[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Vietnam may surpass Bangladesh in garment export: report

Vietnam is set to generate $44 billion this year through garment exports, surpassing Bangladesh, which is currently the world’s second-largest garment exporter, according to a Vietnamese media report.

www.thedailystar.net

Vietnam may surpass Bangladesh in garment export: report

Workers are seen at a garment factory in Hung Yen province of Vietnam. Photo: Reuters/file

Vietnam is set to generate $44 billion this year through garment exports, surpassing Bangladesh, which is currently the world's second-largest garment exporter, according to a Vietnamese media report.

Bangladesh's export goal is $4 billion lower than Vietnam's.

Vietnam's apparel and textile sector is set to earn an export revenue of $44 billion this year, up 11 percent year-on-year, and will likely surpass Bangladesh to become the world's second-biggest exporter in the sector.

Meanwhile, Bangladesh set a target of $40.48 billion for garments, out of a total of $50 billion for overall exports, with an 11.99 percent growth for fiscal year 2024-25. Bangladesh does not set garment export targets on the basis of calendar year.

The export target for knitwear and woven items is $21.7 billion and $18.78 billion respectively.

At a press meeting on Wednesday, Cao Huu Hieu, CEO of Vietnam National Textile and Garment Group (Vinatex), the country's biggest garment maker, announced the $44 billion export target.

He stressed that the sector's performance was weak in the first half of 2024 as the global economy underperformed, and the sector received few orders with strict conditions.

However, the sector recovered and thrived in the second half of this year, not thanks to the growing demand, but because of the political issues in Bangladesh promoting firms to make orders in Vietnam. This is a "fortune" for the sector amid challenges, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said there was no doubt that Vietnam would surpass Bangladesh as the east Asian country's apparel industry faces no bottlenecks.

He stated that Vietnam finds it easy to increase exports of garment goods because there was no labour unrest, gas crisis, or tax issue there.

However, he continued, Bangladesh faces numerous issues that make it difficult for exports to increase.

Even though labour costs are lower than those of Vietnam, exporters of garments encounter challenges at every turn, making it impossible to take the initiative to increase production, he said.

Given that the Trump administration will impose high tariffs on Chinese goods, Hatem even mentioned the possibility of obtaining new investment from China.

He added that although there was potential to draw Chinese investment in attempts to avoid high duties in the US market, there are a number of barriers that prevent Chinese investment from coming here.

Bangladesh fetched $36.15 billion through garment exports last fiscal year, which was 5.22 percent lower than that in the previous fiscal year.

Of the total export earnings, the knitwear sector earned $19.28 billion while woven garments around $17 billion.​

 

[Saif]

No growth in RMG exports to non-traditional markets

Bangladesh’s readymade garment exports to non-traditional markets slightly declined in the July-November period of FY2024-25 due to reduced knitwear shipments, while earnings from...

www.newagebd.net

No growth in RMG exports to non-traditional markets​

Staff Correspondent 28 December, 2024, 23:58

Bangladesh’s readymade garment exports to non-traditional markets slightly declined in the July-November period of FY2024-25 due to reduced knitwear shipments, while earnings from traditional markets, including the United States and the European Union, saw significant growth in the period.

The country’s export earnings from the nontraditional market in the first five months of FY25 fell by 0.77 per cent to $2.76 billion from $2.78 billion in the same period of FY24, according to the Export Promotion Bureau data.

Woven garment exports to nontraditional markets in the period grew by 11.26 per cent to $1.36 billion while knitwear exports declined by 10.23 per cent to $1.40 billion.

The country’s export destination other than the US, the EU, the UK and Canada considered as nontraditional market.

Although the RMG exports to nontraditional markets decreased slightly, the earnings from Japan, India, South Korea, Turkey and Mexico registered a moderate growth in the first five months of FY25.

Bangladesh’s RMG exports to Japan in July-November of FY25 increased by 3.69 per cent to $496.20 million from $478.57 million in the same period of FY24.

RMG exports to India in the five months of FY25 grew by 16.48 per cent to $325.06 million from $279.06 million in the same period of past financial year.

