[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Unrest erodes Bangladesh’s RMG edge over rivals

Garment exports by Bangladesh’s market rivals like India, Vietnam, China and Cambodia have increased to major Western markets due mainly to the latest spell of labour unrest and political changeover earlier in August in the country.

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Unrest erodes Bangladesh’s RMG edge over rivals

Garment exports by Bangladesh's market rivals like India, Vietnam, China and Cambodia have increased to major Western markets due mainly to the latest spell of labour unrest and political changeover earlier in August in the country.

In September, India's readymade garment (RMG) exports grew by 17.3 percent year-on-year, capitalising on political instability in Bangladesh, according to Indian daily The Telegraph.

The growth comes despite global challenges such as inflation and supply chain disruptions, which have impacted other major garment-exporting nations, the report states.

"India's RMG exports have recorded high growth despite global headwinds and inflationary pressures," said Sudhir Sekhri, chairman of the Apparel Export Promotion Council.

"Many leading apparel exporters have experienced a slowdown in recent months, but India has benefitted from Bangladesh's socio-political unrest," he added.

Bangladesh's internal turmoil forced some factories to close temporarily, causing delays in delivery schedules.

Referring to India's CareRatings, The Telegraph also said if the unrest continues for more than one or two quarters, Bangladeshi exporters could face significant challenges in meeting deadlines.

In the July-September period of the current fiscal year, Bangladesh's garment export grew 5.3 percent year on year to $9.28 billion, according to the Export Promotion Bureau (EPB).

Despite the EPB's growth count, apparel exports in the first eight months of 2024 to the US and European Union (EU) were not encouraging compared to Bangladesh's market competitors.

For instance, garment export to the USA, the country's main export destination, fell by 9.16 percent year-on-year to $4.70 billion in the January-August period of the current year, according to data from the Office of Textiles and Apparel (OTEXA).

OTEXA attributed the fall to slumping demand for apparels in the American market.

In combined, the textile and garment shipment from Bangladesh to the USA also fell by 8.98 percent year-on-year to $4.84 billion in the January-August period this year, showed the OTEXA data.

Bangladesh's competitors performed well in the USA and EU markets as data showed that their exports, in terms of quantity, increased. The countries also took the advantage of the rebounding US economy, as consumer spending on retail goods, including apparel items, increased.

The retail sales in the US increased again in September as employment grew and inflation and interest rates fell, said Jack Kleinhenz, chief economist of the National Retail Federation (NRF), the world's largest retail trade association.

In the January-August period, the quantity of apparel imported by the USA increased by 1.5 percent year-on-year, while Bangladesh's export declined by 3.8 percent in terms of quantity.

During the period, US apparel sourcing from China increased by 3.6 percent in terms of quantity.

Apparel exports to the USA by Vietnam during this period increased by 5.2 percent, from India by 7.6 percent and from Cambodia increased by 7.7 percent, according to OTEXA data compiled by the BGMEA.

Similarly, in the January-July period, garment imports by the EU countries increased by 3.3 percent and the growth was only 2.8 percent from Bangladesh, according to Eurostat data compiled by the BGMEA.

During this period, apparel export to the EU by China grew by 6.4 percent, from India at 5.18 percent, from Cambodia at 18.35 percent, from Vietnam at 12.61 percent and from Pakistan by 14.41 percent, showed the data.

Overall in the July-September period, garment export from Bangladesh grew by 5.34 percent, whereas Vietnam recorded the overall apparel export growth at 15.57 percent and India at 13.45 percent, the BGMEA compiled data showed.

The data analysis showed that the garment exports by other countries grew faster than Bangladesh in the major markets largely because of the political and labour unrest.

The local garment exporters could not produce goods smoothly and ship those on time.

Exporters said some of the international retailers and brands either suspended their factory visit or shifted work orders to other countries.

A good number of garment factories have witnessed on and off situations since the beginning of the anti-discriminatory student movement in mid-July this year.

