[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

How our RMG industry empowered women

The RMG industry has provided lakhs of women, with their first formal employment opportunities.

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How our RMG industry empowered women

FILE PHOTO: STAR

Over the past few decades, Bangladesh has emerged as a global hub for the ready-made garment (RMG) industry. The sector has played a pivotal role in transforming the socioeconomic landscape of the country. At the heart of this transformation is the empowerment of women, who make up the vast majority of the RMG workforce. A report by the International Labour Organisation (ILO) reveals that, as of 2020, our RMG sector employs around 32 lakh women. This sector's growth has created numerous job opportunities for Bangladeshi women, contributing to their economic empowerment while also playing a vital role in the growth of the economy.

The RMG industry has provided lakhs of women, particularly from rural areas, with their first formal employment opportunities. This shift from informal, often agricultural work, to formal employment in garment factories has had profound implications for their economic status and independence.

Earning a regular income has allowed women RMG workers to contribute to their household finances, often making them primary breadwinners. This financial independence has given them decision-making power within their families and communities. These women now have the means to invest in their children's education, healthcare, and better living conditions, leading to a positive cycle of development and improved quality of life.

Employment in the garment sector has also facilitated skills development. Many women enter the industry with little or no formal education. Through on-the-job training and experience, they acquire valuable skills in sewing, quality control, and production management. Some factories also offer literacy programmes and vocational training, further improving their capabilities and future employment prospects.

Beyond economic benefits, the RMG industry has been instrumental in fostering social empowerment of women in Bangladesh. By stepping into the workforce, women have challenged traditional gender roles and norms that often confined them to domestic duties. The presence of women in factories has gradually shifted societal perceptions of women's roles as well. As more women work outside home, the acceptance of women as economic contributors has increased.

Working in the garment industry has also facilitated greater social mobility for women. Employment has enabled women to move from rural areas to urban centres, exposing them to diverse cultures and ideas. This exposure has broadened their horizons, increased their awareness of rights and opportunities, and inspired many to pursue further education and career advancements.

However, this growth is not without challenges. Workers often face issues such as stagnated wages, long working hours, and challenging working conditions. These challenges have also sparked advocacy and efforts to improve labour rights and working conditions in the industry. Indeed, the rise of the garment sector has led to the growth of labour unions and advocacy groups fighting for workers' rights. These organizations have been instrumental in negotiating better wages, improving working conditions, and ensuring compliance with the labour law. Women workers have played a crucial role in these movements, often leading protests and strikes to demand fair treatment.

The Bangladesh government, along with international bodies and NGOs, has taken steps to address these challenges. The government had to take initiatives such as the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety to improve factory safety standards following the Rana Plaza disaster in 2013. Additionally, programmes aimed at promoting fair wages and gender equality in the workplace have been introduced, further supporting the rights of female garment workers.

Women's increased economic participation has contributed to community development. As women invest in their families and communities, there is a noticeable improvement in areas such as health, education, and infrastructure. Empowered women are more likely to participate in community decision-making processes, advocating for issues such as clean water, sanitation, and better schools.

I truly believe that Bangladesh's RMG industry is a testament to the transformative power of employment in empowering women and lifting them out of poverty. While challenges remain, the strides made in economic and social empowerment, skills development, and advocacy for rights are undeniable. As the industry continues to evolve, it holds the potential to further enhance the lives of crores of women, driving not only the economic growth, but also social progress and gender equality in Bangladesh.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

Bangladesh may see fastest growth in cotton consumption: report

Bangladesh and Vietnam are expected to experience the fastest growth in cotton consumption and trade over the decade due to their competitive labour and production costs, which will lead to significant expansions in their milling capacities, according to a global report...

www.newagebd.net

Bangladesh may see fastest growth in cotton consumption: report
Moinul Haque 15 July, 2024, 22:42

A worker oversees a cotton processing machine at a factory in Habiganj recently. Bangladesh and Vietnam are expected to experience the fastest growth in cotton consumption and trade over the decade due to their competitive labour and production costs, which will lead to significant expansions in their milling capacities, according to a global report. | New Age photo

Bangladesh and Vietnam are expected to experience the fastest growth in cotton consumption and trade over the decade due to their competitive labour and production costs, which will lead to significant expansions in their milling capacities, according to a global report.

The report titled 'OECD‑FAO Agricultural Outlook 2024‑2033' said that over the next decade, global consumption of raw cotton was projected to increase by 1.7 per cent annually, driven by population growth and rising incomes in middle- and low-income countries.

The demand in the textiles and apparel sectors, as well as competition from substitutes, would remain key factors influencing raw cotton consumption, said the outlook, a collaborative effort by the Organisation for Economic Co-operation and Development and the Food and Agriculture Organisation of the United Nations.

The report projected that the global cotton trade would expand by 2.1 per cent annually, reaching 12.4 million tonnes by 2033, driven largely by increased mill use in Bangladesh and Vietnam, which heavily rely on imports to support their expanding textile sectors.

It also said that imports of raw by Bangladesh and Vietnam would grow by over 3 per cent annually, significantly contributing to global trade dynamics.

The OECD-FAO Agricultural Outlook said Bangladesh's mill consumption of cotton would increase to 2.42 million tonnes, which was 1.71 million tonnes in 2023.

The report showed that the country's import share of cotton would be 18 per cent in 2023 while the China would gain the highest 23 per cent of global share.

The United States would remain the largest exporter, with its share of world trade reaching 31 per cent by 2033, it mentioned.

Global cotton production is projected to steadily increase to 29 million tonnes by 2033, marking a 17-per cent rise from 21.14 million tonnes in the base year of 2004.

The growth will primarily stem from key producers; India is expected to contribute approximately 38 per cent to the global increase, followed by the United States (27 per cent) and Brazil (21 per cent).

The report also said that the reliance on imports, coupled with the projected growth in consumption, underscored Bangladesh's crucial role in the global cotton market.

According to the outlook, the phase-out of the Multi-Fibre Arrangement in 2005 initially favoured Chinese textile producers, but Bangladesh and Vietnam saw robust growth in their textile industries driven by abundant labour, low production costs and government support measures.

It said that Vietnam's accession to the World Trade Organisation in 2007 and significant foreign direct investments, particularly from Chinese entrepreneurs, further boosted its textile sector.

Additionally, free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement facilitated greater market access for Vietnamese textile exports.

Similar foreign investments and FTAs contributed to Bangladesh's emergence as a major global player in textiles.

Furthermore, the report also said that the US-China trade dispute increased mill use in Bangladesh and Vietnam, driving their textile industry expansions.

In Bangladesh, investments in spinning capacity driven by increasing domestic demand for yarn and fabric are expected to raise cotton fibre consumption by 3.3 per cent annually, solidifying its position in the global textile market and significantly contributing to its economic development, the outlook observed.

Despite this shift, China is expected to retain its position as the largest cotton processing country in 2033, followed by India, with annual consumption growth projected at 0.9 per cent and 1.5 per cent respectively over the next decade.

According to the outlook, the global cotton production would grow as a result of improved yields and higher compliance with sustainable standards.

The leading producing countries — India, China, the United States, Brazil and Pakistan — are expected to account for about 77 per cent of global output by 2033.

The report identified that over the past decades, global demand for textiles fibres has sharply increased, driven mainly by population and income growth, particularly in low- and middle-income countries and the expanding demand has been largely supplied by chemical fibres.

Synthetic fibres offered diverse advantages over cotton, such as durability, wrinkle resistance, moisture-wicking properties and competitive pricing, leading the textile manufacturing industry to increasingly favour them over cotton fibres, it said.

As a result, global consumption of natural fibres, including cotton, reached its peak at 26.5 million tonnes in 2007, but declined to approximately 24.4 million tonnes in the period from 2021 to 2023.

Since the early 1990s, non-cotton fibres have steadily gained market share, reaching 78.2 per cent in 2023, while the cotton's share declined to 21.8 per cent, the report showed.

It also said that per capita consumption of non-cotton fibres continued to rise significantly, contrasting with stagnant or declining trends in per capita cotton consumption in recent years.

According to the Bangladesh Textile Mill Association, the country's cotton imports in the financial year 2023-24 stood at 7.5 million bales.​

 

[Saif]

Garment sector reeling from shutdown

DBL Group, a leading garment exporter, usually ships apparel worth around $50 million each month.

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Garment sector reeling from shutdown

Most garment and textile factories reopened yesterday after being kept shut for four days due to violence centring the quota reform movement and the imposition of a nationwide curfew. The units are now racing to meet the strict lead times set by international buyers. The photo was taken at a garment factory in the capital's Jurain yesterday. Photo: Palash Khan

DBL Group, a leading garment exporter, usually ships apparel worth around $50 million each month.

But this month, their shipment will fall by at least 30 percent since production had to be halted following a spell of violence centring the quota reform movement and the government's imposition of a nationwide curfew.

Being a large group, DBL has its own production facilities, including spinning and dyeing units alongside factories for production of garments and accessories.

However, all their units were shut because of the violence over the past four days. At the same time, a few goods-laden trucks were waiting at the Chattogram port to unload export cargo.

"So, the losses are enormous," said DBL Group Managing Director MA Jabbar, adding that the biggest blow was the dent to the confidence of international clothing retailers and brands.

DBL Group is not alone.

As production remained halted for four days, all small, medium and large garment exporters faced similar challenges.

Moreover, business owners could not contact international business partners because of an internet blackout since July 18. However, as broadband internet services gradually began to come back online since Tuesday night, the situation has been improving.

The impacts of the shutdown were felt more acutely by small and medium factories, which cannot afford big losses given their comparatively weaker financial strength.

A factory owner in Rupganj, who ships T-shirts and polo shirts worth $6 million each month to American and Canadian retailers, could not timely receive raw materials, sourced from both at home and abroad.

The unit needs at least $3 million worth of raw materials each month, including yarn, which accounts for 70 percent of the total raw material requirement, chemicals and fabrics.

