[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Chinese firms bullish on Bangladesh’s manmade fibre

Chinese textile companies are optimistic about increasing exports of manmade fibre (MMF) to Bangladesh as the country’s garment makers have been diversifying their products in line with changing global demand over the past few years.

www.thedailystar.net

Chinese firms bullish on Bangladesh’s manmade fibre

Chinese textile companies are optimistic about increasing exports of manmade fibre (MMF) to Bangladesh as the country's garment makers have been diversifying their products in line with changing global demand over the past few years.

Apparel made from artificial fabrics, such as polyester, is in high demand abroad and offers higher export earnings than comparatively lower value-added clothing items made from traditional fibres like cotton.

As such, nearly 30 percent of all locally made garments are now MMF products, reflecting their critical role in the industry.

Non-cotton garments are particularly lucrative, fetching higher prices than traditional cottonwear for having better flexibility, durability, and functionality. For instance, the cost of an MMF T-shirt is roughly double that of a cotton T-shirt.

So, Bangladeshi garment makers have been diversifying their product base with non-cotton items, increasing production capacities, ensuring consistent supply, and improving quality over the past five decades.

Today, Bangladesh accounts for approximately 7.9 percent of global apparel sales, establishing itself as a reliable source for international retailers and brands. With 30 percent of its garment exports comprising MMF products, the country aims to expand its global market share to 12 percent by 2030.

"We are focusing on MMF as demand in Bangladesh is on the rise, with local garment makers gradually shifting to MMF from cotton to increase their share of high-value products in the global market," said William Yan, head of sales at Guangdong Jinlong Fabric Technology Co Ltd.


She was speaking with The Daily Star at the Dhaka International Yarn and Fabric Show (DIFS), organised by CEMS-Global USA at the International Convention City Bashundhara in the Kuril area of Dhaka yesterday.

People visit a stall at the Dhaka International Yarn and Fabric Show at the International Convention City Bashundhara. Photo: Collected

According to Yan, they have 12 clients in Bangladesh that regularly purchase fabrics from them. Previously, these clients would import only cotton fabric, but in recent years, they have started purchasing MMF.

"Although the number of visitors is very low, those who want to do business with us came to make inquiries," she added.

Yan also mentioned that their exports to Bangladesh, particularly MMF, have been increasing gradually.

Echoing the same, Victoria, sales manager at Shishishi Yaming Dress and Weaving Co Ltd, said they have already secured 10 clients in Bangladesh for MMF.

She added that they are focusing solely on MMF at this expo to attract new clients.

Victoria also appreciated local producers, noting that they understand the future market of readymade garments and are working to increase their market share worldwide.

Against this backdrop, she said she foresees a bright future for her company in Bangladesh.

Vivien Zhang, general manager (sales) at Shaoxing Anyue Textiles Co Ltd, highlighted the growing importance of Bangladesh in their business strategy.

"We export a huge quantity of MMF to Bangladesh every year, and this demand continues to grow," she said.

Zhang noted that the company currently has five dedicated clients in Bangladesh who are instrumental in expanding their client base in the region.

According to Zhang, Shaoxing Anyue Textiles is keen to see Bangladeshi garment manufacturers increase their MMF usage as it would not only help their company sustain its business but also foster further development of the textile sector.

She emphasised the mutual benefits of this collaboration, stating that greater adoption of MMF could significantly contribute to the efficiency and sustainability of Bangladesh's apparel industry, paving the way for long-term growth and stronger partnerships.

Anthea, sales manager at Shaoxing Huiyi Textile Co Ltd, and May Lin, head of marketing at Shanghai Haofan Industrial Co Ltd, expressed optimism about future business prospects with Bangladesh.

Both companies see significant potential in the country's growing textile and apparel sector, which has motivated their participation in the DIFS, she said.

