[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Bangladesh’s apparel export to US rose to $7.34b in a decade: US Report

Bangladesh’s apparel export to the USA market increased to US$ 7.34 billion from $5.4 billion in a decade, according to the US Government Office of Textiles and Apparel (OTEXA). The report revealed, apparel imports from Bangladesh to the USA in 2015 were valued at US $5.40 billion, rising to

thefinancialexpress.com.bd

Bangladesh’s apparel export to US rose to $7.34b in a decade: US Report

UNB
Published :
Jun 30, 2025 19:00
Updated :
Jun 30, 2025 19:01

Bangladesh’s apparel export to the USA market increased to US$ 7.34 billion from $5.4 billion in a decade, according to the US Government Office of Textiles and Apparel (OTEXA).

The report revealed, apparel imports from Bangladesh to the USA in 2015 were valued at US $5.40 billion, rising to US $7.34 billion by 2024, reflecting a notable 35.94 percent growth over the same period.

While experiencing a positive trajectory until 2019, the emergence of COVID led to an 11.76 percent decline in 2020 ($5.92 billion was in 2019 and $5.22 billion was in 2020).

Since 2020, Bangladesh has shown impressive growth at 40.45 percent, surpassing the USA’s growth rate of 23.72 percent, according to the report.

The OTEXA stated that in 2015, apparel imports to the USA totalled US $85.16 billion, decreasing to US $79.26 billion by 2024, marking a 6.94 percent decline over the decade.

The trend was consistently positive until 2019, but with the onset of COVID, a significant 23.47 percent drop was observed in 2020 ($83.70 billion was in 2019 and $64.06 billion was in 2020).

Despite the USA showing signs of recovery post-COVID, the economic downturn was substantial, failing to meet the import of 2015 even in 2024.

During US recessions, consumer spending reductions notably impact clothing expenditures, reflecting broader economic shifts impacting the apparel market.

With the USA retail sector heavily reliant on imports (comprising 95 percent of the industry), challenges such as high tariffs (averaging 18.5 percent pre-Trump era), escalating freight costs, and short apparel market lifespans have hindered integration into supply chains.​

 

[Saif]

Reforms, diversification could supercharge RMG exports

Bangladesh's readymade garment (RMG) sector could be on the cusp of a transformative leap, with the potential to earn up to US$94 billion in annual export earnings by 2029, if the country expands into non-traditional markets and embraces manmade fibre (MMF) production. This ambitious amount is exp

thefinancialexpress.com.bd

Reforms, diversification could supercharge RMG exports

FE REPORT
Published :
Jul 02, 2025 00:21
Updated :
Jul 02, 2025 00:21

Bangladesh's readymade garment (RMG) sector could be on the cusp of a transformative leap, with the potential to earn up to US$94 billion in annual export earnings by 2029, if the country expands into non-traditional markets and embraces manmade fibre (MMF) production.

This ambitious amount is expected to be achieved at an average annual growth rate of 15 per cent, which would require coordinated reforms across trade, industry, and finance, according to a new diagnostic report jointly released by the World Bank, IFC, and MIGA.

Beyond export earnings, the report outlines how strategic reforms and sectoral investments could create over 664,000 new formal jobs in the domestic paint and textile dye industry, and formalise hundreds of thousands more through the digitalisation of financial services.

Additionally, unlocking housing sector potential could draw US$2.0 billion in private investment into construction and allied industries, providing another major boost to employment and economic resilience, according to findings presented at a high-profile event on Tuesday.

The adoption of reforms in digital financial services (DFS) could create up to 460,000 new jobs, including the formalisation of around 360,000 informal positions, the report said.

The analysis was shared at a dissemination event for the 'Country Private Sector Diagnostic (CPSD) for Bangladesh' report, jointly conducted by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

The event was held at a hotel in Dhaka, with stakeholders from the government and private sector in attendance.

Suhail Kassim, Senior Operations Officer at the World Bank, delivered the sectoral insights virtually.

IFC Country Manager Martin Holtmann, World Bank's new Country Director for Bangladesh and Bhutan Jean Pesme, senior private sector specialist Hosna Ferdous Sumi, and IFC operations officer Miah Rahmat Ali and operations analyst Noor Ahmed Naveed, among others, spoke at the event.

