โ˜• Support Us โ˜•
[๐Ÿ‡ง๐Ÿ‡ฉ] - Textile & RMG Industry of Bangladesh | Page 4 | PKDefense

[๐Ÿ‡ง๐Ÿ‡ฉ] Textile & RMG Industry of Bangladesh

Reply (Scroll)
Press space to scroll through posts
G Bangladesh Defense
[๐Ÿ‡ง๐Ÿ‡ฉ] Textile & RMG Industry of Bangladesh
402
16K
More threads by Saif


Non-cotton RMG exports could rise to $42b by 2032: study
Fully integrated value chain needed to make it happen

1709598376360.png

Staff Correspondent | Published: 22:09, Mar 03,2024


A file photo shows workers sewing clothes at a readymade garment factory at Savar, on the outskirts of Dhaka. โ€” New Age photo

Bangladeshโ€™s non-cotton apparel exports could increase to $42 billion by 2032 from the existing $15.6 billion with the support of a fully integrated value chain with investments worth $18 billion, according to a recent study.


The study titled โ€˜Beyond Cotton: A Strategic Blueprint for Fibre Diversificationโ€™ said that the share of non-cotton apparel exports from Bangladesh was lesser than cotton apparel exports, but it was increasing rapidly in the global trade.


Over the past five years, there has been a notable surge in global non-cotton fibre production, capturing an impressive 78 per cent share of the total fibre production, it mentioned saying that in contrast, cotton fibre production had faced a decline in the same period.

Under the support of the Bangladesh Garment Manufacturers and Exporters Association, Indian research firm Wazir Advisors Pvt Ltd conducted the research.

The BGMEA on Sunday launched the report at a press conference held at the headquarters of the trade body at Uttara in the capital Dhaka.


The study found that Bangladeshโ€™s cotton apparel exports exhibited a high concentration, primarily focusing on four categories, including t-shirts, jerseys and woven trousers that collectively commanded a significant 63 per cent share.

As Bangladesh approaches graduation from the least developed country status in 2026 and the government and industry leaders are negotiating to extend the duty-free market access in the global market up to 2032, the country should aim to achieve a sustained double-digit growth rate in non-cotton apparel exports, aspiring to increase the earnings to $42 billion, it said.

To realise this vision, the report recommended developing a dedicated policy for the non-cotton industry, encompassing a clearly defined vision, mission and actionable points that specifically address the key challenges of insufficient technical know-how and limited upstream capacities.

It also estimated that an investment of approximately $18 billion in the area of yarn, fabric and garment manufacturing would be required to forge a fully integrated value chain that aligns with the aspirations set for the Vision 2032.

The report also showed that the investment would create additional employment of over 1.8 million.

The report also identified lack of technical know-how and limited upstream capacities as the key challenges for establishing a non-cotton value chain in Bangladesh.

Varun Vaid, business director of Wazir Advisors Pvt Ltd, presented the key findings of the study at the press conference.

He said that globally the use of non-cotton fibre was 75 per cent, but in Bangladesh the picture was just reverse as the local apparel makers used 71 per cent cotton fibre for making garment.


BGMEA president Faruque Hassan said that they wanted to take the global market share of locally made apparel to 12 per cent from the existing 7.87 per cent by using the non-cotton fibre as the prices of the products made with man-made fibre was higher than the cotton made items.

The choice of consumers has also changed and they prefer durable and sustainable products, he said.

Once the country graduates to a developing one, the government could not provide cash incentive for the sector, but the government incentive would be needed in different forms in establishing a non-cotton value chain in the country, the BGMEA president said.

Regarding the recent price hike of power, Faruque said that it would increase the cost of production, fuel inflation and hamper the growth of apparel sector.

He urged the government to withdraw the decision on increasing the price hike of electricity.

BGMEA director Asif Ashraf and former director Shovon Islam, among others, spoke at the press conference.​
 

Principles and the apparel sector​

Published: 00:00, Mar 08,2024
facebook sharing button

twitter sharing button

whatsapp sharing button

1709854515094.png
email sharing button

sharethis sharing button

The root cause of why women are held back from becoming truly empowered anywhere needs to be addressed as well. Social change is required, and respect for gender, qualification, and education all need to come in a single package, writes Saira Rahman Khan

A VERY large number of women in Bangladesh have found employment in the readymade garment factories in Bangladesh, and there is little doubt that they have been seen as the success story for womenโ€™s empowerment in the country, supported by countless research and studies. To be empowered, women and girls must have the agency to use their rights, capabilities, resources, and opportunities to make strategic choices and decisions (UNICEF, 2017). Generally speaking, it is still a challenge for women from rural or poor economic conditions in Bangladesh to find โ€˜empowermentโ€™. It is also seen that, despite the barriers, women are a part of the work and labour force of Bangladesh, especially in the RMG sector. Do these places of employment act as arenas of empowerment? According to UN Women, there were almost 5,000 ready-made garment factories in Bangladesh, contributing to the biggest export earning sector (80.7 per cent of the total export earnings) in the financial year of 2017 (UN Women, 2018). Women comprise 60โ€“70 per cent of the RMG workforce, but with a low literacy level, little knowledge, and little control over their working conditions (UN Women, 2018).