The country’s apparel exports to Turkey in July-November of FY25 increased by 50.54 per cent to $181.85 million while the shipment to Brazil grew by 30.06 per cent to $66.04 million.

RMG exports to Russia in the period fell by 9.34 per cent to $115.04 million while the export earnings from the United Arab Emirates declined by 15.44 per cent to $98.27 million.

EPB data showed that nontraditional markets contributed 17.11 per cent to total RMG exports in the first five months of FY25, down from 19.37 per cent in FY24.

According to the government data, RMG exports to the EU grew by 13.74 per cent while the exports to the US increased by 17.44 per cent in July-November period of FY25.

It also showed that RMG exports to the UK market in the first five months of FY25 recorded growth of 5.84 per cent while the shipment to Canada increased by 13.22 per cent in the period.​

 

[Saif]

Can apparel industry weather any storm? 2024 offers clues

For the local apparel industry, 2024 was a year marked by challenges, recoveries and a renewed sense of hope as the global market began to brighten -- proving once again the resilience of Bangladesh’s apparel might.

www.thedailystar.net

Can apparel industry weather any storm? 2024 offers clues

For the local apparel industry, 2024 was a year marked by challenges, recoveries and a renewed sense of hope as the global market began to brighten -- proving once again the resilience of Bangladesh's apparel might.

Energy crises, dollar shortages, supply chain disruptions, labour unrest centring pay hikes, political uncertainty and a slack law and order situation: the list of domestic challenges for apparel-makers in 2024 was extensive.

In a positive development, Western buyers began returning to Bangladesh following the fierce nationwide movement and political changeover, as inflationary pressures eased and the world recovered from the pandemic and war fallout.

Consequently, Bangladesh's apparel shipments to major export markets like the EU and the USA rebounded. In the July-November period, the country's shipments grew by 16.25 percent year-over-year to $16.11 billion.

"This indicates that the future is brighter now than a few months ago," said MA Jabbar, managing director of DBL Group, whose top clients include Walmart-George, Puma, Esprit, and G-Star.

"I can see a very positive outlook for garment exports," Jabbar added.

The local apparel industry, which fetches the lion's share of the country's export earnings, began 2024 just after emerging from pay hike movements and with increased wages.

Amid the Covid recovery, global markets were then reeling from inflationary woes and the Russia-Ukraine war. There was also the Red Sea crisis and conflict in the Middle East.

Then, in June, the quota reform movement began, blocking apparel shipments to foreign markets.

In July and August, government-imposed internet blackouts and curfews intensified the situation, culminating in a violent political changeover.

This caused deadline delays for apparel-makers, many of whom had to offer discounts to compensate for late shipments.

Amid this struggle, massive labour unrest erupted in major industrial belts on the outskirts of Dhaka in July and continued until October, affecting both production and shipments following the nationwide student movement.

Labourers left production lines, blocked roads and streets and chanted slogans for pay hikes and increments, disrupting the already struggling local apparel manufacturing.

Due to unrest, vandalism and fires, factories in major industrial belts like Gazipur, Savar, Ashulia, Zirani and Zirabo were shut down for several months.

In September, factory owners, labour leaders and workers agreed on a resolution for their 18-point demand.

The minimum wage board increased the annual increment for garment workers to 9 percent from previous 5 -- one of the key labour demands in the 18-point.

The new increment took effect in December and the other demands, except for the amendment of the labour law, have been met too. The government has promised to amend the law by March next year.

For many, the resolution after the unrest meant production resumption, but for a few, it was worse.

For instance, Beximco Group laid off over 40,000 workers from its 16 textile and garment units.

The outgoing year involved correcting export data, as export earnings were previously overstated due to incorrect calculations.

In a final calculation, the central bank said that the garment sector's earnings in fiscal 2023-2024 were $36 billion, rather than the $47 billion calculated by the state-owned Export Promotion Bureau (EPB).

The outgoing year was challenging but also a time for business recovery as work orders rebounded with political stability, said Faruque Hassan, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Hassan said international retailers and brands are now returning with work orders as sales in the USA and EU have grown with the rebounding of retail sales.

