[🇧🇩] Textile & RMG Industry of Bangladesh

[Bilal9]

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

Desperately decreasing prices is not a long term strategy and cannot be sustained.

Ultimately China will need to seek lower-cost production sources (like Bangladesh) to produce and market average price-sensitive apparel globally.

They will however be able to hold on to the higher-end apparel premium product market needing higher skill level value-addition which is not as price-sensitive as lower level apparel products are.

Examples of premium and higher-end apparel products include designer-wear, formal-wear, higher-end winter-wear and constructed apparel like suits and jackets.

Also - apparel made with locally-sourced (and therefore - cheaper) hollow fiber and microfiber based textiles in China which mimic insulation, heat retention, 'hand feel' and luxurious texture properties of material such as wool, cotton and silk which command more premium prices.

The newest specialized commercial polyester fibers are hollow and here is an image of one PET fiber cross section as seen with an electron microscope.

The hollow spaces in the fibers can hold water vapor and moisture which when wicked will provide cooling - like cotton naturally does.

Japanese companies have perfected these hollow fibers for the last two decades, now its China's turn to produce them (as well as the Textiles) economically.

These cotton, wool and silk textiles made from specialized hollow fibers will get more popular as time passes.

One good example of these synthetic cotton yarns (mimic'ing cotton) is Hygro Cotton from Wellspun Fibers USA. Hygro cotton is used extensively in Home textiles such high-thread-count bedsheets and luxurious upmarket towels.

HYGROCOTTON®

Our patented HYGROCOTTON® spinning process makes towels that are softer, loftier and more absorbent after every wash, and sheets that provide temperature regulation all year. These are the “textiles that love you back”.

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[Bilal9]

By the way - this is hollow-fiber synthetic fiber batting (artificial soft cotton) made in China which can be spun into yarn. These fibers are significantly better than polyester and rayon in mimic'ing the "feel" and texture of cotton.

 

[Saif]

RMG exporters fed up with harassment by tax officials

Garment exporters are fed up with being harassed by VAT and customs officials, who have been imposing abnormal fines alleging a lack of documents, said an exporter yesterday.

www.thedailystar.net

RMG exporters fed up with harassment by tax officials
A business leader says

Photo: Amran Hossain

Garment exporters are fed up with being harassed by VAT and customs officials, who have been imposing abnormal fines alleging a lack of documents, said an exporter yesterday.

The VAT and customs officials are imposing fines up to 400 percent, said Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

He added that in places like Sanarpar and Rupganj upzila in Narayanganj, officials are levying fines of Tk 2 lakh to Tk 5 lakh due to an alleged lack of documents.

He further said that officials often detain goods-laden trucks and it takes a few days to release them. But by then it is too late to take the goods to the factories.

As a result, exporters either face a cancellation of work orders or send goods through air, which is very expensive.

Hatem was speaking at a pre-budget discussion on "highlighting income tax, VAT, customs duty, sector-wise allocation of budget, external debt, etc" organised by the Institute of Chartered Accountants of Bangladesh (ICAB) in collaboration with the Economic Reporters' Forum (ERF).

Former ICAB President Md Humayun Kabir moderated the discussion, featuring economists, businessmen, accountants, and journalists.

Ashikur Rahman, senior economist at the Policy Research Institute (PRI), highlighted the need to address inflation, the foreign currency reserve situation, the deficit in development allocation, and the problematic banking sector while preparing the next budget.

He also suggested merging a number of ministries.

PRI Executive Director Ahsan H Mansur reminded to keep internal and external economic shocks in mind while preparing the next budget.

The government should also aim to ensure macroeconomic stability by reducing inflation, Mansur added.

He suggested imposing more tax on land as many are not cultivating their land, which is unproductive.

Mansur said if customs duty, supplementary duty, and customs procedures are not reformed, Bangladesh will face difficulties signing Free Trade Agreements (FTAs) with other countries. Other nations will not show interest because of high duties, he said.