Although the factory owner placed orders with a few local spinners and millers for yarn and fabrics, they could not supply the raw materials as transport operators stayed off the roads fearing violence.

Effectively, the shutdown put factory owners in a double bind because they could neither contact buyers nor continue production.

This is the peak time to confirm prices for goods to be shipped next summer and spring, but the owner could not send quotes online due to the internet blackout.

Now, more money will have to be spent since employees will have to work overtime in order to adhere to the strict lead time set by international buyers, the owner said, asking not to be named.

There were hopes that business would regain momentum from July onwards compared to previous seasons, when the impacts of the Covid-19 pandemic, Russia-Ukraine war, and high inflationary pressures took a toll on business. Instead, a new disruption has shaken up the sector, the owner added.

Syed M Tanvir, managing director of Pacific Jeans, a leading denim exporter based in Chattogram, shared a similar experience.

Tanvir declined to comment on details regarding losses, only stating that they were huge. He said their factories have been closed since Saturday, adding that the supply chain was also severely disrupted.

The lull in production at garment units has also adversely impacted those involved in the primary textile sector, including the main suppliers of yarn, fabrics and other raw materials.

Hundreds of tonnes of unsold yarn have piled up in mills due to the shutdown, transport operators' reluctance to carry goods and a fall in demand.

Fazlul Haque, managing director of Israq Spinning Mills, said he usually sells 100 tonnes of yarn each day. But unsold yarn began piling up before the beginning of the shutdown. At present, the situation has been exacerbated and there is a stockpile of over 2,000 tonnes of yarn at his factory.

Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), said huge losses were incurred, adding that an assessment was ongoing. The BTMA called a meeting of the mill owners today to get more information about losses from owners, he said.

However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has already completed its primary assessment of losses, saying that they amounted to Tk 6,400 crore over the past four days.

BGMEA President SM Mannan Kochi said that garment factories would have to pay around Tk 1,000 crore to workers despite no work being done over the past four days.

The amount of losses in the garments accessories sector is also high, he added.

According to the BGMEA, nearly 950 trucks with exportable garment items were waiting at the Chattogram port to be unloaded.

Garment and textile mills resumed operations yesterday, with workers and officials using their official identity cards as curfew passes.​

 

[Saif]

RMG exporters in a race against time to offset losses

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

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RMG exporters in a race against time to offset losses

Photo: Star/File

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

Following the shutdown of factories and mills for four days, apparel exporters are planning to keep their production units open on Friday and pay overtime bills to meet lead times as they believe increasing productivity can offset a portion of losses.

Due to the situation over the past week, suppliers had to cancel hundreds of pre-scheduled meetings and factory inspections. They also could not communicate with foreign buyers due to an internet blackout, which began on July 18 and persisted until July 23.

The disruption in production, delivery and shipment took place at a time when the sector is struggling to recover its international trade.

Bangladesh's garment shipments fell 5.2 percent to $33.04 billion in the July-May period of the last fiscal year compared to the same period a year prior, according to data from the Bangladesh Bank.

International buyers are also piling pressure on apparel exporters to ship goods quickly as they have to fill their stores with new designs ahead of Christmas, the biggest retail sales extravaganza in the Western world.

The months of July, August and September are the peak time for the shipment of goods to be sold during Christmas.

"Buyers do not want to hear about any crisis. They want on-time delivery of goods," said a garment exporter who ships T-shirts and polo shirts to the US and Canada.

The global apparel supply chain has been struggling to recover from the severe fallout of the Covid-19 pandemic, the Russia-Ukraine war, and historic inflationary pressure on Western consumers.

It was dealt another blow this year in the form of the Red Sea crisis, which triggered commercial vessel operators to nearly double shipping charges.

The shipment of goods from Bangladesh to Europe is taking at least a month more than in previous times due to the crisis, which has forced commercial vessel operators to forgo the traditional route through the Suez Canal and navigate an additional 3,500 kilometres around the Cape of Good Hope in Africa.

As such, in many cases, international clothing retailers and brands are asking for expensive air shipments so goods can reach stores timely.

If a kilogramme of garment is sent to Europe through waterways, it costs around 10 cents or less. But if the same shipment is sent through air from Dhaka airport, it costs more than $4.

An apparel exporter, asking not to be named, said: "I have planned to keep my factory open on Friday so I can ship goods timely and avoid work order cancellations and expensive air shipment."

However, another exporter said it would be difficult to cater to the work orders because of a raw material shortage, which happened because goods could not be transported to factories over the past week.

Faruque Hassan, managing director of Giant Group, said his American buyers could not place work orders during the past week. So, he sent two of his officers to the US so that he does not lose business.

It will take more than one month to overcome the losses of one week, he lamented, adding that port, customs and transport services should be expedited so the business can run smoothly.

"My buyers are yet to seek discounts or cancel orders, but I am sure that I have to make a lot of air shipments to meet deadlines," said another major exporter, seeking anonymity.

Overtime is the main measure to recover losses, he said, adding that customers are not willing to accept any delays in shipment as they need goods quickly to prepare for Christmas.

Mohammad Ali Khokon, president of Bangladesh Textile Mills Association, said the primary textile sector, which includes spinning, weaving, dyeing and finishing activities, lost $58.8 million over the last six days because of shutdown and internet blackout, which is about $9.8 million per day.

Although buyers are not cancelling work orders or seeking discounts, they are putting a pause on work orders or delaying them, which is creating a stockpile of yarn and fabrics in mills.

Khokon also sought a government waiver from extra port charges during the shutdown.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association, said he would sit in a meeting in a day or two with the international buyers and request them to not cancel work orders or seek discounts.​

 

[Bilal9]

RMG exporters in a race against time to offset losses

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

www.thedailystar.net

RMG exporters in a race against time to offset losses
View attachment 7097
Photo: Star/File

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

Following the shutdown of factories and mills for four days, apparel exporters are planning to keep their production units open on Friday and pay overtime bills to meet lead times as they believe increasing productivity can offset a portion of losses.

Due to the situation over the past week, suppliers had to cancel hundreds of pre-scheduled meetings and factory inspections. They also could not communicate with foreign buyers due to an internet blackout, which began on July 18 and persisted until July 23.

The disruption in production, delivery and shipment took place at a time when the sector is struggling to recover its international trade.

Bangladesh's garment shipments fell 5.2 percent to $33.04 billion in the July-May period of the last fiscal year compared to the same period a year prior, according to data from the Bangladesh Bank.

International buyers are also piling pressure on apparel exporters to ship goods quickly as they have to fill their stores with new designs ahead of Christmas, the biggest retail sales extravaganza in the Western world.

The months of July, August and September are the peak time for the shipment of goods to be sold during Christmas.

"Buyers do not want to hear about any crisis. They want on-time delivery of goods," said a garment exporter who ships T-shirts and polo shirts to the US and Canada.

The global apparel supply chain has been struggling to recover from the severe fallout of the Covid-19 pandemic, the Russia-Ukraine war, and historic inflationary pressure on Western consumers.

It was dealt another blow this year in the form of the Red Sea crisis, which triggered commercial vessel operators to nearly double shipping charges.

The shipment of goods from Bangladesh to Europe is taking at least a month more than in previous times due to the crisis, which has forced commercial vessel operators to forgo the traditional route through the Suez Canal and navigate an additional 3,500 kilometres around the Cape of Good Hope in Africa.

As such, in many cases, international clothing retailers and brands are asking for expensive air shipments so goods can reach stores timely.

If a kilogramme of garment is sent to Europe through waterways, it costs around 10 cents or less. But if the same shipment is sent through air from Dhaka airport, it costs more than $4.

An apparel exporter, asking not to be named, said: "I have planned to keep my factory open on Friday so I can ship goods timely and avoid work order cancellations and expensive air shipment."

However, another exporter said it would be difficult to cater to the work orders because of a raw material shortage, which happened because goods could not be transported to factories over the past week.

Faruque Hassan, managing director of Giant Group, said his American buyers could not place work orders during the past week. So, he sent two of his officers to the US so that he does not lose business.

It will take more than one month to overcome the losses of one week, he lamented, adding that port, customs and transport services should be expedited so the business can run smoothly.

"My buyers are yet to seek discounts or cancel orders, but I am sure that I have to make a lot of air shipments to meet deadlines," said another major exporter, seeking anonymity.

Overtime is the main measure to recover losses, he said, adding that customers are not willing to accept any delays in shipment as they need goods quickly to prepare for Christmas.

Mohammad Ali Khokon, president of Bangladesh Textile Mills Association, said the primary textile sector, which includes spinning, weaving, dyeing and finishing activities, lost $58.8 million over the last six days because of shutdown and internet blackout, which is about $9.8 million per day.

Although buyers are not cancelling work orders or seeking discounts, they are putting a pause on work orders or delaying them, which is creating a stockpile of yarn and fabrics in mills.

Khokon also sought a government waiver from extra port charges during the shutdown.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association, said he would sit in a meeting in a day or two with the international buyers and request them to not cancel work orders or seek discounts.​

It's only been about a week's worth of delays, I am sure the factories will bounce back into production nicely.

What will not be recovered however is the lives lost because of this lady's bullheaded attitude and greed. People will not forget this easily. There will be a high cost exacted from her and her sponsors.

 

[Saif]

It's only been about a week's worth of delays, I am sure the factories will bounce back into production nicely.

What will not be recovered however is the lives lost because of this lady's bullheaded attitude and greed. People will not forget this easily. There will be a high cost exacted from her and her sponsors.

I wonder why the Bangladeshi entrepreneurs are not establishing factories to manufacture textile machineries. Textile is the largest industry in Bangladesh and the annual import of textile machineries from abroad stands at $4 billion. So, local production of textile machineries could save the country $4 billion a year.

