🇧🇩 Textile & RMG Industry of Bangladesh (3 Viewers)

[Saif]

Bangladesh needs to develop MMF-based garments: study

Bangladesh should develop manmade fibre-based value chain and produce new product categories to gain the global market share as...

www.newagebd.net

Bangladesh needs to develop MMF-based garments: study
Staff Correspondent | Published: 23:13, Apr 04,2024

Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan, vice-president-elect Abdullah Hil Rakib, directors-elect Shovon Islam, Nusrat Bari Asha and Md Nurul Islam, PricewaterhouseCoopers managing director Shalini Shrivastava and director Arindam Saha, among others, are present at a report launching event at BGMEA headquarters in the capital Dhaka on Thursday. — New Age photo

Bangladesh should develop manmade fibre-based value chain and produce new product categories to gain the global market share as the exports of such apparel would increase to 60 per cent by 2030 from the existing 50 per cent in the world, according to a study.


The report titled 'From shirts to shores: blueprint for Bangladesh RMG industry' projected that the global export of readymade garment would grow to $1,121 billion, which was $953 billion in 2022.


It said that of the projected $1,121 billion global apparel exports, 60 per cent would be MMF-based garments.

In a bid to navigate the challenges and seize opportunities ahead, Bangladesh Garment Manufacturers and Exporters Association commissioned PricewaterhouseCoopers, a research farm, to conduct the study.

The study said that 50 per cent of $953 billion global garment exports in 2022 was MMF based, 37 per cent cotton-based and 13 per cent others.

It showed that China was the leader for MMF-based garment exports with 62 per cent of the market share in 2022 followed by Vietnam, Italy and Turkey.

The BGMEA on Thursday published the report at an event held at the headquarters of the trade body at Uttara in the capital Dhaka.

The report mentioned that Bangladesh should develop the ecosystem for being competitive in manufacturing of select products as the story of MMF would remain strong in global sourcing.

The report showed that the total global trade of four promising products — jackets/suits/blazers, activewears/swimwears, technical garments and brassieres — accounted for $100 billion and 73 per cent of them was MMF based.

It said that focused strategy was required for each promising product – market mix prioritising the high value-added products.

The study also suggested positioning Bangladesh as supplier of value-added MMF-based products in the European Union countries, the United States and the United Kingdom.

It also recommended continued efforts in penetrating new markets, including Japan and South Korea.

The report proposed making investments in automation, digitalisation and resource efficient technologies.


BGMEA president Faruque Hassan emphasised the significance of research-driven strategies in sustaining competitiveness amidst evolving global dynamics.

He said that the report offered vital insights and actionable recommendations aimed at building a more prosperous future for Bangladesh's apparel sector.

'These strategies outlined in the report will serve as guidelines for us to navigate challenges and capitalise on opportunities, thus maintaining our competitiveness in the global market,' BGMEA president said.

BGMEA vice-president-elect Abdullah Hil Rakib, and directors-elect Shovon Islam, Nusrat Bari Asha and Md Nurul Islam were present at the report launching event.

PwC managing director Shalini Shrivastava and director Arindam Saha, among others, attended the programme.​

 

[Saif]

Three priorities for a smart RMG industry

Bangladesh's Ready-Made Garment (RMG) industry stands as a cornerstone of the nation's economy, driving growth and employment while commanding a significant presence in the global fashion market. However, the industry faces pressing challenges in an era of rapid technological advancement and shifti

thefinancialexpress.com.bd

Three priorities for a smart RMG industry​

MOHIUDDIN RUBEL

Published :​

Mar 31, 2024 21:24

Updated :​

Mar 31, 2024 21:24

Bangladesh's Ready-Made Garment (RMG) industry stands as a cornerstone of the nation's economy, driving growth and employment while commanding a significant presence in the global fashion market. However, the industry faces pressing challenges in an era of rapid technological advancement and shifting consumer demands. To sustain its leadership position and embrace the future of fashion, Bangladesh's RMG sector must undergo a transformative journey, leveraging strategic technological interventions.


To sustain its position as a global leader in garment manufacturing and to ensure its continued relevance in an increasingly interconnected world, the RMG sector must embrace innovation and technological integration. This narrative delves into three paramount priorities that, when seamlessly integrated, can weave together a fabric of a smarter, more sustainable, and ethically conscientious RMG sector.

CAPACITY DATABASE—CHARTING THE INDUSTRY'S LANDSCAPE IN REAL-TIME: Imagine a real-time map of the industry's capacity, pulsating with data that reveals production strengths, limitations, and potential bottlenecks. This is the power of a capacity database, a comprehensive repository of information that empowers proactive decision-making.

This foresight enables the prevention of over-capacity, anticipation of shortages, and optimisation of production efficiency. Such transparency and unified data empower businesses to adapt swiftly, customise offerings, and forecast future demands, ensuring continued success on the global stage. This transparent and unified data landscape empowers businesses to adapt with agility, personalise offerings, and anticipate future needs, ensuring continued relevance and success in the global market.

ALL-DATA PORTAL CONNECTIVITY: THE SYMPHONY OF INFORMATION FLOW: Imagine an interconnected ecosystem where stakeholders in the RMG industry seamlessly exchange information, akin to a symphony orchestra playing in perfect harmony. All-data portal connectivity achieves this by facilitating real-time data exchange through cloud-based platforms.

