[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG exports to EU jump 61pc

Bangladesh's readymade garment exports to the European Union (EU) recorded a robust 61-percent growth in January this year, staying ahead of the major competitors, including China, Vietnam, Turkey, and India. Apparel exports to the EU market in January 2025 fetched 1.91 billion euros, compar

thefinancialexpress.com.bd

RMG exports to EU jump 61pc
Monira Munni
Published :
Mar 20, 2025 00:30
Updated :
Mar 20, 2025 00:30

Bangladesh's readymade garment exports to the European Union (EU) recorded a robust 61-percent growth in January this year, staying ahead of the major competitors, including China, Vietnam, Turkey, and India.


Apparel exports to the EU market in January 2025 fetched 1.91 billion euros, compared to 1.18 billion euros earned in the same month last year, according to Eurostat data published on March 18. Eurostat is the statistical office of the EU.

Knitwear subsector exports to the 27-nation economic bloc in the first month of 2025 increased by 64.2 per cent to 1.14 billion euros, while woven garment exports surged by 56.3 per cent to 765.96 million euros.

Bangladesh's garment shipments to the EU in terms of volume witnessed over 58 per cent growth in January 2025, marking a turnover of 126.86 million kilograms from 80.25 million kilograms in the corresponding month of 2024, according to the data.

Exporters have attributed the rise to a number of factors, including rising global demand, shift of work orders from China, and duty-free market access, while local reasons are competitive pricing; enhanced capacity, efficiency, productivity, and workplace-safety compliance; and the production of quality goods.

The developments during last several years ensured buyers' confidence and trust and good business environment in the country, providing a boost to the main export trade.

The EU's total apparel imports in January 2025 stood at 8.28 billion euros, about 32 per cent higher than 6.28 billion euros logged in the corresponding month last year, the data revealed.

Among Bangladesh's main competitors, China recorded a 40.81 per cent growth in January 2025, while India, Pakistan, and Cambodia witnessed double-digit growth of 44.44 per cent, 32 per cent, and 72.43 per cent, respectively.


When asked, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Hoque termed the growth encouraging as the industry is bouncing back.

Like the US, the EU market is also getting better after a long period of weaker position, while the base of comparison was also weak as January 2024 recorded negative growth, he noted.

With the improved economy, consumers are also purchasing apparels, resulting in rising demand, he explained.

Talking to The Financial Express, MA Rahim Feroz, vice-chairman of DBL Group, said the group's exports reached the highest $500 million for the first time as it dedicatedly enhanced both productivity and efficiency by installing modern technology while that of operators also increased.

Capacity, efficiency, and productivity have helped attain the growth overall, he noted.

Besides, work orders from China are also shifting to other garment-producing countries like Bangladesh, said Feroz, also a former leader of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He noted that hundreds of small garment factories closed down during the last two years, while big ones are buying them and operating efficiently and professionally by complying with due diligence, which has also boosted the overall export growth.

"If the government can ensure an uninterrupted power supply, garment exports will reach $100 billion within the next three years," he added.

Both exporters opined that work orders are coming and the growth trend might sustain in 2025 as buyers got back their confidence and are sourcing more from Bangladesh.

According to Eurostat data, China earned 2.37 billion euros in January 2025 by exporting clothes to the EU against 1.68 billion euros in the same month last year.

The EU's imports from Turkey recorded a slow growth of 5.41 per cent to 874.09 million euros in January 2025. Vietnam recorded a 34.27 per cent growth, earning 398.56 million euros that month.

Pakistan and Cambodia fetched 347.71 million euros and 420.86 million euros, respectively, in January this year from the EU market. The EU imported apparels worth 397.70 million euros from India in January 2025, which was 44.44 per cent higher than the earnings in the same month last year.

In the meantime, RMG exports to the United States, the single-largest destination for Bangladesh, grew by 45.9 per cent to $799.65 million in January 2025, according to data from OTEXA, an affiliate of the US Department of Commerce.

In January last year, clothing exports from Bangladesh to the US market stood at $547.95 million.

Exporters, however, noted that though the global demand has been improving in recent months, Bangladesh is failing to grab the opportunity fully as its competitive edges are eroding mainly because of high utility prices, poor gas supply, banking issues, and labour unrest.​

 

[Bilal9]

It’s time Bangladesh built its own global apparel brand

The way to do this is simple. You get one of the reputed global clothing wholesalers to carry these simple design clothes at severe discounts, and then once the label gets established, you slowly start upgrading quality and price. Kind of like H&M and The Gap.

Or - better yet, and more practical, buy a company/brand like the Gap and its sister brands (Old Navy, Banana Republic and Athleta). Which sells high-volume low-priced fashion collections we already supply from Bangladesh. BGMEA should have subsidized the effort and multiple garments suppliers could chip in to divvy up the investment and profits. This is what HAIER (China) as an electrical appliance manufacturer did (ditto with TCS). Walton could do this easily in the US market. So could BGMEA.