Anthea emphasised the importance of such fairs in fostering partnerships and showcasing innovative textile solutions, while May Lin highlighted Bangladesh's expanding role as a key market for high-quality fabrics and yarns.​

 

[Saif]

Bangladesh’s RMG exports in 2024 totals $38.48b

Bangladesh’s Ready-Made Garment (RMG) exports in 2024 achieved a remarkable total of $38.48 billion. The European Union continued to dominate, holding a substantial share of 50.34 percent of Bangladesh’s total RMG exports, which amounted to $19.37 billion. According to official data,

thefinancialexpress.com.bd

Bangladesh’s RMG exports in 2024 totals $38.48b
BSS
Published :
Jan 19, 2025 19:40
Updated :
Jan 19, 2025 19:40

Bangladesh’s Ready-Made Garment (RMG) exports in 2024 achieved a remarkable total of $38.48 billion.

The European Union continued to dominate, holding a substantial share of 50.34 percent of Bangladesh’s total RMG exports, which amounted to $19.37 billion.

According to official data, during the January-December period of 2024, the United States accounted for $7.2 billion, representing an 18.72 percent share, while UK contributed $4.3 billion, equating to an 11.25 percent share.

Within the EU, key markets included Germany, which imported $4.83 billion, followed by Spain with $3.42 billion and France at $2.14 billion.

Additionally, exports to Canada reached $1.24 billion with 3.23 percent market share.

Bangladesh is also making notable strides in non-traditional markets, such as Japan and Australia, reflecting a strategic diversification effort.

Non-Traditional markets accounted for $6.33 billion, representing 16.46 percent of Bangladesh’s total RMG export.

Among these markets, Japan leads with $1.12 billion, followed by Australia at $831 million, India at $606 million, Turkey at $426 million, and Russia at $343 million.

Talking to BSS, Mohiuddin Rubel, Former Director, BGMEA and Additional Managing Director, Denim Expert Ltd, said that the diversification not only broadens Bangladesh’s global reach, but also enhances the resilience of the RMG sector.​

 

[Saif]

Why Bangladesh falling behind in RMG export to US

Bangladesh’s garment shipments to the USA, the South Asian country’s single largest export destination, have been falling over the past two years due to a market correction although other major countries have already adjusted to the scenario.

www.thedailystar.net

Why Bangladesh falling behind in RMG export to US

Representational photo

Bangladesh's garment shipments to the USA, the South Asian country's single largest export destination, have been falling over the past two years due to a market correction although other major countries have already adjusted to the scenario.

Data from the US Office of Textiles and Apparel (OTEXA), a body under the US Department of Commerce, shows that the US imported garment items worth $72.94 billion in the January to November period of last year, registering 0.63 percent year-on-year growth.

Bangladesh accounted for $6.76 billion of the amount, reflecting a 0.44 percent year-on-year decline. Even then, it showed signs of recovery, especially as the country saw a sharp 25 percent decrease in garments exports to the US in previous 2023.

This raises the question of how competitor countries have managed to recover garment exports to the US and why Bangladesh, the third-largest garment supplier to US markets, is taking more time to recover.

To unearth the reasons, a glance back through time is required.

Historically, Bangladesh's growth in garment exports to the US has varied between 10-15 percent over the last few decades. But in 2022, garment exports to the US grew by more than 53 percent, the most in a single year, to $9.72 billion.

This unusual growth occurred mainly after the pandemic-led movement restrictions as retailers and brands imported more to meet pent-up demand in 2022.

Expectedly, exports did not continue at the same pace in the following years, especially as American retailers and brands had plenty of old stock of unsold clothing items, causing the growth rate to fall.

Moreover, during the last two years, the import of garment items by US retailers and brands was low as the severe economic fallout of the pandemic, including historic inflationary pressures, led to a fall in demand.

China, the largest global apparel supplier, has also been experiencing a similar situation. From January to November last year, China's garment exports to the US fell 0.30 percent to $15.22 billion year-on-year.

In the same period, garment exports from Turkey to the US fell 6.77 percent to $0.83 billion.

However, some countries, including India, Pakistan, Indonesia and Vietnam, have illustrated growth in garment exports to the US despite American retailers and brands cutting back on imports.

These countries capitalised on Bangladesh's political crisis, which began in June last year with the student-led movement against the Awami League government. The monthslong protests led to government ouster, labour unrest, shutdown of factories and disruption in shipment of goods, crippling industrial units that were already contending with an energy crunch.