This enhanced visibility enables agile decision-making, streamlines supply chain management, and fosters collaboration across the industry. By embracing standardized data formats and secure platforms, Bangladesh's RMG sector can establish a unified data infrastructure that catalyzes innovation and resilience.By fostering collaboration and establishing standardized data formats and secure platforms, we can create a unified data infrastructure that serves as the bedrock for a smarter and more resilient RMG sector.

SUPPLY CHAIN SMARTNESS: WEAVING INTELLIGENCE INTO THE FABRIC OF PRODUCTION: The concept of supply chain smartness revolutionises traditional production processes, integrating technologies like IoT, AI, and blockchain to optimise efficiency and sustainability.

Imagine a supply chain infused with intelligence, where every step - from raw material sourcing to finished product delivery - is optimised for efficiency and sustainability. This is the essence of supply chain smartness, achieved through leveraging sensors, AI-powered tools, and blockchain's transparency. From streamlining production schedules to identifying quality issues early and promoting sustainable sourcing, supply chain smartness can equip Bangladesh's RMG sector to thrive in a rapidly evolving market landscape.

By strategically weaving these technological threads into the fabric of the Bangladeshi RMG industry, we can create a tapestry not just of efficiency and profitability, but of sustainability, ethical practices, and a future where technology empowers both businesses and workers. This transformation marks not only the sustained global leadership of the Bangladesh RMG industry but also the birth of a new standard for a smart, sustainable, and ethical fashion landscape. With the government's support and industry-wide collaboration, Bangladeshi RMG industry can continue to flourish, woven with threads of innovation, sustainability, and global leadership.

Mohiuddin Rubel, Director, BGMEA and Additional Managing Director, Denim Expert Limited.​

 

[Saif]

Time for fashion brands, retailers to rethink green strategies

Over the past two or three years, we have seen a huge backlash against sustainability marketing in the West.

www.thedailystar.net

Time for fashion brands, retailers to rethink green strategies

Fashion brands have spent almost two decades attempting to use sustainability as a marketing tool, with varying degrees of success. For many, launching any new product will have a "green" angle to it. Sustainability sells—at least that is what we have always been led to believe. But does it, really? My guess is that most consumers still value qualities such as style, fit, value for money and choice above all else. They also have their favourite brands that they stay loyal to through thick and thin. Take, for instance, the remarkable success of sports giants Adidas and Nike in dominating the global market for sporting apparel for so long. Building a strong brand is critical to business success.

However, over the past two or three years, we have seen a huge backlash against sustainability marketing in the West. The word "greenwashing" has become commonplace, and there is a growing lack of trust around brands and the claims they are making about their apparel products. Some brands have been reported for making misleading or false claims about their clothing collections. Some are facing potential fines. All are now considering how to approach this subject. Is it worth making green claims if the risk is accusations of greenwashing, bad publicity and reputational damage? At what point will brands begin to think that the drawbacks outweigh the positives? Might we see more "greenhushing" moving forward?

The problem they all face is that, as their output grows, their supply chain emissions increase. In the absence of a rapid shift to renewable energy in supply chains, it is a thankless task. The net result of all this is that in about five years or so, the fashion industry will have to make radical changes in supply chains in order to reduce carbon intensity in line with protocols such as the Paris Agreement. If they cannot do this, the backlash from consumers, regulators and investors alike will be huge.

I think we may already be reaching that stage already. Aside from the fact that the benefits of green marketing are negligible anyway, there is another issue to consider: supply chains. Most major fashion brands have now set targets to reduce carbon emissions in their supply chains (tier 3). Many have set science-based targets on these issues, and this is an area which investors and regulators alike are watching closely. Brands are under a huge—and growing—level of scrutiny on this topic.

While fashion brands are often criticised for not financially supporting the green transition in supply chains, major brands are committing time to reduce the carbon impact of their supply chains. This is logical because if they fail on this issue, there will be serious questions to answer when we hit key milestones related to sustainability and green transition.

I closely follow the sustainability reporting of fashion brands and retailers. Most are now reporting in great detail their progress around reducing CO2 emissions. In some cases, they are achieving great success in this area, but mainly this is in their own operations, such as retail stores. These emissions are a tiny part of a brand's total emissions—often less than 10 percent.

When it comes to reducing emissions in supply chains, brands have not been quite so successful. Some are making progress in this area but, for most, it is a case of two steps forward, three steps back. Many major brands set CO2 reduction targets before the pandemic. Since then, their supply chain emissions have gone up.

The problem they all face is that, as their output grows, their supply chain emissions increase. In the absence of a rapid shift to renewable energy in supply chains, it is a thankless task. The net result of all this is that in about five years or so, the fashion industry will have to make radical changes in supply chains in order to reduce carbon intensity in line with protocols such as the Paris Agreement. If they cannot do this, the backlash from consumers, regulators and investors alike will be huge.

So many fashion brands are now playing catch-up because they have been unable to move the needle on supply chain emissions in the past five years. It would not be a surprise to see some of the relevant goals getting an extended deadline, but I am not sure this will go down well with investors and consumers.

I believe that while consumers may not care too greatly for products packaged in a "green" way, they do take notice of broader climate issues. There will come a point when the public at large will begin to look for people to blame, and large retailers with carbon-intensive supply chains will be high on the list. So brands need to be ready; they need to be seen doing all they can to cut their carbon footprint, and woe betide those who miss the critical 2030 targets.