In 2011, UN Women published a guideline on empowering women to participate in economic life in the workplace, market, etc. with the purpose of building strong economies. The guideline is called โ€˜The Womenโ€™s Empowerment Principlesโ€™ and consists of a set of principles for business offering guidance on how to empower women in the workplace, marketplace, and community. They are the result of a collaboration between the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and the United Nations Global Compact. The principleโ€™s emphasis is on the business case for corporate action to promote gender equality and womenโ€™s empowerment and is informed by real-life business practices and input gathered from across the globe.โ€™ There are seven principles in total: Principle 1: Establish high-level corporate leadership for gender equality; Principle 2: Treat all women and men fairly at work โ€” respect and support human rights and non-discrimination; Principle 3: Ensure the health, safety, and well-being of all women and men workers; Principle 4: Promote education, training, and professional development for women; Principle 5: Implement enterprise development, supply chain, and marketing practices that empower women; Principle 6: Promote equality through community initiatives and advocacy; and Principle 7: Measure and publicly report on progress to achieve gender equality. Have RMG industries adhered to these principles? Although all seven of the principles are vital for success, the focus of this paper will be on Principles 2, 3, and 4, as these seem to contain the most basic rights needed to provide empowerment opportunities for women workers in the RMG sector.

The second Womenโ€™s Empowerment Principle deals with the issues of fair treatment, non-discrimination, and respect for human rights. Islam (2018) has identified four types of gender-based discrimination in the RMG factory: gender division of labour, discrimination as regards promotions and service benefits, wage discrimination, and discrimination when in a leadership position. According to research conducted by the International Labor Organisation in 2020, 84 per cent of women workers in the RMG sector are in low grades, compared to 68 per cent of men. The research further found that from 2010 to 2018, the proportion of surveyed women in most managerial positions declined, and their overall average representation in such roles remained low and unchanged between 2010 and 2018 (approximately 9 percent). This indicates no improvements in enhancing womenโ€™s representation in managerial and leadership positions in the RMG sector in the past decade (ILO, 2020). An earlier 2018 study shows that the ratio of male to female professionals at the managerial and HR managerial levels is 190:1 and 176:17, respectively (CPD-RMG Study, 2017โ€“2018). Thus portraying huge gender imbalances in these levels of RMG sectors. Women are further limited to โ€˜unskilledโ€™ orโ€™semi-skilledโ€™ job categories in the garment factory; the reward they receive is neither up to their level of investment in labour and time nor is it equal to that of their male counterparts (Sharma 2020). According to the ILO study, the RMG industry tends to rely on low-paid female labour to compete and maximise profits in a highly competitive global market (ILO 2020). This statement alone shows how deliberately discriminatory this industrial sector is.

Tasks in the RMG factories are generally distributed based on gender in Bangladeshโ€™s garments sector, and most of the working circumstances for women employees are determined by this (ILO, 2020). Most typically, women work as helpers, machinists, and, less frequently, as line supervisors and quality controllers (Ahmed, 2023). From data collected within factories, four out of every five production line workers are female, while just one in twenty supervisors is a woman (Heath, Mobarak 2014). Rahman (2022) writes that the percentage of women in managerial positions in the RMG sector has increased from 6 per cent to 12 per cent. This has been due to some training initiatives supported by international organizations. However, according to Ahmed (2023), access to managerial positions and higher-paying white-collar jobs is discriminated against for women. She further writes that as the burden of household work disproportionately falls more on women, the number of workers they can dedicate to work is also lower. Thereby, they also have a lesser inclination to opt for management positions (Ahmed, 2023). Meaning that due to the fact that women have to manage the bulk and burden of housework, they are less inclined to attempt managerial positions and opt for lower-paying work due to time constraints and the pressures and challenges of housebound activities.

As to payment, it is not globally uncommon that women in many sectors receive less pay than men. Farber (2017) gives three reasons for this: the โ€˜penaltyโ€™ of motherhood, the inability to negotiate โ€˜the right wayโ€™ and how they are treated when attempting to negotiate, and employer bias, where the employer knowingly or unknowingly undervalues a womanโ€™s work. Women RMG workers in Bangladesh face all three of these hurdles. As seen, factories prefer to keep women in jobs that pay less. A 2021 study on the gender wage gap that used the administrative records of over 80,000 workers in 70 RMG factories in Bangladesh found an overall wage gap of 20 per cent of which more than half was due to the โ€˜overwhelmingโ€™ predominance of men in managerial roles (Menzel, Woodruff, 2021). In factory areas where women are a majority of the workers, such as in the sewing/floor areas, the same study found that the wage gap was 8 per cent. As regards impending motherhood and maternity leave, one study shows that the women workersโ€™ knowledge of maternity leave and maternity benefits was inadequate, as was the accommodation provided by factories for pregnant workers (Awaj, 2019). In March 2021, it was reported that the IndustryAll Bangladesh Council had demanded from those in charge an assurance of six months of full-paid maternity leave for all female workers. The fact that this is still an issue shows that women are still being discriminated against for โ€˜motherhoodโ€™ in the 21st century.