For example, garment shipments from India to the US grew 4.49 percent to $4.36 billion in January-November last year.

This occurred as a few work orders were shifted away from Bangladesh to India following the student-led mass uprising, which prevented local exporters from being able to ship goods timely or booking new work orders.

Similarly, garment shipments from Pakistan to the US grew 6.57 percent to $1.97 billion.

Vietnam, the second-largest apparel exporter to the US after China, saw 4.48 percent growth in garment exports to the US, hitting to $13.77 billion in the 11-month period.

Vietnam was performing strongly even during bad times due to its strong supply chain and higher prices for exported items.

Different studies suggest that Bangladeshi exporters get half the price compared to their Vietnamese counterparts. For instance, if a t-shirt produced in Vietnam fetches $10, the same t-shirt made in Bangladesh commands only $5.

On the other hand, Indonesia has recently increased its capacity to manufacture high value-added garment items after its textile and garment sectors were injected with foreign direct investments in recent years.

From January to November last year, garment exports from Indonesia to the US grew 0.14 percent to $3.92 billion.

On a positive note for Bangladesh, local garment exporters are hopeful that shipments to the US will rebound strongly because of Trump's imposition of higher tariffs on Chinese and Mexican goods.

Kutubuddin Ahmed, chairman of Envoy Textiles, said garment exports to the US have been recovering as, under the USA's current policies, there is a 25 percent duty on Chinese goods while Bangladeshi apparel exporters face a 15.62 percent duty.

If Trump raises duties on Chinese goods, something he has already said his administration plans to do, then it might be as high as 60 percent. That would definitely benefit Bangladesh, Ahmed said.

Another move from Trump that will benefit Bangladesh is the imposition of a 25 percent duty on Mexican goods, including garment items.

This is because Mexico has turned into a major garment exporter to the USA in recent years, particularly to California, Ahmed added.

This, in turn, happened as Chinese entrepreneurs invested in the textile and garment sectors in Mexico to enjoy zero-duty benefits on exports to the US under "The United States-Mexico-Canada Agreement (USMCA)", which came into effect on July 1, 2020.​

 

[Saif]

Bangladesh faces tough time in global apparel game

Bangladesh is likely to face more hurdles in the race to grab a bigger share of the global apparel market as the Indian government plans to step up its financial assistance to garment exporters.

www.thedailystar.net

Bangladesh faces tough time in global apparel game

Photo: Star

Bangladesh is likely to face more hurdles in the race to grab a bigger share of the global apparel market as the Indian government plans to step up its financial assistance to garment exporters.

The Indian government's confidence that it could capture a bigger slice of the $800 billion global market was renewed when it noticed that some work orders had been shifted away from Bangladesh and arrived at its doors last year.

A few international clothing retailers and brands opted to shift work orders away from Bangladesh as local exporters were facing challenges in timely production, shipment, raw material imports and transportation owing to political turmoil as a result of the student-led mass uprising in July.

The impasse, which began in July and ended with the ouster of the Sheikh Hasina-led Awami League government on August 5 last year, left exporters with their hands tied.

A brief period of instability in the immediate aftermath, which featured spates of labour unrest and closure of a significant number of factories for two to three months, only added to those woes.

A crippling energy crisis, which has prevailed over the last two years, also left many big units operating below capacity.

Moreover, the timing of the "July Revolution" could not have been worse for the garments sector.

July, August, September and October, also represent the peak time for both production and shipment of goods meant for Christmas sales in the Western market, the most important sales season.

This meant local exporters faced tremendous pressure to transport and ship goods. Those who could decide to opt for the expensive route of air shipments, if only to meet deadlines.

Data shows that Bangladesh's exports to major markets are declining as retailers and brands seek alternative destinations while apparel shipments from India, especially to European countries and the US, have been on an upward trend.

Bangladesh's garment exports to the US fell 0.46 percent to $6.7 billion between January and November last year while India's rose 4.25 percent to $4.4 billion, data from the US Office of Textiles and Apparel showed.

On a brighter note, local exporters say that work orders that had shifted away from Bangladesh to other countries, especially to India, are now coming back as normalcy has started to restore in industrial hubs and the law and order is gradually improving.