AK Azad, chairman and managing director of Ha-Meem Group, which mainly exports to the USA, said he experienced labour unrest and his export was affected like others.

"However, now I have been booking a lot of work orders from the buyer as they are coming back for the next seasons," Azad said.

Ex-president of now dissolved Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Khandoker Rafiqul Islam also echoed Azad, saying, "Buyers are coming back now as the normalcy has restored in the sector."​

 

[Saif]

CEMS-Global USA to host Textile Series of Exhibitions in Dhaka

CEMS-Global USA, a New York-based multinational exhibition and convention organiser, on Monday announced that it would host Bangladeshi edition of its globally renowned Textile Series of Exhibitions.

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CEMS-Global USA to host Textile Series of Exhibitions in Dhaka
Staff Correspondent 21 October, 2024, 22:47

CEMS-Global USA, a New York-based multinational exhibition and convention organiser, on Monday announced that it would host Bangladeshi edition of its globally renowned Textile Series of Exhibitions.

The 23rd edition of the Textile Series of Exhibition will be held from November 6 to 9 at the Bangladesh-China Friendship Exhibition Centre in the capital Dhaka and it will remain open from 10.00am to 7.00pm. It will comprise three international expos that will serve as vital platforms for textile and garment industry.

The company provided the details about the exhibition at a press conference held at a hotel in the city on Monday.

Meherun N Islam, president and group managing director of CEMS-Global USA and Asia-Pacific, said, ‘In the past, entrepreneurs of the garment and textile sectors of Bangladesh used to go to various exhibitions abroad to know about necessary products and raw materials. Now they will be able to save money, labour and time through this exhibition.’

SS Sarwar, group chief executive officer of CEMS-Global, said that amid the current situation, this exhibition would be of special importance and if it succeeded, Bangladesh would have a more positive image internationally.

Organisers said that the Textile Series of Exhibitions was already playing a major role in the advancement of South Asian ready-made garments and textile industries.

More than 1,475 companies from 37 countries are expected to participate in more than 2,245 booths in all three of the exhibitions.​

 

[Saif]

Loss to RMG industry

Before his exit from the post of president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Sunday, Khandoker Rafiqul Islam claimed that normalcy has returned to the apparel sector but at a huge cost. According to him, the industry lost $400 million in more than a month-

thefinancialexpress.com.bd

Loss to RMG industry
FE
Published :
Oct 21, 2024 21:53
Updated :
Oct 21, 2024 21:53

Before his exit from the post of president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Sunday, Khandoker Rafiqul Islam claimed that normalcy has returned to the apparel sector but at a huge cost. According to him, the industry lost $400 million in more than a month-long industrial unrest, which has yet to be confirmed by any independent statistical body. If the figure of loss is anywhere near the given sum, it raises more questions than can be answered. In 2023, the readymade garment (RMG) sector fetched $47.38 billion, a record high, and the apex apparel body did not do enough to settle some of the endemic issues souring the industry's labour relations. The fact that the garment owners in the RMG belt most affected by the unrest ultimately accepted all the 18 demands of their workers is a proof that the latter's demands were reasonable and justified. Then why did they allow the situation to escalate to an ugly disruptive level?

Clearly, the inflexible garment owners have none but only themselves to blame. Significantly, garment factories managed well and have been offering reasonable wages to their workers stayed free from the industry's turmoil. It is the ones which were reluctant to give a fair share of the profit to workers have been responsible for leaving their employees and even themselves a casualty of the industrial disruption. The loss has been double-pronged---financial and labour relations. Their litany of infiltration of outsiders for provoking agitation was more a ploy than a reality. That the BGMEA failed to exercise a sobering influence leading to a solution to the problem is clear from the internal feud that has made one group to level charges against another and the vice versa. Finally, an administrator has been appointed to oversee the next election to the body.

The just departed BGMEA president made an appeal to the government to enforce strict law and order in the interest of the sector's stability. This is intriguing if not ludicrous. If workers are not paid their outstanding dues and cleared off their overtime and other benefits on time, the low-paid workers find it difficult to keep their body and soul together in an extremely hostile and volatile market condition. It is the industrial relations, not the army or the law-enforcement agencies, that determine peace, harmony and increased productivity in any industry. Deprived and exploited labour forces are the last to put in their hundred per cent in their performance.