The third Principle deals with ensuring the health, safety, and well-being of all workers. Workplace hazards can be broadly divided into five groups: (a) ergonomic hazards; (b) physical hazards; (c) psychological hazards; (d) mechanical hazards; and (e) chemical hazards (Raihan, Chowdhury 2023). According to Kabir (2019), it is โ€˜evident that RMG workers in South and Southeast Asia are the most affected by the unhygienic and unsafe nature of their workplace conditionsโ€™. In 2017, the ILO conducted a baseline survey on RMG workers with the South Asian Network on Economic Modelling. It studied the lives of 2,184 workers from 111 RMG factories and found that the three most pressing health issues the workers suffered from were thirst (68.5 per cent), hunger (53.2 per cent), and headaches (43.63 per cent) and that 7.05 per cent suffered long-term illnesses such as gastric ulcers and joint pains (Raihan et al. 2019). Another similar survey, conducted by ActionAid in 2019, of 200 women workers found that 90 per cent had experienced negative health impacts at work. These included exhaustion (78 per cent), severe back pain (57 per cent), and injuries to hands and feet (46 per cent), eyesight issues (36 per cent) (ActionAid, 2019).

โ€˜Health, safety, and well-beingโ€™ can definitely extend to mental health and well-being. Given the discrepancies in the treatment of male and female workers, it is clear that women are already suffering some level of stress in the factory workplace. However, there is another side to this that has direct links to patriarchy, discrimination, and the poor treatment of women. This is sexual harassment and violence, and it is widely reported that women RMG workers face both. These contribute to the lack of empowerment opportunities for women in the RMG sector. In 2023, a Solidarity Centre report identified the kinds of gender-based violence female RMG workers suffer. The study showed that 45 per cent workers faced sexual harassment and violence, 22 per cent psychological, 17 per cent verbal abuse, 9 per cent economic and 7 per cent physical abuse and violence. Moreover, 89 per cent of the women in the study said that they had mental breakdowns due to such experiences, while 83 per cent said they had lost interest in their jobs. It is quite obvious that sexual harassment in the RMG workplace is a continuous violation, and its consequences leave both physical and mental pain and negate any opportunities for empowerment.

The fourth Principle towards empowerment is to provide women with training, education, and professional development. In 1978, 130 trainees were sent to South Korea from Bangladesh to embark on a training programme on how the RMG industry is run and how garments are manufactured. Eighteen of the 130 trainees were women (Khan, 2015). Today, training for female RMG workers is conducted in Bangladesh, mainly conducted and financed by international organisations, based on the recognition that women workers have low literacy levels and little control over their working conditions (H&M Foundation, 2020; UN Women Asia-Pacific). Training is also necessary to ensure that women are able to cope with the possibilities of automatons replacing them in the production line. Training is, however, not consistent across factories. A study of 111 factories conducted by SANEM (2019) for the ILO shows that introductory training of workers is either not carried out or is incomplete or improperly conducted in many factories. The same study shows that a majority of those who have received such training are male workers. But what about womenโ€™s training for managerial levels in the factory? For their professional development? Are there women in leadership positions on the factory floor? According to Islam and Jantan (2017), โ€˜In Bangladesh, the majority of the top managers are male, as evidenced by the report of the ILO (2015), which found women hold only 5.4 per cent leading positions in the organisations. Some reasons for this were highlighted in a study conducted by Matsuuraโ€™s (2020) and included the fact that supervisors or line chiefs are required to work overtime after regular working hours, and women had to go home and do housework and tend to children; women feared losing friends and peers if they advanced to supervisory roles; men were unable to accept the fact that women would be their supervisors; and women lack confidence in their abilities to manage male workers. Patriarchal traits of control, dominance, and position are clearly seen in the above reasons.