However, the Indian government, which has been providing plenty of financial incentives to its apparel sector for a long time, is keen to capitalise on the opportunity.

Currently, there are some major government schemes to improve the Indian textile sector, which employs an estimated 45 million people. These include various funds, including those for technology upgradation, skills development, capacity building, and infrastructure and power development. Alongside that, there are production incentives and facilities that provide remission of duties.

Yet, Mithileshwar Thakur, secretary general of India's Apparel Export Promotion Council, told Reuters last week that exporters were finding it difficult to meet the rush of orders in the last few months.

As such, the country has lined up some new initiatives to facilitate garment manufacturers and exporters in the upcoming budget for FY26, which will be placed in parliament soon.

For example, the government is considering increasing the textile ministry's budget allocation by 10-15 percent from the current 44.17 billion rupees ($511 million), a government source privy to discussions told Reuters.

The Indian government may also raise the allocation for production-linked incentives for the textile sector to around 600 million rupees from 450 million rupees for the current fiscal year, the source told Reuters.

Under this scheme, the government offers tax incentives and other concessions to companies choosing to manufacture locally.

Tariff cuts on raw materials such as polyester and viscose staple fibre, along with textile machinery, are also under consideration, a second government source told Reuters.

Import tariffs are currently in the range of 11-27 percent on fibre, compared to almost zero in Bangladesh, impacting Indian garment exporters, Reuters said.

Requesting anonymity, a high-end European garment retailer that has been sourcing products from Bangladesh for many years said a few work orders had shifted from Bangladesh to India due to the recent political instability.

"They said they could feel the uncertainty and instability," the retailer said, hopefully adding that those buyers would return with work orders if they felt that the political situation had stabilised.

On the other hand, Bangladesh has cut export subsidies for almost all sectors to reduce pressure on state coffers and encourage exporters to prepare to compete on the global stage without state support after the country graduates from least developed country (LDC) status in 2026.

In FY24, the Bangladesh government provided cash assistance ranging from 1 percent to 15 percent on export earnings to sharpen the competitive edge of local exports on the international market, which represented a 5 percent slash from the previous highest rate of 20 percent.

The benefit only shrunk further in FY25, with the maximum rate being set at 10 percent and the minimum at 0.3 percent, the Bangladesh Bank said in a notice. Moreover, benefits under the Export Development Fund (EDF) have also been slashed despite rising costs of production.

Currently, Bangladesh is the second-largest global garment exporter after China, grabbing 7.4 percent of the market share and exporting $38 billion worth of items, according to data from the World Trade Organization (WTO). As per the data, India is fifth-largest, shipping $15 billion of items to claim a 3 percent market share.

Faruque Hassan, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the shifting of work orders from Bangladesh to India happened mainly due to the political crisis.

However, he also believed that the anticipated imposition of high tariffs on Chinese goods by the Trump Administration in the USA may have also played a role for the rise in work orders in India.

A lot of work orders are shifting from China to other countries as there is a possibility that the US will levy higher duties on Chinese imports, he explained, adding that Bangladesh was also a beneficiary of the development.

Even two years ago a lot of work orders were shifted to Bangladesh from India, Pakistan, Myanmar and Ethiopia because of better prices and quality and catering capacity in a better business environment.

Hassan also reminded that international retailers and brands do not want to put all their eggs in one basket.

He also backed the local sector, saying local exporters faced tremendous pressure last year but are still performing well because they have a higher installed capacity for both garment and primary textiles.

Moreover, the international retailers and brands have confidence in Bangladesh because the country has demonstrated its capacity to cater to large volumes of work orders, Hassan added.

Moreover, Bangladesh has diversified and a significant amount of exported items are now high-end value-added items, which attracts retailers and brands.

Due to such factors, Bangladesh's export trend is now on an upward trajectory, with garment exports growing since June, when it recorded a sharp year-on-year drop of 10.48 percent to $2.97 billion.

Garment exports began to recover by July, growing 2.89 percent to $3.17 billion, according to data from the Export Promotion Bureau (EPB). This steady rise continued as exports grew 7.20 percent to $3.32 billion in August and 14.6 percent to $3.01 billion in September.