According to BDL Group's Managing Director Jabbar, 2024 was one of the highest-exporting years, as they received massive work orders from international clothing retailers and brands.

"Now we really need to do more for better growth of the sector," Jabbar told The Daily Star over the phone.

He recommended establishing a dedicated EPB-like institution for the garment sector and ramping up investment in man-made fibre and sportswear segments to capture more global markets.

Meanwhile, Rizwan Rahman, a former president of the Dhaka Chamber of Commerce and Industry (DCCI), called for political stability for business growth.

He said the law and order situation has not improved to the expected level and is still affecting the business environment.

According to former BGMEA president Hassan, apart from political and labour unrest, the perennial power and energy crisis severely impacted investment inflow into the sector. As a result, many jobs could not be created in the sector this year.

Hassan also suggested investing more in man-made fibre to get better prices and increase exports, as the demand for specialised garments is increasing worldwide.​

 

[Saif]

RMG workers withdraw protests in Ctg

Workers and staff of various units of Pacific Jeans Ltd at Chattogram Export Processing Zone today withdrew their two-day protest after the owner pledged to meet their demands

www.thedailystar.net

RMG workers withdraw protests in Ctg

Photo: Md Rajib Raihan

Workers and staff of various units of Pacific Jeans Ltd at Chattogram Export Processing Zone today withdrew their two-day protest after the owner pledged to meet their demands.

CEPZ Executive Director Md Abdus Sobhan said the managing director of the company met with the workers around 2:30pm.

The management announced a holiday for today and urged all the workers and staff to join work tomorrow, he said.

Earlier, thousands of workers continued their protests for a second consecutive day today, pressing for additional demands beyond those addressed by the company yesterday.

Following daylong demonstration by workers on Saturday, Managing Director Syed M Tanvir issued a circular saying that the company has agreed to halt forced resignations and inter-unit transfers, meeting two of the workers' demands.

The workers today demanded to fulfil their other demands including termination of some senior officials of the management, raise in different allowances including tiffin and transport allowances, full presence bonus and over time for the staff (team leaders)​

 

[Saif]

Home textile exports bounce back

The export of home textiles is on the path to recovery after nearly one year because of the devaluation of the local currency, increased production capacity and improvement in gas supplies to some extent.

www.thedailystar.net

Home textile exports bounce back
Taka devaluation, increased production capacity boost shipment

The export of home textiles is on the path to recovery after nearly one year because of the devaluation of the local currency, increased production capacity and improvement in gas supplies to some extent.

Home textile exports grew by 7.85 percent year-on-year in the July-December period of the current fiscal year to $410.81 million while it was in the negative even two to three months ago.

Apart from garment items, home textile is one of the three new sectors whose exports crossed $1 billion recently. The two other sectors are jute and jute goods and leather and leather goods.

Home textile exports showcased strong growth of 20.47 percent year-on-year in December to reach $83.98 million, according to data from state-run Export Promotion Bureau (EPB).

Home textile mainly refers to carpets, rugs, floor coverings, curtains, cushion covers, napkins, towels, bedspreads, furnishing fabric, table linen, bed linen, sheets and pillowcases, blankets, shower curtains, aprons, and wallpapers.

Its export fell sharply almost year-round in 2023 and 2024 as the local exporters did not book new work orders for an abnormal price hike of gas.

The Bangladesh government suddenly hiked gas prices by 150.41 percent in February 2023, from Tk 11.98 per unit to Tk 30 per unit, and a good volume of work orders shifted to Pakistan.

Work orders for home textile are booked for one or two seasons in bulk quantities.

With the abnormal gas price increase, exporters could not manage the cost of production, and they did not run their units at full capacity and refused some work orders, which went to Pakistan.

However, the devaluation of the local currency against the US dollar, increased spinning capacity and improvement in gas supplies to some extent helped pull back the business confidence of local exporters.

The shipment of home textile is also returning to its previous volumes gradually.

Also, the fall of inflation in Europe and the US has also been helping to recover home textile exports, said Md Shahidullah Chowdhury, executive director of Noman Group, which accounts for more than 70 percent of Bangladesh's home textile exports.

"We also increased our capacity to an extent with the improvement of gas supply, and exports from the company are growing now," Chowdhury said.

