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[๐Ÿ‡ง๐Ÿ‡ฉ] Textile & RMG Industry of Bangladesh
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Reality is different from perceptions about RMG sector

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For years, discussions about Bangladesh's ready-made garment (RMG) sector have been shaped by narratives that do not always reflect the current reality. While global media often highlights past tragedies or focuses on labour concerns, it overlooks the significant strides made in safety, sustainability, and ethical business practices. However, while acknowledging these improvements, it is equally important to recognise the challenges that remain, particularly regarding workers' rights and fair wages.

As a factory owner, I have seen firsthand the transformation of our industry. Our factories have undergone rigorous upgrades, yet misconceptions persist. Changing perceptions is crucial not only for our reputation but also for ensuring sustainable growth for our workers and businesses alike. We all stand to benefit.

The collapse of Rana Plaza in 2013 was a turning point for Bangladesh's garment industry. In response, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety were introduced, leading to over 38,000 factory inspections and significant remediation efforts. Today, over 1,600 factories have successfully remediated safety issues under the accord, making our factories among the safest in the world.

Despite these advancements, concerns remain about compliance in smaller subcontracting factories, where enforcement is weaker. While larger exporters meet international safety standards, ongoing monitoring is needed to ensure that all workers, regardless of factory size, operate in safe conditions. Standards need to be raised across the board, and I would argue that we are, as an industry, only as good as our weakest link.

The garment sector employs over 4.2 million workers, of whom nearly 60 percent are women, according to a 2023 Bangladesh Bureau of Statistics report. While minimum wages have increased over the years, they remain a contentious issue. In November 2023, the government raised the minimum wage for RMG workers to Tk 12,500 ($113) per month, a 56 percent increase from the previous Tk 8,000 set in 2018. However, worker unions argue that this wage is still not a living wage given rising inflation and living costs.

Efforts to improve working conditions go beyond wages. Several factories have introduced healthcare facilities, childcare centres, and skill development programmes, but these benefits are not yet widespread. A stronger commitment from both government regulators and factory owners is needed to ensure that every garment worker receives fair compensation and a dignified working environment.

Bangladesh is now home to over 200 LEED-certified green garment factories, the highest number in the world. According to the US Green Building Council, investments in solar power, water recycling, and energy-efficient production have positioned Bangladesh as a leader in sustainable apparel manufacturing.

However, challenges persist. Textile dyeing remains a major environmental concern, with rivers suffering from industrial waste. While some factories have installed effluent treatment plants (ETPs), enforcement gaps allow smaller factories to discharge untreated waste. The industry must work collectively to ensure all manufacturers comply with environmental regulations. It only takes a negative report on one factory for us all to be tarred with the same brush.

One of the most effective ways to reshape perceptions is by increasing transparency. International buyers often arrive in Bangladesh with outdated assumptions about factory conditions. Factory tours provide them with firsthand insight into modern, well-equipped facilities that meet and often exceed global safety standards.

However, transparency must extend beyond factory tours. Ensuring that all labour policies are publicly documented, workers have a voice in decision-making, and violations are addressed swiftly will reinforce Bangladesh's reputation as a responsible manufacturing hub. Encouraging direct engagement between buyers and workers, rather than curated visits, will strengthen trust in our commitment to ethical production.

While the industry has made commendable progress, we cannot overlook the areas that still need improvement. Ensuring living wages, enforcing compliance in smaller factories, and addressing environmental concerns must remain priorities.

Bangladesh's RMG sector is a success story; but for it to remain sustainable, we must acknowledge both achievements and challenges. By embracing full transparency, strengthening labour rights, and reinforcing environmental responsibility, we can ensure that our industry is recognised not just for its growth, but for its commitment to fairness and ethical business practices.

As stakeholders, factory owners, workers, policymakers, and international buyers, we have a shared responsibility to uphold the integrity of Bangladesh's most vital industry. Only through collective effort can we truly transform the narrative surrounding our garment sector for both local and global audiences.

