🇧🇩 Textile & RMG Industry of Bangladesh (4 Viewers)

[Saif]

https://thefinancialexpress.com.bd/trade/apparel-export-ebbs-amid-economic-slowdown

Apparel export ebbs amid economic slowdown​

MONIRA MUNNI

Published :​

Feb 19, 2024 00:27

Updated :​

Feb 19, 2024 00:27

A sagging mood in global economy sent Bangladesh's apparel exports ebbing down, with the receipts from its largest market-the European Union---declining over 20 per cent in the past calendar year.

Readymade garment (RMG) exports fetched the country 17.38 billion euros from the EU in 2023 in a 20.65-percent fall from the 2022 earnings of 21.91 billion euro, according to data from Eurostat--the statistical office of the European Union.

Exporters explain the why: high inflation and rising interest rates globally dampened consumer demand that created inventory glut in western buyers' retail stores and discouraged them from placing new orders.

They say the official data from importing countries reflected the real work-order situation here in Bangladesh for the year 2023.

Official figures from the Eurostat showed exports of both knitwear and woven wears to the EU in 2023 having declined.

Knitwear subsector fetched 10.64 billion euros, down from 13.95 billion euro in 2022. Woven items earned 6.74 billion euros, against 7.95 billion euros in 2022.

The overall EU import of apparel in 2023 from the world at large also decreased, by 16.22 per cent to 83.19 billion euros, from 99.29 billion euros in 2022.

The EU trade data also showed two of Bangladesh's key competitors-- China and Turkey--also logged negative growth in export to the EU market in 2023, reflecting an overall dampened Western fashion appetite.

Germany is the single-largest market for Bangladesh's clothing export-and the shipments there, too, witnessed about 17-percent fall last year, says Md Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He explains that demand decreased due to wars, which had driven up inflation and interest rates and that resulted in apparel-inventory swelling.

"As a result, buyers placed reduced-rate work orders throughout the last year," he says.

The BGMEA leader, however, notes that retail sales in December improved following Christmas, leading to a decrease in inventory levels and hopes for a turnaround.

"Buyers have recently started making more queries and placing more work orders," he says, expressing hope for increased exports from April onwards.

The BGMEA leader regrets that they are not getting fair price despite recent wage hike as buyers' cost has also gone up due to the long transit time because of Red Sea crisis that has resulted in up to 30 days additional time to reach the destinations.

Echoing Mr Azim's anticipation, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Hoque linked the decline in shipments mostly to sluggish demand amid economic crisis over there.

He said the official data from the EU, and the US-where local RMG shipments also witnessed a 25-percent decline in 2023-- reflected their real situation.

Exporters said there were less work orders last year and many factories closed down at 05:00 pm and could not work overtime for shortage of work orders.

The BKMEA leader also opines that recently the work-order situation turns for the better which might be reflected in five to six months later.

Eurostat statistics show that China's apparel exports to the EU in 2023 amounted to 22.73 billion euros, accounting for a 21.54-percent decline.

Similarly, EU apparel imports from Turkey recorded a 13.23-percent decline to 9.93 billion euros in the calendar year.

Vietnam and India in 2023 experienced negative growth of 14.68 per cent and 13.12 per cent, respectively, reaching 3.78 billion and 4.03 billion euros.​

 

[Saif]

Single month RMG export hits historic high

It hit $4.97 billion in January, posting a 12.45% year-on-year rise

www.thedailystar.net

Single month RMG export hits historic high​

It hit $4.97 billion in January, posting a 12.45% year-on-year rise

Bangladesh made the highest amount of garment shipment in a single month in January riding on the rebounding global economy and revival of the export.

In fact, January 2024 stands unique for its highest export turnover in a single month in the country's history, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA).​

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The country shipped $4.97 billion worth of garments in January, posting a 12.45 percent year-on-year growth, according to data from the Export Promotion Bureau (EPB) compiled by the BGMEA.

After a depressive October-December quarter of 2023, the export growth curve has taken a positive shift.

In January, knitwear export grew by 17.32 percent year-on-year while woven rebounded by posting a 7.16 percent growth.

"This is a huge milestone and the reflection of our continued expansion, BGMEA President Faruque Hassan said in a statement.

"This is also a reflection of how we are diversifying our product and market base, and moving up in the ladder of value addition."

"We have seen retail sales growth in our major markets where the figures of the USA and the UK markets hit records during holiday seasons last year," the BGMEA chief also said.

Hassan said the burden of excess inventory at the buyers' end is now relaxed and new orders are expected to come.

The pressure on major economies caused by high inflation and interest rate is also getting reduced, Hassan said.

Therefore, it is expected that 2024 will be a year of come back in terms of trade and growth.

"However, we should not be overwhelmed by the instant response of the market."