Last month, total home textile exports from his group reached nearly $27 million while it was worth $22 million in the previous month.

He also said the gradual restoration of normalcy in Bangladesh and political unrest in Pakistan also played a role in the restoration of home textile exports.

The country's home textile exports had crossed $1 billion in FY21, registering a whopping 49.17 percent year-on-year growth.

That momentum continued the following year, with exports rising by another 40-odd percent to $1.62 billion.

However, the gas crisis upended that trend the following year, with home textiles fetching $1.09 billion, down by almost a third.

Bangladesh was struggling to recover lost work orders in the home textile segment, a significant volume of which was shifted to Pakistan nearly two years ago.

This shift occurred mainly due to the sudden doubling of gas prices in Bangladesh and significant devaluation of the Pakistani rupee against the US dollar.

More recently, labour unrest in industrial belts and months of political unrest in Bangladesh have contributed to lower receipts.

Moreover, Pakistan possesses some inherent advantages, such as being the world's seventh-largest producer of cotton, according to Statista.

Pakistan also enjoys benefits under the EU's Generalised Scheme of Preferences Plus (GSP+) while Bangladesh only enjoys standard GSP facilities.

The number of home textile mills has also increased, especially smaller units, said Monsoor Ahmed, former chief executive officer of the Bangladesh Textile Mills Association (BTMA).

For instance, previously six to seven major textile mills used to export home textile, but the number of home textile exporters is more than 25 now, including the small units, he added.

Khorshed Alam, chairman of Little Group, a textile miller, said the production of home textile increased and exports also grew.

At the same time, a few mills stopped production as they were losing work orders during the shifting of work orders to Pakistan.

BTMA President Showkat Aziz Russell said the devaluation of the Taka against the US dollar was the main factor for the improvement in the home textile sector, which helped the exporters to be more competitive.

Moreover, more than 9 million new spindles have been installed over the last few years, which boosted the production in the textile sector.

The target is to install 15 million spindles, and it is expected that the installation of more than six million more spindles can be completed by the end of this year, which will also boost the production of primary textile, including home textile, he added.

"The gas supply improved to a bit, but it is not consistent yet," Russell said, adding that if the gas supply was restored at an adequate pressure, the primary textile sector's investment and production would also grow.​

 

[Saif]

RMG machinery, allied products mega-expo starts Jan 8 in Dhaka

A four-day international trade show on machinery for the garment industry and allied products is set to begin on January 8 in Dhaka. The mega-exhibition is arranged to showcase the apparel industry's latest technology and garments accessories and packaging. The event combining different trade sho

thefinancialexpress.com.bd

RMG machinery, allied products mega-expo starts Jan 8 in Dhaka
UNB
Published :
Jan 05, 2025 22:34
Updated :
Jan 05, 2025 22:34

A four-day international trade show on machinery for the garment industry and allied products is set to begin on January 8 in Dhaka.

The mega-exhibition is arranged to showcase the apparel industry's latest technology and garments accessories and packaging.

The event combining different trade shows will be held from January 8-11 at the International Convention City Bashundhara (ICCB) in the capital. It includes the 22nd edition of Garment Technology Show Bangladesh 2025 (GTB 2025) which is also known as International Tradeshow on Apparel Machinery and Allied Products and the 14th edition of International Garment Accessories and Packaging Expo 2025.

The trade shows will be organised jointly with the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) and ASK Trade and Exhibition Pvt Limited. The GAPEXPO will be showcasing products, types of machinery, and raw materials.

Md Shahriar, president of the BGAPMEA, revealed this at a pre-event press conference in the capital on Sunday.

He said that the garments accessories and packaging industry acts as a backward linkage industry for the country's readymade garment (RMG) sector.

He also said that Bangladesh was fully import-dependent for RMG accessories and packaging materials earlier. Currently, over 60 items are produced locally for export-oriented apparel industries and some are also exporting directly.

He also said that to introduce the sector and to find buyers the GAPEXPO plays a crucial role.

