[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Textile units to remain closed

Textile millers will keep their production units closed due to the prevailing volatile situation in the country.

www.thedailystar.net

Textile units to remain closed

Textile millers will keep their production units closed due to the prevailing volatile situation in the country.

Bangladesh Textile Mills Association (BTMA), which represents the $25 billion primary textile sector, announced the decision in a statement yesterday.

The decision came because of the deteriorating law and order situation in the country and the government's declaration of a three-day holiday from today, the BTMA said.

"The decisions on reopening the mills will be made based on the situation and further declarations from the government," it said.

The BTMA member mills were also shut down for four days two weeks ago due to violence and a subsequent curfew imposed by the government to rein in violence.

The trade body reported that its members lost $58.8 million during the initial four-day closure caused by the violence and curfew.​

 

[Saif]

Garment factories shut down for indefinite period

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice.

www.thedailystar.net

Garment factories shut down for indefinite period

A sign on the wall of a garments unit states that the facility is closed due to the imposition of an indefinite curfew by the government because of heightened unrest around the country on the first day of a non-cooperation movement called by students. Photo: Anisur Rahman

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice.

The garment exporters' platform circulated the message among the members through WhatsApp, said Md Ashikur Rahman Tuhin, a director of the BGMEA.

This is yet another blow to the sector as the apparel factories were shut down for four days during the first round of violence two weeks ago though this is the peak season for Christmas shipments and taking work orders for the next summer and spring seasons.

During the violence in mid-July, the exporters could not communicate properly with their business partners abroad because of an internet blackout.

Exporters now fear mounting losses as export performance had already been poor over the last two years because of the severe fallout of Covid-19 pandemic, Russia-Ukraine war, runaway inflation in the Western world, Red Sea crisis and a labour unrest at home.

Amid violence across the country, majority of garment factories were shut down yesterday on the first day of a countrywide non-cooperation movement called by the organisers of Anti-Discrimination Student Movement.

At least 73 people, including 14 policemen, were killed and dozens injured yesterday as fierce clashes took place in different areas in Dhaka and other parts of Bangladesh.

More than 400 garment factories in Narayanganj, Narayanganj BSCIC and Fatullah areas were closed though many of the units ran for some time in the morning.

Some factories were operational in Rupganj and Araihazar areas of Narayanganj district, said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Also, almost all the factories in Ashulia, Savar, Maona, Tongi and Chattogram had started production in the morning, but after a few hours the student protests began and some factories were vandalised, leading to the closure of the units.

At least six garment factories were vandalised in Narayanganj BSCIC and its adjacent areas, Hatem said, adding that fearing further escalation of the vandalism, the other factory owners have shut down their units.

Hatem confirmed that the workers left their workplaces peacefully after the shutdown.

"We will sit in meetings soon with the owners, the government and other high-ups on how to run our factories," Hatem said, adding that they will monitor the situation at least for two days.

Factories in Konabari and Kashimpur under Gazipur district were shut down although those were opened in the morning, said Arshad Jamal Dipu, vice-president of the BGMEA.

The factories were shut down anticipating violence, he said but could not confirm how many factories were closed.

He said the factory owners are fearing a shutdown of internet again as two weeks ago they suffered a lot and lost business because of the internet blackout. Exporters could not communicate online with their foreign retailers and brands.

Moreover, this is the time for bond renewal of the export-oriented garment factories and already seven factories have complained to him that they cannot renew the bond licences because of the current crisis, Dipu also said.

The owners are also facing trouble in garment shipment and import of raw materials, he added.

Md Towhidur Rahman, president of Bangladesh Apparel Workers Federation, confirmed that all the garment factories in Kaliakoir area have been shut down by the owners fearing escalation of unrest in the sector.

The owners announced closure to save their factories and other assets, he said.

Nazma Akter, president of Sammilito Garment Sramik Federation, a workers' platform, said that the BGMEA leaders held a meeting with the union leaders on Saturday and asked them to be more responsible during the crisis so that the garment factories could remain safe.

The owners are announcing closure of the factories fearing spread of violence in the sector, she said.

The garment exporters fear that if their workers join the ongoing movement across the country, it will further dent the sector, which was hamstrung for four days when factories were completely shuttered due to violence in mid-July.

The sector also suffered serious repercussions because of a five-day internet blackout, which hindered communications between garment suppliers and international retailers and brands, meaning they could not make business deals or hold meetings.

Last week, international retailers and brands expressed concern at a meeting with the leaders of the BGMEA, flagging the difficulties in communication with their headquarters and local suppliers.