There is a need for a paradigm shift in the mentality of management and owners, particularly at a time when the rallying call for narrowing social discrimination by students who spearheaded the recent movement is gaining momentum, in favour of a fair share of profit with workers. Many garment factories have been doing so and the others should follow suit. The apparel industry has received incentive packages for long and it is asking for more for the factories adversely affected by the recent labour unrest. Well, the appointment of an administrator and formation of neutral board under him speaks volumes for the discord within the industry. Patronage cannot be doled out without accountability. The need is to subject ailing factories' financial audits to stringent inspection before granting loan or stimulus packages.​

 

[Saif]

RMG units struggle to adopt global reporting standards

Local garment factories are struggling to implement the Global Reporting Initiatives (GRI) standards, a set of 246 globally accepted standard issues, owing to a raft of factors, including a lack of data, local expertise, national policy directives and incentives, according to a keynote paper...

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RMG units struggle to adopt global reporting standards
Keynote paper blames a lack of data, expertise

Experts attend a roundtable on “Implementing GRI in the RMG Sector of Bangladesh”, jointly organised by The Daily Star and Swisscontact at The Daily Star Centre in Dhaka yesterday. Photo: Star

Local garment factories are struggling to implement the Global Reporting Initiatives (GRI) standards, a set of 246 globally accepted standard issues, owing to a raft of factors, including a lack of data, local expertise, national policy directives and incentives, according to a keynote paper presented yesterday.

The GRI standards represent global best practices for reporting publicly on a range of environmental, social and governance (ESG) impacts.

But so far, only 33 local garment factories have implemented GRI standards for reporting.

The paper also said that 66 percent of global consumers, including 73 percent of millennials, are willing to pay more for sustainable goods.

By 2026, ESG-related assets under management (AuM) are expected to increase to $33.9 trillion, which would account for over one-fifth of total global AuM.

Even more importantly, the EU Sustainability Reporting Standard (ESRS) will be enforced by 2026, said Mohammad Monowar Hossain, head of sustainability at Team Group, while presenting the paper at a roundtable on "Implementing GRI in the RMG Sector of Bangladesh."

The discussion was jointly organised by The Daily Star and Swisscontact at The Daily Star Centre in Dhaka yesterday. Tanjim Ferdous, in-charge (NGOs and foreign missions) of The Daily Star, moderated the roundtable, which featured experts, exporters, professionals, entrepreneurs and officials of different diplomatic missions.

Asif Ashraf, managing director of Urmi Garments Ltd, said the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was the first trade body in the country that had helped its members implement GRI standards in their factories.

However, many small and medium enterprises do not have the financial capabilities or human resources to implement the standards, he said.

"International retailers and brands are not ready to pay higher prices, but every such initiative costs money," Ashraf added.

Melita Mehjabeen, a professor at the Institute of Business Administration of the University of Dhaka, said GRI standards also need to be implemented in sectors such as steel.

She added that a number of companies did not have an adequate understanding of GRI standards.

Md Akhter Hossain Apurbo, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said local exporters are eager to learn how to increase trade while adhering to rules and regulations.

However, Apurbo added that Bangladesh's graduation from the group of least developed countries to a developing nation in 2026 may pose a challenge because of the erosion of trade preference that the country enjoys given its current status.

Mohammad Rashed, another vice-president of the BKMEA, said huge costs are associated with the implementation of such initiatives.

"Moreover, different buyers raise different compliance issues. But many small and medium enterprises do not have the capability to implement those rules and become more compliant."

Michael Klode, project manager at the Programme for Sustainability in the Textile and Leather Sector of the GIZ, identified the unavailability of data as another barrier to the implementation of GRI standards, saying it is sometimes difficult to know what is happening in factories.

Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), said global partnerships and new rules and laws were on the horizon and that the country would have to adapt.

Although Bangladesh is still struggling with social challenges, environmental issues are being given increasing importance, he added.

"Social issues like human rights and labour rights should not be sidelined," he said, pointing to progress in occupational safety and workers' health and nutritional issues.

He also highlighted the lack of functional trade unions and said it is important to comply with international financial reporting standards.

Thijs Woudstra, deputy head of mission at the Embassy of the Kingdom of the Netherlands, appreciated that Bangladesh has the highest number of green garment factories in the world despite facing a lot of setbacks.

GRI is a more data-driven initiative, he said, adding that a country should be able to address these issues.

"ILO's fundamental principles and rights at work guarantee fair and decent working conditions for all. These principles are at the core of the social reporting framework. Bangladesh's garment industry can lead the advocacy effort for a single framework on sustainability reporting," said Anis Nugroho, programme manager of Better Work.

He added that Better Work has been working with 100 global retailers and brands and 470 garment factories in Bangladesh.

Zahedul Hoque, managing director of Kido BD, said the country was moving in the right direction in terms of compliance, but also acknowledged challenges.

"We have to develop by ourselves," Hoque said.

Ainee Islam, programme director at Asia Foundation, said they launched a programme named Oporajita for female garment workers in Bangladesh.

Mohammad Abdullah Yousuf Khan, programme manager at Solidaridad Network, said transparency in the whole supply chain is very important. Transparency will improve buyer confidence and suppliers can get a premium, he said.

Ikramul H Sohel, senior programme officer, market development cooperation section, Swedish International Development Cooperation Agency, said there are many requirements for implementing GRI standards. Skilled manpower is also needed, he added.

Sadril Shahjahan, senior research associate of the Centre for Entrepreneurship Development at BRAC University, said there should be a data repository for the garment sector.

It is required because it will allow those who wish to comply with and adopt GRI initiatives to learn more about it and understand the challenges, he said.

Tanzila Tajreen, senior policy adviser at the Embassy of the Kingdom of the Netherlands, said Bangladesh still has a long way to go as only 33 factories have implemented GRI standards.

"Is this an extra burden for the factories?" she asked.

Ishrat Fatema, team leader at Swisscontact, said they have multiple projects in the garment sector and some will be coming soon.

Mujibul Cezanne Hasan, country director at Swisscontact, said GRI standards are quickly becoming a requirement. It has associated costs but should be treated like an investment, Hasan said.

Sahela Akter, deputy secretary to the Ministry of Industry, also spoke.​

 

[Saif]

Meeting $100b garment export target by 2030 tough, but feasible

Bangladesh’s ambitious $100 billion garment export target by 2030 is currently facing a number of challenges both at home and abroad, but local manufacturers and business leaders are still optimistic about achieving the goal.

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Meeting $100b garment export target by 2030 tough, but feasible
Say manufacturers, business leaders

Bangladesh's ambitious $100 billion garment export target by 2030 is currently facing a number of challenges both at home and abroad, but local manufacturers and business leaders are still optimistic about achieving the goal.

To meet the target, readymade garment exporters seek government policy support, a stable political environment and overall security for their production units.

In fiscal year 2023-24, Bangladesh, the second largest apparel exporter of the world, shipped readymade garments worth over $36 billion.

Now domestic challenges facing manufacturers include a poor business and investment climate, disruptions to production and shipments and shortages of gas and power for production lines.

These issues are compounded by global inflationary pressures and declining prices for apparel items in key markets.

Moreover, the country's scheduled graduation from the least developed country club in 2026 will strip away preferential market access facilities for Bangladeshi RMG items, estimated at $7.77 billion by the World Trade Organization (WTO).

"Buyers are returning to Bangladesh. Therefore, achieving the target is possible if the government can improve gas and power supply," said Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

During his tenure at the BGMEA, Hassan set the export target in 2022. To achieve this goal, the BGMEA then identified adequate gas and power supply, new investment, product and market diversification and investment in man-made fibre products as crucial factors.