It is quite clear that what mainly drives the choice to work in the RMG sector is financial necessity. After a study of the lives of 17 female RMG workers, Al Mamun et al. (2022) surmised that paid RMG employment in Bangladesh has significant positive impacts on female workersโ€™ economic, social, and psychological empowerment. Their findings also pointed to the suggestion that female RMG workers have gained economic capacity, along with some autonomy, freedom of mobility, increased decision-making power, a greater sense of self-esteem, job skills and experience, and consciousness about their rights to make choices (Al Mamun, Hoque, 2022). Despite the positive impacts, the โ€˜curseโ€™ of patriarchy loomed over the workers private lives, as shown by the 2022 study, which highlights the fact that: salaries were kept by some of the women in a common family fund and some women had to seek the permission of their husbandโ€™s before sending money to help their parents; despite working long hours, some women states that they had to do all the housework alone; some women had to leave their children behind with family members in the village because of the long working hours; some women stated that people back in their village were defaming them for working outside the home; and that women with low levels of education were not moving up the ladder.

A recent study supported by the German agency GTZ shows that in 2021, only 53.65 per cent of garment workers were women (Rahman et al., 2023). In 2023, a Bangladesh Bureau of Statistics survey reported that the number of women RMG workers had declined by 10.68 per cent in the span of four years. The same study quotes that the number of female workers makes up 46.18 per cent of the workforce. This is a significant drop in numbers. This shows that although women have been enticed into financial freedom from RMG factories, they have not been able to find the atmosphere or means by which they may be truly empowered in their professional lives either. When garment industries commenced work in the 1980โ€™s, employment opportunities were very limited for women from lower income groups (Rahman et al., 2023). As a result, the number of female workers was high.

What is required for โ€˜empowermentโ€™? According to Papa Seck, chief of the UN Womenโ€™s Research and Data Section, โ€˜There is no empowerment without rights, so womenโ€™s empowerment needs to be anchored in human rights, which provide a universal framework for monitoring. For women to be empowered, they need resources, respect, and a voice. This requires redressing womenโ€™s socioeconomic disadvantage, addressing stereotyping, stigma, and violence, and strengthening womenโ€™s agency, voice, and participation.โ€™ Putting this all into the framework of women workers in the RMG sector, we see that though women are working and seeking employment, this may be an exercise of their rights, or it may be something that is forced upon them by a father or husband. It may be that they had no choice in the matter. Regardless of whether it is an exercise of their individual right to work, they are still not treated with respect and dignity in the workplace, their resources as regards wages and healthcare remain inadequate, and they have no guarantee of long-term employment. As regards the addressing and redressing of stereotypes, stigma, and violenceโ€” and even socioeconomic disadvantages โ€” these issues go far beyond the factory walls and boundaries. These challenge patriarchy and the social structure as a whole. You can take a male factory manager or lineman out of the factory, but you cannot take the patriarchal mindset out of him.

Verbal and sexual abuse, the lack of promotion of qualified women workers, unequal pay, unhygienic conditions for women workers, and the reluctance towards pregnant and new mothers โ€” all point towards a greater, social problem that, unless addressed, will never allow women to find empowerment. Even when they are home, women RMG workers need to do all the housework and even suffer domestic violence. Women are leaving the factories due to conditions that in no way enable them to continue work outside the home. These issues show that women have yet to break the bonds of patriarchy, despite finding employment and, perhaps, economic freedom.

The theme of International Womenโ€™s Day 2024 is โ€˜Invest in Women: Accelerate Progressโ€™. What then needs to be done to make the RMG sector a safe space for womenโ€™s empowerment? There is no doubt that empowerment is required for progress. There has to be recognition from factory owners, factory management, and definitely foreign buyers that women workers are not merely dispensable parts of the factory, working to benefit only buyers and owners. The guidelines of the Womenโ€™s Empowerment Principles need to be followed and mechanisms put in place to ensure full implementation for the benefit of all women workers. This can only be done if women RMG workers are given the respect, security, and facilities they deserve in order to work with dignity. However, that is definitely not enough. The root cause of why women are held back from becoming truly empowered anywhere needs to be addressed as well. Social change is required, and respect for gender, qualification, and education all need to come in a single package. Given that patriarchy is firmly entrenched in the very fibre of Bangladeshi society, challenging patriarchy needs to be done in small doses, and it is the responsibility of families, workplaces, educational institutions, and the government to ensure these steps are implemented. Merely showing data on how many women are employed in various public sectors or are enrolled in academic institutions in no way means that women have been empowered or that they are not facing any social or familial backlash.

Saira Rahman Khan is a professor of law, BRAC University.
 

Bangladeshโ€™s growing prowess in RMG makes Chinese investors upbeat​


1709939617847.png

Customers inspect products at an exposition on yarn, fabric and denim items at the International Convention City Bashundhara in Dhaka yesterday. More than 400 companies from 15 countries have set up 550 booths to showcase textile and garment items at the event. Photo: Sk Enamul Haq

Chinese textile and garment entrepreneurs are bullish about Bangladesh as the country cements its position as a top supplier of apparel items, evidenced from a healthy flow of orders from international clothing retailers and brands.

On the back of higher demand for fabrics, yarns, chemicals, dyes, and capital machinery used in the textile and garment sectors, China has turned into the largest supplier for Bangladesh.

