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[๐Ÿ‡ง๐Ÿ‡ฉ] Textile & RMG Industry of Bangladesh

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[๐Ÿ‡ง๐Ÿ‡ฉ] Textile & RMG Industry of Bangladesh
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Garment sector resumes regular production after Eid: BGMEA
FE Online Desk
Published :
Apr 12, 2025 18:07
Updated :
Apr 12, 2025 18:07

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Nearly all garment factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have resumed operations following the Eid-ul-Fitr holidays.

2,012 out of 2,024 factories โ€“ or 99.40 per cent โ€“ have reopened as of Wednesday, UNB reports citing a BGMEA statement issued on Saturday.

The highest concentration of garment factories is in the Gazipur and Mymensingh regions, where 851 out of 854 units are currently in operation.

In Savar, Ashulia and Jirani areas, 399 of 403 factories have resumed production. Besides, 186 factories are operational in Narayanganj, 320 in Demra, and 336 in Chattogram.

BGMEA data also reveals that 2,019 factories have already disbursed salaries for February, with only five factories โ€“ four in Dhaka and one in Chattogram โ€“ yet to do so.

As of now, 2,008 factories have paid salaries for March, either partially or in full. However, 16 factories are still pending full salary payments for the month, and 16 others have only paid partial salaries.​
 

Increase imports of US goods to reduce trade gap: textile millers
They also suggested increasing US content in manufactured goods to 20% to qualify for reduced tariff rates

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Bangladesh Textile Mills Association President Showkat Aziz Russell speaks at a roundtable on US tariffs, organised by the association at Gulshan Club in Dhaka today. Photo: BTMA

Textile millers and garment exporters today urged the government to increase imports from the US market in order to reduce the trade imbalance between Bangladesh and the United States.

They made the call at a roundtable on "US Tariffs on Bangladesh's Exports: Reciprocal Strategies and Way Forward for Negotiations," organised by the Bangladesh Textile Mills Association (BTMA) at Gulshan Club in Dhaka.

Showkat Aziz Russell, president of the BTMA, proposed leveraging Bangladesh's status as a major importer of American cotton by manufacturing cotton-based garments for duty-free access to the US market.

He also called for robust government support and greater foreign direct investment (FDI) to create employment and enhance competitiveness in the textile sector.

In his keynote, Masrur Reaz, chairman of Policy Exchange Bangladesh, underscored the significance of the recent 90-day deferment on new US tariffs and suggested that stakeholders move beyond diplomacy alone and pursue market-based solutions.

"Bangladesh must act decisivelyโ€”by engaging buyers and brands, increasing US content in exports, and assessing sector-specific impactsโ€”to secure long-term access to the US market," said Reaz.

The speakers suggested increasing US content in manufactured goods to 20 percent to qualify for reduced tariff rates, and establishing US cotton storage hubs in Bangladesh to streamline imports and eliminate logistical barriers.

They also recommended investing in infrastructure, industrial capacity, and human capital to boost productivity and global market readiness, and encouraging US investment in diversified sectors to expand export offerings.

Including the US private sector in ongoing free trade agreement (FTA) dialogues alongside government efforts was also recommended.

Participants expressed cautious optimism that evolving global trade realignments could open new doors for Bangladesh. However, they warned that inaction could lead to long-term setbacks.

The US remains Bangladesh's largest export destination, accounting for nearly 20 percent of total readymade garment exports, valued at $7.34 billion in 2024.

Hafizur Rahman, administrator to the Federation of Bangladesh Chambers of Commerce and Industry; Anwar Hossain, vice chairman of the Export Promotion Bureau and administrator to the Bangladesh Garment Manufacturers and Exporters Association, attended the event.

Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries; Abdul Hai Sarker, president of the Bangladesh Association of Banks; and Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, also attended.