The months of July, August and September comprise the peak season for both shipment of goods for next Christmas and also for booking the work orders from the international retailers and brands for the next summer and spring seasons.

The BGMEA has already said they have incurred losses of Tk 6,400 crore because of the shutdown and internet blackout, while the losses estimated by Bangladesh Textile Mills Association stand at $58.8 million.​

 

[Saif]

RMG exporters expect new vigour in business

Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario.

www.thedailystar.net

RMG exporters expect new vigour in business

Garment exporters have lost Tk 6,400 crore due to the recent unrest and shutdown of factories, said Bangladesh Garment Manufacturers and Exporters Association. Photo: Star/file

Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario.

The business environment was facing an impasse because of the latest spells of violence and frequent shutdown of factories, for which they were unable to manufacture goods for export.

Exporters also said, though July, August and September comprise the peak season for shipping goods meant for Christmas and for booking work orders for the coming summer and spring seasons, they were facing challenges in sending goods to retailers through Chattogram port amid violence.

They were also unable to communicate with their business partners both at home and abroad because of the recent internet blackout across the country and for the violence.

The apparel manufacturers are now planning to reopen their production units and to restart with a new vigour as they have been facing shutdowns, difficulties in transportation and shipment of goods over more than one month because of the political crisis.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called a meeting yesterday at 7:30pm to discuss the next course of action as the prime minister resigned, said a director.

They decided that the garment factories and textile mills will stay shut for now considering the current situation. The owners may take a decision on factory reopening today.

They had earlier shut down their units two weeks ago for four days amidst violence and curfew. During the first round of shutdown, they could not even communicate with their international clothing retailers and brands because of an internet blackout across the country.

Because of the latest spell of student movement and political impasse, the BGMEA has already said they have lost Tk 6,400 crore while the textile millers said the amount of their loss is more than $58.8 million.

The garment and textile millers have shut down their production units across the country fearing labour unrest and vandalism, which will cause a massive loss for the sector.

During the first round of violence and curfew, the international clothing retailers and brands expressed concern over the situation as they were facing difficulties in placing work orders with factories and receiving shipments of goods from Chattogram port.

"We mainly discussed the issue of reopening the factories. However, we may take more time to reopen the factories considering the change in the political situation," said BGMEA Vice-President Arshad Jamal Dipu over the phone.

"We want to restart production in the factories very soon. But we need help from the administration for the smooth running of the units as their instructions are important for us," Dipu added.

Also, it recently became difficult to do business and international trade because this is the time to renew bond licences but many, especially the Chattogram-based exporters, are complaining that the customs department is not renewing the bond licences.

Many have been forced to adopt expensive air shipments because of delays in production and transportation of goods to the factories.

Also, many have been forced to provide discounts and accept cancellation of work orders from international retailers and brands because of the latest spells of violence and curfew.

Banks are charging a higher interest rate on loans, he said, adding that all these things are affecting business and all those issues need to be broadly discussed with the trade bodies and administration soon for resolving the issues.

"We have to work seriously now," Dipu also said.

"I hope everything will change now and business will soon be restored," said a garment exporter asking not to be named.

The work orders from international retailers and brands will also be restored soon as normalcy has also started to return, the exporter added.

"We are getting ready to reopen our factories as soon as possible," said a director of the BGMEA asking not to be named.​

 

[Saif]

Yunus urges RMG industry to aid in rebuilding economy

Nobel laureate Muhammad Yunus, chief adviser to the interim government, called on the country’s garment manufacturers on Wednesday to support the rebuilding of Bangladesh after 15 years of economic plunder under the dictatorship of Sheikh Hasina....

www.newagebd.net

Yunus urges RMG industry to aid in rebuilding economy
United News of Bangladesh . Dhaka 14 August, 2024, 20:42

| BSS photo.

Nobel laureate Muhammad Yunus, chief adviser to the interim government, called on the country’s garment manufacturers on Wednesday to support the rebuilding of Bangladesh after 15 years of economic plunder under the dictatorship of Sheikh Hasina.

Speaking to the leaders of the Bangladesh Garment Manufacturers and Exporters Association at the State Guest House Jamuna, Yunus emphasised the challenges inherited by the interim government. ‘All the institutions were broken. We were in a mess. They left us in an economic crisis. But with the cooperation of everyone we can rebuild the nation,’ he said, according to a statement from the Chief Adviser’s Office.

BGMEA acting president Khandoker Rafiqul Islam led the delegation in the meeting, where the Nobel laureate highlighted the urgency of the situation. The country cannot afford to fail, he said. ‘Else, its impact will be disastrous. The nation may face an existential crisis,’ he warned.