Bangladesh imports nearly $20 billion worth of goods, including fabrics, from China, said industry people.

The reliance on the second-biggest economy in the world is growing since local weavers can only meet 40 percent of the requirement for woven fabrics. The remaining 60 percent is met through imports, mainly from China and India.

Owing to a brighter outlook of Bangladesh and the rising cost of production in China amid a dearth of skilled workers, Chinese investors are flocking to the country and investing in the textile and garment sectors.

At the same time, Chinese fabric sellers are targeting export-oriented garment factories which have been receiving an increased volume of orders from global retailers and brands.

A good number of Chinese textile and garment manufacturers are taking part in the 21st Dhaka International Yarn and Fabric Show 2024 and the 6th Denim Bangladesh 2024 International Expo at the International Convention City in the capital's Bashundhara.

CEMS Global and CCPIT-TEXT of China have jointly organised the exhibitions, where 410 companies from 15 countries have set up 550 booths to showcase textile and garment items. The event will continue until March 9.

"2023 was not good for business given higher inflation in Europe and the US. Now, a lot of orders are coming to Bangladesh and orders are expected to increase further in the near future," said Yong Zhang, general manager of Jinlite, an outerwear manufacturer, which has a factory in the Mongla Export Processing Zone.

Zhang set up the factory in 2018 with a 100 percent Chinese investment to meet demand for outerwear, rainwear, activewear and jackets in Europe and the US. Currently, the factory exports garment items worth more than $20 million annually.

Melody Zhou, sales manager at Top One Down & Feather Co Ltd, said their factory is witnessing a spike in demand for high-end jackets made from duck feathers.

She was the first to introduce the products in Bangladesh and the response from customers has been high.

"Bangladesh has a lot of garment factories and the business opportunity is high."

Aileen, a Chinese entrepreneur who has been selling viscose in Bangladesh, for the last nine years, agrees.

"Sales are good and the demand is rising."

At the inauguration of the showcase, Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said Bangladesh has the highest number of green garment factories in the world and this has brightened the image of the sector and the country and given a boost to buyers' confidence.

"2024 will turn out as a good year for us as retailers and brands are coming up with a higher volume of orders."

Bangladesh, the second-largest apparel supplier globally, is already the biggest denim exporter in Europe and the US, which highlights the sector's strength.

Amin Helaly, senior vice-president of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh imports more than $10 billion worth of fabrics from China per year.

"So, an opportunity has been created for Chinese investors to invest in the textile and garment sector in the country."

Lokman Hossain Miah, executive chairman of the Bangladesh Investment Development Authority, also spoke at the inauguration.​
 

US to look into 'unhealthy competition' in garment pricing​


1709939896974.png


The United States International Trade Commission (USITC) is going to hold a hearing involving Bangladesh to see whether a recent rise in prices of garment items sourced from the country had anything to do with unhealthy competition.

The USITC found out that the prices the US paid for each unit of Bangladeshi garments had recently exceeded the average of the prices paid by America for garments sourced from different countries.

This prompted the agency to open an investigation to find out whether any anti-competitive incident took place.

The USITC is an independent, nonpartisan, quasi-judicial federal agency that fulfils a range of trade-related mandates, according to its website.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is going to virtually attend the hearing on March 11.

The prices rose mainly due to adjustments brought about by American clothing retailers and brands to compensate for an increase in raw material and shipping costs during and after the pandemic, he said.

The price per unit had been rising at a moderate pace since 2017 while that offered by China has declined, the BGMEA chief added. The unit price offered by Bangladesh is currently $3.23, compared to $1.86 and $2.95 for China and Pakistan respectively, he said.

Given that Bangladesh still largely manufactures basic items, the average price level is well above the global average import price per unit paid by the US, he said.

Hassan also said recent geo-political tensions have added woes to global supplies, which were already struggling, and to the demand dynamics of diesel prices, resulting in record hikes.

"In recent years, our cost of production has gone up exorbitantly. Price of electricity has risen by 25 percent, gas by 286.5 percent, diesel by 68 percent, and similar impacts on transport and other factors are notable," he said.

Inflation has pushed cost of finance further up, leading to increased cost of production and cost of goods, he added.

Also, bank charges and municipality and city corporation fees, including different registration and certification fees, have significantly increased, said Hassan.

In the past decade, the industry invested millions of dollars to remediate factories, and is constantly investing in greener manufacturing, emission reduction and resource efficiency to meet emerging due diligence requirements, he said.

He hoped that the USITC would view the overall scenario instead of considering only cost and efficiency-based competitiveness.