However, current political uncertainties have compounded the existing energy situation and increased production costs.

Hassan said that with adequate gas and electricity supply, fresh investment would flow into the sector and many entrepreneurs would invest or expand their operations in high-value-added garment items like man-made fibre garments, jackets, activewear, jerseys, skiwear and sports items.

This value addition, he said, would fetch higher prices compared to traditional basic item exports.

On an optimistic note, he said Bangladesh's exports to non-traditional markets such as Japan, India, Russia, South Korea, South Africa and Australia appear promising.

"If exports continue at the current pace to these markets, along with traditional markets like the USA, Canada and the European Union (EU), it is possible to achieve the target," added Hassan, also the managing director of Giant Group.

The former BGMEA president also said that international retailers and brands have solid confidence in Bangladesh due to improvements in workplace safety and labour rights after the Rana Plaza garment collapse in 2013.

Moreover, he mentioned that China has been losing its global market share. Consequently, apparel work orders are coming to Bangladesh not only from China but also from Pakistan, Myanmar, Ethiopia and Sri Lanka due to political tensions in those countries.

Similar to Hassan, Kalpan Hossain, managing director of Dekko Legacy Group, said non-traditional markets, along with traditional ones, will be key drivers in achieving the target. Besides, he said Latin American countries could be excellent destinations for Bangladesh's apparel shipments.

"Achieving the target will be challenging, but it is still possible," said Hossain. "We have the potential and we must utilise it."

Shams Mahmud, managing director of Shasha Denims, said the country's garment exports have steadily increased over the past decade.

"Therefore, garment exports may grow at an even higher rate in the next six years, provided the sector gets adequate gas supply, financial support, government policy support, political stability and industrial security," he said.

Khandoker Rafiqul Islam, president of the now-dissolved board of directors of BGMEA, also sounded confident in achieving the $100 billion garment export target by 2030, provided all necessary facilities are in place.

With adequate gas supply, he said many companies would expand or invest in new ventures.

However, Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), expressed a different view on achieving the target on time.

"When the target was set, the country's business environment was different and it has now changed," Razzaque said. "With the current business environment, achieving $100 billion might be challenging, but the country may reach $70 billion-$80 billion if a better business environment is ensured."

He added that a global slump in demand for clothing items, coupled with domestic challenges, is making the target difficult.

Razzaque also talked about the possibility of higher tariffs on Chinese items imposed by the USA if the Republican Party wins the next election. He believes this could divert massive work orders to Bangladesh from China.​

 

[Saif]

We must revitalise the home textile sector

Ensure adequate gas supply, resolve dollar crisis

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We must revitalise the home textile sector
Ensure adequate gas supply, resolve dollar crisis

We are concerned about the current state of the home textile sector that has been struggling to regain its lost work orders over the past two years. Reportedly, due to the doubling of gas prices in Bangladesh and a significant devaluation of the Pakistani rupee against the US dollar, many work orders shifted to Pakistan. This shift, combined with a prolonged gas crisis, unstable exchange rates, and rising production costs, has forced numerous factories to shut down, further eroding the sector's competitive edge in the export market. Recent labour unrest and ongoing political instability in the country have worsened the situation further. If these issues are not addressed, the home textile sector will continue to incur losses in the future.

It may be recalled that this sector had experienced notable growth in 2021, with exports surpassing the $1 billion mark, registering a remarkable 49.17 percent year-on-year increase. That momentum carried over into 2022, with exports rising by another 40-odd percent to $1.62 billion. However, as the gas crisis intensified, home textile exports—including bedsheets, tents, rugs, etc—dropped, with earnings falling to $1.09 billion. In FY 2023-24, exports further declined by 2.05 percent to $851.01 million, according to the Export Promotion Bureau (EPB). Industry insiders attribute this downturn to the persistent gas crisis that began in early 2023, following the then government's 150.41 percent hike in gas prices, from Tk 11.98 per unit to Tk 30 per unit. With soaring production costs, many exporters were unable to secure new orders, leading to a shift of international business to Pakistan.