"Particularly we need to be careful while planning new capacity and expansion, cause we cannot add more vulnerability to our existing overcapacity situation. So, quality investment, especially in backward linkage will be crucial for us for the next 5 years," Hassan said.​

 

[Saif]

Speeding up RMG product diversification

The Dhaka Chamber of Commerce & Industry (DCCI) recently arranged a seminar on the export readiness of the country in the post-LDC period. The main presentation made by Dr. Selim Raihan, executive director of SANEM, hit the nail on the head when he had stated that "Bangladesh fetched $823 million f

thefinancialexpress.com.bd

Speeding up RMG product diversification​

SYED MANSUR HASHIM

Published :​

Feb 20, 2024 21:27

Updated :​

Feb 20, 2024 21:27

The Dhaka Chamber of Commerce & Industry (DCCI) recently arranged a seminar on the export readiness of the country in the post-LDC period. The main presentation made by Dr. Selim Raihan, executive director of SANEM, hit the nail on the head when he had stated that "Bangladesh fetched $823 million from the nine new products in 2021 while Vietnam earned $145billlion, Thailand $6.61 billion and India $6.12 billion respectively". It is time to face the reality, no matter how much we like to indulge in self-glorification about how the country is No.2 in the global apparel trade. The 15 years period in question (2006-2021) saw continuity of government and a lot of progress has been made in terms of infrastructure development and power generation. Equally important is that the focus had remained on readymade garments (RMG) and the production of basic apparels.


Only recently, has the industry started to diversify its product line. The competitors have not been sitting around idly, as one can see from Vietnam's experience. Three other nations have been highlighted i.e. Vietnam, Thailand and India along with Bangladesh in terms of how many items have been added to the export basket over this period. Vietnam leads the pack with 41 followed closely by Thailand 31 and although India trailed both with 16, its number was nearly double that of Bangladesh which had nine.

According to a report published in this newspaper earlier this month, RMG exports to the US market had fallen by as much as 25 per cent in the last fiscal. When there's a downturn where people are struggling to pay their mortgages, to eat, meet utility bills, fashion takes a backseat. The high inflation and rising interest rates are indeed, a global phenomenon, and this is reflected by overflowing inventories amongst United States' (US) retailers.

The US alone represents the single largest export market for Bangladeshi apparels. So, any downturn in demand over there will have serious consequences here. Official figures from the Office of Textiles and Apparel (OTEXA)'s latest released data of February 8 show RMG exports witnessed a 25.07 per cent drop on year-to year basis. The US market is unique in the sense that the RMG industry never enjoyed GSP facilities over there. The terms put forward by the US to the industry has at least been met halfway thanks to the upgrading of physical safety standards over many years. The labour issue is another matter and it is difficult to determine precisely when it will be addressed, particularly when the industry faces daunting challenges.

With more than 80 per cent of annual exports out of Bangladesh coming from this sector, policymakers and industry have wasted more than a decade on two fronts: First, there was no attempt to diversify the economy. All the incentives, or at least the bulk of those went to the RMG sector. Second, as is now amply clear, (and on which RMG leaders also concur) diversification of product portfolio hadn't happened as a matter of concerted marketing strategy. The RMG sector has shown itself to be a resilient one. Unfortunately, it is hamstrung by the policy regime and the overwhelming confidence in itself that it can withstand the downturn is misplaced. While it may be easy for some owners to keep factories shut, what the millions of workers will do to put food on the table? There are no easy answers to such troubling questions.
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[Saif]

BGMEA seeks govt support to boost RMG sector’s green transition

Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has sought support of the...

www.newagebd.net

BGMEA seeks govt support to boost RMG sector’s green transition​

Bangladesh Sangbad Sangstha . Dhaka | Published: 21:59, Feb 22,2024

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Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has sought support of the government in ensuring faster and seamless services from government bodies, particularly Rajdhani Unnayan Kartripakkha (RAJUK), for the RMG entrepreneurs.

Faruque made the call as he paid a call on RAM Obaidul Muktadir Chowdhury, Minister of Housing and Public Works, at the Secretariat here today, said a press release.

Their discussions primarily focused on the current state and future prospects of Bangladesh’s ready-made garment industry.

The meeting, also attended by former president of BGMEA Md Shafiul Islam Mohiuddin, director Neela Hosna Ara, and chair of BGMEA Standing Committee on Labour and ILO Affairs ANM Saifuddin, included discussions about the challenges and opportunities facing the RMG industry.

Kazi Wasi Uddin, secretary at the Ministry of Housing and Public Works, and Mohammad Shamim Akhter, chief engineer at the Public Works Department were present at the meeting, said a press release.

The BGMEA president highlighted the significant progress made by the industry, especially in terms of workplace safety and environmental sustainability.

He emphasized the RMG industry’s transition towards sustainable business practices, particularly the growing number of energy-efficient and environmentally friendly garment factories in Bangladesh.

Currently, Bangladesh boasts the highest number of green garment buildings globally, with 207 factories LEED certified by the US Green Building Council (USGBC). Of these, 77 are Platinum rated and 116 are Gold rated.

Faruque expressed optimism that the industry’s green transition would enhance Bangladesh’s competitive edge in the global market and solidify its position as a leader in sustainable garment manufacturing.

However, he underscored the importance of government support, including policy assistance and easy access to finance, to further facilitate the growth of green industries in the country.

