[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

BGMEA enrolls 128 new RMG factories

About 113 readymade garment factory units under the membership of the Bangladesh Garment Manufacturers and Exporters Association have been closed in the last 15 months, from January 2024 to March 2025...

www.newagebd.net

BGMEA enrolls 128 new RMG factories
113 units closed in 15 months

Saddam Hossain 19 April, 2025, 22:53

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

About 113 readymade garment factory units under the membership of the Bangladesh Garment Manufacturers and Exporters Association have been closed in the last 15 months, from January 2024 to March 2025.

According to a source from the BGMEA, about 128 new factories received BGMEA memberships during this time.

The source also said that about 96,104 workers lost their jobs during the mentioned period, while about 74,081 workers got new employment due to newly established factory units.

In the meantime, the RMG exports also witnessed a healthy growth of 10.84 per cent to $30.25 billion in the July-March period of FY25, according to the Export Promotion Bureau data, meaning the operational situation is almost normal in the sector.

Industry insiders said that entry and exit in the private sector are very common and occur every year, though recent political discourses have fueled this.

After the ousting of the then prime minister, Sheikh Hasina, in August, 69 factory units were closed permanently from August 24 to March 25.

The industry people said that the factory units were shut down for several reasons: excessive and abnormal bank loans, hiding of the owners, lack of work orders, and interruption in gas and energy supply.

Moreover, most of the closed factories were in the small and medium category, which lost its competitiveness long ago.

Due to political changes in August 2024, some notable factories closed due to their close ties with the ousted government, which resulted in them receiving abnormal loans from the banks.

Meanwhile, the labour leaders said that more than 1 lac initially unemployed people were able to find new workplaces, and about 75,000 of them were able to, meaning about 30,000-40,000 workers are still unemployed.

Talking to New Age, Faruque Hassan, former president of the BGMEA, said that political and economic factors have contributed to the recent shutdown of several factories.

He also said that several cases of labour unrest and internal management issues have led to factory closures.

Moreover, some factories faced order cancellations or failed to secure regular work, making paying gas and other utility bills challenging.

The stakeholders also said that in some politically sensitive situations, owners were absent from their factories due to ongoing complications, while carrying large outstanding loans from banks.

During the previous government›s tenure, many owners had relatively easy access to bank loans.

However, following the political shift, they no longer received the same level of support from financial institutions.

For these reasons, the units could not sustain their operations.

Former BGMEA President Faruque Hassan said it is important to note that during the same period, many new factories have started operations, gained BGMEA membership, and created new employment opportunities.

‘Every year, some factories shut down while others open—this is part of the natural cycle of a large industrial sector,’ he added.

But this time, he added that the closures of factories owned by a few well-known figures after the political transition have made the issue more prominent.

The industry people said several RMG factory units were closed due to financial difficulties, political instability, and the absence of owners.

The political change affected factories owned by people closely associated with the ousted Awami League government.

Factory owners, such as Beximco and Nassa, were either in hiding or in custody, which led to the closure of factories.

Moreover, a number of factories, such as TNZ and Generation Next closed due to financial crises or utility issues.

Talking to New Age, Nazma Akter, president of the Sommilito Garments Sramik Federadtion, said that more than 1 lac workers lost their jobs due to the factories’ closure.

‘However, about 75,000 workers entered their new workplaces. We want the government should take initiatives to make working opportunities for the rest of the workers,’ she added.

Former BGMEA Director Mohiuddin Rubel told New Age that the newly opened factory units have already recruited the skilled workers of closed factories.

He also said that the pattern of RMG industrialization has changed, as the number of small factories is decreasing while the number of large-scale factories is increasing.

‘The causes of the factory closure are mixed like utility issues, absence of owners which led a weak management, lack of orders,’ he added.

However, he said that the government should focus on small factories so that they can survive.

Talking to New Age, Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, said that a number of factories have been struggling for the past few years.

‘Especially, small factories suffered most due to less competitiveness and global economic issues. After the political changes, owners of a number of factories were in hiding, which also impacted them,’ he added.

He also said that entry and exit are normal issues in the private sector. If the factory cannot repay the loans, the government has nothing to do.

‹The government can ensure the rights of the workers so that they can get their benefits. Government must assess the viability and sustainability of every steps,’ he added.

He also urged the government to normalize the law and order situation, diversify products, and increase efficiency and worker skills.​

 

[Saif]

Garment exports to US grow 17%

Bangladesh shipped apparels worth $5.74 billion in the July-March period to the USA

www.thedailystar.net

Garment exports to US grow 17%
Bangladesh shipped apparels worth $5.74 billion in the July-March period to the USA

Bangladesh's garment exports to the United States grew by 17.23 percent during the July-March period of fiscal year (FY) 2024–25, according to the latest data published by the Export Promotion Bureau (EPB).