Md Saiful Islam, former president of the Metropolitan Chamber of Commerce and Industry, suggested tightening the belt by not approving unnecessary projects in the next budget.

Abdul Haque, former president of Japan Bangladesh Chamber of Commerce and Industry, stressed the need to provide more facilities for cottage, micro, small and medium enterprises so they can develop and contribute more to the economy.

ICAB President Mohammad Forkan Uddin said VAT and taxes are often exempted to control the market when prices of specific goods increase in the local market. As a result, the government loses revenue. Instead of doing this, they should go for market management, he said.

Former State Minister for Planning Shamsul Alam said no major reforms to the National Board of Revenue and Internal Resources Division have been made so far, due to which complaints of harassment persist.

The tax-GDP ratio in Bangladesh is still lower than its South Asian peers like Nepal, Pakistan, India, and Sri Lanka, he said.​

 

[Saif]

RMG workers continue to face a climate of fear, repression: Amnesty

Breaking News, International News & Multimedia

thedailynewnation.com

RMG workers continue to face a climate of fear, repression: Amnesty
3 May 2024, 12:00 am

Staff Reporter :

Amnesty International recently stated on 'International Workers' Day about the ongoing struggles faced by garment workers in Bangladesh.

They highlighted how workers in the country are still experiencing fear and repression, while companies are getting away with human rights abuses without consequences.

They pointed out the tragic incidents at Rana Plaza and Tazreen Fashions Factory, where many workers lost their lives due to unsafe working conditions.

These disasters, according to Amnesty, happened because of negligent monitoring of workplaces, revealing a lack of regulation and safety standards.

Despite efforts by organisations like the Bangladesh Legal Aid and Services Trust (BLAST) to seek compensation for the victims of these disasters, the cases have remained unresolved for over a decade.

Nadia Rahman from Amnesty International emphasised the need for accountability for these incidents, stating, "Workers' rights to fair compensation and safe working conditions are still not being met."

She called attention to the flaws in labour laws and the lack of compliance, stating that true compensation for occupational injuries remains elusive.

Amnesty International is advocating for significant changes to address these issues and ensure the safety and well-being of garment workers in Bangladesh.

"In addition to the lack of justice, most workers today are still fighting for decent wages in an industry that brings the most revenue to Bangladesh and paying a heavy price for fighting for their rights," she said.

According to Amnesty International, garment workers in Bangladesh are facing dire conditions, including being paid poverty wages and encountering numerous obstacles such as harassment, intimidation, and violence when they try to speak up for their rights.

Since the protests in 2023, there have been at least 35 criminal cases filed against garment workers, with reports estimating that tens of thousands of workers have been accused of participating in protests.

Amnesty noted that a significant portion of these cases were filed by factories supplying major global fashion brands and retailers.

Taufiq, a labour NGO worker in Bangladesh, lamented to Amnesty International, "When workers raise their voices, they are ignored; when they try to organise, they are threatened and sacked; and finally, when workers protest, they are beaten, shot at, and arrested."

Sokina, a survivor of the Tazreen Fashions fire in 2012, shared her distress with Amnesty International, stating, "It has been over eleven years, and we have still not received our rightful compensation. The owner of the factory is roaming scot-free and running new businesses by establishing strong ties with the ruling party while we are living a life of destitution."

Despite some global reforms initiated after the Rana Plaza tragedy, such as the International Accord for Health and Safety in the Garment and Textile Industry, occupational safety remains lacking for many workers across various sectors in Bangladesh.

The snail-paced progress during the last eleven years in the Rana Plaza and Tazreen compensation cases, together with widespread preventable occupational deaths and injuries, underscores the wider culture of corporate impunity in Bangladesh.

"We call on the government to remove the limits on compensation for occupational injuries under labour law, ensure those affected receive adequate compensation, and introduce a national data repository on workplace deaths and injuries to ensure transparency and fill the current gaps in official data," said Nadia Rahman.