During the meeting, Faruque also urged the government to streamline business-related laws and regulations, including taxation, value-added tax (VAT), and other facets of cross-border trade, in order to facilitate a more business-friendly environment.​

 

[Saif]

Tk 10,000 proposed as minimum wage for textile workers

The minimum wages board on Thursday finalised its proposals, recommending Tk 10,000 as the minimum wage for cotton textile sector...

www.newagebd.net

Tk 10,000 proposed as minimum wage for textile workers​

Staff Correspondent | Published: 22:03, Feb 22,2024

A file photo shows a man working in a cotton textile mill. The minimum wages board on Thursday finalised its proposals, recommending Tk 10,000 as the minimum wage for cotton textile sector workers. — New Age photo

The minimum wages board on Thursday finalised its proposals, recommending Tk 10,000 as the minimum wage for cotton textile sector workers.

The current minimum is Tk 5,710, which was set in 2018.

Before finalising the draft recommendations, the board visited a few textile factories across the country and held separate meetings with the factory owners and workers.

After getting the views of workers and owners, the board on Thursday finalised its draft proposals for the sector workers, officials of the minimum wages board said.

The minimum wages board secretary, Raisha Afroz, said that all members of the board finalised the draft minimum wages.

According to the draft proposals, the wage for a worker of grade 10 (the lowest grade) has been recommended at Tk 10,000, including basic pay Tk 5,000, 60 per cent of the basic pay (Tk 3,000) as house rent for the upazila town, Tk 750 as medical allowance, Tk 400 as travel allowance and Tk 850 as food allowance.

Minimum wage for the workers in district town has been proposed at Tk 10,350.

The amount includes Tk 5,000 as basic pay, 65 per cent of the basic pay (Tk 3,250) as house rent, Tk 750 as medical allowance, Tk 500 as travel allowance and Tk 850 as food allowance.

Minimum monthly pay for the workers in divisional town has been proposed at Tk 10, 700, including Tk 5,000 as basic pay, 70 per cent of the basic pay (Tk 3,500) as house rent, Tk 750 as medical allowance, Tk 600 as travel allowance and Tk 850 as food allowance.

The wage board secretary declined to disclose the proposed wage amount for the workers of nine other grades.

The workers’ representative to the wage board, Shahjahan Saju, said that they had finalised the wage proposals and the amount of all grades would be made public through a gazette notification soon.

The labour ministry on January 15 appointed representatives from the owners and the workers in the sector to the minimum wage board for the textile mills workers as the workers of the sector raised their voice demanding a pay hike after increasing the wages for the readymade garment workers in December 2023.

Amid the protest from workers, the labour ministry appointed Pahartali Textile and Hosiery Mills general manager Md Abdul Malek as the owners’ representative and Pahartali Textile and Hosiery Mills Workers Union senior vice-president Shahjahan Saju as the workers representative to the wage board.

There are some 7,000 textile units under the sector across the country and nearly 50 lakh people are working in the factories, they said.

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[Saif]

https://thefinancialexpress.com.bd/economy/bangladesh/rmg-export-to-europe-reaches-1392b-in-july-january-period

RMG export to Europe reaches $13.92b in July-January period​

BSS

Published :​

Feb 24, 2024 19:23

Updated :​

Feb 24, 2024 19:29

Bangladesh's RMG export to the European Union (EU) reached $13.92 billion during the July-January period of the current fiscal year (FY24), with a growth of 1.32 per cent compared to the same period of the previous fiscal year (FY23).

As per the latest statistics of the Export Promotion Bureau (EPB), Bangladesh's export to Spain, France, the Netherlands and Poland showed 6.05 per cent, 4.25 per cent, 11.77 per cent and 20.30 per cent growth respectively during the same period of the current fiscal.

However, apparel exports to Italy declined by 1.81 per cent. On the other hand, Germany the largest export market of Bangladesh in the EU, declined by 13.46 per cent fetching an amount of $3.51 billion in this July-January period compared to the same period of the last fiscal (FY23).

EPB statistics showed Bangladesh's RMG export to the USA reached $4.79 billion in the first seven months of FY24, a fall of 3.90 per cent.

At the same time, the country's export to the UK and Canada reached $3.31 billion and $871.27 million respectively, during this seven-month period of FY24, with a growth of 12.98 percent and 0.68 per cent respectively.

During this July-January period of the current fiscal year, apparel export to non-traditional markets grew by 11.69 per cent to $5.46 billion from $4.89 billion in the corresponding period of previous year.

Among the major non-traditional markets, export to Japan, Australia and South Korea increased by 8.74 per cent, 23 per cent and 17.57 per cent respectively.

However, apparel exports to India declined by 21.86 per cent.​

 

[Saif]

Green factories now 209 as two more RMG units obtain LEED certification

Two more readymade garment factories — Comfit Eco Ville Limited and Fakir Eco Knitwears Ltd — have received platinum certifications in Energy and Environmental Design...

www.newagebd.net

Green factories now 209 as two more RMG units obtain LEED certification​

Staff Correspondent | Published: 23:53, Feb 24,2024

A file photo shows workers sewing clothes at a green readymade garment factory at Savar on the outskirts of Dhaka. — New Age photo

Two more readymade garment factories — Comfit Eco Ville Limited and Fakir Eco Knitwears Ltd — have received platinum certifications in Energy and Environmental Design (LEED) from the US Green Building Council and the total number of LEED certified green factories has now risen to 209 in Bangladesh.

