[🇧🇩] Textile & RMG Industry of Bangladesh

[Bilal9]

RMG net export earnings exceed 70%​

BTJ Desk Report
03/12/2023
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For the third consecutive quarter ending in September 2023, Bangladesh’s net export earnings from the shipment of readymade garments (RMG) constituted over 70 % of gross export receipts. In July-September of fiscal year 2023-24, the net export receipt of the RMG sector reached $8.2 billion, making up 70.78 % of the total gross export earnings of $11.61 billion during that period. This indicates an increasing trend, with net export earnings rising from 51.49 % in the same period of the previous fiscal year.

The expansion of the backward linkage industry, reducing the need for imported materials, has contributed to this positive trend, according to the Bangladesh Bank. The BB report highlighted the challenges faced by the RMG sector, including domestic political unrest, global geopolitical conflicts, energy price hikes, and cotton price fluctuations. Despite these challenges, the RMG sector contributed 10.35 % to Bangladesh’s gross domestic product.

The top destinations for Bangladesh’s apparel exports during this period were the United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium. Going forward, the central bank review anticipates challenges for apparel exports due to subdued economic activities, higher inflation, higher interest rates, geopolitical uncertainties, weak productivity growth, and a complex financial environment.

 

[Saif]

USAID recognises 25 RMG factories for empowering women workers

USAID’s Women Thrive in Bangladesh Activity organised a Suppliers’ Roundtable and Champions Award Ceremony at Hotel Le Meridien, Dhaka yesterday

www.thedailystar.net

USAID recognises 25 RMG factories for empowering women workers

USAID's Women Thrive in Bangladesh Activity organised a Suppliers' Roundtable and Champions Award Ceremony at Hotel Le Meridien, Dhaka yesterday.

The event brought together attendees to share lessons learned and best practices from the activity implementations as well as recognizes factories for their achievements in providing life and professional skills training to women workers in Bangladesh's ready-made garment (RMG) sector.

A total of 25 PVH supply chain factories received Thrive Champions Awards for demonstrating significant, measurable, and evident achievements in implementing the Personal Advancement and Career Enhancement (PACE) training programme.

The PACE training programme provides women workers with market-oriented soft skills, like negotiation and communication, to support career advancement while also helping them overcome social norms and gender barriers.

USAID's Women Thrive in Bangladesh Activity presented these awards to not only recognise the factories' efforts in empowering women workers but also to inspire others, promote positive competition, and strengthen accountability in implementing the PACE programme.

Blair King, Deputy Director of USAID's Office of Democracy, Human Rights, and Governance graced the occasion as chief guest. Najeeb Sayed, Senior Director and Country Manager of PVH Bangladesh, and Ram Das, Country Director of CARE Bangladesh, also spoke as special guests.

Bushra Binte Baten, Corporate Responsibility Manager at PVH Corp., Sazzad Kamal, Project Management Specialist at USAID; and Aamanur Rahman, Chief of Party for USAID's Thrive Activity contributed to the discussions. Senior officials from PVH Corp. and its leading supply chain factories, CARE Bangladesh, and partner NGOs, among others, attended the event.

Implemented by CARE Bangladesh, USAID's Women Thrive in Bangladesh activity collaborates with the global brand PVH to empower women in the ready-made garment sector.

The activity provides a combination of professional skills and leadership development training for women ready-made garment workers in PVH Corp.'s supply chain factories and in the communities.

The activity aims to train more than 100,000 women workers in RMG factories and adjacent communities by 2026.​

 

[Saif]

Price of garments exported to the US fall

The prices of major garment items exported to the US declined year-on-year in the January-October period this year as American consumers are yet to recover from heightened inflationary pressures..During the 10 months, the price of men’s cotton woven trousers declined by 7.7 percent, accor

www.thedailystar.net

Price of garments exported to the US fall

The US's overall apparel imports from the world fell by 0.33 percent year-on-year to $67.04 billion in the January-October period this year. China ranked first in apparel shipments to the US, with Vietnam in second place. Bangladesh retained its position as the third-largest garment exporter to the US. File Photo

The prices of major garment items exported to the US declined year-on-year in the January-October period this year as American consumers are yet to recover from heightened inflationary pressures.

During the 10 months, the price of men's cotton woven trousers declined by 7.7 percent, according to data from the US Office of Textiles and Apparel (OETXA).

Meanwhile, prices of women's cotton woven trousers declined by 4.4 percent, men's cotton woven shirt by 3.8 percent, cotton knitted sweater by 7 percent and cotton knitted t-shirt by 3.9 percent.

This resulted in 3.33 percent decline in garment shipments from Bangladesh to the US, hitting $6.14 billion.

The US's overall global apparel imports fell 0.33 percent to $67.04 billion in the same period.

China ranked first in apparel shipments to the US while Vietnam took second place.

Bangladesh retained its position as the third-largest garment exporter to the US.

Both the prices and volume of garment export to the US, Bangladesh's single largest export destination, declined as the world's largest economy slowly recovers from persistent inflation, with retail sales growth increasing gradually.

Additionally, due to some domestic problems, the export prices of the garment items declined.