Bangladesh must also ratify and then comply with the two key International Labour Organisation (ILO) Conventions 155 and 187 on occupational health and safety, along with ILO Conventions 102 and 121 on minimum standards of relief for victims of occupational injuries and deaths.

"We also urge the Government of Bangladesh to immediately end the repression of worker rights and ensure that they can exercise their right to freedom of expression and association, including by being able to form and join trade unions at the factory level, without fear of reprisals," she said.​

 

[Saif]

RMG export to US down 17pc in January-March

Bangladesh's garment exports to the US, the country's largest export destination, fell by over 17 per cent year-on-year to $1.75 billion in January-March, according to the Office of Textiles and Apparel (OTEXA), a body under the American Commerce Department. The slump is evident in both the value

thefinancialexpress.com.bd

RMG export to US down 17pc in January-March
MONIRA MUNNI
Published :
May 04, 2024 23:58
Updated :
May 04, 2024 23:58

Bangladesh's garment exports to the US, the country's largest export destination, fell by over 17 per cent year-on-year to $1.75 billion in January-March, according to the Office of Textiles and Apparel (OTEXA), a body under the American Commerce Department.

The slump is evident in both the value and volume of exports.

US import figures show Bangladesh's key ready-made garment competitors China and Vietnam outperformed Bangladesh in the first quarter.

Exporters list a number of domestic issues like long lead times, inconsistent energy supplies and an overall high cost of doing business for their loss of export share in the US market.

These same factors, they say, give China and Vietnam an advantage in the American market.

US apparel imports from Bangladesh totaled $1.75 billion in January-March this year, compared to $2.13 billion in the same period of 2023, show OTEXA figures released on May 02.

In Q1, the country shipped 11.92 per cent fewer garments, which is 586.09 million square metres, compared to the previous year's 665.42 million square metres.

In contrast, though China's apparel exports to the US saw a slight decline in value, they did experience volume growth.

However, overall US apparel imports fell by 7.14 per cent to $18.07 billion in the first quarter of 2024, down from $19.46 billion in the same period of 2023.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said buyers are now placing orders with shorter lead times due to various factors. This situation puts China and Vietnam, with their shorter lead times and more consistent energy supplies, in a more advantageous position.

Exporters are struggling to meet lead times for current work orders due to a severe gas crisis, he told The Financial Express on Saturday.

He added that meeting production timelines is difficult as they require 15-20 days to obtain fabric due to gas and electricity shortages. Bangladesh also cannot receive all materials efficiently due to the lack of a deep-sea port, further delaying import and export activities.

The BKMEA leader said high production costs due to rising gas prices, recent wage hikes and anticipated electricity rate increases are eroding their competitiveness.

"In many cases, we can't receive the work orders as buyers offer prices below the production costs," he noted.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said price is the key factor.

"Buyers are offering lower rates while production costs are steadily increasing," commented Mr Kochi, calling for measures to reduce costs and ensure fair apparel pricing to remain competitive.

Abdullah Hil Rakib, managing director of Team Group and also BGMEA vice president, attributed the decline to the Red Sea crisis.

OTEXA data shows China's apparel exports to the US in the first three months of 2024 reached $3.44 billion, marking a 0.71 per cent decline.

China saw a 9.79 per cent increase in volume, exporting 1.92 billion square metres of apparel during the first quarter.

Vietnam's apparel exports to the US in January-March 2024 increased by 0.91 per cent to $3.39 billion. US apparel imports from Vietnam also increased by 11.54 per cent, reaching 1.08 billion square metres.

The US's RMG imports from Cambodia rose by 11.13 per cent to $807.87 million in January-March compared to the same period in 2023. India's RMG exports to the US market declined by 8.79 per cent to $1.21 billion compared to $1.33 billion in the same period of 2023.

US RMG imports from Indonesia decreased by 14.16 per cent to $1.02 billion in the first three months of 2024, compared to $1.19 billion in the same period of 2023.

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