So perhaps it is time to forget eco fashion and green claims by brands and retailers. As we move forward, green marketing could be less about products and more about the energy and emissions used in the production of clothing. This could spell opportunities for progressive suppliers.

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

 

[Saif]

Import RMG from Bangladesh directly, PM tells Brazil

Prime Minister Sheikh Hasina today called upon Brazil to directly import readymade garments (RMG) from Bangladesh

www.thedailystar.net

Import RMG from Bangladesh directly, PM tells Brazil

Photo: BSS

Prime Minister Sheikh Hasina today called upon Brazil to directly import readymade garments (RMG) from Bangladesh.

"RMG goods from Bangladesh is being exported to Brazil on a limited scale through a third party. It will be more affordable for Brazil if the country directly imports RMG items from Bangladesh," she said.

The prime minister made the remarks when a delegation of Brazil led by its Foreign Minister Mauro Vieira paid a courtesy call on her at her office in Dhaka this morning.

PM's Speech Writer M Nazrul Islam briefed the newsmen after the meeting.

Stressing the need to ensure trade balance between Bangladesh and Brazil, Sheikh Hasina said the trade balance between the two countries has highly tilted toward Brazil.

Brazil can import more products including jute and jute goods and leather items from Bangladesh to make sure the trade balance between the two countries, she continued.

The prime minister said Bangladesh mainly imports sugar, soybean oil and cotton from Brazil.

"There is huge scope to increase bilateral trade between Bangladesh and Brazil," she said.

Sheikh Hasina has also stressed the need for enhancing the existing bilateral relations between Bangladesh and Brazil.​

 

[Saif]

Bangladesh's cotton import to rise on bright RMG export prospects: USDA

Despite facing a number of economic challenges, Bangladesh may end up importing more cotton year-on-year in marketing year (MY) 2024-25 to meet increasing global demand for garments.

www.thedailystar.net

Bangladesh's cotton import to rise on bright RMG export prospects: USDA

Despite facing a number of economic challenges, Bangladesh may end up importing more cotton year-on-year in marketing year (MY) 2024-25 to meet increasing global demand for garments.

The nation, the second-largest garment exporter after China, is projected to import 80 lakh bales of raw cotton (1 bale equals 218 kilogrammes), the US Department of Agriculture (USDA) said.

This is a 6.7 percent increase from that in MY 2023-24, which begins in August for cotton, the agency said in its report on the production, import and use of cotton in Bangladesh.

Published earlier this month, the report forecast local spinning mills to use a higher amount of raw cotton due to lower imports of yarn and fabric.

The report by USDA's Foreign Agricultural Service said Bangladesh's garment industry is expecting exports to increase by 7 to 10 percent in 2024, rebounding from a decrease in orders during the global economic slowdown.

It said ready-made garments (RMG) exports during the first two months of 2024 reached $9.47 billion, posting 13.2 percent year-on-year growth, and expected this growth to prevail in MY25, leading to an increase in the import of raw cotton.

"Industry contacts noted that Bangladesh's RMG industry is expecting higher numbers of work orders from the second quarter of 2024 with rebounding global demand for RMG products," said the USDA.

The dwindling forex reserve is another reason that may lead to increased consumption of cotton and a decline in purchases of pricier fabrics.

The US agency said many garment factories in Bangladesh have their own spinning mills and prefer to import raw cotton rather than yarn.

These companies, which earn from exporting garments, can open letters of credit (LCs) as they have their own source of US dollars, it added.

"Companies that solely import yarn and fabric will continue to face forex challenges as they tend to be smaller than the fully integrated cotton spinning mills and have more difficulty opening LCs, leading to a reduction in their imports," it said.

"Industry contacts also anticipate a surge in global RMG demand after April 2024, which could increase cotton demand in Bangladesh."

However, it maintained its projection on Bangladesh's cotton imports at 75 lakh bales in MY24 and domestic consumption at 78 lakh bales.

Citing the National Board of Revenue's data, it said Bangladesh imported 41 lakh bales of raw cotton in the first seven months of MY24.

The report, citing spinning industry insiders, said shortages of gas and electricity hampered their production capacity in the first and second quarters of 2023.

However, since the beginning of MY24, the situation has improved slightly.

The industry estimates higher cotton imports and utilisation based on the increased demand for garments in the remaining months of MY24, according to the report.​

 

[Saif]

US trade body reiterates support for GSP revival

The American Apparel & Footwear Association (AAFA) has expressed support for revival of the Generalised System of Preferences (GSP) to reduce costs faced by US citizens.

www.thedailystar.net

US trade body reiterates support for GSP revival

The American Apparel & Footwear Association (AAFA) has expressed support for revival of the Generalised System of Preferences (GSP) to reduce costs faced by US citizens.

Introduced in 1976, the GSP was a trade scheme allowing least developed and developing countries to export goods to the US at a low duty, if none at all in some cases.

Bangladesh was suspended from it in June 2013 after two industrial disasters, the Tazreen Fashions fire and Rana Plaza building collapse, over serious shortcomings in labour rights and workplace safety.

The scheme was cancelled for all beneficiary countries in December 2020.

"The apparel and footwear industry encourages Congress to quickly pass the GSP Reform Act," said Steve Lamar, president and chief executive officer (CEO) of the AAFA, in a statement on April 15.