 

[Saif]

RMG factories resort to weekend production to minimise loss

The garment and textile millers kept factories open on last Friday in an effort to meet the sharp deadline set by their international retailers, as the latest weeklong countrywide violence ate up four vital days of their peak production season.

www.thedailystar.net

RMG factories resort to weekend production to minimise loss

Garment makers are desperately trying to meet deadlines as July, August and September are the peak season for shipping goods to buyers. Photo: Palash Khan

The garment and textile millers kept factories open on last Friday in an effort to meet the sharp deadline set by their international retailers, as the latest weeklong countrywide violence ate up four vital days of their peak production season.

Amid the perennial inadequate supply of gas and power outages, last week's internet shutdown came as a major challenge for the manufacturers, as they failed to send the inspection reports to their buyers online, which they have to do regularly.

The local garment manufacturers are frantically trying to cover up the losses as July, August and September are the peak months for shipping goods to the western buyers, which they will sell in the upcoming Christmas, the biggest retail sales season in the western world.

Many owners are also running their factories for additional hours, using overtime to adhere to the strict lead time in an effort to avoid going for expensive air shipments, giving big discounts or cancellation of work orders from the buyers.

The violence centring the quota reform movement eroded the foreign retailers' confidence in Bangladesh to a great extent, as many of the local garment suppliers have received 30 percent to 40 percent fewer work orders than usual as the buyers are following a go-slow policy.

Consequently, the international retailers and brands did not place fresh work orders and also did not confirm the price level for the goods meant for the next summer and spring, which they were supposed to do last week, the exporters said.

"I have been running my unit even on Friday as I have counted a huge loss because of the four-day factory shutdowns following the violence," said a garment exporter asking not to be named.

However, the exporter could not run the factory on Friday in full swing because of long power cuts.

"I am worried about how I will pay the workers' July salary as I made a loss this month and I failed to confirm goods' prices due to the internet disruption," the exporter said.

Shaif Ullah Mansur, managing director of Chattogram-based Mellow Fashions Ltd, said he used to run night shifts in his factory in peak production seasons when pressure from the buyers increases.

But this year he preferred not going for night shifts amid fears of being affected by violence although the work pressure is immense now. Mansur said the monthly income from his 800-worker factory is Tk 5 crore and he lost Tk 1 crore of his monthly income because of the weeklong violence.

"My American buyers are now asking me whether I am capable of supplying the goods in time if new work orders are placed."

Mohammad Zaber, managing director of Noman Group, the single largest textile and garment exporter of Bangladesh, said his company lost 40 percent of the monthly work orders because of the factory and mill shutdown and internet suspension.

This is the peak season for Zaber's company for the confirmation of work orders for the next summer and spring seasons.

He said his company has been communicating with the buyers for a time extension for shipment. Moreover, the shipment time extension does not end the problem, he said.

The commercial shipping vessels, which carry the export goods, have to follow a tight global schedule to meet the increased competitiveness since the beginning of the Covid-19 pandemic, the Russia-Ukraine war and the Red Sea crisis, he said.

Instant communication is very important in garment trade and both the buyers and suppliers use WhatsApp now, but the sad part is the service is down now, he added.

Two garment exporters said they lost one million pieces of garment production each during the last weeklong violence and now he is working day and night to cover up the losses and ship goods timely.

Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, said many factory managements ran their units on Friday but still many of them will have to face air shipment.​

 

[Saif]

Govt to waive port demurrage for RMG raw materials

The shipping ministry yesterday announced that it would waive demurrage charges for imported containers carrying accessories and raw materials for the readymade garment sector which could not be delivered from the Chattogram port as operational activities were hampered for the past seven days.

www.thedailystar.net

Govt to waive port demurrage for RMG raw materials

The shipping ministry yesterday announced that it would waive demurrage charges for imported containers carrying accessories and raw materials for the readymade garment sector which could not be delivered from the Chattogram port as operational activities were hampered for the past seven days.

Violence centring the quota reform movement, the government's imposition of a nationwide curfew, and a five-day internet blackout prevented the goods from being delivered on time from the country's premier seaport.

A press release issued by the shipping ministry's Senior Information Officer Md Jahangir Alam provided the update, but it did not specify a timeframe.

State Minister for Shipping Khalid Mahmud Chowdhury announced the decision at a meeting with a delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at his office in Dhaka yesterday, the release said.

BGMEA President SM Mannan led the delegation.

During a visit to the port on July 25, the state minister assured the media that the government would waive demurrage charges for delayed delivery of imported containers.

Addressing the meeting with the BGMEA yesterday, the state minister said the port remained operational despite the turmoil of the past week.

But due to the internet blackout, which affected the functioning of the port and customs authority, garment exporters failed to take timely delivery of their import consignments from the port, said the minister.

He said the decision was taken with the aim of assisting RMG factories to continue import and export activities through the port and ensure export shipments within the lead time fixed by the buyers.

BGMEA Vice-President Rakibul Alam, who was present at the meeting, told The Daily Star that the waiver would be effective for import containers that could not be taken out after the expiry of a four-day free stay.

Imported containers are allowed to stay at the port yards free of charge for the first four days after being unloaded from vessels.

For a 20-foot loaded container, the port charges demurrage at $6 per day during the first week following the four free days. It then charges $12 each day during the second week. From then onwards, it charges $24 per day.

For a 40-foot container, the charges are double.

Chittagong Port Authority (CPA) Secretary Md Omar Faruk said they heard about the decision but were yet to get an official letter in this regard.

Upon getting an official decision, the port authority will comply, he said.

Cargo and container delivery from the port yards gradually came to a halt since July 17 due to the volatile situation before the internet blackout, which began on July 18, caused further disruptions.

The lack of assessment facilities due to the absence of the internet as well as the countrywide curfew created a container congestion at the port.

On July 22, the Chattogram port was encumbered with 42,150 TEUs (twenty-foot equivalent units) of containers, occupying over 79 percent of the port's storage capacity of 53,118 TEUs.

Smooth operations of a port are hampered if containers occupy over 60 percent of its storage capacity, port officials said.​

 

[Bilal9]

I wonder why the Bangladeshi entrepreneurs are not establishing factories to manufacture textile machineries. Textile is the largest industry in Bangladesh and the annual import of textile machineries from abroad stands at $4 billion. So, local production of textile machineries could save the country $4 billion a year.

Some of the basic textile machinery (simple looms) are already made locally (for ganjee and lungi business). Mid-grade and of course Highest grade looms (waterjet and air jet looms) are all made overseas but some mid-grade looms are also assembled locally.

Making or assembling machinery locally has to be cost effective (for the end result, compared to imports) and when China is such a low-cost producer already for mid and higher grade looms, it doesn't encourage local Bangladeshi entrepreneurs to add value by making high grade textile loom parts or machines locally.

The primary reason is that high grade machinable steel and other parts making inputs (even CNC machining centers to make precision parts) are still cheaper in China because they are locally sourced from in-country suppliers there. Even in India these inputs are more expensive locally, so the inputs (such as high grade alloys and steel bars/ingots/rod stock) are all imported from China to make machines and parts in India.

The way Indians encourage local production of looms and parts of looms is by assigning very high import tariff on mfd. and finished machinery, especially from China. Bangladesh does not do so. But maybe we need to (like how we boldly did for the cellphone mfrs. by increasing tariff for finished cellphone imports).

Currently the Bangladeshi textile loom importer lobby is quite strong and they exert pressure on NBR and textile ministry not to heavily tax textile machinery imports which would actually encourage local loom and knitting machine manufacturing. That needs to change and it will when larger companies like Meghna, Energypac and other light engineering firms start pressuring the govt. to change tariff policy.

 

[Saif]

Some of the basic textile machinery (simple looms) are already made locally (for ganjee and lungi business). Mid-grade and of course Highest grade looms (waterjet and air jet looms) are all made overseas but some mid-grade looms are also assembled locally.

Making or assembling machinery locally has to be cost effective (for the end result, compared to imports) and when China is such a low-cost producer already for mid and higher grade looms, it doesn't encourage local Bangladeshi entrepreneurs to add value by making high grade textile loom parts or machines locally.

The primary reason is that high grade machinable steel and other parts making inputs (even CNC machining centers to make precision parts) are still cheaper in China because they are locally sourced from in-country suppliers there. Even in India these inputs are more expensive locally, so the inputs (such as high grade alloys and steel bars/ingots/rod stock) are all imported from China to make machines and parts in India.

The way Indians encourage local production of looms and parts of looms is by assigning very high import tariff on mfd. and finished machinery, especially from China. Bangladesh does not do so. But maybe we need to (like how we boldly did for the cellphone mfrs. by increasing tariff for finished cellphone imports).

Currently the Bangladeshi textile loom importer lobby is quite strong and they exert pressure on NBR and textile ministry not to heavily tax textile machinery imports which would actually encourage local loom and knitting machine manufacturing. That needs to change and it will when larger companies like Meghna, Energypac and other light engineering firms start pressuring the govt. to change tariff policy.

Your post is very informative. Thank you

 

[Saif]

Apparel retailers express concern about shipment delay

International clothing retailers and brands yesterday expressed concern about the timely shipment of goods following the latest spell of violence stemming from the quota reform movement, imposition of curfew and five-day internet blackout, which crippled economic activities.

www.thedailystar.net

Apparel retailers express concern about shipment delay

The disruption in production at garment factories caused by violence stemming from the quota reform movement as well as a nationwide curfew and internet blackout has created anxiety among foreign buyers, who are desperate to receive timely shipment of goods ahead of the Christmas season. PHOTO: STAR/FILE

International clothing retailers and brands yesterday expressed concern about the timely shipment of goods following the latest spell of violence stemming from the quota reform movement, imposition of curfew and five-day internet blackout, which crippled economic activities.

In light of the situation, retailers urged leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to ensure timely shipment of goods to be sold during the Christmas season.

They also demanded that the government quickly restore high-speed internet and broadband services to allow quick communications with their headquarters abroad.

They made the demands at a meeting with BGMEA leaders at the trade body's office in the capital's Uttara.

Although it was a regularly scheduled meeting between the BGMEA and buyers, important issues came to the fore due to the recent crisis.

