[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Bangladesh’s Garment Industry: Future growth in a changing world

Bangladesh has emerged as a significant player in the global garment industry, securing its position as the second-largest garment exporter worldwide. The country’s remarkable journey from economic struggles to becoming a key player in the textile and apparel sector is a testament to its...

www.thedailystar.net

Bangladesh’s Garment Industry: Future growth in a changing world​

Bangladesh has emerged as a significant player in the global garment industry, securing its position as the second-largest garment exporter worldwide. PHOTO: COLLECTED

Bangladesh has emerged as a significant player in the global garment industry, securing its position as the second-largest garment exporter worldwide. The country's remarkable journey from economic struggles to becoming a key player in the textile and apparel sector is a testament to its resilience and adaptability.

The roots of Bangladesh's garment industry can be traced back to the 1970s, a period when the country was grappling with the aftermath of its Liberation War and the challenges of establishing a stable economy. In the early stages, the industry was primarily focused on meeting domestic demand, with limited international exposure. However, a series of economic reforms and strategic decisions paved the way for Bangladesh to enter the global market.​

​

Policy initiatives

The economic reforms initiated in the 1980s played a pivotal role in shaping Bangladesh's garment industry. The government, recognising the potential of the sector, implemented policies aimed at attracting foreign investment and fostering a conducive business environment. Incentives such as tax breaks, the duty-free import of machinery, and streamlined export procedures helped create a favourable climate for the growth of the garment industry.

Labour force

One of the key factors that propelled Bangladesh's garment industry onto the global stage is its abundant and cost-effective labour force. The country's population density and low wage rates attracted international apparel brands and manufacturers seeking to optimise production costs. This competitive advantage allowed Bangladesh to offer affordable clothing to consumers worldwide, fostering sustained demand for its products.
Participation in international trade agreements and preferential market access further boosted Bangladesh's garment exports. Agreements like the Generalized System of Preferences (GSP) provided the country with tariff advantages in key markets, facilitating increased export volumes. The strategic positioning of Bangladesh in proximity to major consumer markets, such as Europe and North America, also contributed to its accessibility to global supply chains.

While the growth of Bangladesh's garment industry has been remarkable, it has not been without challenges. The sector has faced criticism and scrutiny over issues such as labour rights, workplace safety, and environmental sustainability.

The rapid expansion of the garment industry in Bangladesh has raised concerns about working conditions and labour rights. Incidents such as the Rana Plaza collapse in 2013, which claimed the lives of over 1,000 garment workers, highlighted the need for improved safety standards and worker welfare. International pressure and advocacy have since led to increased awareness and efforts to address these issues.

In response to growing environmental awareness, there is a notable shift towards sustainable practices in the garment industry. VISUAL: STAR

Environmental sustainability

The textile and apparel industry is notorious for its environmental impact, and Bangladesh's garment sector is no exception. The excessive use of water, chemicals, and energy in the production process has raised environmental concerns. Efforts are being made to adopt sustainable practices, with some manufacturers investing in eco-friendly technologies and processes to reduce their carbon footprint.

Global economic uncertainties

The garment industry is sensitive to global economic fluctuations and uncertainties. External factors such as economic recessions, trade tensions, and the impact of unforeseen events such as the Covid-19 pandemic can disrupt supply chains and affect demand for apparel. Navigating through these uncertainties requires resilience and adaptability.

Future prospects for growth

Despite the challenges, Bangladesh's garment industry continues to exhibit resilience and adaptability. The sector's prospects for future growth are shaped by a combination of factors, including technological advancements, sustainability initiatives, and changing consumer preferences.

The adoption of Industry 4.0 technologies is poised to revolutionise the garment manufacturing process in Bangladesh. Automation, artificial intelligence, and data analytics are being integrated into production systems to enhance efficiency, reduce costs, and improve quality. Embracing these technological advancements will not only boost productivity but also position Bangladesh as a competitive player in the evolving landscape of smart manufacturing.

The demand for environmentally friendly and socially responsible fashion is on the rise, and Bangladesh’s garment industry can tap into this trend by aligning its practices with consumer expectations. VISUAL: STAR

Sustainable practices and ethical manufacturing

In response to growing environmental awareness, there is a notable shift towards sustainable practices in the garment industry. Bangladesh has started to embrace eco-friendly initiatives, such as using recycled materials, reducing water consumption, and implementing waste management strategies. Adopting fairer manufacturing practices is not only an ethical imperative but also a strategic move to meet the demands of environmentally conscious consumers and comply with international standards.

The environmental impact of the garment industry is a global concern, and sustainable practices are crucial in mitigating this impact. Ethical manufacturing entails adopting eco-friendly production processes, reducing water and energy consumption, and minimising waste. By embracing sustainable practices, Bangladesh's garment industry can contribute to global efforts to address climate change and environmental degradation, showcasing a commitment to responsible business practices.