The increase comes amid concerns over reciprocal tariffs imposed by the Trump administration in early April, as the US is the country's largest single-country export destination for readymade garments.

During the nine-month period, the US accounted for 18.97 percent of Bangladesh's total garment exports, with shipments valued at $5.74 billion, EPB data show.

Overall, Bangladesh's RMG exports stood at $30.25 billion in the first three quarters of FY25 -- up 10.84 percent from the same period a year earlier.

The European Union maintained its position as the largest regional destination, taking in 49.82 percent of total RMG exports, worth $15.07 billion.

This marks a year-on-year increase of 11.31 percent.

Germany led the EU market with imports worth $3.80 billion, followed by Spain, France, the Netherlands, Italy and Poland.

The Netherlands recorded a 23.15 percent rise in imports, while France, Sweden and Denmark also posted solid growth.

The United Kingdom, a traditional stronghold for Bangladeshi garments, imported $3.36 billion worth of products -- 11.10 percent of total exports.

However, growth in the UK market remained modest at 4.14 percent.

Exports to non-traditional markets grew by 6.66 percent, reaching $5.12 billion and making up 16.93 percent of total RMG shipments.

Japan led this category with imports valued at $960.45 million, followed by Australia and India.

Among other key destinations, Turkey imported $357.22 million worth of garments, while exports to Mexico stood at $251.22 million.

Despite encouraging performances in several emerging markets, exports to Russia, South Korea, the UAE and Malaysia declined.

The fall in Russian demand is widely attributed to geopolitical tensions, while softer performances in the UAE, Malaysia and Korea indicate the need for renewed commercial engagement.

By product type, knitwear exports grew by 11.22 percent, though gains in non-traditional markets slowed.

Woven garments saw a 10.40 percent increase, buoyed by rising demand in less conventional markets even as growth in the UK remained subdued.​

 

[Saif]

https://thefinancialexpress.com.bd/views/columns/is-fdi-a-boon-or-bane-for-rmg-sector

Is FDI a boon or bane for RMG sector?
Wasi Ahmed
Published :
Apr 22, 2025 23:05
Updated :
Apr 22, 2025 23:05

The question of whether Foreign Direct Investment (FDI) in Bangladesh's readymade garment (RMG) sector is ultimately beneficial remains unresolved. Industry stakeholders and policymakers have yet to provide a definitive stance. There are foreign collaborations, but not in the form of any large-scale FDI. However, the government's efforts to attract FDI in both within and outside the Export Processing Zones (EPZs) is not industry-specific, and hence not meant to exclude any specific manufacturing sector beyond the scope of investment. The key question remains: is FDI outside the specialised zones a welcome proposition?

In recent years, Bangladesh has emerged as a viable destination for industrial relocation, especially from countries like China, Japan, and South Korea. Rising labour costs in those economies have prompted many manufacturers to seek alternative locations for setting up export-oriented industries. Bangladesh, despite infrastructure and governance challenges, offers competitive advantages such as low wages, abundant labour force and experience in mass garment production. Among all manufacturing sectors, the RMG industry stands out as the most promising candidate for attracting overseas investment. Industry observers argue that FDI in this area could generate multiplier effects across various related sectors-logistics, packaging, accessories, and more.

However, local RMG manufacturers remain wary of such developments. It can well be guessed that much of the concerns of the local manufacturers stem from the fear that if the government allows unconditional approval to foreign investment in the RMG sector, there might be serious competition in the low-end segment products---the key strength of Bangladesh's apparel industry. This fear is further heightened by the fact that China has already made it known that producing low-end apparels is no longer viable in that country, because of soaring wages. So, provided with adequate opportunities, chances of relocation of Chinese factories for low-end products are high.

In view of this, stakeholders are more inclined to confine foreign investment to the garment sector and the EPZs only. As for investment outside the EPZs, they reportedly agreed some time ago to accept foreign investment outside the EPZs on condition that those factories will produce fashion items for non-traditional and new markets like Russia, Brazil, China, South Africa, India, Australia and Mexico.

The country's RMG sector is now in a state of uncertainty, if not of panic. Although exports did not suffer any major setback due to the fallout of the Covid 19 and the Russia-Ukraine war on global markets and some ups and downs in export orders coming to Bangladesh, the sector did demonstrate strong resilience that eventually paid to ride out the problems of supply chain disruptions and market instability. However, in order to further strengthen the foundation of the industry, experts including foreign buyers stress upon the need for expanding and diversifying the manufacturing base in ways that will be beneficial to the local industry and the country's economy. Is FDI the right recipe in this regard?