 

[Saif]

Garment exports to EU surged 53% in January

Garment shipments from Bangladesh to the European Union (EU) surged by 52.56 percent year-on-year to $1.97 billion in January this year, according to data from Eurostat.

www.thedailystar.net

Garment exports to EU surged 53% in January

Garment shipments from Bangladesh to the European Union (EU) surged by 52.56 percent year-on-year to $1.97 billion in January this year, according to data from Eurostat.

The shipment was worth $1.29 billion in January last year, said the EU's statistical office.

In terms of volume, the apparel export to the EU rose by 58.08 percent. Meanwhile, average unit prices decreased by 3.49 percent.

In January 2025, apparel imports by the EU surged by 25.12 percent, reaching $8.57 billion, accompanied by a notable 41.10 percent spike in volume and an 11.33 percent decrease in average unit prices.

Various factors contributed to this positive export trend, said Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in a WhatsApp message.

The factors include a rise in value added garment production, benefits from the new US tariffs, duty-free market access, adherence to safety standards, and collaborative efforts of manufacturers and workers, he said.

These developments enhanced buyer confidence, solidifying Bangladesh's position in the export landscape, he added.

He was optimistic about future projections, anticipating a rise in work orders throughout 2025, sustaining growth momentum. As buyers expand sourcing activities in Bangladesh, the growth trajectory is set to continue, he said.

Comparatively, China experienced a 33.55 percent growth in garment exports to the EU in January 2025 while India, Pakistan, and Cambodia also posted substantial growth rates of 36.99 percent, 25.12 percent, and 63.54 percent respectively.

China's apparel exports to the EU totalled $2.46 billion in January 2025, up from $1.84 billion in January 2024.

Conversely, Turkey saw a marginal 0.03 percent decrease in apparel imports to the EU, amounting to $904 million in January 2025, while Vietnam recorded a 27.35 percent growth, reaching $412 million.

India, Pakistan, and Cambodia secured $411 million, $360 million, and $435 million in January 2025, respectively, from the EU clothing market.

In conclusion, the data indicates a more pressing need for strategic changes for future growth, even though Bangladesh demonstrated resilience in preserving export quantity and value.

For Bangladesh to maintain its competitiveness and protect profit margins in the face of ongoing global price deflation, value addition and market diversification are still crucial, said Rubel.​

 

[Saif]

Time for RMG owners to grow up

With Eid-ul-Fitr approaching, the familiar specter of unrest looms over the ready-made garment (RMG) sector. This has almost become an annual ritual before Eids, where workers take to the streets demanding their wages, arrears, and Eid bonuses, while factory owners use the situation as a bargaining

thefinancialexpress.com.bd

Time for RMG owners to grow up
Atiqul Kabir Tuhin
Published :
Mar 22, 2025 23:24
Updated :
Mar 22, 2025 23:24

With Eid-ul-Fitr approaching, the familiar specter of unrest looms over the ready-made garment (RMG) sector. This has almost become an annual ritual before Eids, where workers take to the streets demanding their wages, arrears, and Eid bonuses, while factory owners use the situation as a bargaining tool to extract additional facilities from the government.

Last week, a garment owner-who is also a film star and producer-seemingly played the same old trick to get some additional benefits from the government. He said, "The workers will have to be paid their salaries for February, half of their March salaries, and Eid bonuses. Where will the owners get so much money?" The implication seemed to be that garment owners were somehow unfairly burdened, even though they continued to earn hefty profit, lead a lavish life, while the workers have to struggle for their rightful dues.

He further claimed that "240 groups of garment factories had shut down and that closures were happening daily, leaving thousands unemployed". However, the Press Secretary of the Interim Government later dismissed this as a blatant lie. Citing industrial police sources, he stated that 99 per cent of factories in the country's major industrial belts were operational. Furthermore, official data showed that garment exports had grown by 11 per cent over the past seven months, contradicting any claims of widespread industry closure.

According to the latest Eurostat data, Bangladesh's RMG exports to the European Union (EU) recorded an impressive 61 per cent growth in January this year, surpassing major competitors such as China, Vietnam, Turkey, and India. Apparel exports to the EU market reached 1.91 billion euros in January, up from 1.18 billion euros in the same month last year. Similarly, garment exports to the US surged by 45.93 per cent year-on-year in January, reaching $799.65 million, according to data from the US Office of Textiles and Apparel (OTEXA). These figures suggest that, far from facing an existential crisis, the sector is thriving in global markets.