For instance, the garment sector faced massive spates of labour unrest in recent months, meaning many factories could not ship goods on time. So, they had to provide big discounts, reduce prices, or face work order cancellations.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, added that the negative import growth of clothing items by US retailers and brands also impacted the volume and value of Bangladeshi garments.

"But on the bright side, the US market is rebounding gradually. Shipments have been showing a bit of an upward trend," Hassan told The Daily Star over the phone.

The garment and textile sectors must be supplied with adequate gas and power so that those can run at full capacity, recover their exports and ensure timely shipments, he added.

The taka's sharp depreciation against the US dollar is another reason, with the per unit price of local garment items falling. The taka has lost 36 percent of its value against the greenback since January 2022.

Another reason outlined by the former BGMEA chief is that local manufacturers are now booking work orders at lower prices to keep factories running since they have to incur big losses if machines remain idle.

Local garment factories have been facing challenges such as massive labour unrest and factory closures following the deferral in timely production and shipment.

Very often, factories were shut down in major industrial zones like Ashulia, Savar, Zirani and Zirabo because of the labour unrest, which affected the production and shipment of goods, exporters said.​

 

[Saif]

Apparel exports to EU rise by 33.78pc in Oct

Bangladesh’s apparel exports to the European Union in October recorded highest growth of 33.78 per cent year-on-year, marking the strongest performance in the first 10 months of 2024...

www.newagebd.net

Apparel exports to EU rise by 33.78pc in Oct
Moinul Haque 19 December, 2024, 23:07

A file photo shows female workers sewing clothes at a readymade garment factory in Dhaka. | New Age photo

Bangladesh’s apparel exports to the European Union in October recorded highest growth of 33.78 per cent year-on-year, marking the strongest performance in the first 10 months of 2024.

The EU’s apparel imports from Bangladesh in October increased to 1.75 billion euros compared with those of 1.31 billion euros in the same month of 2023, according to data from Eurostat, the statistical office of the EU.

Exporters said that the flow of work orders from global buyers had been increasing but nearly 34 per cent surge in exports to the EU in October was abnormal.

They said that the shipments halted in July and August, caused by political instability and labour unrest, were likely deferred to September.

This backlog of shipments contributed to the surge in export growth in October, they said.

According to the EU data, Bangladesh’s readymade garment exports to the EU faced steep declines early in the year 2024 but managed to rebound in the August, September and October.

The country’s RMG export growth gained momentum in August with a 4.2 per cent increase, strengthened further in September with 7.4 per cent growth.

From January to October of 2024, Bangladesh’s apparel exports to the EU saw poor growth of 0.76 per cent, reaching 15.19 billion euros, up from 15.08 billion euros during the same period in 2023.

This limited growth was primarily due to significant declines in exports during January, February and March.

Former Bangladesh Garment Manufacturers and Exporters Association vice-president Mahmud Hasan Khan Babu said that although global buyers were placing more orders in Bangladesh, the surge in export by nearly 34 per cent in October seemed unusual.

He said that shipments of many consignments were halted in July and August due to the student-led mass uprising and labour unrest in the country, with the goods being shipped later.

Babu said that this backlog of shipments from previous months might have contributed to the surge in export growth in October.

Regarding the current business trend, he said that the flow of orders had remained encouraging and that if the law and order situation improved, Bangladesh would receive more global orders.

The Eurostst data showed that the overall apparel imports by the EU from different countries in the first 10 months of 2024 decreased by 0.16 per cent to 71.47 billion euros from 71.58 billion euros in the same period of the previous year.

The EU’s apparel imports from China in January-October of 2024 grew slightly by 0.24 per cent to 20.03 billion euros from 19.98 billion euros in the same period of 2023.

The EU’s apparel imports from Turkey in the first 10 months of 2024 declined by 6.18 per cent to 7.90 billion euros from 8.43 billion euros in the same period of 2023.

The EU’s apparel imports from India increased by 0.54 per cent to 3.68 billion euros in the first 10 months of 2024 compared with those of 3.66 billion euros in the same period of the past year.

Vietnam’s apparel exports to the EU in January-October period of 2024 grew by 2.46 per cent to 3.27 billion euros from 3.19 billion euros in the same period of 2023.

Pakistan’s apparel exports to the EU grew by 10.81 per cent in the first 10 months of 2024, increasing to 2.88 billion euros from 2.60 billion euros in the same period of 2023, the Eurostat data showed.​

 

[Saif]

Govt increases annual increment of garment workers to 9pc

The circular also said the new increment will come into effect from December 1 and the workers will receive the salary with 9 percent annual increment in January

www.thedailystar.net

Govt increases annual increment of garment workers to 9pc

Representational photo: Star/file

The government increased the annual increment of garment workers at 9 percent from 5 percent, according to a circular from the labour and employment ministry yesterday.

The circular also said the new increment will come into effect from December 1 and the workers will receive the salary with a 9 percent annual increment in January.

The other service benefits of the workers will not be cut because of the increase of the annual increment, the circular also said.

Earlier, the minimum wage board recommended the government last month to increase the annual increment by four percent along with existing five percent to make it 9 percent.

With a massive labour unrest in August and September, the government adopted 18 point demands in September including the review of the annual increment to cool down the unrest.

Finally, the annual increment has been fixed at 9 percent instead of 10 percent, the percentage the workers demanded.​