In the recently held investment summit, the deliberations mainly centred on economic zones including what the country is ready to offer to investors in those zones. Since the event was organised by the Bangladesh Economic Zones Authority (BEZA), the focus was obviously to attract prospective investors to those zones - some of which are country-specific.

There are quarters in the country who fear foreign investment in the RMG outside the SEZs and EPZs might pose genuine threat to the sector. Looking at the scenario simplistically may not help, as there are counter-arguments that may reveal that the fear of the local manufacturers is more from better wage prospects for workers in the foreign factories, which in turn will have its effect on the local factories.

Notably, the local manufacturers at the moment are rigid in their stand on wages. The rigidity of domestic entrepreneurs on wage issues has often been a contentious topic, particularly in labour rights discussions. Allowing foreign investment in low-end segments could, they fear, disrupt the wage equilibrium and create labour unrest in existing factories. So, according to them, inviting foreign investment in the basic and low-end segment of apparels would call for undesirable chaos. In this context, critics are at ease to raise the all-important question: if foreign investors can afford to pay better and still make profits, why not the locals?

Given these complexities, any decision to allow FDI in the RMG sector - particularly outside EPZs -must be preceded by a comprehensive consultation process. Engaging local stakeholders, especially domestic manufacturers, will be critical in finding a workable solution. It is also essential to involve think tanks, policy analysts, and industry experts to weigh the broader implications of such a policy shift.

Bangladesh's RMG sector is at a crossroads. While FDI could act as a catalyst for transformation and long-term competitiveness, unregulated or poorly managed foreign entry could disrupt the delicate balance the industry has maintained over decades. A thoughtful, strategic approach - rooted in inclusive dialogue and clear regulatory frameworks - will be essential to ensure that FDI complements rather than competes with local industry.​

 

[Saif]

Textile giant Bangladesh pushed to recycle more waste

Bangladesh’s limited capacity to deal with the enormous waste generated by its textile sector may prove unsustainable as the global fashion industry faces pressure to reduce its environmental footprint. Bangladesh, the world’s second-largest apparel producer, only recycles a small perc

thefinancialexpress.com.bd

Textile giant Bangladesh pushed to recycle more waste
REUTERS
Published :
Apr 23, 2025 20:00
Updated :
Apr 23, 2025 20:18

Bangladeshi garment workers make clothing in the sewing section of a factory in Gazipur, Bangladesh, Apr 9, 2025. Photo : REUTERS/Mohammad Ponir Hossain

Bangladesh’s limited capacity to deal with the enormous waste generated by its textile sector may prove unsustainable as the global fashion industry faces pressure to reduce its environmental footprint.

Bangladesh, the world’s second-largest apparel producer, only recycles a small percentage of its textile waste, with the rest shipped abroad or left to pollute the landscape.

As more countries introduce rules requiring greater recycled content in clothes, analysts and business owners say Bangladesh must expand recycling to meet demand from a global textile recycling market projected to be worth $9.4 billion by 2027.

The European Union this month published its first road map towards meeting the standards under its Ecodesign for Sustainable Products Regulation, which includes provisions for reducing the environmental harm caused by the textile industry.

This will require Bangladesh and other fashion suppliers to boost recycling while improving working conditions in what is largely an informal sector, said Patrick Schröder, a senior research fellow at the British think tank Chatham House.

“As the call for recycling grows and fast fashion goes out of fashion in the coming years, millions of jobs will be impacted, and Bangladesh needs to think ahead to step up its capacity to keep up with the changes,” he said.

TONS OF WASTE

Bangladesh’s fashion industry is estimated to produce up to 577,000 metric tons of textile waste from the factories each year.

Most of it is shipped abroad, and the rest is left to clog bodies of water, pollute the soil, enter landfills or be incinerated, which produces toxic gases, according to a report by Switch to Circular Economy Value Chains, a project supported by the EU and the Finnish government.

What is processed has evolved into a vast, informal business in Bangladesh. Thousands of informal workshops sort and bundle the waste, known as jhut, and what remains in Bangladesh is down-cycled to make low-value products like mattresses, pillows and cushions.

When clothing scraps are swept up from factory floors, politicians and other influential people control who gets it and at what price, said Asadun Noor, project coordinator at the United Nations Industrial Development Organisation in Dhaka.