To revitalise the sector, the government must prioritise uninterrupted gas supply to home textile mills so that they can operate at full capacity. As home textile production relies heavily on gas for processes like running steam boilers and dyeing fabrics, the sector's energy needs cannot be sustainably met by imported gas alone. It is crucial, therefore, for the government to explore and develop domestic gas fields rather than relying solely on imports. Unlike Pakistan, which produces much of its own raw materials, Bangladesh depends on external markets, making the ongoing dollar crisis an additional hurdle. That needs to be resolved, too.

We urge the government to take necessary steps to stabilise the sector and support its needs. Doing that will not only help the home textile sector recover but also secure its long-term position in the global market.​

 

[Saif]

BGMEA seeks payment from Australian buyer

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday requested the Australian high commissioner in Bangladesh to take measures regarding approximately $20.30 million in outstanding payments that a Sydney-based company owes to 23 local exporters.

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BGMEA seeks payment from Australian buyer

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday requested the Australian high commissioner in Bangladesh to take measures regarding approximately $20.30 million in outstanding payments that a Sydney-based company owes to 23 local exporters.

Anwar Hossain, the administrator of the trade body, sent a letter Nardia Simpson, acting high commissioner of Australia in Bangladesh, seeking payments to the affected suppliers.

In the letter, Hossain said 16 BGMEA member factories had been experiencing non-payment issues with Mosaic Brands Ltd in September, reporting that approximately $14.9 million was outstanding at the time.

"We regret to inform you that an additional seven BGMEA member factories are now facing similar issues, with Mosaic Brands Ltd withholding export payments totalling approximately $4.9 million," according to the letter.

"We respectfully seek your kind support in securing the outstanding payments to the affected factories."

Ensuring these payments will not only safeguard the operations of these factories but also protect the livelihoods of the workers who depend on them, the administrator said.

Non-payment is adversely impacting the regular business activities of the factories in their dealings with the line banks.

Mosaic Brands Ltd, formerly Noni B Limited, grew into one of the largest speciality fashion retailers in Australia, with over 1,000 stores nationally, according to its website. The brands under its umbrella include Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads and Beme.

However, the company has run into financial trouble after cycling in and out of profitability in recent years.

On Monday, Mosaic Brands announced that it had entered voluntary administration, putting almost 3,000 jobs at risk.

Voluntary administration is a process where an insolvent company is placed in the hands of an independent person who can assess all the options available and generate the best outcome for a business owner and its creditors.​

 

[Saif]

Financial inclusion among garment workers low: Experts

Poor financial and digital literacy among garment workers in Bangladesh coupled with a lack of supportive policies and related data are the main barriers for improving financial inclusion for this segment, according to experts.

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Financial inclusion among garment workers low: Experts

Experts attend a roundtable styled “Improving Financial Health of RMG Workers in Bangladesh: Policy Frameworks and Future Pathways” at The Daily Star Centre in Dhaka yesterday. Photo: Amran Hossain

Poor financial and digital literacy among garment workers in Bangladesh coupled with a lack of supportive policies and related data are the main barriers for improving financial inclusion for this segment, according to experts.

Besides, the absence of formal employment contracts and prevalence of informal payment channels for garment workers are the other roadblocks to improving their financial inclusion.

These comments came at a roundtable, styled "Improving Financial Health of RMG Workers in Bangladesh: Policy Frameworks and Future Pathways".

The event was jointly organised by The Daily Star and Sarathi, a project of Swisscontact Bangladesh that works for improving the financial health of local garment workers, at The Daily Star Centre in Dhaka yesterday.

Sajid Amit, director of the Center for Enterprise and Society (CES) at the University of Liberal Arts Bangladesh (ULAB), said financial inclusion among garment workers has yet to reach its full potential.

In his presentation, titled "Stitching Financial Health for a Resilient Future: Policy Brief on Improving Financial Health of RMG Workers in Bangladesh", he informed that 70 percent of garment workers use mobile financial services (MFS).