Mohibuz Zaman, managing director of ACI Healthcare Ltd, and Mohammad Helal Mia, chairman of Amanat Shah Group, were also present.​
 

Bangladesh suspends import of yarn via land ports from India
Special CorrespondentDhaka
Updated: 15 Apr 2025, 19: 55

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The unusual hike in yarn price is impacting the competitiveness of RMG industry BSS

The National Board of Revenue (NBR) has suspended the import of yarn from India through land ports.

The facilities for importing yarn through Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports have been revoked.

The NBR issued a notification in this regard on Tuesday, with immediate effect.

The new notification revises the earlier one issued on 27 August 2024. Yarn was primarily imported from India through these land ports.

Earlier in February this year, Bangladesh Textile Mills Association (BTMA), an organisation representing textile industry owners, demanded the suspension of yarn imports from India via land ports.

Subsequently, in March, the Bangladesh Trade and Tariff Commission, under the commerce ministry, recommended that the NBR takes measures to halt yarn imports via land ports in order to promote the use of domestically produced yarn in the garment industry.

In a letter addressed to the NBR chairman, the tariff commission suggested continuing yarn imports through seaports as before, until appropriate infrastructure is developed in all land and rail routes, land ports, and customs houses adjacent to the borders to determine yarn count in accordance with international standards, thereby ensuring the protection of the domestic textile industry.

In response, NBR chairman Abdur Rahman Khan issued an order in this regard. However, the import of yarn may still be carried out via sea or other non-land routes.

Sources said yarn produced in the northern and southern regions of India is stored in warehouses in Kolkata before being transported to Bangladesh. This yarn enters the country at relatively lower prices. As a result, yarn imported via land ports has been used more extensively than locally produced yarn.

The Bangladesh Textile Mills Association (BTMA) has claimed that this has caused significant harm to the domestic textile industry.

Sources further indicate that although the prices of yarn produced in China, Turkey, Uzbekistan, and Bangladesh are relatively similar, Indian yarn imported via land ports is significantly cheaper.

In fact, the prices of yarn imported through land ports are much lower than the prices declared at the Chattogram customs house. Consequently, domestic yarn manufacturers are struggling to remain competitive in the market.​
 

US thread supplier opens new manufacturing facility in Ctg​


The facility is expected to increase production capacity, improve service levels, and shorten lead times, enabling A&E to deliver high-quality thread products more efficiently, the company said in a blog post on 20 March​


Photo: Pixabay


Global thread supplier American & Efird (A&E) has officially opened its 24th production facility in Chattogram, marking a milestone in its global expansion.

According to the yarn manufacturer, this new state-of-the-art facility will strengthen A&E's manufacturing network and increase its capacity to meet the growing demand for innovative thread solutions across Bangladesh and South Asia.

Strategically located near Chattogram's bustling seaport and financial hub, the new plant complements A&E's existing operation in Gazipur, further cementing the company's commitment to the region.

The opening was celebrated with a ribbon-cutting ceremony attended by key industry figures, customers, suppliers, partners, and government officials.

Guests were given a tour of the facility, which features cutting-edge technologies and scalable production processes.

The facility is expected to increase production capacity, improve service levels, and shorten lead times, enabling A&E to deliver high-quality thread products more efficiently, the company said in a blog post on 20 March.

Jeffrey P Pritchett, CEO of Elevate Textiles (A&E's parent company), expressed his enthusiasm, saying, "This facility enhances our ability to support customers globally while maintaining A&E's high standards of excellence. It reflects our long-term growth vision and commitment to providing innovative thread solutions."

He added, "The new facility features advanced production lines for spun and filament threads, incorporates green technologies to reduce environmental impact, and will serve as a regional hub for innovation, focusing on sustainable thread solutions."

In addition to strengthening A&E's manufacturing base, the new plant will create more than 350 local jobs, contributing to economic growth in the region.

Chris Alt, president of A&E, said, "This facility will allow us to meet the growing demand for our thread and specialty yarn products with greater speed and precision."

Angelo Leanage, managing director of A&E South Asia, emphasised that the facility's impact goes beyond production, with benefits for social development and regional growth.