In this year's tradeshow, about 500 exhibitors from 25 countries are showcasing the latest technology in terms of machines and software used in every process of production, he added.​

 

[Saif]

RMG exports grew moderately in 2024 despite headwinds

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB)..This is due to an increasing demand for clothing with the fall of inflation in major

www.thedailystar.net

RMG exports grew moderately in 2024 despite headwinds

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB).

This is due to an increasing demand for clothing with the fall of inflation in major export destinations.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

Exports from the sector grew although many had thought that shipments would be negatively affected by domestic and external challenges.

For instance, garment exports in fact declined by 6.62 percent year-over-year to $2.38 billion in April, which came as a surprise given that the export trend was enjoying positive momentum.

Similarly, garment shipments declined last June by 10.48 percent year-on-year to $2.97 billion after increasing by 1.45 percent in January and 4 percent in March.

In July, apparel exports grew by only 2.89 percent year-on-year to $3.17 billion, as per the EPB data.

However, the exports rebounded strongly from September, growing by 14.61 percent to $3.01 billion that month and by 22.80 percent to $3.29 billion in October.

The trend did not stop there as the garment shipments grew by 16.25 percent to $3.30 billion in November before expanding again by 17.45 percent to $3.77 billion in December.

Exports started rebounding from September as normalcy gradually returned to the industrial zones after the labour unrest ended with factory owners accepting the 18-point demands of garment workers.

Moderate retail sales growth continued in November even as two of the holiday season's busiest shopping days bumped over into December and were not included in the month's totals, according to National Retail Federation (NRF), the largest US retail association.

"November sales increased on top of a strong October and would have been even higher if Thanksgiving Sunday and Cyber Monday hadn't fallen in December," NRF President and CEO Matthew Shay said in a statement.

"Year-over-year gains were solid even as retail prices in many categories are lower this year, showing that consumers are buying more merchandise as the economy continues to grow. We remain confident in our holiday forecast," Shay said.

Total retail sales, excluding automobiles and gasoline, were up 0.15 percent seasonally adjusted month-over-month and up 2.35 percent unadjusted year-over-year in November, according to the Retail Monitor.

That compared with increases of 0.74 percent month-over-month and 4.13 percent year-over-year in October.

In 2023, the garment export sector aimed for $50 billion in 2024 but adjusted expectations to $38.48 billion, marking a 7.23 percent increase from 2023.

The industry confronted challenges like wage protests leading to a 56 percent wage hike, said Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director of Denim Expert.

Even after uncertainties from the national election, there was a 1.45 percent year-on-year growth in garment exports in January, he said.

A 60 percent cut in export incentives, compounded by global economic instability and volatile oil prices, affected consumer behaviour, he said.

Rising energy and transportation costs, along with high bank interest rates, hurt small and medium enterprises, causing closures, he added.

Despite a slight increase in exports in July and August compared to the same months of 2023, the figures for 2024 lagged behind those of 2022.

Rubel also said the outlook for 2025 depends on improved industrial relations and political reforms.

Former BGMEA president Faruque Hassan said garment exports would have been much higher had the challenges not been there. However, he expects 2025 will be a better year as normalcy is returning to the sector.

Exports grew not only in volume, but also value as international retailers' and brands' confidence in Bangladesh has been boosted, and the local currency was devalued, he added.​

 

[Saif]

RMG workers for Eid bonus equal to one month’s wage

Ahead of the Eid-ul-Fitr, to be held at the end of March, garment workers in Dhaka have issued a set of six demands, including a bonus equivalent to one month’s wage, as part of a broader call for fair treatment and improved working conditions.

www.newagebd.net

RMG workers for Eid bonus equal to one month’s wage
United News of Bangladesh . Dhaka 10 January, 2025, 22:43

Ahead of the Eid-ul-Fitr, to be held at the end of March, garment workers in Dhaka have issued a set of six demands, including a bonus equivalent to one month’s wage, as part of a broader call for fair treatment and improved working conditions.

The demands were voiced by the Dhaka Garment Workers’ Wage Increase Struggle Council during a rally held in front of the National Press Club on Friday.

Speakers at the rally highlighted the mounting pressures caused by skyrocketing living costs, arguing that current wages are inadequate to meet even basic needs.