“This is a very opaque process, offering limited visibility of the waste value chain to clothing brands and suppliers,” he said.

The scraps go to hundreds of mostly unregistered workshops near the capital Dhaka, where they are cleaned and sorted into batches based on quality, colour and other considerations.

Tens of thousands of workers, 70% of them women, sort the remnants for 10 to 12 hours a day, a study by the UN’s children agency UNICEF said last year.

Workers said they toil for low wages without key safety measures, like drinking water, paid sick leave or protection from harassment.

One of them is Sabura Begum, 30, who works with 250 other women at a workshop in the city of Narayanganj, near Dhaka.

“I earn a wage of about $80 a month and it does not make it easy to run my family,” she said.

A small share of the waste sorted in workshops like Begum’s is sent to about two dozen recycling factories in Bangladesh.

A large portion is exported to other countries such as India or Finland for recycling into new fibre where this is a larger base of recycling facilities as well as advanced technology like chemical recycling that produces strong, fresh fibres.

Some of the fibres made from exported scraps are then sent back to Bangladesh to be made into clothes.

More local recycling could save Bangladesh about $700 million a year in imports, the Switch to Circular Economy Value Chains report estimated.

Other major textile hubs are ramping up recycling capacity. For example, India recycles or reuses about 4.7 million tons, or about 60%, of its textile waste, according to a report by Fashion for Good, a coalition of businesses and non-profits.

DOING A BETTER JOB

Some Bangladeshi companies are aiming to compete and provide proper labour standards.

In 2017, Entrepreneur Abdur Razzaque set up Recycle Raw, which has now become one of the largest waste-processing businesses in Bangladesh.

“We offer decent wages and respect basic labour standards - ensuring things like drinking water, air circulation and security for our largely female workforce - so we attract and retain them much better than others,” Razzaque said.

A few local recycling factories are also investing in adding more production lines, but large-scale investment in technology like chemical recycling, with support from fashion brands and development-finance organisations is needed, said Abdullah Rafi, CEO of recycler Broadway Regenerated Fiber, based in the city of Ashulia, near Dhaka.

However, investors expect a regular supply of waste feed stock and that means the current opaque system of handling waste would have to go, he said.

“What we now need is more finance and collaboration among brands, suppliers, waste handlers and recyclers to scale up our capacity,” said Rafi.​

 

[Saif]

Safety condition improves, challenges remain

Bangladesh’s readymade garment industry has undergone a significant change in the aftermath of the Rana Plaza collapse, one of the deadliest industrial accidents in the country, but there are still in the sector many issues to be addressed...

www.newagebd.net

Safety condition improves, challenges remain
Saddam Hossain 23 April, 2025, 23:34

Representational image. | New Age file photo

Bangladesh’s readymade garment industry has undergone a significant change in the aftermath of the Rana Plaza collapse, one of the deadliest industrial accidents in the country, but there are still in the sector many issues to be addressed.

RMG businesses said that once criticised for its unsafe working conditions, the country’s sole multi-billion-dollar export sector had taken serious strides in rebuilding its reputation and restoring global confidence after the tragic accident 12 years ago.

However, rights activists, brands and foreign partners said that safety issues in the sector had improved after the accident, but the progress could not be termed sustainable.

On April 24, 2013, Rana Plaza, an eight-story building at Savar, on the outskirts of the capital Dhaka, crumbled during working hours, killing 1,138 people, mostly garment workers, and injuring thousands others.

Talking to New Age, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that issues related to safety, compliance and worker rights had experienced a major improvement since the Rana Plaza collapse.

‘However, the incident was a tragic and painful event for the industry and we will have to feel the pain in our whole lifetime,’ he added.

Industry insiders said that the factories had followed strict policies to ensure fire, electrical and structural safety and had spent significant amounts of money on those areas.

Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association, told New Age that in recent years, they had taken major initiatives to ensure a safe working environment in the RMG industry.

‘An extensive reform has been carried out in the industry with the support of the government, buyers, trade unions and other international organisations, including the International Labour Organisation,’ he added.

He also said that the government-led initiative and the buyers-led Accord and Alliance inspected about 4,000 factories with the aim of improving safety issues in the units.

‘The building collapse was a tragic incident in the history of this industry. But we have taken that as a turning point and put in all-out efforts to build a safe and sustainable industry,’ he added.

He also said that each factory spent on average Tk 5 crore on factory renovation, detailed engineering assessment and retrofitting.

A 2021 report by McKinsey consultancy labelled Bangladesh’s RMG sector a frontrunner in transparency regarding factory safety and value-chain responsibility.