Yunus also urged the manufacturers to keep their businesses separate from politics. ‘You should send a clear signal that you won’t mix business with politics. It does not help any cause,’ he advised.

Reflecting on the recent student-led revolution, which he described as ‘unprecedented in human history,’ Yunus noted the responsibility placed on the interim government. ‘They have put their trust in us. I was abroad when they called me and urged me to take up the leadership,’ he shared.

The BGMEA leaders expressed their full support for Yunus’s leadership during this critical time for the nation. They requested the formation of a task force to address sector-specific challenges, aiming to restore international buyers’ confidence in Bangladesh. Their demands included relaxed debt repayment terms and adjustments to utility bill payments.

The chief adviser listened to their concerns and promised to address them. ‘We will ensure transparency at every stage. The Bangladeshi people have immense talents. Bangladesh is the world’s second-largest garment exporter. We want it to grow further,’ he stated.

After the meeting, BGMEA director Shovon Islam spoke to reporters, expressing optimism about the future under Yunus’s leadership. As Yunus took charge of the interim government, buyers across the globe are gaining confidence in Bangladesh, he said. ‘We want to utilise that confidence and increase work orders.’

He also outlined the short-term and long-term needs of the industry, including the formation of a task force to address ongoing challenges. ‘We requested him to form a task force with all stakeholders so that it could play a long-term role,’ Shovon Islam added.

He further mentioned the BGMEA’s need for assistance in securing power and addressing liquidity issues, to which Yunus responded positively. ‘In reply, the chief adviser told us he would help us,’ he confirmed.​

 

[Saif]

Bangladesh’s RMG export to EU drops in Jan-June

Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday...

www.newagebd.net

Bangladesh’s RMG export to EU drops in Jan-June
Moinul Haque 18 August, 2024, 22:40

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday. | New Age photo

Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday.

Exporters said that global challenges had impacted all major exporting countries, including Bangladesh.

However, Bangladesh has been more severely affected due to the erosion of its competitive advantages, driven by high utility prices, poor gas supply and recent wage hike, they said.

Although the country’s knitwear exports to the EU decreased by 8.58 per cent in January-June of 2024, the shipment of woven garments witnessed a slight increase by 0.28 per cent to 3.74 billion euros from 3.73 billion euros, the data showed.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that global challenges impacted all major apparel exporting countries.

He said that Bangladesh had been severely affected due to the erosion of its competitive advantages, driven by high utility prices, shortage of gas and wage hike.

Citing the current situation of the country, Fazlul said, ‘Buyers rarely announce their decisions to shift or cancel work orders outright. Instead, they gradually redirect their orders elsewhere to mitigate business risks.’

He said that one of his buyers was scheduled to place an order for the next season at the end of July, adding, ‘I didn’t receive that order, which means it was likely diverted to other destinations.’

However, Fazlul expressed hope that the exports would recover in the coming months if the political situation stabilised.

The readymade garment imports by the EU from different countries in January-June of 2024 fell by 6.03 per cent to 38.47 billion euros compared with those of 40.94 billion euros in the same period of 2023.

Data showed that the overall reduction of 4.98 per cent in Bangladesh’s apparel exports was slightly better than the global average decline of 6.03 per cent in the EU’s apparel imports.

The Eurostat data showed that apparel imports by the EU from China in the first half of 2024 declined by 7.23 per cent to 9.16 billion euros compared with those of 9.88 billion euros in the same period of past year.

Although China remained as the top apparel exporter to the EU in value, the European Union’s official data showed that Bangladesh obtained the top position in exporting knitwear to the 27 nation economic bloc in January-June of 2024.

Bangladesh’s knitwear exports to the EU in in the first half of 2024 stood at 4.98 billion euros while those of China were 4.51 billion euros.

Bangladesh’s woven garment exports to the EU in January-June of 2024 stood at 3.74 billion euros against China’s exports of 4.65 billion euros in the period.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that long lead times were a major factor causing Bangladesh to lag behind its competitors.

The ongoing power and gas crises have hindered manufacturers from utilising their full production capacity and created challenges in procuring raw materials on time, leading to delays of additional 20-25 days in producing goods and making shipments, he said.

Hatem also said that Bangladesh had experienced negative growth not only on the EU market but also in the US and UK.

He mentioned that while Export Promotion Bureau data might have showed growth, the reality told a different story.