Consumer preferences are also shifting towards sustainable and ethically produced products. The demand for environmentally friendly and socially responsible fashion is on the rise, and Bangladesh's garment industry can tap into this trend by aligning its practices with consumer expectations. Sustainable and ethical manufacturing not only attracts conscious consumers but also opens up new market opportunities and strengthens brand loyalty.

Compliance with international standards

Many global retailers and consumers scrutinise the practices of suppliers, and compliance with internationally recognised standards ensures market access and fosters trust. Bangladesh's garment industry, by prioritising sustainability and ethics, can position itself as a responsible participant in the global supply chain.

In fact, sustainable practices and ethical manufacturing contribute to the resilience of Bangladesh's garment industry. Addressing labour rights issues and ensuring workplace safety can prevent disruptions due to strikes or accidents. Environmentally sustainable practices reduce exposure to regulatory risks and enhance the industry's adaptability in the face of changing environmental regulations and consumer expectations.

The sector’s prospects for future growth are shaped by a combination of factors, including technological advancements, sustainability initiatives, and changing consumer preferences. ILLUSTRATION: AFIA JAHIN

Innovation and technological advancements

Embracing sustainability often involves adopting innovative technologies and processes. Sustainable practices can drive technological advancements in the industry, enhancing efficiency and reducing environmental impact. By investing in research and development of eco-friendly materials and production methods, Bangladesh's garment industry can position itself as a hub for innovation and sustainable manufacturing.

Diversification and value addition

To mitigate risks associated with overreliance on a single sector, Bangladesh's garment industry is exploring diversification and value addition. Rather than solely focusing on low-cost mass production, manufacturers are venturing into high-value segments, including customised and niche products. This strategic shift allows Bangladesh to cater to diverse market demands and create a more sustainable and resilient industry.

Bangladesh's garment industry has historically been focused on mass production of basic apparel items. Diversification involves expanding product lines to include a wider array of garments, from high-end fashion to niche markets such as sportswear, athleisure, and sustainable fashion. This strategy helps mitigate risks associated with dependence on a single market or product, making the industry more resilient to economic fluctuations and shifts in consumer preferences.

By diversifying product offerings, Bangladesh's garment industry can tap into niche markets that offer higher profit margins and sustained demand. Customised and specialised garments catered to specific consumer segments can create a competitive edge, allowing manufacturers to differentiate themselves in a crowded global marketplace.

Consumer preferences are dynamic, driven by factors such as sustainability, innovation, and individuality. Diversification enables Bangladesh's garment industry to adapt to these changing preferences. By offering a variety of products that align with diverse consumer needs, manufacturers can stay ahead of trends and maintain relevance in the highly competitive fashion landscape.

E-commerce and digital transformation

The rise of e-commerce and digital platforms has transformed the retail landscape, presenting new opportunities for the garment industry. Bangladesh's manufacturers are increasingly embracing digital transformation, from online sales channels to digital design and production processes. This shift not only facilitates direct access to consumers but also enables greater agility in responding to changing market trends.

E-commerce has dismantled geographical barriers, allowing Bangladesh's garment industry to reach a global audience with unprecedented ease. Online platforms provide manufacturers and exporters the opportunity to showcase their products to customers around the world, enabling them to tap into previously untapped markets. This newfound global reach has become instrumental in reducing dependence on traditional brick-and-mortar retail channels.

E-commerce platforms empower Bangladesh's garment industry to adopt a direct-to-consumer (DTC) model, eliminating intermediaries and establishing a more direct connection with end consumers. This shift allows manufacturers to gain better control over branding, pricing, and customer relationships. By cutting out middlemen, businesses can enhance profit margins and adapt more swiftly to changing consumer preferences.

Online presence through e-commerce platforms enhances the visibility and branding of Bangladesh's garment industry. Through digital marketing strategies, manufacturers can showcase their products to a vast and diverse audience. Social media, search engine optimisation, and other online marketing tools enable companies to build a strong brand image, fostering consumer trust and loyalty.

E-commerce facilitates real-time communication and collaboration across the entire supply chain, from manufacturers to retailers and end consumers. This enhanced connectivity optimises inventory management, reduces lead times, and minimises the risk of overstock or stockouts. The efficient flow of information ensures that products are delivered to consumers in a timely manner, contributing to customer satisfaction and loyalty.

The digital nature of e-commerce transactions generates vast amount of data that can be leveraged for insightful analytics. Bangladesh's garment industry can use this data to understand consumer behaviour, preferences, and market trends. By analysing this information, businesses can make data-driven decisions, refine their product offerings, and tailor marketing strategies to better align with the needs and desires of their target audience.

E-commerce platforms enable the garment industry to offer customised and personalised products, catering to individual preferences. Through user-friendly interfaces, consumers can personalise garment specifications, choose colours, and select sizes according to their preferences. This level of customisation enhances the overall shopping experience, fostering a sense of individuality and exclusivity.

Challenges

Despite the positives, challenges lie ahead for Bangladesh's garment industry. The first of these is sustainability. While this represents an opportunity in some ways, it also is a threat. We are seeing global concerns about clothing over production and mass production centres such as Bangladesh could find themselves in the cross-hairs of these discussions.