"GSP has always had bipartisan support, and the record long lapse has been unexplainable and damaging to American businesses, American workers, and beneficiary countries alike, all while handing a huge trade win to China," he said.

"This retroactive renewal is far more effective at making our trusted partners more competitive than misapplied tariffs will ever be," he said.

"This GSP program is also helpful to mitigate the costs faced by our nation's supply chains during this time of continuous disruption," said Lamar.

"Once renewed, this can have a very real impact on the cost and offering of everyday goods such as luggage for summer travel and backpacks for school in the fall," he said.

"We were pleased to see several proposed reforms, including measures to update the competitive need limitation mechanism and open a process to consider currently ineligible products," said Beth Hughes, vice president of the AAFA for trade and customs policy.

Bangladesh has been putting in the effort to enjoy the duty benefit on exports, State Minister for Commerce Ahasanul Islam Titu told The Daily Star over the phone yesterday.

Bangladesh has fulfilled 16 conditions for the reinstatement of the GSP and submitted the progress report to the United States Trade Representative twice.

However, on different occasions the US has been saying that Bangladesh needs to do more.

Prior to the suspension, Bangladesh was exporting goods, such as dry fish, tobacco items and ceramics and excluding the main export item, garments, worth $34 million under the GSP.​

 

[Saif]

RMG industry's transition to circular economy

The ready-made garment (RMG) industry of Bangladesh has made considerable strides in increasing the number of green garment factories. So far with 213 factories certified by the U.S. Green Building Council (USGBC) in the Leadership in Energy and Environmental Design (LEED) category, Bangladesh can

thefinancialexpress.com.bd

RMG industry's transition to circular economy
ATIQUL KABIR TUHIN
Published :
Apr 17, 2024 22:01
Updated :
Apr 17, 2024 22:01

The ready-made garment (RMG) industry of Bangladesh has made considerable strides in increasing the number of green garment factories. So far with 213 factories certified by the U.S. Green Building Council (USGBC) in the Leadership in Energy and Environmental Design (LEED) category, Bangladesh can boast of being home to the highest number of green factories in the world. Moreover, five hundred more garment factories are also in the pipeline of receiving the LEED certification, which is a manifestation of the fact that an increasing number of apparel manufacturers are embracing environmentally sustainable and energy-efficient practices in their manufacturing process. Now the bustling and vibrant industry, with an annual export turnover of nearly $ 47 billion that is about 84 per cent of the country's total export earnings, is well positioned to take its sustainability practices up a notch by embracing circular transformation of the industry.

The RMG industry has so far been following a linear business model of "make, use and throw away" or "take, make and dispose". But the world is slowly but steadily transitioning from linear to circular production model. It is, however, heartening to see that stakeholders of the RMG industry started dabbling in circular economy model. In simple terms, the circular economy calls for eliminating maximum waste in the market by adopting a regenerative manufacturing system that treats waste as a source of new materials and new revenue. In this way, the requirement for virgin material can be reduced to a bare minimum or would not be needed at all.

In a circular system, products are designed and manufactured with such materials that they can be used, reused, repaired and recycled, thereby reducing waste and extending the lifecycle of materials incalculably. In this way, circular production method strives to ensure the majority of products or product materials do not end up as waste. It also embraces responsible sourcing of materials, reducing water and energy consumption and minimising waste at each and every stage.

Take the example of global sportswear giant Nike's formula of a circular economy for its products. It designs products in a way that they can be used, re-used, recycled, and composted at the end of their life. Nike says it is working to reduce its use of virgin materials and to increase its use of recycled materials.

The practice of circular economy is gaining ground worldwide because linear production system is not only negatively impacting the environment, but also leading to rapid depletion of finite natural resources. The European Union says by 2030 all textile products placed on the EU market must be made of recycled fibers, free of hazardous substances, and produced in respect of social and environmental rights.

Bangladesh is also experiencing environmental degradation of extreme measures. Textile and dyeing factories are one of the main culprits for polluting the rivers and canals and creating havoc to the environment.

Putting all of these issues together, embracing a circular economy is not just a choice, but a necessity for the RMG industry. If the circular economy model can be implemented in a substantive and meaningful way, it would be enormously beneficial for both the environment and business. It would also reduce the industry's pressure on natural sources. For all these reasons circular fashion can be a major thrust towards sustainable growth of the apparel industry.

However, when it comes to embracing circular business models, there is no 'one size fits all' solution. The procedure varies depending on the industry's context. As the second largest garment supplier in the world, Bangladesh's RMG industry has to deal with a huge volume of pre-consumer waste, not post-consumer waste. According to BGMEA, the apparel industry annually produces about 400,000 tonnes of pre-consumer textile waste. This waste is currently collected in an informal way, and only 5 per cent of it is recycled locally. The remaining waste is either incinerated in furnaces or dumped in landfills, which has a negative impact on the environment and human health.

To break free from the linear model of production, the RMG industry should prioritise upstream circularity, which refers to reducing waste at the source, during the design, production, and cutting processes. Technology can play a vital role here as innovations such as 3D printing and digital platforms for garment customization enhance efficiency and sustainability. These technologies enable a closer connection between manufacturers and buyers, fostering a sense of mutual responsibility for reducing pre-consumer waste to a bare minimum.