Comfit Eco Ville Limited located at Mirzapur in Tangail is rated platinum by the US Green Building Council on February 20 with a score of 85 out of 110 while Fakir Eco Knitwears Ltd located in Narayanganj is rated platinum by the USGBC on February 21 with a score of 85.

Out of 209 LEED certified green factories, 79 received platinum rating and 116 achieved gold certifications, according to the Bangladesh Garment Manufacturers and Exporters Association.

According to the USGBC, to achieve the global Leadership in Energy and Environmental Design certification, a project has to earn points by adhering to prerequisites and credits that address carbon, energy, water, waste, transportation, materials, health and indoor environmental quality.

Platinum certification is the highest category in the ranking and projects have to earn more than 80 points out of 110, 60-79 points for gold and 50-59 points for silver category.

BGMEA president Faruque Hassan in a statement on Saturday said that the growing number of green factories in Bangladesh was a testament to the industry’s unwavering commitment to sustainability.

‘Our members have consistently shown exceptional leadership in adopting eco-friendly practices, from energy-efficient operations to water conservation initiatives,’ he said.

The BGMEA president also said that the dedication to environmental responsibility was not only commendable but also essential for ensuring the long-term sustainability of RMG industry.

According to the BGMEA statistics, the country is now home to 54 of the top 100 highest-rated LEED certified green factories in the world.

Faruque said that the global community was taking notice of Bangladesh’s green factory initiatives, and buyers were coming forward and investing in green energy infrastructure in Bangladesh.​

 

[Saif]

11 organisations to be recognised for developing textile sector

Eleven organisations, including 10 trade bodies, will be awarded for their role in developing the textile sector, expanding textile education and increasing exports

www.thedailystar.net

11 organisations to be recognised for developing textile sector​

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Eleven organisations, including 10 trade bodies, will be awarded for their role in developing the textile sector, expanding textile education and increasing exports.

The recipients are the Bangladesh Garments Manufacturers and Exporters Association, the Bangladesh Knitwear Manufacturers and Exporters Association, the Bangladesh Textile Mills Association, the Bangladesh Specialised Textile Mills and Powerloom Industries Association, the Bangladesh Cotton Association, the Bangladesh Garment Buying House Association, the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, the Bangladesh Textile University, the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association, the Bangladesh Embroidery Manufacturers & Exporters Association, and Bangladesh Tanti Samiti.

They will be honoured at an event at the Bangabandhu International Conference Center on February 27.

Jahangir Kabir Nanak, minister for textiles and jute, shared the information on the occasion of National Textile Day at a press conference at his office at the secretariat on Sunday, according to a press release.

"The textile sector is an integral part of the country's economy, society and culture and it is also playing an important role in the country's socio-economic development, poverty alleviation, women's empowerment and employment generation."​

 

[Saif]

Apparel exports of $27b may be lost due to climate change: study

Bangladesh could loss apparel export earnings of nearly $27 billion and 0.25 million jobs by 2030 due to climate-induced disruptions...

www.newagebd.net

Apparel exports of $27b may be lost due to climate change: study​

Staff Correspondent | Published: 21:56, Feb 28,2024

A file photo shows workers sewing clothes at a readymade garment factory at Savar on the outskirts of Dhaka. Bangladesh could loss apparel export earnings of nearly $27 billion and 0.25 million jobs by 2030 due to climate-induced disruptions, a global study projected. — New Age photo

Bangladesh could loss apparel export earnings of nearly $27 billion and 0.25 million jobs by 2030 due to climate-induced disruptions, a global study projected.

The study conducted by Cornell University and Schroders highlighted the threat posed by extreme heat and flooding to the global apparel industry and suggested immediate action to address these challenges.

Mapped in Bangladesh and Cornell University’s School of Industrial and Labor Relations Global Labor Institute on Wednesday jointly unveiled the findings on ‘Climate Resilience and Fashion’s Costs of Adaptation’ in an event held at Lakeshore Hotel in the capital Dhaka on Wednesday.

The study focused on production hubs in Bangladesh, Cambodia, Pakistan, and Vietnam and it calculated climate-driven losses over $65 billion in export earnings and nearly 1 million jobs by 2030 in the four countries.
Together, these four represented 18 per cent of global apparel exports in 2021, the report said.

The report also projected the losses to gross domestic product from high heat and humidity by 4.9 per cent for Bangladesh, 6.5 per cent for Cambodia, 5.1 per cent for Pakistan and 4.9 per cent for Vietnam by 2030.

It also mentioned that the ‘Pell-mell’ growth in fashion’s favourite production centres over three decades has created ‘urban heat islands’ with dangerously high heat stress for workers.

‘More building in flood plains and the accompanying blankets of concrete means more dramatic flooding. Sea-level rise and storm surges, rainfall and riverine flooding threaten to interrupt apparel production and transport, strand industry assets, and jeopardise workers’ health and livelihoods,’ the study mentioned.

According to the study, apparel workers in Bangladesh surveyed in 2023 noted that workplace heat has been considerably higher in recent years.

In 2022 survey of 67 Dhaka apparel workers accustomed to high heat found that more than three-quarters (78 per cent) wished for cooler working conditions in that city’s hottest and most humid months, the report said.

It also found that flooding also interrupted work and life, sometimes dramatically as a minor inundation of 0.25 metres from rainfall, riverine or coastal flooding in factories might cost hours or even days.