There are also issues around climate change. Many buyers from Bangladesh now require their manufacturers to meet strict climate targets around energy use. Can garment makers meet these requirements? To do this, a coordinated approach is needed involving industry, government, and the national energy infrastructure. This issue will become parament over the next five years as buyers seek to hit 2030 climate targets.

Competition is also a challenge. Fast growing rivals such as Vietnam and Turkey are capable of stealing market share from Bangladesh. The latter has the benefit of close proximity to Western customers. The former is ahead of Bangladesh in terms of its technical textile capabilities. Africa is also viewed by many as the next big thing in textile production, although progress in countries such as Ethiopia has been stop-start over the years.

Likewise, talk of near-shoring is an issue Bangladesh should keep a close eye on. There have for many years been discussions around textile near-shoring in countries such as the US and the UK. The benefits of this include speed to market and a reduced environmental footprint.

Near-shoring has yet to take off in any significant form due to numerous reasons—labour costs in the West, lack of skills base and so on—but it cannot be ruled out as a medium- to long-term threat to domestic garment makers.

Bangladesh's garment industry has come a long way since its inception, evolving into a key player on the global stage. The historical development of the sector reflects the resilience of the country in overcoming economic challenges and leveraging its strengths. As the industry faces ongoing challenges related to labour rights, environmental sustainability, and global economic uncertainties, its future growth prospects hinge on embracing technological advancements, sustainable practices, and diversification strategies.

By addressing the challenges and capitalising on emerging opportunities, Bangladesh's garment industry can navigate the complexities of a changing world. As the country continues to evolve, the industry's ability to balance economic growth with social and environmental responsibility will be crucial in shaping its role in the global garment market.​

 

[Bilal9]

 

[Saif]

Garment makers seek policy on virtual marketplaces

Garment manufacturers have sought a policy from the government on virtual marketplaces, saying they cannot enter into deals with international clothing retailers and traders in absence of dedicated international payment gateways for them.

www.thedailystar.net

Garment makers seek policy on virtual marketplaces​

Garment manufacturers have sought a policy from the government on virtual marketplaces, saying they cannot enter into deals with international clothing retailers and traders in absence of dedicated international payment gateways for them.

The existing policy on online marketplaces is limited to only domestic markets, although e-commerce platforms are the main tool for sales of goods both at home and abroad, they said.

In this age of virtual connectivity, people of all ages are spending more time in the virtual world, said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in a statement yesterday.

For the fashion industry, it has created new opportunities since consumers are increasingly becoming inclined towards digital shopping, he said.

The disruption in global fashion retailing and distribution caused by digital technologies and applications is both a challenge and opportunity, he added.

"In fact, we have well realised the significance of the virtual marketplace during the lockdown periods," Hassan said.

Limitations arising from the regulatory framework, particularly in the realm of cross-border transactions and foreign currency policies, serve as an impediment for the apparel industry to tap into the burgeoning global e-commerce market, he said.


The National Digital Commerce Policy of 2018 only governs the domestic market, and does not make any explicit policy framework addressing international e-commerce, he said.

The absence of global payment gateways, challenges in securing working capital financing, cumbersome export processing for small orders, and an impractical return policy, where returns are categorised as imports, constitute substantial impediments to establishing a robust digital marketplace, said Hassan.

It also underscores the virtual marketplace's potential to serve as a central hub for stock lots, streamlining connections among local producers, traders, and international buyers in emerging markets, he said.

"I hope the policymakers and entrepreneurs will make the most of it to get to the next step, and it may require further studies on specific issues including logistics and distribution, branding, and foreign exchange and revenue policies," he added.

"If we want to maintain our position in the global competition, we need to develop a comprehensive business model," said Hassan.

Earlier, at a press conference on January 25, the BGMEA unveiled the findings of a study on virtual marketplaces. Hassan called on the government to take steps focusing on the study's findings.

The study said the idea of fast fashion is to very quickly design, manufacture, and produce high volumes of clothing, replicating any ongoing trend and constantly updating the shelves of retail stores.

Across most apparel categories, consumers are now wearing each clothing article for only half the duration they did 20 years ago, it said.

Now, fast fashion clothing items are updated weekly by brands such as Zara, H&M, and Topshop, among others, it added.

Before the widespread adoption of fast fashion, clothing was produced on a seasonal basis. New clothes were released in fall, winter, spring and summer, said the study.

In contrast to fast fashion, seasonal clothing takes about a year to go from a concept to the hands of a customer. It takes about 6 to 8 months to conceptualise a design and prepare the clothing articles for production, it said.

Then, it takes another 2 to 3 months for the finished clothing to reach the hands of a customer. This one-year lead time is inefficient for today's consumers, as fast fashion requires trendy clothes to reach customers within weeks, it added.

Hence, cost-efficiency is not the only requirement anymore. Faster production and shorter lead times are needed to stay competitive in the industry, said the study.​

 

[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).​

​

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.
​

 

[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

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.

​

 

[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​

​

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.​