For example, buyers called for addressing the backlog and congestion of containers at the Chattogram and Benapole ports so that export activities could run smoothly, according to a senior BGMEA leader who was present at the meeting.

Their concerns had been compounded by the fact that factories faced a complete shutdown for four days, especially as the months of July, August and September are the peak time for the shipment of goods to be sold during Christmas, the biggest retail sales extravaganza in the Western world.

It is also the peak time to confirm the prices of goods to be shipped next summer and spring.

The disruption in production, delivery and shipment took place at a time when Bangladesh's exports were trending downwards.

Overall exports declined from $39.69 billion in the July-May period of FY23 to $37.35 billion in the same period of FY24, according to data from the Bangladesh Bank.

In the same period, Bangladesh's garment shipments fell 5.2 percent to $33.04 billion.

At present, many garment factories cannot continue timely production due to a lack of raw materials like yarn, which could not be transported to factories because of the volatile situation over the past week.

Furthermore, suppliers had to cancel hundreds of pre-scheduled meetings and factory inspections over the past week.

Almost all the major garment sourcing companies were present at the meeting, including representatives from retailers like H&M, M&S and Bestseller.

They expressed concern about difficulties transporting goods as well as shipments from Chattogram port while also lamenting the slow internet speed, which hindered communication with their headquarters.

After the meeting, BGMEA president SM Mannan Kochi said retailers and brands assured them that they would not seek discounts or air shipments or cancel work orders.

Kochi added that production had resumed at factories while internet services and port operations were restarted after meetings with the prime minister, ICT minister, home minister and shipping minister over the last few days.

The BGMEA chief also said retailers were a bit worried as they want fast internet and smooth operations in ports.

The garment sector incurred production losses amounting to Tk 6,400 crore during the four-day shutdown. Additionally, Tk 1,000 crore will have to be paid to workers although there was no production in the units.

Kochi urged the government to keep the garment sector out of the purview of curfews or any kind of political activity considering the importance of the sector.

Last week, Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association, said the primary textile sector, which includes spinning, weaving, dyeing and finishing activities, lost $58.8 million in six days due to the shutdown and internet blackout, which is about $9.8 million per day.

Although buyers are not cancelling work orders or seeking discounts, they are putting a pause on work orders or delaying them, which is creating a stockpile of yarn and fabrics in mills.​

 

[Saif]

Global RMG buyers concerned over business disruption

Global apparel buyers and retailers on Monday expressed concerns over the disruption of business activities with Bangladesh, citing the ongoing issues with internet connectivity...

www.newagebd.net

Global RMG buyers concerned over business disruption
Staff Correspondent 29 July, 2024, 23:00

New Age file photo

Global apparel buyers and retailers on Monday expressed concerns over the disruption of business activities with Bangladesh, citing the ongoing issues with internet connectivity.

Despite the restoration of internet connection after a blackout amid unrests over the quota reform movement in the country, the connection remained slow, buyers said at a meeting with leaders of the Bangladesh Garment Manufacturers and Exporters Association at its office at Uttara in the capital Dhaka.

The buyers also urged the apparel manufacturers to ensure the timely shipment of goods and restore high-speed internet and broadband connections to facilitate communication with their headquarters.

According to the meeting sources, the global buyers also discussed about the image of Bangladesh over the recent violence centring on quota reform movement in which more than 200 people were killed.

The buyers requested the RMG sector leaders to work proactively to prevent the ongoing situation from affecting Bangladesh's eligibility for the GSP+ benefit in its largest export market, the European Union.

They emphasised that eligibility for the market access facility would depend on addressing several soft issues, meeting sources said.

The regional head of British multinational retailer Marks and Spencer, Shwapna Bhowmick, Swedish fast fashion brand H&M regional country manager Ziaur Rahman, along with representatives from Inditex and Bestseller were present in the meeting.

The BGMEA and the global buyers sought mutual support to mitigate the impact of the recent business disruption.

BGMEA vice-presidents Syed Nazrul Islam, Arshad Jamal Dipu, Abdullah Hil Rakib and Miran Ali, among others, were present.

Following the meeting, a buyer representative said that they were struggling to communicate with their respective headquarters even after the internet connection resumed on July 24.

The complete internet shutdown resulted in a total breakdown of communication and this disruption could negatively impact the country's image, he said.

Another buyers' representative said that they were facing difficulties in shipping containers to the ports as rail communication was yet to resume.

A BGMEA director told New Age that internet blackout was the prime concern for the buyers.

The buyers said that the recent internet cutoff had given a signal to the global stakeholders that Bangladesh could be disconnected from global communication any time.

Following the meeting, BGMEA president SM Mannan Kochi said that international retailers and brands assured the BGMEA that they would not seek any discounts, air shipments or cancellation of work orders due to the recent violence and production suspension.

During the meeting, Kochi also informed buyers about BGMEA's engagement with the government to restore stability in the industry and highlighted the significant loss of production and shipment during the closure, which caused severe financial and supply chain impacts.

'I urge everyone to consider the extraordinary circumstances and show considerate approach towards their suppliers,' the BGMEA president said.

Some of local apparel makers told New Age that they had decided to travel to various export destinations to directly communicate with their respective buyers, assuring them of timely production and shipments after the reopening of factories and other services.

They said that the buyers were worried and they (buyers) wanted to understand both the current situation and future prospects.

Shovon Islam, managing director of Sparrow Apparels Ltd, said that he planned to travel to the United States next week to meet with two major buyers who have been silent about new work orders.

He said that buyers were anxious and wanted clarity on what was happening and what would happen next.​

 

[Bilal9]

Your post is very informative. Thank you

You're welcome, as always.

 

[Saif]

Internet woes hit garment exports as buyers fret

Global apparel buyers on Monday expressed concern over the Internet connection, which is still slow after the restoration of a weeklong cutoff during the violent anti-quota movement. They urged sector leaders and suppliers to ensure timely goods shipments and restore high-speed Internet and broadb

thefinancialexpress.com.bd

Internet woes hit garment exports as buyers fret
Global fashion brands sound alarm over BD supply chain disruptions
Monira Munni
Published :
Jul 30, 2024 09:31
Updated :
Jul 30, 2024 10:21

Global apparel buyers on Monday expressed concern over the Internet connection, which is still slow after the restoration of a weeklong cutoff during the violent anti-quota movement.

They urged sector leaders and suppliers to ensure timely goods shipments and restore high-speed Internet and broadband connections to enable effective communication with their headquarters, according to sources.

At a meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders at BGMEA headquarters in Dhaka's Uttara, the buyers also appealed to authorities and sector leaders to take proactive steps to prevent the ongoing situation from jeopardising Bangladesh's eligibility for GSP plus benefits in its largest export market, the European Union.

Ziaur Rahman, regional country manager of Swedish fast fashion clothing company H&M, Shwapna Bhowmick, regional head of British multinational retailer Marks and Spencer (M&S) and representatives from Inditex and Bestseller attended the meeting.

BGMEA President SM Mannan Kochi, vice-presidents Syed Nazrul Islam, Arshad Jamal Dipu, Abdullah Hil Rakib and Miran Ali were also present.

The BGMEA and buyers' forum pledged mutual support to mitigate the impact of recent disruptions, meeting sources said.

Speaking anonymously after the meeting, a buyer representative told The Financial Express that communication with headquarters remained problematic despite the Internet resumption on 24 July following a week-long blackout.

"Even during previous crises like Covid-19 and other political turmoils, the readymade garment industry was exempt from restrictions and high-speed Internet was available. But this time, the full cutoff of the Internet resulted in no communication," the representative said, adding that the overall communication breakdown could damage the country's image.

Another representative informed the meeting of difficulties in shipping containers to ports as rail communication is yet to resume.

Meeting sources said the GSP plus issue was also discussed, with participants urging BGMEA leaders to work closely with the government.

After the meeting with international retailers and brands, BGMEA President SM Mannan Kochi said the retailers and brands assured them that they will not seek any discount, air shipment or cancellation of work orders because of the latest spell of violence and suspension of production.

Earlier, he requested the buyers for the same issues.

Mr Kochi informed the meeting about BGMEA's engagement with the government to restore stability in the industry and added that they lost significant production and shipment during the closure, causing severe financial and supply chain impact at their end.

He said he assured the buyers that they were committed to meeting their expectations and doing everything within their limits to mitigate the impact of the recent disruptions.

"I urge them all to consider the extraordinary circumstances and show understanding towards their suppliers," he said, adding that any measures due to unexpected delay would only exacerbate challenges they were already facing.

When asked, H&M Regional Country Manager in Dhaka Ziaur Rahman said that H&M would not seek discounts for delays caused by factory closures and port congestion due to the Internet outage.

Meanwhile, local exporters and suppliers are now travelling to export destinations to reassure buyers of timely production and shipments following the reopening of factories and other services.

Talking to the FE, several exporters said buyers were concerned about the current and future situation, expressing worries about timely garment shipments due to violence and port delays.

Shovon Islam, managing director of Sparrow Apparels Ltd, told the FE that buyers were worried about the current situation and future developments.

He said he would travel to the US next week mainly to meet with two major buyers who had been silent about new work orders.

"I was expecting to see an increase in their orders, but they have not said anything specific. So I will fly over to convince them, as there were no delays in their previous shipments," he said.

Another exporter said a $1.5 million shipment from 14 July was still stuck at Benapole port due to customs clearance issues. They had sent an official to India to meet with a buyer who sourced about $25 million from their company.​

 

[Saif]

US cos shifting from BD in apparel sourcing

American fashion companies are actively diversifying their apparel- sourcing base and exploring opportunities especially in India amid growing risks and market uncertainty in Bangladesh, says a latest US study. It cites shipping delays and supply-chain disruptions and 'managing geopolitics and oth

thefinancialexpress.com.bd

US cos shifting from BD in apparel sourcing
Monira Munni
Published :
Jul 31, 2024 01:04
Updated :
Jul 31, 2024 01:04

American fashion companies are actively diversifying their apparel- sourcing base and exploring opportunities especially in India amid growing risks and market uncertainty in Bangladesh, says a latest US study.