Upstream circularity will help reduce waste, but it will not eliminate waste. So the next stage should be to follow the principle of 'recycle and recover' through which textile waste (jhoot) can be turned into the fiber; and the fiber into fabric, and RMG products made from that recycled fabric. Recycling textile waste into new fabrics or products, also reduces the need for virgin resources. In this way not only is the pre-consumer textile waste eliminated, but also, according to an estimate, the industry can save as much as US$500 million a year.

To this end, a platform named Reverse Resources has been collaborating with manufacturers across Bangladesh as part of the Circular Fashion Partnership project since 2020. So far it has teamed up with about 170 manufacturers to segregate their waste and digitally trace it to recycling solutions. Clearly, this is the sort of solution BGMEA should bring into the mainstream if it wants to fulfil its Sustainability Vision 2030 where embracing circular economy is one of the key targets.

To build a circular ecosystem in the RMG industry, there is also a need for greater collaboration between all stakeholders, including brands, manufacturers, policymakers and waste management companies. Overall, there is a need for the development of a national circularity strategy, as well as fiscal incentives and other forms of support for factories that are investing in upstream circularity measures. The role of innovation is also of paramount importance for developing new circularity solutions for the textile industry. This includes developing new sustainable materials, designing for recyclability, and improving manufacturing efficiency. Factories that are willing to innovate and re-invent themselves by embracing this new business model will gain a competitive advantage over their peers because circularity matters for a sustainable future.​

 

[Saif]

BD urges US to provide duty, quota free access on RMG items

Breaking News, International News & Multimedia

thedailynewnation.com

BD urges US to provide duty, quota free access on RMG items
22 Apr 2024, 12:00 am

Business Report :

Bangladesh has urged the United States to provide duty free and quota free access on Bangladeshi RMG items made from US cotton.

Bangladesh also demanded of the US government for creating export opportunities for Bangladeshi products like pharmaceuticals, ceramics apart from RMG as well as simplifying further the registration process of pharmaceuticals.

The demands were placed at a US-Bangladesh TICFA Intercessional Meeting held at the Ministry of Commerce conference room at Bangladesh Secretariat here on Sunday.

Briefing reporters after the meeting, the head of Bangladesh delegation and Senior Secretary of the Ministry of Commerce Tapan Kanti Ghosh said that the RMG industry of Bangladesh is now more compliant than the past.

"The workers in the RMG industry represent the poor community. If the USA wants to contribute towards improving the living standards of this section of people, then the USA can provide duty free access," he added.

Citing that the USA has kept intact the duty free and quota free access of the products of LDCs of Africa, Tapan said such countries in Asia can also avail such facility.

The Commerce Secretary said that the government has already improved the labour condition and brought necessary legal reforms. "We've raised our arguments in the meeting that the Bangladeshi RMG items are worthy of getting duty free access in US market in overall consideration," he added.

Tapan said the government has also sought technological support from the US in boosting farm production alongside improving the preservation system.

Besides, he said the government has also sought support in standard certification in exporting agricultural items and ensuring necessary accreditation.​

 

[Bilal9]

US to look into 'unhealthy competition' in garment pricing

The United States International Trade Commission (USITC) is going to hold a hearing involving Bangladesh to see whether a recent rise in prices of garment items sourced from the country had anything to do with unhealthy competition.

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US to look into 'unhealthy competition' in garment pricing​

View attachment 3925

The United States International Trade Commission (USITC) is going to hold a hearing involving Bangladesh to see whether a recent rise in prices of garment items sourced from the country had anything to do with unhealthy competition.

The USITC found out that the prices the US paid for each unit of Bangladeshi garments had recently exceeded the average of the prices paid by America for garments sourced from different countries.

This prompted the agency to open an investigation to find out whether any anti-competitive incident took place.

The USITC is an independent, nonpartisan, quasi-judicial federal agency that fulfils a range of trade-related mandates, according to its website.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is going to virtually attend the hearing on March 11.

The prices rose mainly due to adjustments brought about by American clothing retailers and brands to compensate for an increase in raw material and shipping costs during and after the pandemic, he said.

The price per unit had been rising at a moderate pace since 2017 while that offered by China has declined, the BGMEA chief added. The unit price offered by Bangladesh is currently $3.23, compared to $1.86 and $2.95 for China and Pakistan respectively, he said.

Given that Bangladesh still largely manufactures basic items, the average price level is well above the global average import price per unit paid by the US, he said.

Hassan also said recent geo-political tensions have added woes to global supplies, which were already struggling, and to the demand dynamics of diesel prices, resulting in record hikes.

"In recent years, our cost of production has gone up exorbitantly. Price of electricity has risen by 25 percent, gas by 286.5 percent, diesel by 68 percent, and similar impacts on transport and other factors are notable," he said.

Inflation has pushed cost of finance further up, leading to increased cost of production and cost of goods, he added.

Also, bank charges and municipality and city corporation fees, including different registration and certification fees, have significantly increased, said Hassan.

In the past decade, the industry invested millions of dollars to remediate factories, and is constantly investing in greener manufacturing, emission reduction and resource efficiency to meet emerging due diligence requirements, he said.

He hoped that the USITC would view the overall scenario instead of considering only cost and efficiency-based competitiveness.

At the same time, drawbacks such as a lack of local raw materials and absence of foreign direct investment in this industry also need to be taken into consideration, the BGMEA chief added.​

These middlemen sitting in the middle of New York are the scumbuckets. They will suck every drop of blood out of you as a worker while they amass Billions. Even if they are paying the same amount for Bangladeshi apparel exports like they did ten years ago, these middlemen are not happy.