Apparel imports of the EU from Turkey in the first half of 2024 declined by 10.95 per cent to 4.59 billion euros compared with those of 5.15 billion euros in the same period of 2023, the EU data showed.

India’s RMG exports to the EU in the first half of 2024 fell by 4.53 per cent to 2.32 billion euros compared with those of 2.43 billion euros in the same period of the previous year.

Apparel imports of the EU from Vietnam in January-June of 2024 fell by 6.16 per cent to 1.70 billion euros compared with those of 1.81 billion euros in the same period of 2023.​

 

[Saif]

RMG supply chain disrupted by flood

The country’s apparel makers on Saturday said that the recent flooding had disrupted the readymade garment sector supply chain by submerging the Dhaka-Chattogram highway and sought alternative routes for transportation of goods in time of any natural calamities...

www.newagebd.net

RMG supply chain disrupted by flood
Staff Correspondent 25 August, 2024, 00:16

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. | New Age photo

The country’s apparel makers on Saturday said that the recent flooding had disrupted the readymade garment sector supply chain by submerging the Dhaka-Chattogram highway and sought alternative routes for transportation of goods in time of any natural calamities.

They urged the government to arrange for exporting containers via the Pangaon port due to the flooding on the Dhaka-Chattogram highway, saying that the alternative route was crucial to meeting export deadlines.

Exporters also recommended using the Mongla Port as a backup to avoid further disruptions at the Chattogram port.

‘There is no doubt that the flooding will impact the timely shipment of readymade garment products, with the transportation through the Dhaka-Chattogram highway remaining suspended. However, we are uncertain about the overall impact this natural calamity will have on our business operations,’ former Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan told New Age.

Transportation will most likely resume tomorrow or the day after, but exporters will still face delays in meeting lead times, he said.

Faruque expressed hope that buyers would take the situation into account, as the natural calamity is an unavoidable circumstance.

He, however, recommended enabling alternative shipment routes through the Mongla port to avoid any unforeseen disruptions at the Chattogram port.

Faruque also suggested that the Pangaon river port be prepared for sending export containers to the Chattogram port.

Bangladesh Knitwear Manufacturers and Exporters association executive president Mohammad Hatem said that the flood had disrupted the supply chain of the readymade garment sector, with both the shipment and release of containers halted since August 22 due to the Dhaka-Chattogram highway being submerged.

He urged the government to make immediate arrangements for sending export containers to the Chattogram port via the Pangaon port in the River Buriganga so that exporters could maintain export deadlines.

Hatem said that after a month-long disruption caused by the student movement in the country, exporters had just begun clearing the backlog of shipments and releasing import consignments but the sudden flood had created a new challenge, hindering business momentum.

He claimed that global buyers had already begun pressuring suppliers to use air cargo for shipments to ensure timely delivery to their stores.

Hatem mentioned that exporters would have to cover the cost of air freight, which would amount to at least 50 per cent of the total value.

BGMEA president Khandoker Rafiqul Islam said that export and import business through the Chattogram Port was hampered as the Dhaka-Chattogram highway remained submerged.

After a month-long disruption caused by the nationwide student movement, business had just begun to rebound, but the sudden flooding has dealt a new blow, he said.

The BGMEA president hoped that the goods transportation on the Dhaka-Chattogram highway would resume today and that normalcy would soon be restored.​

 

[Saif]

Circular textiles lack policy, Bangladesh forgoes $5b in exports a year: study

The absence of a comprehensive policy framework for circular textiles, which would incentivise the recycling of post-industrial textile waste known as jhut, is causing Bangladesh to forgo $5 billion in potential annual export revenues from recycled textile products, according to a recent study...

www.newagebd.net

Circular textiles lack policy, Bangladesh forgoes $5b in exports a year: study
Moinul Haque 26 August, 2024, 22:28

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. The absence of a comprehensive policy framework for circular textiles, which would incentivise the recycling of post-industrial textile waste known as jhut, is causing Bangladesh to forgo $5 billion in potential annual export revenues from recycled textile products, according to a recent study. | New Age photo

The absence of a comprehensive policy framework for circular textiles, which would incentivise the recycling of post-industrial textile waste known as jhut, is causing Bangladesh to forgo $5 billion in potential annual export revenues from recycled textile products, according to a recent study.

The study titled ‘Regulatory framework to enable recycling of post-industrial waste (jhut) for the RMG industry in Bangladesh said that to harness its potential for innovation and industrial advancement through the circular economy, Bangladesh’s textile industry must formalise the informal jhut sector, though political economy challenges have impeded an inclusive and just transition.