While the said garment owner's claim about factory closures may have been exaggerated, it has been reported that about 100 factories have been shuttered due to the lingering effects of the Russia-Ukraine conflict, political turmoil, and workers' unrest in the aftermath of the August 5 political changeover. However, if any factory owner genuinely finds it difficult to pay 15 days' salary for March before the month's end, there is no mandatory requirement to do so. Workers have never protested for advance salaries. As long as they receive their dues, they remain happy. However, factory owners have the option to secure loans of up to 80 per cent against the LC from banks, a widely accepted industry practice. Instead of utilising this facility, why do they expect the government to step in with bank loan arrangements and incentives? Other industrial sectors and businesses-many of which are not as successful as the RMG sector-do not make similar demands for special privileges.

Over the past four decades, Bangladesh's RMG sector has experienced remarkable growth, establishing itself as the world's second-largest apparel exporter. However, despite this impressive trajectory, it is perplexing that the sector remains heavily reliant on government support to maintain its competitiveness. This dependency is evident in the form of cash export incentives, tax benefits and so on. While government assistance can be crucial for fledgling industries, the continued reliance of a 40-year-old industry raises serious questions about its sustainability and maturity.

The RMG sector now resembles a 40-year-old child! It is high time sector stood on their own feet, took responsibility for its workers and maintained its competitiveness without government incentive. So, rather than entertaining irrational demands, the government must hold the RMG owners accountable if their factories fail to clear workers' wages and Eid bonuses in time. The prosperity of this sector cannot come at the cost of the very workers who sustain it.​

 

[Saif]

Transport operators won't listen to reason

This Eid-ul-Fitr is going to draw bigger homebound crowds at the bus and launch terminals, railway stations and airports. One of the reasons for this is that the government and private company employees, students and others will be enjoying longer Eid holidays this year. So, more people will leave

thefinancialexpress.com.bd

Under-invoicing in garment imports
Shiabur Rahman
Published :
Mar 27, 2025 23:41
Updated :
Mar 27, 2025 23:41

Bangladesh has achieved a remarkable success in readymade garment export. Shelves of leading global brands cannot be imagined without made-in-Bangladesh garments. Still Indian and Pakistani dresses seem to have remained an integral part of Eid celebrations of Bangladeshi people, particularly those belonging to the middle class to affluent section. Their Eid joy perhaps remains incomplete without Indian lehengas and Pakistani three-pieces and punjabis no matter how expensive they are. A modest Pakistani three-piece or punjabi costs more than Tk 5,000 on an average while a gorgeous lehenga is priced at as high as a six-digit figure.

Consignments of garments from India and Pakistan as well as from China keep reaching Bangladesh round the year, but their number skyrockets before every Eid to cater to rising Eid demand. Shipments of fashion products also come from a few other Asian and European countries.

As a RMG export country, Bangladesh has high import duties imposed on the import of the same products and is supposed to earn huge revenues from their imports. But that is not the case just because of widespread tax evasion through under-invoicing. A vernacular contemporary has recently run a report on the extent of tax evasion by importers of Indian and Pakistani dresses. According to the report, businessmen declared the import price of each modest Indian three-piece as low as Tk 40, salwar-kameez Tk 18, girls' tops Tk 11 and gorgeous lehenga Tk 105. The declared price of a piece of Pakistani punjabi for adults is Tk 65. Customs authorities, however, did not release the goods in many cases just taxing them based on the declared prices, they themselves appraised the value of the products and levied taxes accordingly. According to people who observe duty issues, the appraised value is still far below the actual import prices of the dresses.

Data from the revenue authorities and trade bodies corroborate the suspicion that a significant portion of garment imports from India and Pakistan is undervalued. According to industry estimates, the actual value of imports from these two neighbouring countries could be several times higher than the declared values.

Under-invoicing in imports is persistent for long, but its extent in the import of garments has reached an alarming level in recent years. This illegal trade manoeuvre is causing substantial revenue losses to the government, and promoting hundi. Importers collude with suppliers to create fake invoices, often using hundi or offshore accounts to settle the remaining balance, thus keeping the undeclared portion of the transaction hidden from the authorities.

The Bangladesh revenue authorities have implemented various measures to curb under-invoicing, but enforcement still remains a challenge. Customs officials rely heavily on invoice declarations and are often unable to verify the authenticity of transaction values. The absence of a proper valuation database or reference pricing mechanism makes it difficult to cross-check the declared values. Corruption among the revenue authorities is also considered a big barrier to checking under-invoicing. Media reports suggest that a section of customs officials ignore under-invoicing in exchange for bribes, allowing fraudulent transactions to continue. Unless stricter oversight and transparency measures are introduced, this problem will not go away.

Checking under-invoicing is not an easy task and it requires stronger regulatory frameworks, technological interventions, and international cooperation. The revenue authorities should establish a minimum reference price for imported garments based on international market prices, leverage technology to cross-check invoices with export data from the source countries, enhance post-import audits to detect under-invoicing cases and introduce mechanism to impose heavier penalties, including revoking licences of fraudulent importers to deal with the issue. Enhanced digital documentation and real-time data sharing with the countries of origin could help reduce the malpractice.​