Mostafiz Uddin is managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​
 

BKMEA seeks outstanding TK 70 billion cash assistance by 15th Ramadan
FE ONLINE REPORT
Published :
Mar 04, 2025 20:22
Updated :
Mar 04, 2025 20:22

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Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding installment of cash incentives worth TK 70 billion by 15th Ramadan.

The trade body for the knitwear subsector argued for the immediate release of the cash incentive installment, saying delays could cause serious disruptions in the export-oriented sectors, especially the textile and garment industry.

BKMEA president Mohammad Hatem made the plea in a letter sent to the finance secretary on Tuesday.

In the letter, the BKMEA leader said that until March this year, incentive claims worth about Tk 70 billion in export subsidies or cash assistance have been submitted to the central bank for the fiscal year 2024โ€“25.

Mr Hatem urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by 15th Ramadan before Eid.

He said that the readymade garment industry has been passing a tough time due to a number of challenges, including the changed political situation.

The prolonged labour unrests in various industrial zones have severely disrupted production, leading to factory closures and an abnormal rise in production costs, he added.

"But to maintain buyers' confidence here in the country's export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than actual production costs in many cases," Mr Hatem said.

Despite an increase in orders, many factories are facing liquidity crisis, he said in the letter, highlighting the increasing pressure of wage and festival allowance payments ahead of Eid.

He warned that failure in making timely payments might lead to renewed labour unrests in the industrial sector and sought the government's support, which is crucial in maintaining stability in the sector.

Meanwhile, a commerce ministry report revealed that some 500 RMG factories are at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.​
 

Bangladesh's garment industry
A story of resilience, adaptability & strategic development

Manmohan Parkash
Published :
Mar 04, 2025 23:03
Updated :
Mar 04, 2025 23:03

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A worker at a garment factory in Dhaka Photo : FE/Files

Bangladesh's garment industry stands as a perfect example of economic transformation, a testament to how resilience, adaptability, and strategic foresight can reshape a nation's destiny. What began as a modest industry in the 1980s has grown to become the second-largest exporter of garments in the world, following only China. This remarkable rise has not come without challenges, but it is the industry's ability to overcome adversity and evolve in the face of shifting global demands that has defined its success. Today, Bangladesh's garment sector is a symbol of determination, ingenuity, and the power of a nation harnessing its potential.

The first chapter of Bangladesh's garment story is one of sheer resilience. In the early years, the country faced a myriad of challenges: political instability, an underdeveloped infrastructure, and a population with limited skills in manufacturing. However, the most defining challenge came in the form of global competition and domestic hurdles-none more glaring than the 2013 Rana Plaza disaster. The tragedy, though heartbreaking, became a turning point in the country's commitment to improving the safety and welfare of its workers.

In response to this disaster, Bangladesh implemented rigorous reforms in factory safety, worker rights, and compliance with international labour standards. The Accord on Fire and Building Safety and Alliance for Bangladesh Worker Safety initiatives ensured that manufacturers modernised their factories, making them safer and more conducive to long-term sustainability. The tragedy, though a painful chapter, pushed the industry to its limits and forced it to confront issues that many had long overlooked. Yet, in its aftermath, the garment industry stood up stronger, with improved standards that have allowed it to retain its place in the global supply chain.

The garment sector's adaptability is perhaps its greatest strength. Over the years, Bangladesh has exhibited a remarkable ability to adjust to global market shifts and consumer demands, including the rise of fast fashion. Where many other countries failed to keep up, Bangladesh pivoted quickly, utilising its lower labour costs, growing infrastructure, and a labour force eager for work. The country's garment manufacturers became synonymous with quick turnaround times and competitive prices, positioning Bangladesh as a key player in the global fast-fashion sector.