But major flooding of one metre more can halt or slow production and transport for weeks and apparel workers can find themselves stuck in their homes or risking illness by pushing through flood waters to get to their factories and maintain their incomes, the study observed.

Workers in Bangladesh apparel factories reported that they were docked pay even if they were a few minutes late due to transport hassles or were denied paid leave if they fell sick.

Workers estimated that they were late 10 times a month in May, June and July, and that even transport costs in flooded streets were higher.

The report found that workers missed three full days of work per month due to heat- and flood-related illness in the hottest and rainiest quarter of the year.

Those absences can mean losses of Tk 1,200 – 1,500 a month, or more than 10 per cent of their income in the highest-cost months of the year.

The study said that the workers interviewed for this report estimated spending Tk 3,500 for medicine and Tk 2,000 for electricity at home in the hottest months when fans have to run constantly to allow them to sleep.

Employers generally downplayed the extent to which temperature affected workers, report mentioned.

Jason Judd, executive director of GLI, presented the study’s findings on the impacts of extreme heat and flooding on apparel production hubs in key countries of the global supply chain.

He emphasised the need for investors to engage with apparel companies and their stakeholders, highlighting the current gap in risk management strategies that often overlook adaptation measures.

The study also examined the supply chain footprint of six global apparel brands, showing the impact of extreme weather conditions on workers and manufacturers.

Sheikh HM Mustafiz, managing director of Cute Dress Industry Ltd, said that apparel sector entrepreneurs in Bangladesh invested huge in establishing green factories and that would help to reduce temperature.

Kazy Mohammad Iqbal Hossain, climate action lead-global supply chain at Lindex, spoke about brand responsibility and the importance of collaborative efforts to address climate challenges.

Nazma Akter, executive director of Awaj Foundation, said that to produce low price denim and tee-shirts, Bangladeshi factory owners were destroying nature and making low payment to the workers.

She said that inequality between workers and factory owners was also affecting environment.

Nazma urged the government to realise compensation from the people who were making profits through polluting environment.

Matin Saad Abdullah, a BRAC University professor, highlighted the academic and technical opportunities arising from the research and data, emphasising the role of the academic community and investors in supporting industry-wide change.

MiB lead operations officer Afshana Choudhury also spoke at the event.

The event was presided over by Mohammad Mahboob Rahman, treasurer of BRAC University, who facilitated the panellist session and open floor discussion.​

 

[Saif]

https://www.thedailystar.net/business/news/bgmea-removal-non-tariff-barriers-indo-bangla-trade-3555801

BGMEA for removal of non-tariff barriers to Indo-Bangla trade​

BGMEA president meets Bangladeshi high commissioner to India

Local garment makers have requested the Bangladeshi high commission in India to actively work towards removing non-tariff barriers between the two countries in order to boost bilateral trade.

Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), made the call Wednesday during a meeting with Md Mustafizur Rahman, Bangladeshi high commissioner to India, held in New Delhi.

They also discussed existing challenges in export and import with a particular focus on non-tariff barriers, especially in the trading of textile products.

They also talked about possible solutions to address these issues, BGMEA said in a statement.
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[Saif]

Growing demand in denim item has created new opportunity

Breaking News, International News & Multimedia

thedailynewnation.com

Growing demand in denim item has created new opportunity​

1 Mar 2024, 12:00 am

Staff Reporter :

Increase in consumption of denim items internationally has created a new opportunity for Bangladesh and the local entrepreneurs are desperate to grab a share of the growing market.

The local exporters are now competing with China, Pakistan, Vietnam, Turkey and Mexico as the size of the global denim is expected to stand at over $76 billion by 2026.

The entrepreneurs are showing interest in producing the items as most of the fabrics used in the denim sector are being manufactured in the country, which is popular in various countries like the USA and Europe.

The share of Bangladeshi denim in the US market is over 22 per cent and 27 per cent in the EU market. Denim shipment to the US and EU has increased by 42 per cent and 15 per cent respectively in just one year.

Following this, local entrepreneurs have invested nearly Tk 25,000 crore in the denim segment of the primary textile sector, which already has 42 modern mills capable of supplying over 900 million metres of denim fabrics each year, according to data of the Bangladesh Textile Mills Association (BTMA).

Syed M Tanvir, Managing Director of the Chattogram-based Pacific Jeans Ltd, told The New Nation, “We want to increase denim production by more than 12 per cent this year compared to 2023. The outlook for denim in 2024 is better than last year, so the export of denim items is expected to grow this year.”

Reaching to the current state of the sector, the entrepreneurs had to struggle hard as there was no washing plant in the country till 1984. Later, late Nasir Uddin, founder of the Pacific Jeans Ltd, set up a washing plant in Chittagong Export Processing Zone (CEPZ) taking technical support of Italian buyers during the time.

As the entire work of fabric production, sewing and washing is being completed locally, lead time denim export has reduced significantly, the manufacturers said.

They further said demand for denim has been rising worldwide because of changes in fashion as the denim is more flexible and comfortable.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a target of apparel export worth $100 billion in 2030 and denim can play an important role in this regard.

Monsoor Ahmed, Chief Executive Officer of the BTMA, said that fresh investment and reinvestment in the sector was continuing as Bangladesh had already proven itself as a reliable source for denim fabrics.