It cites shipping delays and supply-chain disruptions and 'managing geopolitics and other political instability' related to sourcing which have newly emerged among US brands and retailers as top five concerns in 2024.

They consider India as more competitive than most other Asian suppliers regarding vertical-integration capability, manufacturing flexibility, and agility.

"While China (100-percent utilization rate) and Vietnam (89-percent utilization rate) still lead, for the first time since 2014 we conducted the survey, more respondents reported sourcing from India (89-percent utilization rate) than from Bangladesh (86 per cent utilization rate)," reads the report.

India in 2024 ranked second from fourth in 2023 while Bangladesh ranked down to fourth position from third last year.

Titled '2024 Fashion Industry Benchmarking Study', the study report also reveals that nearly 60 percent of respondents plan to expand apparel sourcing from India over the next two years, exceeding the planned expansion from any other Asian country.

By leveraging its more advanced local textile-manufacturing capability, India's apparel exports to the United States relied much less on imported components than economically developed countries such as Bangladesh, Cambodia, and Vietnam, according to the report.

Additionally, as India is elevated as a strategic partner with the United States, sourcing from there "is perceived as involving relatively lower geopolitical risks".

On the other hand, about 48 per cent of respondents expressed an interest in expanding apparel sourcing from Bangladesh over the next two years, down from 52 per cent in 2023 and 58 per cent in 2022.

"The high social-compliance risks involved in sourcing from the country remained a key concern for respondents."

Citing example, it says the high-profile labour protests over the minimum wage increase in late 2023 brought Bangladesh's social- responsibility record in the garment sector back into the news headlines.

The report has quoted one respondent as commenting, "We monitor the situation closely. Meanwhile, as an apparel-sourcing base, Bangladesh is well-known for its price competitiveness. However, the country's export potential has been constrained by its limited product diversification beyond basic cotton items and knitwear."

Findings of the eleventh edition of the survey, jointly conducted by the United States Fashion Industry Association (USFIA) and the University of Delaware, were released Monday.

It surveyed executives from 30 leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the country, from April to June 2024.

The report shows that a higher percentage of respondents sourced from Cambodia and Indonesia (each 75 per cent utilization rate) and Pakistan (61 per cent utilization rate) this year, with the gaps in their utilization rates compared to the top tier significantly narrowing.

"The results reveal that US fashion companies have been diversifying their sourcing base beyond China, Vietnam, and Bangladesh, even though companies are not necessarily leaving Asia."

In comparison, almost all respondents, 97 per cent, to be specific, say at least 40 per cent of their total sourcing value or volume now comes from Asian countries other than China.

Specifically, respondents commonly placed about 11-30 percent of their sourcing orders in large-scale apparel-supplying countries such as Vietnam, Bangladesh, and India.

Limited by manufacturing capability, other smaller-scale Asian countries such as Cambodia, Indonesia, and Pakistan typically accounted for 1-10 percent of a fashion companies' total sourcing value or volume.

Asked about the buyer shift, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said it is concerning that Bangladesh is losing business to its competitors like China, Vietnam, India and Pakistan mainly because of high cost of production fuelled by high utility charges with severe shortage of energy, especially gas.

"Bangladesh competes only offering competitive prices whereas its competitors like China, India and Pakistan offer lowest price aggressively as they have their own raw materials," he said.

Local industry is facing high cost due to high gas and electricity prices while there is no adequate supply of energy while wages have been increased and interest rate goes up. All these erode their competitive edges.

"Even there is no prediction that the situation might improve and we have no options to minimize costs," he said, adding that situation is getting worse during last one year.

Another exporter says US big buyers are interconnected with their political parties and geopolitics matter in their sourcing patterns. And Bangladesh gets no duty benefit there.

Both the exporters expressed concern over the ongoing situation as they are getting queries from buyers over the present situation marked by anti-quota movement and violence-taming curfew.

Official figures from the Office of Textiles and Apparel (OTEXA) show that Bangladesh's readymade garment (RMG) exports to the US totalled $7.28 billion in 2023 in a 25.07-percent drop compared to the $9.72 billion earned in 2022.

Data showed that 2022 apparel earnings were almost double the 2013 earnings of $4.94 billion when the USA suspended its GSP facility for Bangladesh-made exportable goods on grounds of poor labour and safety standards immediately after the Rana Plaza building collapse.

Local RMG, however, does not enjoy the US GSP facility.

Bangladesh shipped clothing items worth $7.13 billion during January-December 2021, according to OTEXA data.

Bangladesh's apparel exports to the United States sustained a double-digit decline of 12.31 per cent in the first five months of 2024, reaching $2.90 billion.

On the other hand, India witnessed a 2.06-percent negative growth to earn US$2.08 billion during January-May period of 2024. Similarly, US apparel imports from India in 2023 had experienced negative growth of 21.42 per cent, reaching $4.46 billion. The figure was $5.69 billion in 2022, according to OTEXA data.​

 

[Saif]

Textile millers urge govt for loan relief amid financial crisis

Bangladesh Textile Mills Association (BTMA) has called on the government to provide lower interest rate loans and suspend loan instalments for six months to help the industry recover from significant losses caused by the recent unrest. In a letter addressed to Finance Minister Abul Hassan Mahmood

thefinancialexpress.com.bd

Textile millers urge govt for loan relief amid financial crisis
FE Online Desk
Published :
Aug 01, 2024 19:41
Updated :
Aug 01, 2024 19:41

Bangladesh Textile Mills Association (BTMA) has called on the government to provide lower interest rate loans and suspend loan instalments for six months to help the industry recover from significant losses caused by the recent unrest.

In a letter addressed to Finance Minister Abul Hassan Mahmood Ali, BTMA highlighted the severe impact of the unrest on the export sector. The letter noted that garment factories have faced extensive closures during the two weeks of instability, leading to the cancellation of purchase orders, reduced production, worker absenteeism, and raw material shortages, reports UNB.

The garment factory owners are struggling to stay afloat amid these challenges, the letter said. With the monthly payroll for July due, the situation is dire, it said.

BTMA proposed a one-year bank loan at a maximum interest rate of 2.0 per cent to cover the current month's salaries. They warned that without this financial support, there could be disruptions in paying workers' wages and allowances.

In addition to salary support, BTMA requested similar loan terms for paying July's gas and electricity bills.

The association also demanded a suspension of existing loan instalments, arguing that the heavily affected export-oriented industry cannot bear the burden of term loan repayments. They urged the government to make all term loans interest-free for the next six months and to suspend instalment payments.​

 

[Saif]

Deepening political crisis adds to RMG woes

The deepening political crisis in the country has exacerbated the woes of apparel industry, with exporters facing difficulties in operating factories, shipping goods, and booking work orders.

www.thedailystar.net

Deepening political crisis adds to RMG woes

The deepening political crisis in the country has exacerbated the woes of apparel industry, with exporters facing difficulties in operating factories, shipping goods, and booking work orders.

Garment exporters fear that if their workers join the ongoing movement across the country, it will further dent the sector, which was hamstrung for four days when factories were completely shuttered due to violence in mid-July.

The sector also suffered serious repercussions two weeks ago because of a five-day internet blackout, which hindered communications between garment suppliers and international retailers and brands, meaning they could not make business deals or hold meetings.

Last week, international retailers and brands expressed concern at a meeting with the leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), flagging the difficulties in communication with their headquarters and local suppliers.

They also pointed out that thousands of consignments were stuck at the Chattogram port for around a week.

Additionally, factories have been experiencing difficulties in booking work orders.

July, August and September are the peak months for the shipment of goods to be sold during the Christmas season. It is also when exporters book work orders for the following summer and spring seasons.

But because of the unrest that has persisted over the past two weeks, buyers are following a go-slow policy, which may continue in the near future.

For instance, the European Union (EU), Bangladesh's largest export destination, has already said it will not further negotiate with Bangladesh on a cooperation agreement in light of the present situation, which saw the deaths of at least 204 people, including students.

"We are apprehensive that garment workers may also be called to be involved in the movement," said former BGMEA President Md Shafiul Islam Mohiuddin.

Adding that hundreds of shipments could not be delivered on time, Mohiuddin said: "Altogether, we are in bad shape."

The garment sector, which was already struggling to recover from the severe fallouts of the Covid-19 pandemic, Russia-Ukraine war, Red Sea crisis and historic inflationary pressures on Western consumers, is now facing a domestic political crisis, he added.

Many have had to opt for expensive air shipments and provide discounts as they failed to ship goods timely due to a disruption in production following the internet blackout and shutdown of factories, he added.

"The biggest loss is the damage to the reputation of Bangladesh as a good supplying country. The country is now perceived as weak by international retailers and brands," said a European garment buyer, asking not to be named.

However, he added that his company was still booking work orders for upcoming seasons as factories are still operational.

He also said his company faced a shipment crisis as operations at the Chattogram port were moving at a snail's pace due to the internet disruption but added that shipments were now taking place smoothly.

He added that they would face further difficulties in shipment and placing work orders with local suppliers if the situation does not improve.

"My officers were sent to Chattogram to monitor the shipment problem as production was delayed, but they cannot return now in Dhaka," said a medium-level garment supplier, asking not to be named.

"The situation of booking work orders for next season is quite bad since I could not communicate with my buyers during the internet blackout," the factory owner added.

Arshad Jamal (Dipu), chairman of Tusuka Group, said the garment business is between two seasons as it is the peak time for the booking of work orders for next summer and spring as well as the peak time to send shipments ahead of Christmas.

He added that buyers were not willing to compromise on lead times.

Furthermore, the Red Sea crisis has also created a barrier to the timely shipment of goods.

Since October last year, international commercial vessels have had to travel an additional 3,500 kilometres around the Cape of Good Hope in Africa because of Houthi attacks along the Suez Canal, the main waterway between Asia and Europe.