Prices of essential goods keep rising, but the wages remain unchanged; it’s becoming impossible to survive, said one protester.

Workers accused employers of withholding portions of their salaries, forcing many to take on gruelling work schedules of 14-16 hours a day. Despite the labour law stipulation for double overtime pay, they claim employers routinely fail to comply.

The workers also criticised the widespread delay in salary payments. Under the law, wages are to be disbursed by the 7th of each month, but workers allege this deadline is rarely met. Many also condemned the practice of withholding wages until the night before Eid, calling it ‘illegal and inhumane.’

The garment workers outlined six primary demands: set minimum wages in line with rising market prices, limit workdays to 8 hours and enforce double pay for overtime, provide a bonus equivalent to one month’s wages for Eid-ul-Fitr, ensure salaries are paid by the 7th of every month, abolish the practice of withholding wages until just before Eid, enhance workplace safety, ensure job security, introduce equal pay for female workers, and provide health-friendly meals and night allowances for night shifts.

Speakers at the rally demanded fair treatment, better working conditions, and compliance with existing labour laws.​

 

[Saif]

RMG sector must lead renewable energy push

Although not a major carbon-emitting country, Bangladesh can emerge as a global pioneer in carbon reduction as a victim of climate change, experts said at an event yesterday.

www.thedailystar.net

RMG sector must lead renewable energy push
Speakers tell discussion; call on govt to align policies, set timeline to achieve net zero emissions

Speakers at a discussion titled “Pathways to a Just Energy Transition: Balancing Sustainability, Equity, and Industry Growth in the RMG Sector,” at The Daily Star Centre in the capital yesterday. Photo: Star

Although not a major carbon-emitting country, Bangladesh can emerge as a global pioneer in carbon reduction as a victim of climate change, experts said at an event yesterday.

They said the RMG sector should lead this effort, given its potential to increase the use of renewable energy in factories. Additionally, they called on the government to align policies and set a timeline to achieve net zero emissions.

The remarks were made during a discussion titled "Pathways to a Just Energy Transition: Balancing Sustainability, Equity, and Industry Growth in the RMG Sector," at The Daily Star Centre in the capital.

The event was jointly organised by The Daily Star and Oxfam.

In his keynote presentation, Dr Mohammad Emran Hasan, head of Climate Justice and Natural Resource Rights (CJNRR), said while Bangladesh contributes minimally to global carbon emissions, it is among the most impacted countries globally.

He said the RMG and textile industries could save approximately 1,159 kilotonnes of oil equivalent (KTOE) of energy annually by adopting energy-efficient machinery and conservation measures.

The overall industrial sector in Bangladesh consumes about 3,740 KTOE per year.

Hasan suggested measures such as introducing Solar PV Systems, Net Metering Policy, energy-efficient machinery and processes, automation and digitalisation, green financing initiatives, and access to green bonds to ensure a just energy transition.

Azad Abul Kalam, manager of Just Energy Transition at ActionAid, said policymakers should prioritise energy sovereignty over energy security.

"If they want energy security, they would plan more energy imports, but if they think about energy sovereignty, they would focus on relying on local resources like gas, solar, and wind," he said.

Azad said the ousted government had showcased the power sector as their greatest success, but the Ukraine war exposed its vulnerabilities.

"During that time, when fuel prices spiked globally, the industries faced the most trouble," he said.

Wasiur Rahman Tonmoy, senior coordinator of capacity development at Manusher Jonno Foundation, said, "We analysed 23 policy papers in Bangladesh's power and energy sector. None of the papers incorporated women's access to energy. Moreover, the rights of marginalised people to energy are also overlooked."

Shahriar Ahmed Chowdhury, head of the Centre for Energy Research at United International University, said there were misalignments in government plans for the power and energy sector.

"Local experts were not involved in the process; the planning was injected. Foreign experts introduced unproven technologies into those papers," he said. He said transmission and distribution systems are still not ready to handle solar energy.

Sohanur Rahman, executive coordinator at YouthNet Global, stressed the importance of capacity-building for a green transition.