"With this expansion, we continue our mission of delivering high-quality products and services while fostering economic progress in the region."

According to the company, this new plant is a key part of A&E's broader strategy to strengthen its leadership position in the global textile industry, building on a legacy of excellence that dates back to 1891. The Chattogram facility is set to play a pivotal role in shaping the future of thread solutions for the textile sector.
 

RMG exports grew 10.84pc in July-March
Bangladesh Sangbad Sangstha . Dhaka 17 April, 2025, 22:26

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New Age file photo

The countryโ€™s readymade garment exports witnessed a healthy growth of 10.84 per cent during the July-March period of the current financial year fetching $30.25 billion that highlights the resilience and potentials of the apparel sector.

This was revealed since the Export Promotion Bureau recently published the country-wise export data for the July-March period of the financial year 2024-25.

The data revealed that the European Union continues to be a pivotal market, which represented 49.82 per cent of Bangladeshโ€™s total RMG exports, with a total value of $15.07 billion.

Exports to the United States reached $5.74 billion, representing 18.97 per cent of the total share, while Canada totalled $963.85 million with a 3.19 per cent market share, and the UK market was also important, with exports worth $3.36 billion, which is 11.10 per cent of Bangladeshโ€™s total RMG exports during the specified period.

Regarding growth, Bangladeshโ€™s RMG exports to the EU grew significantly by 11.31 per cent year-over-year, with the USA demonstrating a strong increase of 17.23 per cent and Canada registering an increase of 15.66 per cent. However, RMG exports to the UK exhibited a more modest growth rate of 4.14 per cent.

Within the EU, Germany stood out as a significant market, with Bangladeshโ€™s exports valued at $3.80 billion, followed by Spain at $2.65 billion, France at $1.65 billion, Italy at $1.17 billion, Poland at $1.26 billion, and the Netherlands at $1.61 billion.

Growth rates were especially notable in Germany (10.72 per cent), France (10.75 per cent), the Netherlands (23.15 per cent), Poland (10.32 per cent), Denmark (12.80 per cent), and Sweden (19.96 per cent).

Bangladeshโ€™s RMG sector also showcased growth in non-traditional markets, with an overall rise of 6.66 per cent, where total exports reached $5.12 billion, capturing 16.93 per cent of Bangladeshโ€™s total exports, indicating potential for further expansion.

Among these markets, Japan led with imports totalling $960.45 million, followed by Australia at $653.64 million and India at $535.15 million.

Exports to countries such as Turkey and Mexico are significant as well, amounting to $357.22 million and $251.22 million, respectively, with a commendable growth rate of 20.45 per cent by India, 10.06 per cent by Japan, 23.44 per cent by Mexico, and 32.54 per cent by Turkey.

While growth in Japan, Australia, India, Turkey, and Mexico is positive during this timeframe, exports to Russia, Korea, the UAE, and Malaysia have diminished.

Negative growth in the UAE, Malaysia, and Korea suggests the need for further efforts in these markets.

The knitwear sector has shown a total growth of 11.22 per cent, while growth has suffered particularly in non-traditional markets. The woven sector has also seen a growth of 10.40 per cent, with slower growth in the UK but considerably higher growth in non-traditional markets.

The ongoing growth in exports significantly depends on the EU and USA, which continue to be the main markets for Bangladesh, indicating further potential within these areas.

Talking to BSS, Mohiuddin Rubel, former director, BGMEA, managing director, Bangladesh Apparel Exchange and additional managing director, Denim Expert Ltd, said it shows the significance of the major/traditional markets in our total export growth.

โ€˜The moderate growth in the non-traditional market underscores the importance of further research and focus in this category, as it possesses substantial growth potential, which will also help to balance reliance on traditional markets,โ€™ he said.

Rubel also said that persistent global trade tensions are constantly reshaping the global environment, creating opportunities that Bangladesh could take advantage of.​
 

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