Despite the fact that most mills were established over the past 10 years, they have had to increase their capacity due to demand from international clothing retailers and brands, he said.​

 

[Saif]

Apparel sector must adapt to climate crisis

Climate-adaptive measures are vital for the sector’s future

www.thedailystar.net

Apparel sector must adapt to climate crisis​

Climate-adaptive measures are vital for the sector’s future

VISUAL: STAR

We are alarmed to learn of a new study that suggests that Bangladesh could lose $27 billion in annual apparel exports by 2030, and $711 billion—or 68.5 percent of total RMG exports—by 2050 if it does not adopt a climate-adaptive approach. According to the study, climate-induced disruptions, primarily due to extreme heat and flooding, are already causing Dhaka's garment workers to miss an average of three days of work per month, incurring an income loss of Tk 1,200 to 1,500. Additionally, by 2030, up to 2.5 lakh employees are at risk of losing their jobs due to climate change. If left unaddressed, this situation could lead to billions of dollars in lost productivity and push apparel buyers to source from less climate-vulnerable countries, further jeopardising our export earnings.

We cannot underestimate the gravity of these findings and predictions. To address this situation, the study recommends embracing climate-adaptive approaches, such as by treating heat and flood events as health hazards or engaging with the investors, apparel companies, and other stakeholders to address the absence of adequate adaptation measures in their risk management strategies. Bangladesh, ranked as the seventh-most extreme disaster risk-prone country in the world, stands at the forefront of climate adversity.
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A staggering 56 percent of the population resides in high climate-exposure areas. The country already faces heightened vulnerability to child marriage, illiteracy, erosion, displacement, extreme weather, land loss, food insecurity, diseases, pollution, and other related threats. Over the past 20 years, climate change has cost Bangladesh $3.72 billion. Additionally, extreme heat exposure results in an annual loss of 254 work hours per person, translating to $280 to $311 billion in lost productivity.

Against this backdrop, we must intensify our efforts to avoid further distress. Focused regional research and adaptive strategies are crucial, alongside developing more persuasive climate justice advocacy measures to expedite effective action, including in the apparel sector. Bangladesh has taken a leading role in advocating for climate justice and collective action in the world. But we must do more, considering the ever-increasing risks we face.

 

[Saif]

'Why don't RMG owners pressurise buyers instead of workers?'

Despite the five-year minimum wage review cycle, there seems to be no preparation on the factory owners’ end

www.thedailystar.net

'Why don't RMG owners pressurise buyers instead of workers?'​

'Why don't they pressurise the buyers instead of workers?'

Kalpona Akter, a labour rights activist and president of Bangladesh Garment and Industrial Workers Federation, discusses the ongoing protest of garment workers, their circumstances, and demands for a liveable minimum wage in an exclusive interview with Naimul Alam Alvi of The Daily Star.

Can you contextualise the latest protests by garment factory workers in Bangladesh?

The minimum wage for ready-made garment factory workers was last reviewed in 2018, when workers demanded Tk 16,000 of monthly wage. The government and RMG factory owners settled on Tk 8,000; since then, the workers have received a mandatory five percent wage increment. Even with the increment, entry-level workers currently earn only around Tk 9,000 per month.
Since 2020, the Covid-19 pandemic and the Russia-Ukraine war have triggered a worldwide cost-of-living crisis, impacting everyone, including the RMG workers. Regardless of their wage level, workers are struggling to make ends meet, unable to afford basic necessities for themselves and their families.

Despite the five-year minimum wage review cycle, there seems to be no preparation on the factory owners' end. Their proposal should have come earlier, but instead, they belatedly offered a disrespectful proposal in late October to set the minimum wage at Tk 10,400—not even half of the workers' demand. This angered the workers, whose demand is now clear: either reduce essential commodity prices or increase wages.

But the workers' voices are being suppressed. They are being beaten by law enforcement members and goons, fired at indiscriminately, and subjected to lawsuits. Some have been arrested, creating a climate of fear among workers and labour rights activists alike.

The owners accuse the workers of conspiracy, but how is it a conspiracy when eggs cost Tk 15 apiece, onions Tk 120 per kg, and potatoes Tk 70 per kg?

How long can the police suppress the workers? The owners may not be able to "afford" Tk 23,000, but the wage certainly cannot be Tk 10,400 or even Tk 12,000. It must enable the workers to survive, buy food, pay rent, and support their families. With stagnant wages, reduced capacity to meet basic needs, and no significant growth between entry-level and skilled workers, how long will the workers suffer in silence?

Factory owners argue that they are unable to increase minimum wages or overall wages due to competitive market pressure and the need to maintain low prices. What's your perspective on that?

The factory owners claim they must produce low-cost products due to buyers' low prices. They create a competitive environment both internationally and domestically. However, Bangladesh is the world's second-largest apparel producer. If we still cannot strengthen our position and negotiate with our buyers, establishing a minimum price below which we will not go, it's disheartening. We have powerful organisations like the BGMEA and BKMEA. What do they do? Why do they foster internal competition within our sector? What is the purpose of their association then? As long as they don't learn to say no, they'll keep producing cheap clothing and claiming no profit. Yet, we see many of them expanding their businesses and building new factories. If they don't have the money, I'm at a loss as to how they find the funding to build these factories.