This increased freight costs for international clothing retailers and brands.​

 

[Bilal9]

US cos shifting from BD in apparel sourcing

American fashion companies are actively diversifying their apparel- sourcing base and exploring opportunities especially in India amid growing risks and market uncertainty in Bangladesh, says a latest US study. It cites shipping delays and supply-chain disruptions and 'managing geopolitics and oth

thefinancialexpress.com.bd

US cos shifting from BD in apparel sourcing
Monira Munni
Published :
Jul 31, 2024 01:04
Updated :
Jul 31, 2024 01:04
View attachment 7223

American fashion companies are actively diversifying their apparel- sourcing base and exploring opportunities especially in India amid growing risks and market uncertainty in Bangladesh, says a latest US study.

It cites shipping delays and supply-chain disruptions and 'managing geopolitics and other political instability' related to sourcing which have newly emerged among US brands and retailers as top five concerns in 2024.

They consider India as more competitive than most other Asian suppliers regarding vertical-integration capability, manufacturing flexibility, and agility.

"While China (100-percent utilization rate) and Vietnam (89-percent utilization rate) still lead, for the first time since 2014 we conducted the survey, more respondents reported sourcing from India (89-percent utilization rate) than from Bangladesh (86 per cent utilization rate)," reads the report.

India in 2024 ranked second from fourth in 2023 while Bangladesh ranked down to fourth position from third last year.

Titled '2024 Fashion Industry Benchmarking Study', the study report also reveals that nearly 60 percent of respondents plan to expand apparel sourcing from India over the next two years, exceeding the planned expansion from any other Asian country.

By leveraging its more advanced local textile-manufacturing capability, India's apparel exports to the United States relied much less on imported components than economically developed countries such as Bangladesh, Cambodia, and Vietnam, according to the report.

Additionally, as India is elevated as a strategic partner with the United States, sourcing from there "is perceived as involving relatively lower geopolitical risks".

On the other hand, about 48 per cent of respondents expressed an interest in expanding apparel sourcing from Bangladesh over the next two years, down from 52 per cent in 2023 and 58 per cent in 2022.

"The high social-compliance risks involved in sourcing from the country remained a key concern for respondents."

Citing example, it says the high-profile labour protests over the minimum wage increase in late 2023 brought Bangladesh's social- responsibility record in the garment sector back into the news headlines.

The report has quoted one respondent as commenting, "We monitor the situation closely. Meanwhile, as an apparel-sourcing base, Bangladesh is well-known for its price competitiveness. However, the country's export potential has been constrained by its limited product diversification beyond basic cotton items and knitwear."

Findings of the eleventh edition of the survey, jointly conducted by the United States Fashion Industry Association (USFIA) and the University of Delaware, were released Monday.

It surveyed executives from 30 leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the country, from April to June 2024.

The report shows that a higher percentage of respondents sourced from Cambodia and Indonesia (each 75 per cent utilization rate) and Pakistan (61 per cent utilization rate) this year, with the gaps in their utilization rates compared to the top tier significantly narrowing.

"The results reveal that US fashion companies have been diversifying their sourcing base beyond China, Vietnam, and Bangladesh, even though companies are not necessarily leaving Asia."

In comparison, almost all respondents, 97 per cent, to be specific, say at least 40 per cent of their total sourcing value or volume now comes from Asian countries other than China.

Specifically, respondents commonly placed about 11-30 percent of their sourcing orders in large-scale apparel-supplying countries such as Vietnam, Bangladesh, and India.

Limited by manufacturing capability, other smaller-scale Asian countries such as Cambodia, Indonesia, and Pakistan typically accounted for 1-10 percent of a fashion companies' total sourcing value or volume.

Asked about the buyer shift, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said it is concerning that Bangladesh is losing business to its competitors like China, Vietnam, India and Pakistan mainly because of high cost of production fuelled by high utility charges with severe shortage of energy, especially gas.

"Bangladesh competes only offering competitive prices whereas its competitors like China, India and Pakistan offer lowest price aggressively as they have their own raw materials," he said.

Local industry is facing high cost due to high gas and electricity prices while there is no adequate supply of energy while wages have been increased and interest rate goes up. All these erode their competitive edges.

"Even there is no prediction that the situation might improve and we have no options to minimize costs," he said, adding that situation is getting worse during last one year.

Another exporter says US big buyers are interconnected with their political parties and geopolitics matter in their sourcing patterns. And Bangladesh gets no duty benefit there.

Both the exporters expressed concern over the ongoing situation as they are getting queries from buyers over the present situation marked by anti-quota movement and violence-taming curfew.

Official figures from the Office of Textiles and Apparel (OTEXA) show that Bangladesh's readymade garment (RMG) exports to the US totalled $7.28 billion in 2023 in a 25.07-percent drop compared to the $9.72 billion earned in 2022.

Data showed that 2022 apparel earnings were almost double the 2013 earnings of $4.94 billion when the USA suspended its GSP facility for Bangladesh-made exportable goods on grounds of poor labour and safety standards immediately after the Rana Plaza building collapse.

Local RMG, however, does not enjoy the US GSP facility.

Bangladesh shipped clothing items worth $7.13 billion during January-December 2021, according to OTEXA data.

Bangladesh's apparel exports to the United States sustained a double-digit decline of 12.31 per cent in the first five months of 2024, reaching $2.90 billion.

On the other hand, India witnessed a 2.06-percent negative growth to earn US$2.08 billion during January-May period of 2024. Similarly, US apparel imports from India in 2023 had experienced negative growth of 21.42 per cent, reaching $4.46 billion. The figure was $5.69 billion in 2022, according to OTEXA data.​

Indian companies can win a few one-off apparel orders because of unrest in Bangladesh, but they are structurally incapable of serving larger and more established buyers like H&M etc. in the longer term.

I won't go into the many reasons but we can discuss if there is interest.

There are Indian companies sitting in Bangladesh with established factories in fact.

 

[Saif]

Sharing tussles over major sea route worry exporters

A veritable tug-of-war ambiance over seizing market share in Bangladesh's one of the biggest sea routes stokes up concerns among the users, especially clothing exporters, about cost and time escalations. This route carries importance for the shipment from Bangladesh as it facilities four-day lead

thefinancialexpress.com.bd

Sharing tussles over major sea route worry exporters

Some foreign shippers desert Colombo-West transshipment route following rules tightening
Jasim Uddin Haroon
Published :
Aug 04, 2024 00:21
Updated :
Aug 04, 2024 00:26

A veritable tug-of-war ambiance over seizing market share in Bangladesh's one of the biggest sea routes stokes up concerns among the users, especially clothing exporters, about cost and time escalations.

This route carries importance for the shipment from Bangladesh as it facilities four-day lead time for the clothing exporters, in particular.

The fights between Bangladesh-flaged vessels and foreign ships began soon after the issuance of a rule under the Bangladesh Flag Vessels Act 2019 sometime in 2023 by the government of Bangladesh, sources in the shipping circles said.

The Chattogram-Colombo route leading to major markets handles more than 40 per cent of goods belonging to Bangladesh. The country's total external trade is believed to be worth US$120 billion.

The major international shipping route connects Bangladesh with its trading partners across the globe. After reaching Colombo, Sri Lanka, the cargos are loaded onto big vessels bound for different destinations in America and Europe.

When the government's implementing agency concerned, named MMD, enforced the rule tightly through showcases and penalties on foreign vessels, many foreign vessels withdrew from the route.

The rule provides for waiver certificate from the MMD for transporting goods belonging to Bangladesh. The certificate should have been taken 15 days earlier despite the fact that the one-side voyage needs to be completed in 3-4 days.

Before such execution of the rule called flat protection or protection of interests, there were more than 20 vessels, mostly foreign feeder vessels, plying the transshipment route.

Now it is trimmed to around 12 vessels, mostly Bangladesh-flagged vessels.

One of world's shipping giants -- CMA-CGM of France -- Tokyo-based ONE, Doha-based MALIHA and Dubai-based Unifeeder left the route. Many shipping executives blame the tussle between the local and foreign shipping companies for the situation.

The Flag Protection Act was enacted with the aim of transporting 50 per cent of the country's merchandise on domestic vessels, including the state-owned Bangladesh Shipping Corporation (BSC) ships.

"But the BSC does not have any single-container ship and, as such, it is impossible to transport 50 per cent of goods by domestic ships," says one of the trade sources.

One local flag-vessel company, HR Line, now dominates the cargo-haulage route.

Contrarily, one leading foreign line, X-press Line of Singapore, is struggling to survive on the route despite the fact that the relevant UN body is in favour of maintaining a level playing field for all.

As per the UNCTAD, 40 per cent can be protected for the local vessels, 40 per cent belong to the trading-partner vessels and the remaining 20 per cent to be kept open for grabs.

As the foreign vessels are leaving the route, port-users apprehend "monopoly" from local shipping companies on the vital part of the country's foreign-trade processing.

Garment manufacturers that employ more than 5.0 million people, mostly women, in the jobs-scant economy, raised their voice few times against the execution of the rule, arguing this will impact their shipments.

Syed Nazrul Islam, a first vice president of BGMEA, the apex body of garment producers, told the FE that they had expressed their concern many times on the issue as they believe their goods delivery may be affected once there be shortage of vessels meant for the Ctg-Colombo route.

"We produce clothing for different seasons, and once there are delays in reaching the goods, the buyers will not pay as we had contracted them."

Mr. Islam notes that once they fail due to poor number of vessels on the route, delivery of goods will be impacted and buyers will not give them orders for the next season.

He mentions that this route is very much important for them as they enjoy 4-day lead time.

One senior official at HR Line, when met its Dhaka office, told the FE correspondent that they are still having a much lower share than they should have enjoyed under the rule.

"Actually we don't get any special privilege," he said.

Asked about the penalties imposed on the foreign ships, he said that the penalties should have been much more.