At the same time, drawbacks such as a lack of local raw materials and absence of foreign direct investment in this industry also need to be taken into consideration, the BGMEA chief added.​
 

Time to switch to non-cotton garment​

ATIQUL KABIR TUHIN
Published :​
Mar 06, 2024 21:48
Updated :​
Mar 08, 2024 19:25


1709942115176.png
Representational image/Files

After decades of steady growth with cotton-made products, it is high time the Bangladesh readymade garment (RMG) industry shifted its gears and strategically focused on man-made fiber (MMF) to drive further growth. A recent study conducted by Wazir Advisors Pvt Ltd. suggests that the expansion of non-cotton garment exports holds immense potential for the country's economy. According to the study, conducted under the patronage of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh has the potential to increase its non-cotton garment exports from the current $15.6 billion to an impressive $ 46 billion annually by 2032, if entrepreneurs were to invest $18 billion to enhance manufacturing capacity and a fully integrated value chain.


Of late, the global fashion landscape has undergone a dramatic shift, with the reign of cotton fading and MMF taking center stage. While cotton initially fuelled the surge of the Bangladesh apparel market, that seems now to have reached its peak and its growth potential appears limited. This echoes the global trend in fibre demand, where the cotton-to-MMF ratio has shifted from 75:25 thirty years ago to a stark 25:75 today.

This strategic change underscores the growing significance of apparel made from artificial fabrics in the global market. In spite of the seismic shift in fibre demand, with non-cotton fibre accounting for 75 per cent of garments manufactured globally, Bangladesh still relies on cotton fibers to make 71 per cent of the country's export-oriented products. In recent years, however, the country's RMG sector began to recognise the changing tide.

A recent report suggests manufacturers are actively aligning their strategies with the global trend and embracing MMF as the new frontier. This shift is evident in the rapidly rising imports and investments in MMF, with the import of MMF increasing by over 13 per cent in the past calendar year. Moreover, the study also finds that the use of non-cotton fibres in garment production in Bangladesh has increased from 25 per cent to 29 per cent over the past three years. This shift in preference towards non-cotton fibers presents Bangladesh with a lucrative opportunity to diversify its export portfolio and reduce its dependency on cotton fibers.

The study also suggests that the decline in China's share of the non-cotton garment market, coupled with Bangladesh's remarkable growth in this segment-from 1 percent to 5 percent in recent years-opens a new window of growth in this sector. Consequently, it is encouraging to note that Bangladeshi apparel exporters are increasingly turning to man-made fibers to secure better prices and expand their market reach. This strategic pivot towards non-cotton fibres aligns with Bangladesh's ambition to increase its share in the global apparel market from the current 7.87 per cent to 12 per cent by 2026.

Moreover, the surge in demand for non-cotton garments is not merely driven by market trends but also influenced by environmental factors. As consumers are becoming more environmentally conscious, the preference for non-cotton garments-perceived as eco-friendlier alternatives-is gaining momentum. MMF offers recyclability and reusability, aligning with the growing trend of sustainable clothing. Brands like H&M and Nike leverage recycled materials like polyester to attract environmentally conscious consumers.

Several other factors such as modern lifestyles and changing attitudes have led consumers to favour MMF for its easy care, functionality, and affordability. The growing "athleisure" trend further fuels the demand for polyester, a key MMF. Capitalising on this global trend, the MMF manufacturers are investing heavily in research and development to improve the technical and aesthetic properties of synthetic textiles such as polyester, viscose, recycled nylon and lyocell. Such improvements have not only helped the widespread usage of MMF products but also supported it in replacing other natural fibers.

Buoyed by this trend, many brands and retailers are shifting some products from cotton to man-made fibers. Moreover, cotton is becoming difficult and costlier to produce due to decreasing arable land. Other problems that have decreased the demand for natural cotton-made products are lower impact strength, shrinking after washing, variable quality influenced by weather, poor moisture resistance causing swelling of fibers, restricted maximum processing temperature, and low wetting with hydrophobic polymers. Alternatively, synthetic fiber has been offering some special benefits for both the consumers and the producers, along with offering solutions to the aforementioned problems of natural cotton.

This shift underlines that it's not a choice, but an imperative for Bangladesh to capitalise on the growing demand for artificial fibers, both to meet consumer preferences and to mitigate the environmental impact of cotton production. While Bangladesh currently imports non-cotton fibers worth US$ 1.2 billion annually, there exists immense potential for local investments to bolster garment exports and create additional opportunities.

In the end, the findings of the study emphasises a pivotal moment for Bangladesh's apparel industry. Perhaps even a crossroad-a moment that demands proactive investment and strategic alignment with global market trends. By seizing the potential of non-cotton garment exports, Bangladesh can not only diversify its export basket, but also emerge as a frontrunner in sustainable and competitive fashion manufacturing, driving economic growth and employment opportunities for its citizens. Policymakers and industry stakeholders must collaborate in harnessing this transformative potential of non-cotton garment export. This strategic shift driven by global trends, consumer preferences, and sustainability concerns opens doors for future growth and can solidify the country's position as one of the leading apparel manufacturers. Its potential is limitless.​
 

BGMEA requests Primark to source more from Bangladesh​


1710284780387.png

Primark officials now in Dhaka

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today urged Primark to source more garment items from Bangladesh, particularly the high-end apparels.