Moreover, the industry has shown a remarkable ability to diversify. While initially focused on basic, low-cost garments, Bangladesh has become adept at producing more sophisticated and fashion-forward items. Today, it manufactures everything from jeans and jackets to sportswear and knitwear, appealing to a wide range of markets, from high-street retailers to luxury brands. This evolution speaks to Bangladesh's ability to understand and respond to the ever-changing nature of the global fashion industry.

The industry's responsiveness to sustainability trends is another testament to its adaptability. In recent years, global buyers have increasingly demanded eco-friendly and ethical practices in production. Bangladesh, ever attuned to the shifts in market expectations, has started investing in green technologies, cleaner production methods, and energy-efficient machinery. Factories are transitioning to sustainable practices, using renewable energy, water recycling, and eco-friendly fabrics. The increasing number of Platinum LEED-certified companies signify the growing commitment to sustainability, aligning with international environmental standards while fostering responsible manufacturing practices. This not only ensures continued market access but also demonstrates that Bangladesh is poised to meet the demands of a more conscientious consumer base.

Strategic foresight has been central to Bangladesh's garment industry success. The government played a crucial role in creating an enabling environment, through the development of Export Processing Zones (EPZs), bonded warehouses, and tax incentives for investors. These measures attracted foreign direct investment (FDI), allowing manufacturers to scale production, upgrade technology, and improve productivity. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also provided a unified platform to advocate for the interests of garment manufacturers, enabling them to negotiate with both domestic and international stakeholders.

A key to the sector's success has been the robust textile supply chain that exists within the country. Bangladesh boasts a large number of textile mills that supply the fabric necessary for garment production. This local textile industry supports the garment sector, reducing reliance on imports and allowing for more cost-effective production. By building this vertically integrated supply chain, Bangladesh has positioned itself as a one-stop-shop for garment production, from fabric manufacturing to finished goods.

Equally important is the role of global market connectivity. Bangladesh has forged long-lasting relationships with international buyers, many of whom have become reliant on the country for high-volume, low-cost, and high-quality production. The country's participation in global trade agreements and its preferential access to major markets, such as the European Union (EU) and the United States (US), have further solidified its place in global supply chains. The access to duty-free imports of raw materials, coupled with competitive labour costs, has helped Bangladesh to remain at the forefront of the global garment industry.

The future of Bangladesh's garment industry is full of potential but also fraught with challenges. Rising labour costs, competition from countries with even lower wages, and pressures for further improvements in working conditions require constant adaptation. However, the industry has proven time and again that it can evolve and overcome adversity.

To remain competitive, Bangladesh must continue its focus on diversifying its product range, investing in cutting-edge technology, and nurturing a more skilled workforce. Moreover, continued investment in sustainability will be essential, as the global market increasingly demands that manufacturers adhere to environmental and ethical standards. Bangladesh is in a good position to lead this charge, as it has already begun to implement green practices and adopt new technologies that ensure it can maintain its position as a global leader in garment production.

The story of Bangladesh's garment industry is not just about cheap labour and low costs-it is a story of resilience, adaptability, and strategic development. Overcoming challenges, responding to global shifts, and continuously evolving to meet the needs of the market have made Bangladesh one of the world's largest and most successful garment exporters. As the world continues to evolve, Bangladesh's garment industry stands as a powerful example of what can be achieved with vision, perseverance, and a relentless pursuit of progress.

Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank (ADB).​
 

Home textile exports witness comeback
Saddam Hossain 06 March, 2025, 23:04

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The export of home textile products has witnessed a comeback over the past few months, owing to an improved order situation and increased production capacity.

According to Export Promotion Bureau data, in the July-February period of the current financial year, the home textile sector earned $578 million, a positive growth of 5.23 per cent from $549.25 million in the same period of FY24.

The home textile sector was regarded as an emerging player in the countryโ€™s export baskets. It touched the milestone of $1 billion in export earnings as the third player, after the readymade garment, along with jute and leather.