The shipper, however, informed that Unifeeder was their own agency and they requested them to withdrew as there is no good business for the line there.

The World Shipping Council issued another letter urging the government to amend some sections of the rule, on a note of concern over the fist-tightening.

The Singapore office of the Washington-based navigation organisation called for relaxation of several terms and conditions laid down in the law. It referred to the provision of obtaining waiver certificate in 15 days prior schedule.

President of BCSA or Bangladesh Container Shipping Association Mr. Fayaz told the FE that many internationally reputed shipping companies left the route.

He said local HRL has only 8.0-9.0-percent share. "In future any big shipping company will not come."

Captain Sabbir Mahmood, principal officer of the MMD, could not be contacted after reaped attempts for his comment on what looks like a tug-of-war ambiance over the seafaring.​

 

[Bilal9]

Sharing tussles over major sea route worry exporters

A veritable tug-of-war ambiance over seizing market share in Bangladesh's one of the biggest sea routes stokes up concerns among the users, especially clothing exporters, about cost and time escalations. This route carries importance for the shipment from Bangladesh as it facilities four-day lead

thefinancialexpress.com.bd

Sharing tussles over major sea route worry exporters

Some foreign shippers desert Colombo-West transshipment route following rules tightening
Jasim Uddin Haroon
Published :
Aug 04, 2024 00:21
Updated :
Aug 04, 2024 00:26

A veritable tug-of-war ambiance over seizing market share in Bangladesh's one of the biggest sea routes stokes up concerns among the users, especially clothing exporters, about cost and time escalations.

This route carries importance for the shipment from Bangladesh as it facilities four-day lead time for the clothing exporters, in particular.

The fights between Bangladesh-flaged vessels and foreign ships began soon after the issuance of a rule under the Bangladesh Flag Vessels Act 2019 sometime in 2023 by the government of Bangladesh, sources in the shipping circles said.

The Chattogram-Colombo route leading to major markets handles more than 40 per cent of goods belonging to Bangladesh. The country's total external trade is believed to be worth US$120 billion.

The major international shipping route connects Bangladesh with its trading partners across the globe. After reaching Colombo, Sri Lanka, the cargos are loaded onto big vessels bound for different destinations in America and Europe.

When the government's implementing agency concerned, named MMD, enforced the rule tightly through showcases and penalties on foreign vessels, many foreign vessels withdrew from the route.

The rule provides for waiver certificate from the MMD for transporting goods belonging to Bangladesh. The certificate should have been taken 15 days earlier despite the fact that the one-side voyage needs to be completed in 3-4 days.

Before such execution of the rule called flat protection or protection of interests, there were more than 20 vessels, mostly foreign feeder vessels, plying the transshipment route.

Now it is trimmed to around 12 vessels, mostly Bangladesh-flagged vessels.

One of world's shipping giants -- CMA-CGM of France -- Tokyo-based ONE, Doha-based MALIHA and Dubai-based Unifeeder left the route. Many shipping executives blame the tussle between the local and foreign shipping companies for the situation.

The Flag Protection Act was enacted with the aim of transporting 50 per cent of the country's merchandise on domestic vessels, including the state-owned Bangladesh Shipping Corporation (BSC) ships.

"But the BSC does not have any single-container ship and, as such, it is impossible to transport 50 per cent of goods by domestic ships," says one of the trade sources.

One local flag-vessel company, HR Line, now dominates the cargo-haulage route.

Contrarily, one leading foreign line, X-press Line of Singapore, is struggling to survive on the route despite the fact that the relevant UN body is in favour of maintaining a level playing field for all.

As per the UNCTAD, 40 per cent can be protected for the local vessels, 40 per cent belong to the trading-partner vessels and the remaining 20 per cent to be kept open for grabs.

As the foreign vessels are leaving the route, port-users apprehend "monopoly" from local shipping companies on the vital part of the country's foreign-trade processing.

Garment manufacturers that employ more than 5.0 million people, mostly women, in the jobs-scant economy, raised their voice few times against the execution of the rule, arguing this will impact their shipments.

Syed Nazrul Islam, a first vice president of BGMEA, the apex body of garment producers, told the FE that they had expressed their concern many times on the issue as they believe their goods delivery may be affected once there be shortage of vessels meant for the Ctg-Colombo route.

"We produce clothing for different seasons, and once there are delays in reaching the goods, the buyers will not pay as we had contracted them."

Mr. Islam notes that once they fail due to poor number of vessels on the route, delivery of goods will be impacted and buyers will not give them orders for the next season.

He mentions that this route is very much important for them as they enjoy 4-day lead time.

One senior official at HR Line, when met its Dhaka office, told the FE correspondent that they are still having a much lower share than they should have enjoyed under the rule.

"Actually we don't get any special privilege," he said.

Asked about the penalties imposed on the foreign ships, he said that the penalties should have been much more.

The shipper, however, informed that Unifeeder was their own agency and they requested them to withdrew as there is no good business for the line there.

The World Shipping Council issued another letter urging the government to amend some sections of the rule, on a note of concern over the fist-tightening.

The Singapore office of the Washington-based navigation organisation called for relaxation of several terms and conditions laid down in the law. It referred to the provision of obtaining waiver certificate in 15 days prior schedule.

President of BCSA or Bangladesh Container Shipping Association Mr. Fayaz told the FE that many internationally reputed shipping companies left the route.

He said local HRL has only 8.0-9.0-percent share. "In future any big shipping company will not come."

Captain Sabbir Mahmood, principal officer of the MMD, could not be contacted after reaped attempts for his comment on what looks like a tug-of-war ambiance over the seafaring.​

There is no tug of war. We can't let foreign cargo carriers have unfair preference over our own flag vessels. If needed, we will buy/lease more container carrier ships (quite easy to do) and ship our own stuff. Money remains in Bangladesh. CMA/CGM and other container carrying shipping lines can find their own business in other countries.

We should give business preferentially to Bangladeshi shipping companies like HR, they are our taxpayers. Some foreign company Dalals are raising a big hoo-haa because their roti-kapra is being affected. No Dalali allowed anymore against national interest.

 

[Saif]

Textile units to remain closed

Textile millers will keep their production units closed due to the prevailing volatile situation in the country.

www.thedailystar.net

Textile units to remain closed

Textile millers will keep their production units closed due to the prevailing volatile situation in the country.

Bangladesh Textile Mills Association (BTMA), which represents the $25 billion primary textile sector, announced the decision in a statement yesterday.

The decision came because of the deteriorating law and order situation in the country and the government's declaration of a three-day holiday from today, the BTMA said.

"The decisions on reopening the mills will be made based on the situation and further declarations from the government," it said.

The BTMA member mills were also shut down for four days two weeks ago due to violence and a subsequent curfew imposed by the government to rein in violence.

The trade body reported that its members lost $58.8 million during the initial four-day closure caused by the violence and curfew.​

 

[Saif]

Garment factories shut down for indefinite period

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice.

www.thedailystar.net

Garment factories shut down for indefinite period

A sign on the wall of a garments unit states that the facility is closed due to the imposition of an indefinite curfew by the government because of heightened unrest around the country on the first day of a non-cooperation movement called by students. Photo: Anisur Rahman

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice.

The garment exporters' platform circulated the message among the members through WhatsApp, said Md Ashikur Rahman Tuhin, a director of the BGMEA.

This is yet another blow to the sector as the apparel factories were shut down for four days during the first round of violence two weeks ago though this is the peak season for Christmas shipments and taking work orders for the next summer and spring seasons.

During the violence in mid-July, the exporters could not communicate properly with their business partners abroad because of an internet blackout.

Exporters now fear mounting losses as export performance had already been poor over the last two years because of the severe fallout of Covid-19 pandemic, Russia-Ukraine war, runaway inflation in the Western world, Red Sea crisis and a labour unrest at home.

Amid violence across the country, majority of garment factories were shut down yesterday on the first day of a countrywide non-cooperation movement called by the organisers of Anti-Discrimination Student Movement.

At least 73 people, including 14 policemen, were killed and dozens injured yesterday as fierce clashes took place in different areas in Dhaka and other parts of Bangladesh.

More than 400 garment factories in Narayanganj, Narayanganj BSCIC and Fatullah areas were closed though many of the units ran for some time in the morning.

Some factories were operational in Rupganj and Araihazar areas of Narayanganj district, said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Also, almost all the factories in Ashulia, Savar, Maona, Tongi and Chattogram had started production in the morning, but after a few hours the student protests began and some factories were vandalised, leading to the closure of the units.

At least six garment factories were vandalised in Narayanganj BSCIC and its adjacent areas, Hatem said, adding that fearing further escalation of the vandalism, the other factory owners have shut down their units.

Hatem confirmed that the workers left their workplaces peacefully after the shutdown.

"We will sit in meetings soon with the owners, the government and other high-ups on how to run our factories," Hatem said, adding that they will monitor the situation at least for two days.

Factories in Konabari and Kashimpur under Gazipur district were shut down although those were opened in the morning, said Arshad Jamal Dipu, vice-president of the BGMEA.

The factories were shut down anticipating violence, he said but could not confirm how many factories were closed.

He said the factory owners are fearing a shutdown of internet again as two weeks ago they suffered a lot and lost business because of the internet blackout. Exporters could not communicate online with their foreign retailers and brands.

Moreover, this is the time for bond renewal of the export-oriented garment factories and already seven factories have complained to him that they cannot renew the bond licences because of the current crisis, Dipu also said.

The owners are also facing trouble in garment shipment and import of raw materials, he added.

Md Towhidur Rahman, president of Bangladesh Apparel Workers Federation, confirmed that all the garment factories in Kaliakoir area have been shut down by the owners fearing escalation of unrest in the sector.

The owners announced closure to save their factories and other assets, he said.

Nazma Akter, president of Sammilito Garment Sramik Federation, a workers' platform, said that the BGMEA leaders held a meeting with the union leaders on Saturday and asked them to be more responsible during the crisis so that the garment factories could remain safe.