The study estimated that Bangladesh’s current annual recycling capacity for apparel-grade yarns was between 18,000 and 24,000 tonnes, which represented only about 5-7 per cent of the 3,30,000 to 5,00,000 tonnes of 100 per cent cotton and cotton-elastane waste produced each year.

It said that less than 5 per cent of this waste was upcycled into products like rag rugs, rag dolls, and blankets and a substantial portion — over 55 per cent — was exported to recycling companies worldwide, while the remaining waste was downcycled into stuffing materials for cushions and mattresses, incinerated onsite for energy recovery, or, in negligible amounts, sent to landfills.

The study was jointly conducted by the Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and H&M under the programme for sustainability in the textile and leather sector.

The report outlined measures and regulatory reforms necessary to establish an effective management framework for jhut aiming to maximise economic, social, and environmental benefits within Bangladesh’s jhut supply chain.

It recommended collaborative stakeholder engagement, protection of workers’ rights and safety, promotion of circular textile economy practices, and capacity building and technology adaptation to transform the jhut sector.

The report also outlined a number of key policy solutions for the informal jhut sector that include improving data availability, transparency and traceability through a national jhut database, introducing industry guidelines for jhut management and recycling standards and revising value-added tax and tariff rules for jhut transactions.

It also suggested providing economic incentives to formalise jhut collection, handling and sorting, establishing central depository systems and cluster-based sorting hubs to promote decent work and social inclusion and enhancing the investment environment for advanced recycling technologies.

Current disposal methods result in severe environmental impacts, such as air pollution, resource depletion, and harmful chemical leaching, which pose significant threats to ecosystems and public health, the report mentioned.

The survey pinpointed key challenges in Bangladesh’s recycling industry including sorting jhut, timely disposal, boosting productivity and minimising waste through improved design.

It also identified potential threats if factory owners implement jhut recycling strategies on their own premises.

Potential threats to jhut recycling include political restrictions, general pressures, increased scrutiny, internal recycling disruptions and intimidation from those benefiting from the status quo.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said that the textile industry in Bangladesh had begun recycling and it would yield very positive results in the near future.

‘We lack core raw materials like cotton and petrochemicals, but strengthening our recycling industry could reduce import costs and create a robust backward linkage industry for the country,’ he said.

Faruque said that sorting jhut was a major challenge due to a lack of trained personnel, though the sector had already provided training to many with support from GIZ and H&M.

He also highlighted the importance of establishing jhut collection points for the industry’s transition, mentioning that the BGMEA proposed this but implementation has been stalled due to political reasons.

‘In the global context, an evolving narrative around sustainability in the textile sector is shaping the operations and strategies of major brands. A pronounced push towards integrating circularity in value chains is evident, with entities such as H&M and GIZ at the forefront of these initiatives,’ the report said.

Regulatory bodies, particularly in the European Union, are moving towards stricter mandates and introducing extended producer responsibility requirements, it mentioned.

The study suggested that this global shift offered Bangladesh a chance to boost trade through sustainability goals and create formal employment by formalising the jhut sector and adopting circular economy models.

To transform the report recommended for the enhanced collaboration among government bodies, manufacturers, non-government organisations and recycling companies is essential for developing sustainable infrastructure, adopting innovative technologies and establishing efficient waste management systems.

It also suggested that enforcing existing labour laws and introducing new regulations are crucial to protecting workers’ rights and safety in the jhut recycling industry, including upholding health and safety standards, eliminating child labour and addressing gender-based issues.

The study also recommended that brands and suppliers should adopt recycled materials in their products to set sustainability standards, reduce waste, boost consumer demand for eco-friendly goods, and drive innovation and market growth for recycled textiles.​

 

[Saif]

Exports fell in FY24 for lower woven, knitwear shipments

Bangladesh’s overall exports fell 4.34 percent year-on-year in FY24 due to lower shipments of ready made garments (RMG), reflecting sluggishness in industrial activities and the economy.

www.thedailystar.net

Exports fell in FY24 for lower woven, knitwear shipments

Bangladesh's overall exports fell 4.34 percent year-on-year in FY24 due to lower shipments of ready made garments (RMG), reflecting sluggishness in industrial activities and the economy.

The country's export receipts amounted to $44.47 billion in the previous fiscal while it was $46.49 billion in FY23, according to data released by the Bangladesh Bank on Tuesday.

The central bank said it compiled the export figures provided by the National Board of Revenue (NBR).

The Export Promotion Bureau (EPB) is yet to publish the export data for the entirety of FY24.

