no longer be seen as a liability but as a call to action.

Hasan Meer is a journalist at The Daily Star​
 

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