[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Bangladesh’s growing prowess in RMG makes Chinese investors upbeat

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.

www.thedailystar.net

Bangladesh’s growing prowess in RMG makes Chinese investors upbeat​

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.​

 

[Saif]

US to look into 'unhealthy competition' in garment pricing

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.

www.thedailystar.net

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

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.​

 

[Saif]

Time to switch to non-cotton garment

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 n

thefinancialexpress.com.bd

Time to switch to non-cotton garment​

ATIQUL KABIR TUHIN

Published :​

Mar 06, 2024 21:48

Updated :​

Mar 08, 2024 19:25

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.​

 

[Saif]

BGMEA requests Primark to source more from Bangladesh

Primark officials now in Dhaka

www.thedailystar.net

BGMEA requests Primark to source more from Bangladesh​

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.​

 

[Saif]

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.

www.thedailystar.net

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.​

 

[Saif]

RMG diversification is imperative

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

thefinancialexpress.com.bd

RMG diversification is imperative​

SYED MANSUR HASHIM

Published :​

Mar 15, 2024 22:07

Updated :​

Mar 16, 2024 21:45

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 – very important for Bangladesh RMG – 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.​

 

[Saif]

Garment export to USA falls 2.58%

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

www.thedailystar.net

Garment export to USA falls 2.58%​

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

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.​

 

[Amata]

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.