The CPSD identified four key sectors with high growth potential where targeted private investment could stimulate significant economic development are greening the RMG sector, housing for middle-income groups, domestic production of paint and textile dyes, and expansion of digital financial services (DFS).

The report also included an overview of the country's business climate, foreign direct investment (FDI) trends, cross-cutting challenges, and institutional bottlenecks that continue to hinder private sector development.

Electricity shortages topped the list of business obstacles, followed by limited access to finance, corruption, informality, and high tax rates.

Syed Nasim Manzur, President of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), said the most pressing concerns for investors today are policy inconsistency, regulatory overreach, and systemic corruption.

Speaking on the challenges facing the RMG sector, Mr Kassim noted high import duties on non-cotton raw materials such as MMF, a lack of regulation on fabric waste and groundwater use, and low levels of investment in modern technologies.

These, he said, are key constraints to achieving greener and more sustainable production.

He also stressed the need for labour law reforms to ensure continued access to the EU market following Bangladesh's graduation from Least Developed Country (LDC) status, in line with upcoming European green product standards such as the Ecodesign for Sustainable Products Regulation.

To remove market distortions, the report recommended ending the cash incentives for exports of PET (polyethylene terephthalate) bottles and flakes, aligning duties on solar inverters and panels to create a level playing field, and introducing water efficiency certification for RMG firms.

In the paint and dye sector, the CPSD highlighted inconsistent customs classifications on imported inputs and the high cost of inventory holding as major barriers to domestic production.

It recommended digitising customs procedures, revising bonded warehouse policies to permit third-party operations, and improving logistics to reduce trade costs.

For the housing sector, high urban development costs and cumbersome land registration and clearance processes were seen as key hurdles.

The report called for improving access to municipal services, digitalising land records, and expanding access to housing finance to attract long-term investment in affordable housing for the middle class.

In digital financial services, the CPSD suggested policy actions to promote wholesale transactions via mobile financial services and encourage the use of structured finance by removing taxes on assets moved between originators and financing vehicles.

These steps could deepen financial inclusion and make DFS a stronger engine for job creation. The report, while optimistic about Bangladesh's growth potential, underscores the need for regulatory clarity, digital transformation, and an inclusive investment climate to fully unlock the capacity of the private sector.​

 

[Saif]

‘Expansion into non-traditional markets, adoption of MMF to boost annual export by 15pc’

Expansion into non-traditional markets and the adoption of MMF (manmade fibre) could lead to an average annual export growth of 15 per cent, potentially increasing the country’s readymade garment foreign currency earnings to US$94 billion by 2029. Besides, expansion in domestic pain and dye

thefinancialexpress.com.bd

‘Expansion into non-traditional markets, adoption of MMF to boost annual export by 15pc’
Says report prepared by World Bank, IFC, MIGA about Bangladesh

FE ONLINE REPORT
Published :
Jul 01, 2025 19:27
Updated :
Jul 01, 2025 19:30

Expansion into non-traditional markets and the adoption of MMF (manmade fibre) could lead to an average annual export growth of 15 per cent, potentially increasing the country’s readymade garment foreign currency earnings to US$94 billion by 2029.

Besides, expansion in domestic pain and dye production could lead to the creation of over 0.664 million formal jobs within the sector, while up to 0.46 million new jobs with formalising up to 0.36 million informal jobs could be possible if required reforms are made for digital financial services.

Reforms in regulatory, supply-side and demand-side constraints that are hampering private investments in housing could create investment potential of about US$2.0 billion in construction and allied industries.

The statistics were disclosed on Tuesday at a dissemination event on the ‘Bangladesh: Country Private Sector Diagnostic (CPSD) for Bangladesh’ report jointly by the World Bank, IFC and MIGA held in a city hotel.

Suhail Kassim, senior operations officer at the World Bank, shared the sectoral overview at the event virtually while

IFC country manager Martin Holtmann, World Bank’s new country division director for Bangladesh and Bhutan Jean Pesme and senior private sector specialist Hosna Ferdous Sumi and IFC operations officer Miah Rahmat Ali and operations analyst Noor Ahmed Naveed, among others, spoke there.

The CPSD contains a thorough analysis by the WBG, which pinpointed four specific sectors-- greening the Ready-Made Garments (RMG) sector, housing for the middle-income segment, paints and textile dyes and digital financial services that have high growth potential and where private investment can stimulate economic growth and development.