In FY21, the sector crossed $1 billion in exports for the first time and in FY22, it bagged $1.62 billion.

However, due to an abnormal hike in gas prices and the Ukraine-Russia war, the sectorโ€™s earnings started falling. In FY23, the sector earned $1.09 billion and in FY24, the earnings dropped to $851 million.

Throughout the timeframe of more than one year, the monthly exports remained negative.

However, since November 2024, export earnings from home textiles bounced back. In July-January of FY25, the sector earned $494 million, in July-December $410.81 million and in July-November $326.83.

The EPB data stated that the sectorโ€™s earnings maintained positive growth between 5 per cent and 9 per cent throughout these months.

Momtex Limited is one of the major exporters of home textile products, with 7,500 employees and a production capacity of 6 million metres per month.

Shahjada Rubel, head of business at Momtex, told New Age that exports experienced positive growth and the factories had a handsome amount of purchase orders.

โ€˜Due to a hike in duties in China, a number of Chinese companies shifted their production facilities in Bangladesh which impacted our exportsโ€™, he added.

However, he said, the government must focus on uninterrupted supply of gas and energy and price reductions to sustain export growth.

Industry insiders said that home textiles was one of Bangladeshโ€™s first-line export sectors, with the ability to produce bulk products, which had also accelerated the countryโ€™s rise to global leadership.

The countryโ€™s home textile export basket includes bed linen, bed sheets and other bedroom textiles, bath linen, carpets and rugs, blankets, kitchen linen, curtains, cushions and cushion covers and quilt covers.

Talking to New Age, Mohammed Ayub Khan, senior vice-chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, said that due to the reasonable prices of yarn, the factories increased their production.​
 

RMG manufacturers want separate ministry
Staff Correspondent 08 March, 2025, 23:11

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The manufacturers of the countryโ€™s readymade garment sector demanded a separate ministry for sustainable RMG and textile sector.

They also said that the RMG sector is a major source of export earnings as a single sector, but it has to face new challenges from global and local perspectives. To address these challenges, it requires a long-term policy, for which a separate ministry is necessary.

They were speaking at an Iftar event organized by the Bangladesh Garment Manufacturers and Exporters Associationโ€™s election-centric panel, Forum, in the capital on Saturday.

Mahmud Hasan Khan Babu, forum panel leader and managing director of Rising Group, said that the garment sector needs policy support for a certain period of time.

โ€˜Domestic and foreign conspiracies are always going against this sector and a vested interest group is creating anarchy in the name of workerโ€™s unrest at different times. It should be investigated whether politics is involved behind this,โ€™ he added.

He also said that the entrepreneurs of this sector should be freed from customs inspections and harassment.

Rashid Ahmed Hossaini, secretary general of the Forum, said that they have learned about the identification of 700 fake voters through media outlets.

โ€˜Their voting rights have been canceled. This is very shameful that this sector has fake voters. We want the next election to be transparent and acceptable. We should remember that the economy cannot be sustained in Bangladesh without this sector. And BGMEA cannot be turned into a party office of any particular political party,โ€™ he added.

Former BGMEA President Anisur Rahman Sinha said that the government may have less knowledge about business, and it is the responsibility of businesses to assist the government.

โ€˜BGMEA, as an organization, has to take a role in highlighting and resolving any problems being created.

Another former president, Anwar-ul-Alam Chowdhury (Parvez), said that BGMEA needs skilled leadership to deal with the crisis.

Rubana Huq, another former BGMEA president, said that the manufacturers want relief from many years of garbage. A transparent vote to restore the balance is necessary.

Moreover, a factory can become sick for reasons beyond its control, but there is no exit policy.

โ€˜We urge the government to formulate a detailed exit policy. Moreover, the manufacturers should increase their bargaining with foreign buyers for fair prices,โ€™ she added.

Meanwhile, the BGMEA election for the 2025-27 tenure is scheduled for May 28, according to the election schedule announced on Saturday.​
 

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