Meanwhile I guess our poor Bangladeshi workers are just "happy to have a job" and are forced to work for pennies while these NYC middlemen profit and refuse to pay living wages (even Bangladesh living wages which are the lowest in the world).

Bangladesh does not even have quota or duty free benefits for exports to the US which other countries (Vietnam for example) enjoy.

 

[Bilal9]

Apparel exports to EU jump 8.5% in Feb 2024

Infographic: TBS

Bangladesh's apparel exports to the European Union market surged by 8.5% month-on-month to around €1.3 billion in February this year – the highest in the last four months.

However, shipments to the 27-nation economic bloc remained 18.6% lower compared to the corresponding month a year ago, according to Eurostat.

Bangladesh has witnessed the most significant decline in apparel exports among its competitors in the EU countries during the first two months of 2024. This trend mirrors a similar decline observed in the United States market during the same period.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said apparel exports are facing a challenging time as most buyers are not paying proper prices.

He explained that exporters are losing competitiveness despite increased production costs caused by utility price and wage hikes.

He also expressed concern that the escalation between Iran and Israel may significantly affect exporters in the coming months.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, echoed the sentiments of the BGMEA president.

He mentioned that inquiries from western buyers had increased in recent months, but many manufacturers have been unable to entertain their orders as buyers are offering low prices.

Hatem also noted that buyers are now looking for shorter lead times, but Bangladesh's shipment time has increased to 89-90 days from 50-60 days due to the gas crisis. Consequently, many western buyers are placing their orders in Vietnam and China instead, he said.

In January-February 2024, the South Asian nation experienced a significant decline in its apparel exports to the EU market, amounting to a decrease of 26.74%.

According to Eurostat, the statistical office of the European Union, Bangladesh's exports totaled €2.48 billion during this period, down from €3.39 billion in the corresponding period of 2023.

Exporters highlighted that despite a surge in global demand for apparel, Bangladesh's benefits were minimal due to prolonged lead times and escalating production costs.

Specifically, the country saw a decline in its knitwear exports to the EU in January-February 2024, amounting to €1.42 billion compared to €2 billion in the same period a year ago.

Similarly, the country's woven garment exports to the 27-nation economic bloc during the first two months of 2024 decreased to €1.06 billion from €1.38 billion in the corresponding period of last year, according to Eurostat data.

Recent data from the US Department of Commerce's Office of Textiles and Apparel indicates that Bangladesh has fallen behind its competitors in apparel exports to the American market during the January-February period of 2024.

According to OTEXA data, Bangladesh experienced a notable decline of 19.24% in its apparel exports to the US during the first two months of this year. This contrasts with China, which saw export growth of 0.48%, and Vietnam, which recorded an increase of 0.14% during the same period.

According to Eurostat, clothing imports by the EU from various countries witnessed a decrease of 15.31% to €12.53 billion in the first two months of 2024, down from €14.80 billion in the same period last year.

Specifically, apparel imports from China to the EU in the January-February period dropped by 13.12% to €3.33 billion, compared to €3.83 billion in the same period of 2023.

The EU's apparel imports from Turkey decreased by 10.69% to €1.54 billion, down from €1.72 billion in the same period of the previous year.

 

[Saif]

These middlemen sitting in the middle of New York are the scumbuckets. They will suck every drop of blood out of you as a worker while they amass Billions. Even if they are paying the same amount for Bangladeshi apparel exports like they did ten years ago, these middlemen are not happy.

Meanwhile I guess our poor Bangladeshi workers are just "happy to have a job" and are forced to work for pennies while these NYC middlemen profit and refuse to pay living wages (even Bangladesh living wages which are the lowest in the world).

Bangladesh does not even have quota or duty free benefits for exports to the US which other countries (Vietnam for example) enjoy.

Bangladesh has been asking for duty free access to the US market but the strong textile lobby in the US is the main roadblock to allowing Bangladeshi RMG products duty free access by the US Govt. As far as I remember Bangladeshi exporters pay 15% duty on RMG products in the US. Not only that, the US Govt. has revoked GSP+ facility after Rana Plaza incident.

 

[Bilal9]

Bangladesh has been asking for duty free access to the US market but the strong textile lobby in the US is the main roadblock to allowing Bangladeshi RMG products duty free access by the US Govt. As far as I remember Bangladeshi exporters pay 15% duty on RMG products in the US. Not only that, the US Govt. has revoked GSP+ facility after Rana Plaza incident.

You are correct on most counts. But the lobby opposing duty-free access for Bangladeshi products is not the textile lobby in the US. USA makes very few similar products which Bangladesh exports, and they do not care. The lobbies opposing our duty-free exports are being paid by our competitors who make similar products, low wage countries who are our Asian neighbors, including one right next door. Also, Mexico, Honduras and Guatemala may employ lobbyists to oppose Bangladesh - if we falter in US market they are net gainers.