The largest recent increase was seen in October, when exports jumped 22.80 percent to $3.29 billion, but steady growth is continuing. Garment exports grew 16.25 percent to $3.30 billion in November and 17.45 percent to $3.77 billion in December.

So, the export trend suggests that Bangladesh has been performing well despite the odds.

Former BGMEA President Hassan also added that India has not only been providing financial assistance but has also launched an aggressive marketing drive to grab more of the global market.

For example, the country is arranging a mega-expo called "Bharat Tex 2025" in Delhi in February this year. It will be India's largest textile expo and will be designed to attract more buyers and business.

Selim Raihan, a professor of economics at the University of Dhaka and executive director of the South Asian Network on Economic Modeling (Sanem), said it is true that some work orders have shifted from Bangladesh to India because of the political crisis.

However, he added that the Indian government has been trying to increase apparel exports for many years but has not performed well since its labour laws are more stringent and wages are higher compared to Bangladesh.

In India, labour unions are also strong, he explained.

He also added that the incentives that the Indian government is planning to offer to exporters must comply with WTO guidelines. Otherwise, the competitor countries will protest, he said.​

 

[Saif]

Bangladeshi recycled yarn brand in trademark clash with Swiss sportswear giant

Cyclo vs. Cyclon: A one-letter dispute sparks global confusion

www.thedailystar.net

Bangladeshi recycled yarn brand in trademark clash with Swiss sportswear giant
Cyclo vs. Cyclon: A one-letter dispute sparks global confusion

A Bangladeshi brand owner in recycled yarn is seeking a resolution to an intellectual property dispute with a Swiss brand, as both companies are creating confusion in international markets due to their nearly identical names.

Simco, a Bhaluka-based recycled yarn-producing spinning mill in Bangladesh, manufactures yarn under the brand name Cyclo and supplies it to apparel manufacturers and exporters.

As per product traceability rules, the brand name Cyclo is written on the hangtags of apparel made from Cyclo-branded recycled yarn, which is then exported to European and American retailers and brands.

The intellectual property rights for Cyclo were registered in Singapore in 2014.

However, another brand, ON, based in Switzerland, registered its apparel brand as Cyclon in Switzerland in 2021 and has been marketing its products under this name, said Rayhan Kabir, manager for process optimization of Simco, at a press conference at the Sheraton Hotel in Dhaka yesterday.

ON sells apparel and shoes under the Cyclon brand, he said.

He added that he has been communicating with the Swiss company for the last two years to resolve the issue amicably, as consumers often get confused due to the similarity in brand names.

Cyclo was created by Simco Spinning & Textiles in 2014 as the first certified recycling facility for garment waste in Bangladesh.

It was established as a brand name for their recycled fibers and yarns with the goal of guiding the bustling garment industry towards sustainable production and circular practices.

Since then, the Cyclo brand has been trademarked and registered in over 20 countries, starting from Bangladesh and expanding to the EU, USA, UK, and Japan.

Swiss-based running shoe company ON is an emerging giant in the performance sportswear industry, capturing market share from established brands like Nike and Adidas, with an estimated market capitalisation exceeding $20 billion.

Around 2021, ON launched a recycling programme called "Cyclon" as its "first step towards circularity" and shortly afterward, began attempts to limit the use of, block, or cancel Bangladesh's Cyclo brand name in key markets.

Similarities not only in the name but also in the field of circularity and recycling in the apparel sector have forced Simco to defend its right to use Cyclo across multiple jurisdictions and classifications, despite being a pioneer in the field and having well-established first use.

Despite numerous attempts by Simco to engage with ON's management and reach an amicable resolution, their efforts were met with resounding silence, he said, adding that this dismissive attitude underscores a troubling disregard for the intellectual property rights of a pioneering Bangladeshi brand.

This highlights the power imbalances that smaller companies from developing nations face on the global stage.

ON was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement—a mission that still guides the brand today.

Fifteen years after its market launch, ON delivers industry-disrupting innovation in premium footwear, apparel, and accessories for high-performance running, outdoor activities, training, all-day wear, and tennis, according to the company's website.​