Another report by QIMA, a global supply chain compliance solutions provider, ranked the country second in the same year’s ethical manufacturing index.

Moreover, Bangladesh also amended its labour law twice, in 2013 and 2018, to safeguard workers’ rights and ensure workplace safety.

The country increased workers’ minimum wages by 56 per cent in 2023 and raised the increment to 9 per cent from 5 per cent in 2024.

In terms of LEED-certified green factories, Bangladesh also witnessed a big jump.

Before the Rana Plaza accident, there were only two green factories in the country.

Currently, the US Green Building Council has certified 240 Bangladeshi factories as LEED (leadership in energy and environmental design).

There are 98 platinum-rated, 128 gold-rated, 10 silver-rated and four certified factories. Moreover, the highest-scoring factory is also from Bangladesh.

After the Rana Plaza collapse, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Workers’ Safety helped the country’s factories to improve their fire, structural and electrical safety measures.

The Alliance left the country in 2018 after remediating 93 per cent across 700 factories it inspected, and the Accord, which lasted until 2020, helped standardise fire and building safety in more than 2,000 RMG factories.

After their departure, the RMG Sustainability Council, an entity comprised of RMG manufacturers, global brands and retailers, and global unions and their Bangladeshi affiliates, started its journey in 2020.

Regarding the RSC, Hatem said that the entity was doing its job as per the global standard, but it also sometimes tried to put artificial pressures on the industry.

‘The biggest paradigm shift since Rana Plaza has been the safety culture that has been developed through public-private partnership in the factories,’ said Mohiuddin.

The BGMEA has also framed its new policy on new member enrolment and subcontracting, he said.

Despite facing crises like the Rana Plaza collapse, Covid pandemic and global economic turmoil due to the Russia-Ukraine war over the years, the RMG sector’s export earnings have never experienced a hard hit.

Bangladesh exported apparel worth $38.48 billion in 2024, a 7.23-per cent increase compared with $35.89 billion in 2023.

Talking to New Age, Nazma Akter, president of the Sommilito Garments Sromik Federation, said that the accused in the Rana Plaza case were yet to be punished and most of the accused were in hiding.

‘Accused Rana along with others must be brought to justice,’ she said.

‘The factory authorities are yet to regularise the remediation activities and the government should do it by maintaining global standard,’ she said.

She also said that safety issues had improved a lot, but this could not be called sustainability, as accidents and fire incidents were still persistent in the sector, along with the absence of earthquake safety.

In some cases, the blacklisting of workers is also persistent, she added, noting that owners had safe passage after committing crimes.

Regarding the cases, Hatem said they also demanded punishment of actual criminals.​

 

[Saif]

Can Bangladesh fend off Vietnam in RMG race?

Bangladesh's limited trade diplomacy, coupled with its slower shift towards value-added production, could allow Vietnam to surpass it in global rankings

www.thedailystar.net

Can Bangladesh fend off Vietnam in RMG race?

Bangladesh's status as the world's second-largest garment exporter has become increasingly precarious, driven by a confluence of global trade shifts, regional competition and structural inefficiencies at home.

The imposition of 37 percent tariffs by the Trump administration has only intensified the pressure on Bangladesh, prompting industry leaders and analysts to express concern over the country's ability to maintain its global standing.

The country now faces a decisive test of its export resilience and trade negotiation capacity. For a sector built on cost competitiveness and heavily dependent on price-sensitive markets, the tariff escalation poses a direct threat to a business model long anchored in low-wage labour.

Many industry leaders are monitoring Vietnam's ascent warily. Although Vietnam faces a steeper tariff -- 46 percent compared to Bangladesh's 37 percent -- there is growing concern that Bangladesh's limited trade diplomacy, coupled with its slower shift towards value-added production, could allow Vietnam to surpass it in global rankings.

"If we don't move fast, we will not be able to save the day," said Rubana Huq, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

In 2023, Bangladesh accounted for 7.4 percent of global apparel exports, valued at $38 billion, according to the World Trade Organization (WTO). Only China ranked higher, with $165 billion in exports and a commanding 31.6 percent market share. Vietnam followed closely, exporting $31 billion of garments and holding a 6 percent share.

These rankings, however, reflect 2023 performance. The WTO's 2024 data -- yet to be released -- may offer a clearer picture of shifting dynamics. Compounding concerns, the WTO revised Bangladesh's previously reported export figures downward by $9 billion due to discrepancies in data submitted by the Export Promotion Bureau, raising questions about statistical reliability.