 

[Saif]

BGMEA seeks US govt support to ensure fair minimum apparel price

The Bangladesh Garment Manufacturers and Exporters Association on Monday at a meeting with the visiting United States Trade Representative delegation sought support and collaboration of the US government to ensure fair minimum price of apparel and a unified code of conduct for social audits...

www.newagebd.net

BGMEA seeks US govt support to ensure fair minimum apparel price
Staff Correspondent 22 April, 2024, 23:29

Bangladesh Garment Manufacturers and Exporters Association president SM Mannan Kochi, senior vice-president Khandoker Rafiqul Islam and vice-presidents Md Nasir Uddin and Abdullah Hil Rakib and assistant USTR for South and Central Asia Brendan Lynch, among others, are present at a meeting with the visiting United States Trade Representative delegation held at the BGMEA headquarters in the capital Dhaka on Monday. | — Press release

The Bangladesh Garment Manufacturers and Exporters Association on Monday at a meeting with the visiting United States Trade Representative delegation sought support and collaboration of the US government to ensure fair minimum price of apparel and a unified code of conduct for social audits.

The apparel trade body also urged the US government to reinstate GSP in favour of Bangladesh and include garment items in its GSP programme, according to a BGMEA press release.

The USTR delegation at the meeting with the BGMEA discussed the labour action plan provided by the US government.

At the meeting with the BGMEA leaders at the headquarters of the trade body in the capital Dhaka, the USTR team also discussed the required changes in Bangladesh Labour Act to ease the trade union registration process and to address the unfair labour practices, the meeting sources said.

The USTR delegation on Sunday handed over an 11-point 'Bangladesh Labour Action Plan' to commerce secretary Tapan Kanti Ghosh and urged the government to implement it in order to avail duty-free benefits and access to funds of the US International Development Finance Corporation.

The BGMEA in a press release said that the USTR delegates appreciated the progresses Bangladesh made in the past few areas in the labour sector and discussed areas where further improvements were required, including amendments to the BLA.

The US delegation led by the assistant USTR for South and Central Asia Brendan Lynch also discussed bilateral trade and policies, including workers' rights, wellbeing and market access matters.

The BGMEA side was headed by its president SM Mannan Kochi and included senior vice-president Khandoker Rafiqul Islam and vice-presidents Md Nasir Uddin and Abdullah Hil Rakib.

During the discussion, the BGMEA president shared updates on the progress made by the readymade garment industry regarding workplace safety, workers' rights and the ongoing labour law reforms in Bangladesh.

He reiterated the commitment and the ongoing efforts of the government of Bangladesh and of the industry to make further progress in workers' rights and welfare issues.​

 

[Saif]

Bangladesh fails to hook higher share of global RMG demand rise: report

Bangladesh has failed to capture a larger share of increased global demand for apparel in 2024 as China is outpacing Bangladesh in terms of receiving export orders, according to a Quality Inspection MAnagement report...

www.newagebd.net

Bangladesh fails to hook higher share of global RMG demand rise: report
Moinul Haque 23 April, 2024, 22:29

A file photo shows workers sewing clothes at a readymade garment factory at Savar, on the outskirts of Dhaka. Bangladesh has failed to capture a larger share of increased global demand for apparel in 2024 as China is outpacing Bangladesh in terms of receiving export orders, according to a Quality Inspection MAnagement report. | — New Age photo

Bangladesh has failed to capture a larger share of increased global demand for apparel in 2024 as China is outpacing Bangladesh in terms of receiving export orders, according to a Quality Inspection MAnagement report.

QIMA, a leading provider of supply chain compliance solutions, in its second quarter, 2024 barometer titled 'Q1 Procurement Uptick: a Beacon of Hope for Western Retail?' said that after a year of sluggish demand, the first quarter of 2024 witnessed a rise in sourcing volumes across the board, both in overseas supplier regions and nearshoring markets.

It showed that global demand for textile and apparel inspections and audits from garment manufacturing countries, including Bangladesh, increased over 20 per cent in the Q1 of 2024 while China was experiencing resurgence in popularity among apparel brands, its competitors in Asia and beyond were keeping pace.

According to the report, both United States- and European Union-based brands stepped up their procurement in Bangladesh, instilling optimism that the country's export sector would perform better this year compared with 2023, when a political crisis halted a significant portion of Bangladesh's manufacturing.

Citing a recent initiative of the government, QIMA expressed its doubt whether the optimism would pan out remains to be seen, as the industry has some concerns about the Bangladeshi government's policy move to reduce cash incentives for garment exports.

The recent data also reflected that Bangladesh's apparel exports have been witnessing deepest drop among its competitors, including China and Vietnam, in the US and the EU markets.

In 2023, QIMA data showed that much of China's growth was driven by emerging regions' demand, Q1 '24 saw the appetite for madein-China bouncing back in the West.

Demand for China inspections and audits among US-based buyers grew by 12 per cent year on year, while among European brands, the growth was even faster.

Especially from buyers based in Germany the growth was 35 per cent, France 30 per cent, and the Netherlands 33 per cent, the QIMA data showed.

'Meanwhile, interest in China's manufacturing capacities remained robust among buyers in other parts of Asia, as well as in Latin and South America, with double-digit growth in inspection and audit demand across the board,' the report said.

This barometer report, informed by QIMA's data on product inspections and factory audits, as well as its recent survey of more than 800 businesses, offers an early glimpse into the state of the sourcing landscape in 2024 and expectations for the upcoming months.

According to the survey, two-thirds of respondents globally reported plans to maintain or increase business volumes with Chinese suppliers in 2024.

It showed that 59 per cent of buyers in the US and 68 per cent of those based in the EU expressed similar intentions.