Why do you think factory owners redirect pressure from buyers onto workers when such demands arise, offering excuses that the buyers will not listen, rather than negotiating for better prices and subsequently better wages for the workers?

Because they can get away with putting pressure on the workers. Factory owners have embedded themselves within the government. If the legislators are the factory owners themselves, where can I go to seek justice? Where is the impartial body that will listen to the workers? The government is not neutral. A high percentage of MPs are garment factory owners. They are concerned about themselves, not the workers. Their "power" works to silence the workers, labour rights activists, and those who are part of unions. Their strategy does not include negotiating with the buyers.

Whenever there has been a movement to raise wages, the workers have been suppressed. PHOTO: AMRAN HOSSAIN

They should have met with the buyers back in 2022. They should have informed them that the workers' wages in Bangladesh would need to be increased the following year, and set a minimum price limit that the buyers must adhere to. Instead, whenever there has been a movement to raise wages, the workers have been suppressed. Cases have been filed against the protesting workers; they have been fired from their jobs, and they have been blacklisted. The factory owners have managed to do this because they have the muscle, money and administrative power, none of which the workers possess.

However, there is hope for a solution. Many of the sourcing countries are working on laws for human rights due diligence. Germany, France and the Netherlands have already enacted them, and the European Union is also going to adopt one. One of the elements of such laws is to ensure a living wage for workers. We are trying to ensure that the question of living wage covers contributing countries, so that sourcing countries cannot shake off their responsibility by saying the manufacturing countries will ensure the living wage of the workers. We are saying that no, the companies that are sourcing from manufacturing countries have to make sure that they are paying enough and that the money contributes to the living wages.

Another hope will emerge if the power is neutralised here. And to do that, you have to give the opportunity to form free unions in the factories. Only when there is an opportunity for free unions will the workers have power in collective bargaining agreements. They will be able to decide whether to accept the mandatory five percent increment or demand 10 percent, should the wage review be done every five years or should it be three years.

We see RMG workers frequently taking to the streets to demand wage increases and other improvements. Why does this have to happen so often?

The legal framework exists. The law clearly states that the owner, worker or the government can review the wage structure after three years if the inflation rate is high. It is only mandatory after five years. Workers should not need to take to the streets. The procedure should involve a wage board meeting every five years. Both parties will submit proposals, there will be discussions, and the wage will be announced.

I spoke with labour rights activists in Kerala, India; they were surprised to learn that our minimum wage review occurs every five years. They do it annually there, and workers don't have to take to the streets for it. Wage review is the owners' responsibility. They announce a wage that aligns with the inflation rate. If our neighbouring country can do it, why can't we? Why wait five years; why not review the wage every year?

Repression can never silence workers' voices or labour movements. It needs to be addressed systematically. We need to have discussions and provide workers with a platform for dialogue, such as a trade union. The second step is to move beyond the profit paradigm. If we don't include workers in profit-sharing, this backlash will continue. Calling the workers a part of the owners' families is a mere lip service if we don't believe it wholeheartedly and don't demonstrate it in our actions.​

 

[Saif]

A garment powerhouse

Walk down the road in Savar, Gazipur or Narayanganj in the morning hours and you will see a long line of workers heading to work.

www.thedailystar.net

A garment powerhouse​

A closer look at how retailers, from H&M to Walmart, turned Bangladesh into the world’s second-largest clothing supplier

Walk down the road in Savar, Gazipur or Narayanganj in the morning hours and you will see a long line of workers heading to work. They will soon join the production lines behind silent brick walls to make clothes for the world. The garment industry, home to 40 lakh workers, is one of the largest employers, fetching $47 billion in annual exports, a milestone Bangladesh crossed in 2023. Behind this growth story exists another group -- fashion retailers perpetually in pursuit of low-cost products.


After a journey of nearly five decades, Bangladesh has morphed into the second-largest garment exporter in the world after China, accounting for 7.9 percent of the global market share. It is now the mainstay of Bangladesh's economy with the sector's rapid growth and modernisation over the past decade. The transformation of the garment industry was catalysed, in part, by a series of workplace tragedies, including the Rana Plaza disaster that took the lives of more than 1,100 workers. In those dark days, retailers stayed with Bangladesh in a push for workplace compliance. The groundbreaking International Accord that made jobs safer for millions of garment workers in Bangladesh was later extended to Pakistan.​

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Photo: Saurav Hossain Siam

It is now expected that Bangladesh's share in the global market will continue to grow. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to capture 12 percent of the international market share by 2026 when Bangladesh is scheduled to graduate from the group of the least-developed countries. That partly depends on the retailers' appetite for Bangladesh as the nation will lose most of the duty benefits after LDC graduation.

Initially, Bangladesh's garment industry grew under a quota system introduced by an international trade agreement, known as the Multifibre Arrangement (MFA), in 1974. The MFA, which persisted until January 2005, imposed quotas on the amount of clothing and textiles that developing countries could export to developed nations. Thanks to the agreement, the garment sector found a niche in the market for many years and continued to thrive.


However, the main role was played by the buyers, who flocked to Bangladesh to source clothing items at competitive prices.