Despite the correction, Bangladesh retains several structural strengths: a large and affordable labour force, robust backward linkages through its $25 billion primary textile sector, a global lead in certified green factories, and rising compliance with international safety standards.

But these are increasingly offset by entrenched weaknesses -- underdeveloped infrastructure, extended lead times, high borrowing costs, bureaucratic frictions and overreliance on low-value, basic garments.

What separates Bangladesh from competitors like Vietnam is not just cost structure but strategic direction. Vietnam has steadily moved up the value chain, diversifying its product base and leveraging free trade agreements to secure preferential access. With both countries subject to elevated tariffs in the US market, the decisive variable may be the ability to offer differentiated, value-added products and to navigate trade diplomacy with agility.

Without targeted reforms and meaningful trade engagement, Bangladesh's position in global supply chains risks being overtaken -- not through a sudden collapse, but by gradual erosion in competitiveness and missed opportunities.

Tapan Chowdhury, a garment exporter and managing director of Square Pharmaceuticals, acknowledged that Vietnam could eventually overtake Bangladesh if key structural challenges remain unaddressed. However, he believes Bangladesh retains its competitive edge -- at least for now.

"Given that the Trump administration set the tariff at 37 percent, Bangladesh retains its competitiveness since the effective tariff rate for Vietnam is nearly 10 percentage points higher in the same market," he said.

Tapan urged exporters to shift towards high-value products to withstand price pressures. "International retailers and brands always offer lower prices for basic items. Exporters must adopt the right strategies and be selective in choosing buyers to offset challenges."

Echoing the need for deeper reforms, Rubana Huq, also managing director of Mohammadi Group, said Bangladesh's growth narrative often overlooks entrenched problems.

While the potential of the apparel sector is widely recognised, Rubana warned that optimism alone is not enough. "Relying solely on the continued growth of basic garments is no longer a viable strategy," she said. The sector must diversify its product base, invest in technology upgrades, and develop a skilled workforce capable of adapting to global demand. She stressed the urgency of expanding capacity in man-made fibre (MMF) garments, where Bangladesh continues to lag behind competitors.

"Bangladesh will lose its competitive edge if we can't engage in active economic diplomacy," she warned, calling for stronger international engagement to secure favourable trade terms.

Faruque Hassan, managing director of Giant Group, raised another important distinction in the comparison with Vietnam. He said Vietnam's export statistics often include both garments and textiles, unlike Bangladesh, which reports garments only.

"For example, Vietnam last year reported more than $37 billion in combined textile and garment exports, which included several billion dollars worth of textiles," he said. "If we exclude garments from that equation, it will take more time for Vietnam to overtake Bangladesh."

Nonetheless, Hassan stressed the need for swift action. "We need to explore new markets, diversify both products and destinations, invest in technology, and produce more value-added garments. That must go hand-in-hand with improving customs services, port operations, gas supply, and utility services, and removing non-tariff barriers."

Other exporters remain more confident. Md Fazlul Hoque, managing director of Plummy Fashions Ltd, dismissed speculation that Vietnam is about to overtake Bangladesh.

"For years, people have been saying that Vietnam will surpass us, but that hasn't happened. Bangladesh remains competitive and continues to grow."

He added that rankings are less important than performance. "Meeting the market demand is how we can climb even higher."

Indeed, Bangladesh has maintained a strong presence in key markets. It is currently the second-largest apparel exporter to the EU, with annual shipments exceeding $25 billion, and ranks third in the US with yearly exports of over $8 billion. In Canada and select emerging markets, Bangladesh has also expanded its footprint significantly, with market share rising to more than 20 percent, double the level from five years ago.

Still, concerns over looming threats persist. Anwar-Ul-Alam Chowdhury, chairman of Evince Group, pointed to two immediate risks: Trump's tariffs and Bangladesh's upcoming graduation from least developed country (LDC) status, scheduled in November 2026.

He stressed the need for proactive diplomacy in addressing the US tariffs. "Bangladesh must address Trump's tariffs politically. And the government must take timely policy steps to offset the immediate impacts of LDC graduation."

Although countries like the EU, the UK, Canada, and Australia have pledged to extend duty-free access beyond 2026, Anwar-Ul-Alam argued that Bangladesh must not be complacent. He called for negotiating free trade agreements (FTAs) with major trading partners and enhancing engagement with Asian markets such as China, India, and Japan.

If positioned strategically, he noted, Bangladesh could attract new orders as sourcing patterns shift away from China and Vietnam under US tariff pressure. "But this will depend entirely on our diplomatic and strategic responses."