The owners are announcing closure of the factories fearing spread of violence in the sector, she said.

The garment exporters fear that if their workers join the ongoing movement across the country, it will further dent the sector, which was hamstrung for four days when factories were completely shuttered due to violence in mid-July.

The sector also suffered serious repercussions because of a five-day internet blackout, which hindered communications between garment suppliers and international retailers and brands, meaning they could not make business deals or hold meetings.

Last week, international retailers and brands expressed concern at a meeting with the leaders of the BGMEA, flagging the difficulties in communication with their headquarters and local suppliers.

The months of July, August and September comprise the peak season for both shipment of goods for next Christmas and also for booking the work orders from the international retailers and brands for the next summer and spring seasons.

The BGMEA has already said they have incurred losses of Tk 6,400 crore because of the shutdown and internet blackout, while the losses estimated by Bangladesh Textile Mills Association stand at $58.8 million.​

 

[Saif]

RMG exporters expect new vigour in business

Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario.

www.thedailystar.net

RMG exporters expect new vigour in business

Garment exporters have lost Tk 6,400 crore due to the recent unrest and shutdown of factories, said Bangladesh Garment Manufacturers and Exporters Association. Photo: Star/file

Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario.

The business environment was facing an impasse because of the latest spells of violence and frequent shutdown of factories, for which they were unable to manufacture goods for export.

Exporters also said, though July, August and September comprise the peak season for shipping goods meant for Christmas and for booking work orders for the coming summer and spring seasons, they were facing challenges in sending goods to retailers through Chattogram port amid violence.

They were also unable to communicate with their business partners both at home and abroad because of the recent internet blackout across the country and for the violence.

The apparel manufacturers are now planning to reopen their production units and to restart with a new vigour as they have been facing shutdowns, difficulties in transportation and shipment of goods over more than one month because of the political crisis.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called a meeting yesterday at 7:30pm to discuss the next course of action as the prime minister resigned, said a director.

They decided that the garment factories and textile mills will stay shut for now considering the current situation. The owners may take a decision on factory reopening today.

They had earlier shut down their units two weeks ago for four days amidst violence and curfew. During the first round of shutdown, they could not even communicate with their international clothing retailers and brands because of an internet blackout across the country.

Because of the latest spell of student movement and political impasse, the BGMEA has already said they have lost Tk 6,400 crore while the textile millers said the amount of their loss is more than $58.8 million.

The garment and textile millers have shut down their production units across the country fearing labour unrest and vandalism, which will cause a massive loss for the sector.

During the first round of violence and curfew, the international clothing retailers and brands expressed concern over the situation as they were facing difficulties in placing work orders with factories and receiving shipments of goods from Chattogram port.

"We mainly discussed the issue of reopening the factories. However, we may take more time to reopen the factories considering the change in the political situation," said BGMEA Vice-President Arshad Jamal Dipu over the phone.

"We want to restart production in the factories very soon. But we need help from the administration for the smooth running of the units as their instructions are important for us," Dipu added.

Also, it recently became difficult to do business and international trade because this is the time to renew bond licences but many, especially the Chattogram-based exporters, are complaining that the customs department is not renewing the bond licences.

Many have been forced to adopt expensive air shipments because of delays in production and transportation of goods to the factories.

Also, many have been forced to provide discounts and accept cancellation of work orders from international retailers and brands because of the latest spells of violence and curfew.

Banks are charging a higher interest rate on loans, he said, adding that all these things are affecting business and all those issues need to be broadly discussed with the trade bodies and administration soon for resolving the issues.

"We have to work seriously now," Dipu also said.

"I hope everything will change now and business will soon be restored," said a garment exporter asking not to be named.

The work orders from international retailers and brands will also be restored soon as normalcy has also started to return, the exporter added.

"We are getting ready to reopen our factories as soon as possible," said a director of the BGMEA asking not to be named.​

 

[Saif]

Yunus urges RMG industry to aid in rebuilding economy

Nobel laureate Muhammad Yunus, chief adviser to the interim government, called on the country’s garment manufacturers on Wednesday to support the rebuilding of Bangladesh after 15 years of economic plunder under the dictatorship of Sheikh Hasina....

www.newagebd.net

Yunus urges RMG industry to aid in rebuilding economy
United News of Bangladesh . Dhaka 14 August, 2024, 20:42

| BSS photo.

Nobel laureate Muhammad Yunus, chief adviser to the interim government, called on the country’s garment manufacturers on Wednesday to support the rebuilding of Bangladesh after 15 years of economic plunder under the dictatorship of Sheikh Hasina.

Speaking to the leaders of the Bangladesh Garment Manufacturers and Exporters Association at the State Guest House Jamuna, Yunus emphasised the challenges inherited by the interim government. ‘All the institutions were broken. We were in a mess. They left us in an economic crisis. But with the cooperation of everyone we can rebuild the nation,’ he said, according to a statement from the Chief Adviser’s Office.

BGMEA acting president Khandoker Rafiqul Islam led the delegation in the meeting, where the Nobel laureate highlighted the urgency of the situation. The country cannot afford to fail, he said. ‘Else, its impact will be disastrous. The nation may face an existential crisis,’ he warned.

Yunus also urged the manufacturers to keep their businesses separate from politics. ‘You should send a clear signal that you won’t mix business with politics. It does not help any cause,’ he advised.

Reflecting on the recent student-led revolution, which he described as ‘unprecedented in human history,’ Yunus noted the responsibility placed on the interim government. ‘They have put their trust in us. I was abroad when they called me and urged me to take up the leadership,’ he shared.

The BGMEA leaders expressed their full support for Yunus’s leadership during this critical time for the nation. They requested the formation of a task force to address sector-specific challenges, aiming to restore international buyers’ confidence in Bangladesh. Their demands included relaxed debt repayment terms and adjustments to utility bill payments.

The chief adviser listened to their concerns and promised to address them. ‘We will ensure transparency at every stage. The Bangladeshi people have immense talents. Bangladesh is the world’s second-largest garment exporter. We want it to grow further,’ he stated.

After the meeting, BGMEA director Shovon Islam spoke to reporters, expressing optimism about the future under Yunus’s leadership. As Yunus took charge of the interim government, buyers across the globe are gaining confidence in Bangladesh, he said. ‘We want to utilise that confidence and increase work orders.’

He also outlined the short-term and long-term needs of the industry, including the formation of a task force to address ongoing challenges. ‘We requested him to form a task force with all stakeholders so that it could play a long-term role,’ Shovon Islam added.

He further mentioned the BGMEA’s need for assistance in securing power and addressing liquidity issues, to which Yunus responded positively. ‘In reply, the chief adviser told us he would help us,’ he confirmed.​

 

[Saif]

Bangladesh’s RMG export to EU drops in Jan-June

Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday...

www.newagebd.net

Bangladesh’s RMG export to EU drops in Jan-June
Moinul Haque 18 August, 2024, 22:40

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday. | New Age photo

Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday.

Exporters said that global challenges had impacted all major exporting countries, including Bangladesh.

However, Bangladesh has been more severely affected due to the erosion of its competitive advantages, driven by high utility prices, poor gas supply and recent wage hike, they said.

Although the country’s knitwear exports to the EU decreased by 8.58 per cent in January-June of 2024, the shipment of woven garments witnessed a slight increase by 0.28 per cent to 3.74 billion euros from 3.73 billion euros, the data showed.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that global challenges impacted all major apparel exporting countries.

He said that Bangladesh had been severely affected due to the erosion of its competitive advantages, driven by high utility prices, shortage of gas and wage hike.

Citing the current situation of the country, Fazlul said, ‘Buyers rarely announce their decisions to shift or cancel work orders outright. Instead, they gradually redirect their orders elsewhere to mitigate business risks.’

He said that one of his buyers was scheduled to place an order for the next season at the end of July, adding, ‘I didn’t receive that order, which means it was likely diverted to other destinations.’

However, Fazlul expressed hope that the exports would recover in the coming months if the political situation stabilised.

The readymade garment imports by the EU from different countries in January-June of 2024 fell by 6.03 per cent to 38.47 billion euros compared with those of 40.94 billion euros in the same period of 2023.

Data showed that the overall reduction of 4.98 per cent in Bangladesh’s apparel exports was slightly better than the global average decline of 6.03 per cent in the EU’s apparel imports.

The Eurostat data showed that apparel imports by the EU from China in the first half of 2024 declined by 7.23 per cent to 9.16 billion euros compared with those of 9.88 billion euros in the same period of past year.

Although China remained as the top apparel exporter to the EU in value, the European Union’s official data showed that Bangladesh obtained the top position in exporting knitwear to the 27 nation economic bloc in January-June of 2024.

Bangladesh’s knitwear exports to the EU in in the first half of 2024 stood at 4.98 billion euros while those of China were 4.51 billion euros.

Bangladesh’s woven garment exports to the EU in January-June of 2024 stood at 3.74 billion euros against China’s exports of 4.65 billion euros in the period.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that long lead times were a major factor causing Bangladesh to lag behind its competitors.

The ongoing power and gas crises have hindered manufacturers from utilising their full production capacity and created challenges in procuring raw materials on time, leading to delays of additional 20-25 days in producing goods and making shipments, he said.

Hatem also said that Bangladesh had experienced negative growth not only on the EU market but also in the US and UK.

He mentioned that while Export Promotion Bureau data might have showed growth, the reality told a different story.

Apparel imports of the EU from Turkey in the first half of 2024 declined by 10.95 per cent to 4.59 billion euros compared with those of 5.15 billion euros in the same period of 2023, the EU data showed.

India’s RMG exports to the EU in the first half of 2024 fell by 4.53 per cent to 2.32 billion euros compared with those of 2.43 billion euros in the same period of the previous year.

Apparel imports of the EU from Vietnam in January-June of 2024 fell by 6.16 per cent to 1.70 billion euros compared with those of 1.81 billion euros in the same period of 2023.​