In July, the agency under the Ministry of Commerce informed that it would refrain from updating statistics for three months to ensure accurate reporting.

It decided to do so after the central bank released data on the country's balance of payments (BoP), which showed a $14 billion gap compared to the EPB's statistics.

In the latest BoP, the Bangladesh Bank said export value, which is calculated on a Free on Board (FoB) basis for the BoP, stood at $40.8 billion in FY24, down by nearly 6 percent year-on-year.

When products are shipped on a FoB basis, the liability and ownership of the goods lies with the buyer.

The central bank added that the FoB has been adjusted with shipments from the Export Processing Zones (EPZ) in Bangladesh.

When comparing the FoB data to the export data, a gap of $3.66 billion is seen.

A senior official of the Bangladesh Bank said this is because they don't use the FoB method when counting overall exports.

"That's why there has always been a gap between the export statistics used in BoP and overall exports," the official added.

Khandoker Rafiqul Islam, newly elected president of the Bangladesh Garment Manufacturers and Exporters Association, said their exports to both Europe and the US are in the negative as per internal data.

"Business slowed after the beginning of the Russia-Ukraine war as sluggish demand in the West led to stockpiling of previously shipped goods. So, buyers cut back on purchases," he added.

The export data compiled by the Bangladesh Bank showed that exports of woven garments dropped 5.36 percent year-on-year to $16.86 billion in FY24.

Knitwear, the biggest export earner, accounted for 44 percent of total receipts. However, it also posted a 5.35 percent decline to $19.26 billion.

Islam said buyers usually place orders during the months of July and August, but this time they became cautious due to the political changeover stemming from a recent mass uprising.

"The good thing is that we see development," he said, informing that queries from prospective buyers have increased as their previous stocks have reduced.

"So, if the situation returns to normal, exports will likely become positive this year," Islam added.

Central bank data showed that of the top 10 exporting sectors, only three -- agricultural products, chemicals and plastic -- recorded export growth.

Plastic exports registered the highest growth followed by agricultural items and chemicals.

"The government allowed exports of aromatic rice for some days. This is one of the main reasons that exports of agricultural products grew," said Eleash Mridha, managing director of PRAN Group.

He added that freight costs, which soared in the wake of the Russia-Ukraine war, have gradually declined.

"However, the Red Sea crisis is still affecting shipments. But as global commodity prices remain low, exports may grow this fiscal too," Mridha added.

Home textile exporters saw the biggest fall in shipments at 24 percent followed by leather and leather products at around 12 percent and frozen and live fish at 11 percent.

Exports of home textiles, the fourth largest item in the country's export basket, brought home $782 million in FY24 compared to $1.08 billion in FY23.

Leather and leather products, the third biggest export item, recorded $1.03 billion in export earnings last year. It brought in $1.17 billion in FY23.

Arifur Rahman, general manager of ABC Leather Ltd, said the war affected demand for leather products, especially in Europe. However, the demand in Japan remains unchanged.

Meanwhile, the demand for artificial footwear is rising as they are comparatively cheaper than leather shoes, Rahman added, citing that the price of leather shoes ranges between $18 and $22 whereas a pair of artificial ones costs just $3 to $10.​

 

[Saif]

Army, police to start joint operation tonight to safeguard RMG factories

The Bangladesh Army, police and industrial police will start a joint operation in Savar, Ashulia and Gazipur areas tonight to safeguard the ready-made garment (RMG) industries. Home Affairs Adviser Lieutenant General (retd) M Jahangir Alam Chowdhury has issued such a directive. BGMEA President Kh

thefinancialexpress.com.bd

Army, police to start joint operation tonight to safeguard RMG factories
BSS
Published :
Sep 02, 2024 21:03
Updated :
Sep 02, 2024 21:03

The Bangladesh Army, police and industrial police will start a joint operation in Savar, Ashulia and Gazipur areas tonight to safeguard the ready-made garment (RMG) industries.

Home Affairs Adviser Lieutenant General (retd) M Jahangir Alam Chowdhury has issued such a directive.

BGMEA President Khandaker Rafiqul Islam told reporters after a meeting of the BGMEA and BKMEA with the home affairs adviser this afternoon at the Bangladesh Secretariat.

Earlier today, workers seeking jobs were protesting at Ashulia by blocking the Nabinagar-Chandra and Baipail-Abdullahpur roads, demanding equal employment opportunities for men and women in RMG factories, among other demands.

The workers gathered in front of various factories along the Dhaka EPZ and Baipail-Abdullahpur roads to begin their demonstration for employment this morning.