Mostafa Abid Khan, a former member of Bangladesh Trade and Tariff Commission, warned that even a 10 percent tariff burden could be difficult for many local exporters to absorb. He also flagged Vietnam's advantage under its free trade agreement with the EU, saying the Southeast Asian country continues to strengthen its foothold in the European market.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, echoed this concern. "Under the EU-Vietnam FTA, Vietnam's exports to Europe are bound to rise. Its presence in the US and Canadian markets is also expanding."

Razzaque also pointed to a critical structural difference. Vietnam's rapid growth in the garment sector is driven largely by Chinese investment, reportedly $61 billion in textiles and garments. In contrast, Bangladesh's $55 billion textile and garment sector has less than 5 percent foreign investment.

"This is a relative advantage for Bangladesh," he said, suggesting that US buyers may be wary of Vietnam's deep production ties with China.

However, to seize any potential gains from declining Chinese exports, Bangladesh must address one key weakness: its limited capacity in MMF-based apparel, according to Razzaque. "Countries that wish to fill the gap left by China in the US market must be able to scale up MMF production."​

 

[Saif]

RMG orders adequate until Christmas

Local suppliers have secured adequate work orders from US clothing retailers and brands to stay busy until Christmas at the end of this year, although the shipments are likely to be subject to Trump’s reciprocal tariffs.

www.thedailystar.net

RMG orders adequate until Christmas
Exporters say

Local suppliers have secured adequate work orders from US clothing retailers and brands to stay busy until Christmas at the end of this year, although the shipments are likely to be subject to Trump's reciprocal tariffs.

The factories will start manufacturing garments in full swing for the Christmas season from June, and it will continue until the end of July.

The shipment of the goods to the US will start from August so that they can be sold in November and December.

The autumn and winter seasons, Christmas, and Thanksgiving are major sales seasons for garments in the Western world.

However, a majority of local garment exporters are still waiting for Trump's final decision on tariffs, as his administration has given a 90-day pause on the reciprocal tariffs on the countries concerned.

Regarding the next summer season's work orders, both suppliers and buyers are yet to hold negotiations to confirm their values and volumes, as retailers and brands are waiting for Trump's final decision.

Like other countries, the 10 percent baseline tariff is still in place for Bangladesh, except for the 145 percent tariff on the import of Chinese goods. Although Trump on Wednesday assured he would consider a substantial reduction of tariffs on Chinese goods, he made it clear it would not be to zero.

Bangladeshi garment suppliers are now busy holding negotiations on work orders to increase export volumes to Europe and other countries because of favourable or zero tariff rates for Bangladesh.

Bangladesh may face tough competition in other markets such as the European ones, as China and Vietnam will also try to grab bigger market shares to offset the probable reduction in shipments to the US due to the high tariffs imposed on them by the Trump administration.

The booking of orders until Christmas was confirmed by Abdullah Hil Rakib, managing director of TEAM Group, which exported $560 million worth of garments last calendar year, about 25 percent of which were destined for the US.

"So, I am not worried about the next Christmas shipment," Rakib told The Daily Star over the phone.

He also said that over the last few years, he has been increasing garment exports to the US but might have to conduct reviews due to the high tariffs that have been proposed.

Rakib is hopeful that garment exports to the US from Bangladesh will increase further because of the high tariffs imposed on products from China and Vietnam.

He said that after Trump's tariffs were announced, a US-focused retailer came to his factory.

The retailer was planning to shift work orders from China to his factory as the tariff on Chinese goods is very high at 145 percent, and the effective rate on Bangladesh was 26 percent, including a previous 16 percent and a 10 percent baseline tariff.

Rakib is hopeful that US buyers will ultimately come to Bangladesh for sourcing garments as the tariff on products from China and Vietnam—two global giants in garment production—is higher than that on products from Bangladesh.

On the other hand, the tariff on Indian goods is lower than that on Bangladeshi products, but India does not have high manufacturing capacity.

Moreover, Pakistan will face lower tariffs than Bangladesh, but its product varieties are not as diversified as those of the latter, he said.

Shovon Islam, managing director of Sparrow Apparels Ltd, which annually exports garments worth $300 million, about 50 percent of which end up in the US, said some of his buyers were demanding that he bear half of the 10 percent baseline tariff.

However, in garment manufacturing, 70 percent is spent on fabrics, which the manufacturers import to make the garments.

He also said he would have to ship all the goods by mid-September to his US buyers so that the goods could be sold during the Christmas season.

He has received 10 percent fewer work orders year-on-year from his US buyers this season because of the Trump tariffs.