BGMEA President Faruque Hassan made the call at a meeting with Primark high-ups held at the BGMEA office at Uttara in Dhaka.​

He also sought support from the Irish fast fashion retailer to implement the recently announced minimum wage for RMG workers by adjusting prices of Primark's orders.

Primark senior officials, including Steve Lawton, trading director; Matthew Rhodes, head of sourcing and supplier management; Eoin Tonge, chief financial officer; Richard Morrison, director; Filippo Poggi, sourcing country controller for Bangladesh, India, Pakistan and Sri Lanka, attended the meeting.​
 

Poor pay, long work hours making them quit jobs: study​

Disruption to work-life balance due to extended working hours alongside family responsibilities is compelling many female ready-made garments workers to leave their jobs, according to a study.

The findings of the study, "Unpaid Care Work: Perspective of Employers and Workers in RMG Sector," were revealed at a seminar at Dhaka's CIRDAP auditorium yesterday.​

Aimed at investigating the current challenges being faced by female RMG workers, the study was conducted during February-March this year, by Oxfam with support of Karmojibi Nari and Creative Pathways Bangladesh.
Around 79 percent of female RMG workers who quit cited family responsibilities as the prime reason, said the study.

Meanwhile, 31 percent of respondents said they were unable to take care of their children due to long work hours, and thus, had to leave their jobs.

Additionally, 29 percent said they quit due to inadequate salary and benefits, 18 percent cited harassment and discrimination, while 17 percent blamed poor working conditions.

"Daycare centre facilities should be arranged by factory owners," said Shah Mohammad Abu Zafar, president of Bangladesh Labour Federation.

"The government and factory owners must ensure all the required benefits within the industrial areas," he mentioned, stressing on the prevalence of malnourishment in female RMG workers and the need to address it immediately as it hampers productivity.

The wages have increased but their (workers') standard of living did not improve, said Meher Afroz Chumki, former state minister of women and children affairs ministry. Alongside highlighting the gap between workers' income and personal expenditure, she also stressed the need for daycare facilities at factories, emphasising on existing laws that are in place in this regard but are seldom adhered to.

"We need to practically implement the research findings and recommendations. Only then will laws be created and accountability be ensured," said Shirin Akhter, founder of Karmojibi Nari.

She also called for collaborative research and initiatives by the government and private stakeholders to improve sectors that employ more women.​
 

RMG diversification is imperative​

SYED MANSUR HASHIM
Published :​
Mar 15, 2024 22:07
Updated :​
Mar 16, 2024 21:45

1710631068487.png

FE file photo

For quite sometime now experts have been putting forward unambiguous suggestions for diversifying the product portfolio of Bangladesh's apparel industry (RMG). Its rival countries such as China and Vietnam have already taken the effort to seriously diversify their baskets of apparel export, whereas Bangladesh still remains indifferent. Even India and Indonesia fall into the category of 'diverse'.While Bangladesh is one notch above Pakistan, that is hardly of any consequence because Bangladesh is number two in global apparel trade, and the time has arrived to start diversifying. The faster it is the better. A glimpse into the US market โ€“ very important for Bangladesh RMG โ€“ reveals the exporting country's overwhelming reliance on cotton products.

According to a report published in this newspaper recently, government data show "over 80 per cent of Bangladesh's apparel export earnings in the last fiscal year came from shipping basic items like tee shirts, trousers, shirts, sweaters and underwear to the Western market. Local apparel manufacturers acknowledge that diversification does not happen overnight: it requires investment, infrastructure support, consistent energy and raw material supplies and, of course, time." These were findings by Dr. Sheng Lu, who is an Associate Professor and Director of Graduate Studies in the Department of Fashion and Apparel Studies at the University of Delaware, USA. His study tells us that China remains number one exporter primarily because of the wide selection of clothing styles it offers its customers.

Given the geopolitical situation, it is clear that the US policymakers are keen to diversify its sourcing of apparels away from China. Some countries like Vietnam and India are looking forward to taking a share of that pie.

In the past, the RMG industry was more than confident that it would be able to grab a large percentage of that pie, now it is hamstrung with its concentrated outlook on its product base. Hence, Vietnam is stepping into this game better equipped than Bangladesh as it can offer a wider selection of products to choose from (from a buyers' perspective) that include outerwear, under garments and swimwear. India is doing well in dresses whereas Bangladesh is still a major buyer destination for basic knitwear items. Basic, i.e. Bangladesh is very good at producing items that also carry a lower price tag.