However, challenges persist in improving their financial inclusion through MFS as only 30 percent of the workers own smartphones and have access to the internet.

Meanwhile, it was found that 45 percent of them have security concerns about digital transactions.

Amit also informed that while nano loans and earned wage access solutions have gained popularity among garment workers, their limited smartphone ownership, low credit score and other hurdles are preventing them from availing these facilities.

Moreover, garment workers are largely unable to visit bank branches during operating hours due to demanding factory schedules, which is why their banking activities are typically limited to fund withdrawals, deposits or transfers, he added.

During the presentation, the speakers said that access to loans is one of the main draws for financial inclusion as people often turn to external financing for large expenses.

However, most female garment workers face communication barriers that make it difficult for them to understand the products being offered.

Also, the absence of formal employment contracts means that it is nearly impossible for garment workers to secure bank loans.

Against this backdrop, Md Arfan Ali, chairman of Zaytoon Business Solutions, said bank policies in this regard are not aligned with the interests of marginalised people.

"This one of the reasons why financial inclusion has not improved among garment workers," he added.

Stressing the need for a legal framework to facilitate financial inclusion, Mohammad Rashed, president of Digital Finance Forum Bangladesh, said related policymakers and stakeholders should be knowledgeable to this end.

Mosleh Saad Mahmud, the head of cash management and liability marketing at Dhaka Bank, said the process of improving financial inclusion among garment workers should start from the banking sector.

But when the banks assess workers' eligibility for loans, they do not get the required information due to the lack of relevant data, such as the applicant's creditworthiness, he added.

Md Forhad Mahmud, head of mobile banking division and financial inclusion at Dutch Bangla Bank, said they facilitate the salary payments of 2.5 million workers through their MFS service "Rocket".

However, the accountholders limit their activities to only basic transactions for a lack of financial and digital literacy, he added.

Rumana A Tulee, assistant vice president of the agent banking division at Bank Asia, said four factors -- accessibility, convenience, supportive products and financial literacy -- should be improved to facilitate financial inclusion of workers.

Rashadul Islam, senior assistant vice president of Dhaka Bank, said the process and cost of access to finance should be made easier and more affordable for garment workers.

Terming infrastructure, innovation, skills and literacy as vital for expanding financial inclusion, Shariful Islam Chowdhury, project officer at UNCDF, said it is not possible to ensure financial inclusion by just providing access to banks accounts.

Tanjim Ferdous, in-charge (NGOs and foreign missions) of The Daily Star, stressed the importance of introducing related topics for improving financial literacy in academia.

Tahmina Khan Majlish, CEO of Digital Finance Forum Bangladesh, said the financial inclusion of garment workers would improve if their perspective is taken into consideration.

"It should be looked at whether the end-users feel comfortable, confident and secure," she added.

Shoheli Afrin, additional director of the Bangladesh Bank, highlighted various policies taken by the country's central bank for ensuring the financial inclusion of garment workers.

However, the central bank cannot improve financial inclusion on its own, she said, adding that commercial banks and factory owners also have roles and responsibilities to play in this regard.

Salma Akhter, senior manager of partnership and advocacy at Swisscontact Bangladesh, said the biggest challenge for ensuring financial inclusion is social barriers.

"To overcome these challenges, the mindsets of all stakeholders should be changed," she added.

Fazle Razik, head of programme at Swisscontact Bangladesh, said the issue of improving financial inclusion among garment workers was practically untouched when they started working on it.

"When it comes to our vision, we have come a long way and are slowly gaining new ground," he added.

Tasmina Rahman, managing director at Grameen Trust, Sk Khalidujjaman, associate director at Waadaa Insurance, and Ahmed Shamsul Huda, national business manager of Rocket, spoke at the event.

Mushfiqur Rahman, senior manager of projects and research at ULAB's CES, and Md Sajib Hussain, senior assistant secretary (international trade, environment and sustainability) of the Bangladesh Knitwear Manufacturers and Exporters Association, were also present.​