At one point, the protesting workers placed barricades at various points on the Nabinagar-Chandra and Baipail-Abdullahpur roads.

They started throwing bricks and stones at the factories, causing severe traffic congestion. A good number of factories in the area were forced to declare a holiday amid the protests.

Meanwhile, the industrial police and army members managed to clear the Baipail-Abdullahpur road of barricades.​

 

[Saif]

All RMG factories set to resume operations on Thursday with enhanced security measures

All garment factories across the country will reopen on Thursday, following assurances of enhanced security measures by law enforcement agencies. A coordinated effort involving various security forces, including the army, police, and industrial police, will begin on Wednesday night to ensure the sa

thefinancialexpress.com.bd

All RMG factories set to resume operations on Thursday with enhanced security measures
FE ONLINE REPORT
Published :
Sep 04, 2024 19:32
Updated :
Sep 04, 2024 22:50

All garment factories across the country will reopen on Thursday, following assurances of enhanced security measures by law enforcement agencies. A coordinated effort involving various security forces, including the army, police, and industrial police, will begin on Wednesday night to ensure the safety of industrial zones.

As many as 167 readymade garment factories in the industrial belts of Ashulia, Savar and Gazipur failed to operate on Wednesday due to workers' unrest, mostly instigated by outsiders.

On Tuesday, at least 126 garment factories suspended operation while another 100 were forced to close on Monday over unrest.

Bangladesh Garment Manufacturers and Exporters Association President Khandoker Rafiqul Islam made the announcement at a press conference held on Wednesday at the trade body's headquarters in Uttara in the city.

Before the conference, the BGMEA leaders held a meeting with factory owners and top officials from law enforcement agencies.

Former BGMEA presidents AK Azad, Dr Rubana Huq, Anwarul Alam Chowdhury, Anisur Rahman Sinha, Kutub Uddin Ahmed and Gulam Quddus, among others, were also present during the meeting.​

 

[Saif]

RMG export to US falls in Jan-July

Bangladesh’s apparel exports to the United States in January-July of 2024 witnessed a significant fall both in value and volume while the other competing countries, such as China and Vietnam, performed well in the market...

www.newagebd.net

RMG export to US falls in Jan-July
Staff Correspondent 05 September, 2024, 22:37

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. Bangladesh’s apparel exports to the United States in January-July of 2024 witnessed a significant fall both in value and volume while the other competing countries, such as China and Vietnam, performed well in the market. | New Age photo

Bangladesh’s apparel exports to the United States in January-July of 2024 witnessed a significant fall both in value and volume while the other competing countries, such as China and Vietnam, performed well in the market.

The country’s apparel exports to the US, the largest export destination for Bangladesh, declined by 10.27 per cent to $4.10 billion in the first seven months of 2024 compared with that of $4.57 billion in the same period of 2023, according to the data released by the Office of Textiles and Apparel under the US Department of Commerce.

In terms of volume, Bangladesh exported 1.33 billion square metres of apparel from January to July period of 2024, a 4.55-per cent decrease from 1.39 billion square metres exported during the same period of the previous year.

Exporters said that the US buyers decreased their orders in Bangladesh due mainly to long shipment time.

Due to a shortage of gas and electricity, as well as complexities in banking and customs procedures, the shipment of export goods has been delayed, they said.

Negative growth in apparel export earnings from the US market persisted, as the underlying issues remained unresolved, Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem told New Age on Thursday.

He said that the persistent shortages of gas and electricity, combined with the complexities of opening letters of credit with banks and delayed customs procedures, were continuing to cause shipment delays and adversely affected overall export performance.

Hatem, however, hoped that the apparel exports to the market would get momentum in the coming months as the interim government was working to improve the situation.

The OTEXA data showed that overall US apparel imports declined by 4.65 per cent to $43.63 billion in the first seven months of 2024, down from $45.76 billion in the same period of 2023.

Apparel imports by the US from China in January-July period of 2024 declined by 4.22 per cent to $8.76 billion from $9.14 billion in the same period of the previous year.

Vietnam’s apparel exports to the US totalled at $8.09 billion in the first seven months of 2024, reflecting a 1.54-per cent year-over-year decrease, according to the data.

The OTEXA data, released on Wednesday, showed that Bangladesh’s position remained unchanged as the third-largest apparel exporter to the US market with 9 per cent share while China and Vietnam occupied the first and the second highest positions with 21.09 per cent and 18.54 per cent share respectively.

The OTEXA data revealed that the US apparel imports from Cambodia grew by 5.96 per cent to $1.91 billion in January-July 2024 compared with that of $1.8 billion in the same period in 2023.