One of the areas that the apparel industry association, the BGMEA has been looking into is value-added products, particularly non-cotton materials that include polyester and manmade fibres (MMF). This is an effort to shift away from cotton and for obvious reasons. For Bangladesh to attain the target of US$100 billion in export earnings by 2030, something fundamental needs to change in the industry. A move away from over-dependence on cotton-based apparels to the MMF!

In a recently unveiled BGMEA study titled 'Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh Apparel Industry', the potential of Fibre diversification of non-cotton textile and apparel for Bangladesh in the global apparel market has been explored. Global trade (cotton and non-cotton) has increased marginally from 1.0 per cent from 2018 to 2022. Indeed, wool fibre, yarn, and fabric trade have declined notably over the last five years, while over the same period, acrylic fabric exports have increased since 2018.The study reveals that non-cotton apparel exports by China, Vietnam, Italy and Spain have dominated that particular garment export scene where it accounts for more than 50 per cent of total exports. "The fastest-growing non-cotton categories globally, Jerseys and Pullovers of Man-Made Fibres (MMF) lead the way, and women's wear categories (outerwear, dresses, and trousers dominate the list."

So, what will Bangladesh do? It holds 2nd position in production and is squarely aligned with current market demands of international markets. To be able to catch up and compete with its closest rivals in the MMF and non-cotton segments, some problems remain. There is the challenge of a shortage of technical manpower, the overall reliance on imported raw materials, high manufacturing cost, and significant capital expenditure requirements.

What the industry is looking for is greater understanding of the problems facing it at policy level. The capital-intensive nature of investments requires a rethinking of high interest rates charged by financial institutions and more non-cotton-focused government policies. There is a huge demand for vocational training institutes that would go a long way to address the technical competences of Bangladeshi workers and of course, the availability of consistent power supply. Diversification won't happen magically, it requires an enabling environment whereby decision makers work with the industry to find solutions rather than simply adopting a top-down approach. These are serious issues and as RMG remains the top foreign exchange earner in annual exports, these issues need to be tackled head on if Bangladesh is to remain a dominant player in the global apparel trade.​
 

Attachments

  • 1710631011262.png
    1710631011262.png
    871.8 KB · Views: 30

Garment export to USA falls 2.58%​

However, apparel shipment to the EU rose 3.27% in Jul-Feb

1710973751259.png


Garment exports to the USA, the single largest export destination for Bangladesh, fell by 2.58 percent year-on-year to $5.46 billion in the July-February period of the current fiscal year.

American retailers and brands imported 23 percent lower amount of clothing items last year compared to the previous year because of high inflationary pressure, which impacted Bangladesh's shipment to the US markets.

Thanks to the presence of competitive pricing and long-time trade relations, Bangladesh is the third largest garment supplier to the USA after China and Vietnam.

Bangladesh's performance has been strong compared to its peers in case of garment export to the USA despite being slapped with a 15.62 percent tariff, the highest in the world in this particular market.

However, clothing sales have started increasing in the US economy thanks to the recent recovery of the market.

The National Retail Federation (NRF), the largest retailers' platform in the USA, said sales in the clothing and accessories stores were up 0.51 percent month-over-month and up 8.05 percent year-on-year in February.

"February retail sales indicate continued momentum from consumers," NRF President and CEO Matthew Shay said.

"While the future direction of interest rates and inflation remains uncertain, it's clear that a strong job market and increases in real wages are continuing to support spending."

In the July-February period of 2023-24 fiscal year, garment export to the European Union, the biggest trade block for Bangladesh, reached $16.23 billion, posting a 3.27 percent year-on-year jump, according to data compiled by the Export Promotion Bureau and Bangladesh Garment Manufacturers and Exporters Association.

Apparel shipment to Spain, France, Netherlands, Poland and Denmark showed 8.68 percent, 4.72 percent, 14.55 percent, 21.82 percent and 32.81 percent growth respectively.

However, the apparel export to Italy declined by 0.93 percent year-on-year in the July-February period.

On the other hand, RMG export to Germany, the largest market in the EU, declined by 11.63 percent year-on-year to $4.09 billion.

At the same time, the garment export to the UK and Canada reached $3.85 billion and $998.77 million, posting a 14.64 percent and 1.81 percent year-on-year growth respectively.

Meanwhile, apparel export to the non-traditional markets grew by 10.83 percent year-on-year to $6.30 billion.

Among the major non-traditional markets, exports to Japan, Australia and South Korea increased by 7.12 percent, 21.29 percent and 17.16 percent respectively.

However, apparel export to India declined by 22.99 percent year-on-year in the July-February period.​
 
What else can be expected from cheap and shameless Indians. Tangail saree has originated from Tangail of Bangladesh not West Bengal of India.
Such comments perpetuate harmful stereotypes and undermine the rich cultural heritage shared between India and Bangladesh. Appreciation of cultural origins should unite, not divide.
 

Members Online

Latest Posts

Latest Posts