Syed M Tanvir, managing director of Pacific Jeans, said he was still holding negotiations with his US buyers over the Christmas shipments.

"My US buyers neither cancelled nor increased the work orders and also did not seek any discount from me," said a Rupganj-based garment exporter asking not to be named.

Some 40 percent of his yearly exports go to the USA.

But at the same time, it is also not clear what the buyers will do after August, as they are also in a wait-and-see approach now because of the 90-day pause in tariffs, he said.

By June this year, the buyers will be able to confirm work orders for the next season, the exporter also said.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the buyers may offer lower prices because of the high tariffs, but the exporters would have to stay positive and strong in negotiations.

Currently, more than 900 local garment factories send apparel to the US, and nearly 25 factories have a high concentration on the American markets.

Bangladesh is the third-largest garment exporter to the US after China and Vietnam, and accounts for 9.3 percent of the over $100 billion worth of garments it imports in a year.​

 

[Saif]

Apparel exports to EU witness robust 37pc growth in Jan-Feb

Bangladesh's readymade garment exports to the European Union (EU) recorded a robust 37-percent growth during January-February period of 2025, staying ahead of the major competitors like China, Vietnam, Turkey, and India. Apparel exports to the EU market during the first two months of this year fet

thefinancialexpress.com.bd

Apparel exports to EU witness robust 37pc growth in Jan-Feb
FE Report
Published :
Apr 27, 2025 00:10
Updated :
Apr 27, 2025 00:10

Bangladesh's readymade garment exports to the European Union (EU) recorded a robust 37-percent growth during January-February period of 2025, staying ahead of the major competitors like China, Vietnam, Turkey, and India.

Apparel exports to the EU market during the first two months of this year fetched US$ 3.69 billion, compared to US$ 2.69 billion earned in the same period of last year, according to data compiled by BGMEA based on Eurostat, the statistical office of the EU.

Exporters have attributed the rise to a number of factors, including rising global demand, shift of work orders from China, and duty-free market access, while local reasons are competitive pricing, enhanced capacity, efficiency, productivity, workplace-safety compliance, and the production of quality goods.

The developments during the last several years, enhanced buyers' confidence and trust, and good business environment have also helped boost the country's main export trade.

The EU's total apparel imports in January-February of 2025 stood at US$16.09 billion, 17.81 per cent higher than US$ 13.66 billion logged in the corresponding months last year, the data revealed.

Among Bangladesh's main competitors, China recorded a 25.12-percent growth during January-February period of 2025, while India, Pakistan, and Cambodia witnessed double-digit growth of 25.60 per cent, 29.65 per cent, and 41 per cent, respectively.

When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former director Mohiuddin Rubel said Bangladesh's apparel exports to the EU experienced remarkable growth both in value and volume.

The RMG exports in January-February 2025 grew remarkably by 36.99 per cent supported by a strong 39.02 per cent increase in volume.

However, a decrease of 1.46 per cent in unit price underscored the challenges of maintaining profitability, he noted.

He also attributed several factors that contributed to this positive export trend, including value-added garment production, the EU's economic recovery, duty-free market access, adherence to safety standards, and collaborative efforts of manufacturers and workers.

Looking ahead, the outlook remains optimistic with an expected increase in work orders throughout 2025, sustaining growth momentum, he added.

As buyers expand their sourcing activities in Bangladesh, the growth trajectory is expected to continue, especially amidst rising tensions between the US and other countries, he added.

Meanwhile, the BGMEA data showed that China's apparel exports to the EU reached US$4.54 billion, up from US$3.63 billion in January-February 2024.

However, Turkey faced a 3.64-percent decrease in apparel exports to the EU, amounting to US$1.61 billion during January-February period of 2025.

Vietnam recorded a 16.58-percent growth, reaching US$759 million exports.

India, Pakistan, and Cambodia fetched US$865.18 million, US$710.65 million, and US$775.11 million respectively during January-February period of 2025 from clothing exports to the EU.

Mr Rubel added that data highlighted the necessity for strategic adaptations to foster future growth.

"Despite Bangladesh's resilience in upholding export levels both in quantity and value, there is a clear imperative for the country to sustain its competitive edge and enhance profit margins amidst persistent global price declines," he noted.

Key factors such as value addition and expanding market reach remain pivotal for Bangladesh's economic sustainability and prosperity, he further said.

In the meantime, RMG exports to the United States, the single-largest destination for Bangladesh, grew by 26.64 per cent to US$1.50 billion during the January-February period of 2025 which was US$1.18 billion in the corresponding period of 2024, according to the data by OTEXA, an affiliate of the US Department of Commerce.​