In the first seven months of 2024, India’s readymade garment exports to the US market decreased by 2.21 per cent to $2.85 billion.

Meanwhile, Indonesia saw a decline of 7.86 per cent, with exports totalling at $2.28 billion during the same period.​

 

[Saif]

RMG work orders shifting to India amid unrest in BD

A latest spate in labour unrest in Bangladesh's readymade garment factories prompted global apparel brands to shift work orders to neighbouring India. The unrest follows Sheikh Hasina government's fall in a student movement. Factory owners and labour leaders allege that the unrest, apparently cre

thefinancialexpress.com.bd

RMG work orders shifting to India amid unrest in BD
Monira Munni
Published :
Sep 06, 2024 09:21
Updated :
Sep 06, 2024 09:21

A latest spate in labour unrest in Bangladesh's readymade garment factories prompted global apparel brands to shift work orders to neighbouring India.

The unrest follows Sheikh Hasina government's fall in a student movement.

Factory owners and labour leaders allege that the unrest, apparently created at the instigation of outsiders, has forced hundreds of their units to close for the last couple of days.

As a result, the buyers were reportedly shifting their orders to India, they said.

In addition to the closed ones, hundreds of garment factories suspended their operations for the last four days, beginning from Monday over the worker protests.

The Economic Times of India on Thursday reported that the Tiruppur knitwear export hub has swung export orders worth 4.50 billion rupees in the last two weeks from Bangladesh due to the political unrest there.

Quoting KM Subramanian, president of Tirupur Exporters' Association (TEA), it also noted that global apparel brands like KiK from Germany, Zeeman from Netherlands, and Pepco of Poland, among others, placed orders to be delivered before the Christmas and New Year and the average price of the garment ordered is to the tune of $3.0 per piece.

According to another report by Times of India, Raymond Ltd Chairman and Managing Director Gautam Singhania said on Tuesday last that the company has been receiving "massive inquiries" for garments supply after the political crisis erupted in Bangladesh over the last two months.

"Bangladesh has no fabric capacity... Fabric goes from India to Bangladesh. With the current crisis in Bangladesh, if a customer comes to us, we are giving them integrated supply, both the fabric and the garment, thus saving time.

"The perception has changed against Bangladesh. This is the time when we are getting massive inquiries. We invested 2.0 billion rupees last year to increase our capacity, which has come online and is available," the report quoted Singhania.

Global Data, a leading data and analytics company, on August 19 revealed that the ongoing political and economic instability in Bangladesh, a global hub for textile and apparel manufacturing, became the focal point of discussion among the industry experts and influencers on social media platform "X".

Influencers highlight that the disruption in Bangladesh's textile sector offers India a chance to capitalise on the potential shift in global apparel manufacturing.

They believe India's market share in apparel exports could increase as global brands seek to diversify their supply chains, revealed the Social Media Analytics Platform of Global Data.

GlobalData's Social Media Analytics Platform captured a few popular influencer opinions in this regard.

"Someone's crisis is someone else's opportunity. Bangladesh has been a major exporter of textiles. Now that Bangladesh is going through huge instability, India should make use of the opportunity to bring that business to our country. More so, Tamilnadu should use this opportunity as the state with the number one share of textile exports," GlobalData statement quoted D Muthukrishnan, a certified financial planner.

"India's market share in apparel exports has been 3.0 per cent for a long time. Disruption in Bangladesh along with wage revision is making global labels think of diversification… Lot of Indian companies could be benefitted inking term," it quoted Gurmeet Chadha, chief investment officer at Complete Circle Wealth.

"Bangladesh's loss (textiles) will be Bihar's gain," said Saurav Jha, founder and director of Delhi Defence Review.

Prashant Nair deputy executive editor at CNBC-TV18 was quoted as saying: "A quick point on textile stocks rallying - while the Bangladesh situation may benefit Indian mills. I reckon it will be a temporary bump. Textile exports are Bangladesh's mainstay. Whoever takes charge won't let it slip."

Shreyasee Majumder, Social Media Analyst at GlobalData, commented: "Influencers express a mix of optimism and caution regarding the potential benefits for India's apparel industry amid the Bangladesh's textile sector disruptions."

There is a widespread perception that this is a promising short-term opportunity, predicting a rally in textile stocks and an increase in India's market share, she said.

Many believe that Bangladesh, given the critical importance of textiles to its economy, will prioritise restoring its industry, potentially reclaiming its position sooner than anticipated, she added.​