With local garment makers working under the cutting and making (CM) method, the onus was on the buyers to play the vital role of supplying designs, patterns, fabrics and raw materials. The CM method, which involves costs of cutting, sewing, pressing, folding and packing, is still popular in Bangladesh, with suppliers mainly doing so to avert risks.

Photo: Saurav Hossain Siam

In the late 1970s and mid-1980s, buyers used to place orders in small quantities and the sales of garment items were mainly facilitated by third-party vendors because the size and scale of businesses were so small that international retailers and brands were uninterested in placing direct orders.


However, with time, major retailers and brands, especially from Europe and the US, started arriving here and directly purchasing goods. About 50 of them now have liaison offices in Bangladesh, allowing them to buy garment items at competitive prices. By and large, Bangladesh has proven itself as a reliable supplier of value-added garment items while also growing by leaps and bounds in design and pattern-making.

Bangladesh cemented its position during the peak of the coronavirus pandemic when it kept its factories open except for the initial few months of the health crisis in 2020 while factories in all other supplying nations were shut for many months at a stretch.

Of the $47 billion worth of exports of garment items last year, the lion's share was shipped through a direct purchasing method by retailers and brands. With direct sales, both buyers and suppliers benefit as no third party shares the profit. However, many small buyers, who can't afford an overseas office, still rely on third-party vendors.

Swedish retail giant H&M is the largest buyer of Bangladeshi clothes, purchasing items worth nearly $4 billion annually. The country is also the single largest sourcing destination for H&M, which has its own office in Dhaka.

US retail giant, Walmart, is the second-biggest buyer of Bangladeshi apparel, procuring nearly $2.5 billion worth of products a year. It was the largest buyer for the country for many years before ceding the top spot to H&M in recent years.

Spanish company Inditex, which owns brands like Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home, buys nearly $2 billion worth of garment items from Bangladesh every year.

Shafiur Rahman, regional operations manager of G-Star in Bangladesh, said Bangladesh will remain an important sourcing destination for his company in future. G-Star Raw, a Dutch designer clothing company, buys nearly $1 billion worth of garments, including denim and T-shirts, from Bangladesh a year.

Photo: Saurav Hossain Siam

"We will keep sourcing the same amount of clothing in 2024, anticipating slight growth in the fourth quarter onward," said Rahman.

British retail giant M&S procures more than $2 billion annually from Bangladesh. Japan's Uniqlo has turned into nearly a billion-dollar buyer. Of the $1.6 billion worth of garment items exported to Japan last year, the majority was secured by the Japanese retailer alone.

Japan has remained a major destination for Bangladesh since 2011, when Tokyo started allowing zero-duty benefits to the LDCs for garment items and knitted items, even if they are made from imported fabrics.

Photo: Saurav Hossain Siam

With such a major trade benefit in place, Japanese clothing retailers started clamouring to Bangladesh and thus Japan became the largest export destination for the country in Asia.

Irish retail giant Primark has ramped up purchases, with their annual purchases now valued at nearly $2 billion.

Puma, Nike, PDS, Adidas, Gap, Levi Strauss & Co, VF Corporation, PVH Corporation, Old Navy, Banana Republic, Sainsbury's, Esprit, and C&A are some other major buyers, with each buying nearly $1 billion worth of clothes from Bangladesh a year.

The sourcing pattern from Bangladesh has also changed a lot over the years because of the changing habits of buyers and consumers, and the sales of retailers and brands.

Many top retailers and brands source garment items in small quantities but at higher prices. For instance, Hugo Boss, a German luxury fashion brand, procures garment items worth a few hundred million.​

 

[Saif]

Bangladesh uses more manmade fibres to make garments for global buyers

The use of non-cotton fibre in garment production in Bangladesh has increased to 29 percent from 25 percent in the last three years as exporters go for diversification for better prices and to expand their global footprint, according to a new study.

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Bangladesh uses more manmade fibres to make garments for global buyers​

Study finds

Photo: Star

The use of non-cotton fibre in garment production in Bangladesh has increased to 29 percent from 25 percent in the last three years as exporters go for diversification for better prices and to expand their global footprint, according to a new study.

Varun Vaid, business director of Wazir Advisors Pvt Ltd, shared the findings at a press conference on the premises of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) in Dhaka today. He conducted the study on behalf of the BGMEA in the last two years.

Globally non-cotton fibre is used in 75 percent of garment manufacturing. In contrast, Bangladesh relies on cotton fibres to make 71 percent of the country's export-oriented products.
However, Bangladesh has more potential to use non-cotton fibre as the demand for manmade fibre garments is on the rise globally, according to the study.

If Bangladesh invests $18 billion, the country will be able to export $46 billion worth of non-cotton garment items by 2032, it said.

Speaking at the event, BGMEA President Faruque Hassan said that by using manmade fibres, the BGMEA wants to raise the global market share of locally made apparel items to 12 percent from 7.87 percent now since the prices are higher for the products made from artificial fibres.

He said climate change also has a major impact on fashion as consumers prefer non-cotton garment items to cotton items because of more functionality and sustainability.
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"Local garment exporters are producing cotton garment items. By just increasing the volume of non-cotton products, we can expand to more markets and get better prices."