Former Bangladesh Knitwear Manufacturers and Exporters Association president Fazlul Hoque agreed with the findings of QIMA and said that Bangladesh was getting little benefits from the recent surge in global demand for the apparel due to the increasing production cost.

He said that China had desperately decreased the prices of products to gain the lion share of the increased demand for apparel on the global market.

'It is fact: Bangladesh is losing its competitiveness on the global market due to the increased production cost and our competitors, including China and Vietnam, grabbing more export orders,' BKMEA executive president Mohammad Hatem said.

He said that the excessive hike in prices of gas and electricity and recent increase of workers' wages affected the competitiveness of the sector.

Recent data from the US Department of Commerce's Office of Textiles and Apparel reveals that Bangladesh significantly lagged behind its competitors in apparel exports to the US market during the January-February period of 2024.

According to OTEXA data, Bangladesh's apparel exports to the US in January-February 2024 declined by 19.24 per cent, contrasting with China's export growth of 0.48 per cent and Vietnam's increase of 0.14 per cent in the same period.

Similarly, Eurostat, the statistical office of the European Union, showed that Bangladesh's apparel exports in January-February 2024 saw a decline of 26.74 per cent, in the 27-nation economic bloc, while the exports of China decreased by 13.12 per cent and Vietnam declined by 10.77 per cent in the period.​

 

[Saif]

Bangladesh lags behind RMG competitors

What should have been a time for rejoicing over the primary export sector of Bangladesh, is turning out to be a bitter pill. The readymade garments (RMG) sector has seen its share of its products in the two main markets- the United States (US) and the European Union (EU) fall in both value and volu

thefinancialexpress.com.bd

Bangladesh lags behind RMG competitors
SYED MANSUR HASHIM
Published :
Apr 26, 2024 21:59
Updated :
Apr 26, 2024 21:59

What should have been a time for rejoicing over the primary export sector of Bangladesh, is turning out to be a bitter pill. The readymade garments (RMG) sector has seen its share of its products in the two main markets- the United States (US) and the European Union (EU) fall in both value and volume over the two-month period (January - February, 2024). While China and Vietnam have both registered single-digit growth in terms of value and volume of exports to the US, Bangladesh has registered double-digit negative growth rate in this market. The situation is all negative for these three nations in the EU market (over the same period), but Bangladesh's loss is markedly more than its two closest competitors.

QIMA, a quality-control company, in its latest report revealed that "following a slow 2023, demand for textile and apparel inspections and audits were up by more than 20 per cent YoY in Q1 2024 globally." The report further stated that, "interest in China's manufacturing capacities remained robust among buyers in other parts of Asia, as well as in Latin and South America, with double-digit growth in inspection and audit demand across the board". Bangladeshi RMG companies have been struggling with cost escalations that have hampered its ability to take advantage of the recent rebound in the global apparel demand. These cost hikes include a new wage board structure for workers in the industry and increase in energy costs. Not equally but still quite important is the nagging issue of logistics whereby shipment delays have been costing the sector heavily in meeting deadlines.

Then there is the question of incentives. A recent decision to withdraw incentives on this industry has not helped matters. But incentives were bound to go anyway sometime. Some experts believe that the explosive growth in industrial production capacity in this sector had happened without proper demand forecasting. Many companies have grown to conglomerate size employing tens of thousands of workers. The expansion of some companies defied the economics but they grew nonetheless, due to availability of easy credit and perceived notions of demand for their products (in some cases). The belief that the government would forever go on providing subsidies in one form or another or perhaps, delay the inevitable introduction of a living wage that would potentially hamper the business model was perhaps was misplaced.

There are multifarious problems that the RMG industry is suddenly confronting. Upward revision of energy prices (both electricity and primary), a less-than-efficient system of outbound cargo (both by sea and air), etc. did not help matters. While a miniscule number of companies strove hard to make their factories energy-compliant, this was not the case for the majority of the industry. While it is seen that hundreds of companies are now joining the US LEED certification standard, thousands more are not in a position to do so. These are basic realities of life. While systemic problems are a national priority and require reform at policy level, there are things that should have been done at the sector level, but were not. When business was rosy, few entrepreneurs saw it fit to streamline their operations by introducing technologies that would bring down drastically their factories' consumption of water, electricity and energy. Only a handful of them saw it fit to allocate a significant portion of their profits to retrofit their plants in order to meet the stringent requirements demanded in emerging markets such as Japan because it was felt that the good days would last forever.

Sadly, nothing lasts forever in the cutthroat business of fashionwear. Vietnam, a late entrant into the apparel market, had invested heavily in power and ports long before Bangladesh had joined that phase. It also invested heavily in human capital development vis-à-vis infrastructure development and made the regulatory regime as simple as possible. Bangladesh is still grappling with these basic issues. The good news here is that buyers of EU and the US have stepped up their procurement from Bangladesh, but it remains to be seen whether this is temporary or it will last. The full spectre of subsidy-withdrawal coupled with other cost escalation factors will become apparent in the months to come. According to OTEXA data, the country's RMG exports to the US totaled US$1.18 billion in the two-month period mentioned which is a 19.24 per cent decrease compared to the corresponding period in 2023. Unless the RMG sector wakes up and addresses the problems it has at factory level, it will become increasingly difficult to do business. Policymakers too should weigh the pros and cons of getting the house in order in terms of logistics bottlenecks if they don't want the dominant export sector to suffer and experience a dip in its exports.​