"As zero carbonisation is one of the major goals of the chief adviser, it is time for Bangladesh to take the lead. We need initiatives to develop green skills and jobs, especially for youths and women," he said.

He also called for mass public consultations and worker-level input in future plans.

Former BGMEA president Faruque Hassan said there are inefficiencies in industrial energy use. "Industries are wasting around 28 percent of their energy. SREDA has initiated energy audits, but these efforts need to expand. Energy-saving technologies can help industries save energy and reduce dependence on imported fuel," he said.

Oxfam Country Director Ashish Damle highlighted global shifts back to fossil fuels, which could impact Bangladesh.

"Bangladesh needs a strong policy commitment. This is the right time to collaborate with the most affected countries and demonstrate leadership," he said.

Dr Munjurul Hannan Khan, executive director of NACOM, pointed out the lack of inter-departmental collaboration.

"Policies from the environment ministry are ignored by the energy ministry and vice versa. We also lack a specific timeline for achieving net-zero targets," he said.

He urged the government to remove taxes on renewable energy.

Shariful Islam, Oxfam's head of Influencing, Communication, Advocacy and Media, conducted the discussion.

Among others, Helvetas Bangladesh's Mohammad Mahmudul Hasan, Laudes Bangladesh's programme manager Faiza Tuba, journalist Mahfuzur Rahman Mishu, and The Daily Star's in-charge of NGOs and Foreign Missions Tanjim Ferdous spoke.​

 

[Saif]

RMG sector: A catalyst for Bangladesh’s energy transition

Experts at a recent event in Dhaka highlighted the potential for Bangladesh to pioneer efforts in carbon reduction, with the ready-made garment (RMG) sector as a central player in this transformation

www.thedailystar.net

RMG sector: A catalyst for Bangladesh’s energy transition

While Bangladesh is not a significant contributor to global carbon emissions, it is one of the most vulnerable countries to the impacts of climate change. This paradox presents a unique opportunity for the nation to position itself as a global leader in climate action. Experts at a recent event in Dhaka highlighted the potential for Bangladesh to pioneer efforts in carbon reduction, with the ready-made garment (RMG) sector as a central player in this transformation.

The discussion, organised by The Daily Star and Oxfam, emphasised the RMG industry's ability to adopt renewable energy and energy-efficient technologies. This sector alone could save approximately 1,159 kilotonnes of oil equivalent (KTOE) of energy annually, a substantial portion of the 3,740 KTOE consumed by Bangladesh's industrial sector. Initiatives such as solar photovoltaic systems, net metering policies, and green financing are crucial to achieving these goals.

The shift towards renewable energy and sustainability in Bangladesh, however, requires more than just industry-level initiatives. Policymakers must prioritise energy sovereignty over energy security, as highlighted in the report titled, "RMG sector must lead renewable energy push", published on January 14. Focussing on domestic resources like solar, wind, and gas can reduce dependence on volatile global energy markets, a lesson underscored by the economic fallout from the Ukraine war.

While the government has made some strides in addressing energy inefficiencies, a lack of inter-departmental collaboration and the absence of a clear timeline for achieving net-zero emissions remain critical barriers. Experts pointed out that local expertise is often sidelined in favour of foreign consultants, leading to misaligned energy policies and untested technological solutions. The government must integrate local knowledge into its planning and execution processes to ensure long-term success.

Equity in the energy transition also emerged as a pressing concern. Analysis of existing policy frameworks revealed significant gaps in addressing the needs of women and marginalised groups. A just energy transition must be inclusive, incorporating the voices of those most affected by energy policies, particularly workers and local communities.

The global shift back to fossil fuels poses additional challenges for Bangladesh. However, this moment presents an opportunity for the country to collaborate with other climate-affected nations and advocate for stronger international commitments to sustainability. Removing taxes on renewable energy technologies and expanding energy audits across industries are necessary steps to drive this transition.

The RMG sector's leadership in adopting green technologies could serve as a model for other industries. As one of the largest contributors to Bangladesh's economy, this sector holds the potential to inspire a broader national commitment to climate action. Bangladesh's vulnerability to climate change should no longer be seen as a liability but as a call to action.

Hasan Meer is a journalist at The Daily Star​