It also included an overview of the country context, including a discussion on Foreign Direct Investment (FDI) trends, business environment, cross-cutting constraints to private investment, and the strength of institutional underpinnings for private sector development.​

 

[Saif]

RMG, textile leaders urge gas policy reforms to boost output

Leaders from Bangladesh's leading ready-made garment (RMG) and textile industry associations have urged the government to exempt industrial and captive gas-run facilities from seeking re-approval from Titas Gas Transmission and Distribution Company Ltd during internal rearrangements-provided their

thefinancialexpress.com.bd

RMG, textile leaders urge gas policy reforms to boost output

FE REPORT
Published :
Jul 03, 2025 09:05
Updated :
Jul 03, 2025 09:05

Leaders from Bangladesh's leading ready-made garment (RMG) and textile industry associations have urged the government to exempt industrial and captive gas-run facilities from seeking re-approval from Titas Gas Transmission and Distribution Company Ltd during internal rearrangements-provided their hourly load, monthly load, and outlet pressure remain unchanged.

"Removing the requirement for prior approvals will help the industry adopt more energy-efficient and high-performance machinery. We believe this will significantly boost energy efficiency, enhance production, and contribute to valuable foreign exchange earnings," they added.

The leaders recently made this appeal in a joint letter to Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources.

The industry leaders warned that procedural delays and restrictions in the current gas connection approval process are hurting production and costing the country valuable export earnings.

The appeal-endorsed by Hossain Mehmood, President, Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA), Fazlee Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers & Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury (Parvez), President, Bangladesh Chamber of Industries (BCI), Taskeen Ahmed, President, Dhaka Chamber of Commerce & Industry (DCCI), Mahmud Hasan Khan, President, Bangladesh Garments Manufacturers & Exporters Association (BGMEA) and Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA)-highlights that RMG and textile mills are unable to operate at full capacity due to inadequate gas supply, resulting in up to 40 per cent lower production.

They stated that most factories are established with BIDA's approval and built with significant investment in infrastructure, imported machinery, and utilities, often backed by bank financing. But despite this, companies are unable to fully utilise their installations and meet export targets.

Industry leaders argued that frequent restructuring or machinery replacements are required to improve efficiency or respond to changing buyer demands. However, the current requirement to seek prior approval from gas distribution companies for any rearrangement-even within factory premises-causes unnecessary delays.

They proposed that gas distributors should not interfere in the internal setup of customer premises beyond the RMS (Regulating and Metering Station) room, provided that the approved load and pressure remain unchanged. Additionally, they requested the withdrawal of a previous directive requiring clearance from electricity distribution companies (e.g., Palli Bidyut) for new captive power connections above 10 MW, citing the national grid's unreliable supply.

Other key demands include allowing unused gas load from one industrial unit to be transferred to another under the same ownership and premises without reclassifying it as a new connection.

They also called for permitting load transfers across different premises owned by the same company and introducing a digital application system for gas connections and meter installations, with a fixed processing timeframe of 3-5 working days.

"Authorising regional gas offices to approve load rearrangements would avoid higher-level delays. Establishing an approved list of gas meter brands and models would also simplify procurement and reduce installation times," the letter read.

They further sought automatic approval of low-pressure regulators in areas with chronic pressure shortfalls.

The industry leaders argued that these reforms would enhance energy efficiency, enable the adoption of modern machinery, and allow uninterrupted production-contributing significantly to export growth and foreign exchange earnings.

The letter was also copied to the Adviser to the Ministry of Commerce for information and necessary action.​

 

[Saif]

COTTON IMPORTS: Textile millers for removal of 2pc AIT

Textile millers of the country have urged the government to withdraw a 2 per cent advance income tax imposed on imported cotton recently.

www.newagebd.net

COTTON IMPORTS: Textile millers for removal of 2pc AIT
Staff Correspondent 04 July, 2025, 22:57

A file photo shows a worker overseeing a cotton processing machine at a factory in Habiganj. | New Age photo New Age merchandise

Textile millers of the country have urged the government to withdraw a 2 per cent advance income tax imposed on imported cotton recently.

They also requested the government to exempt specific tax of Tk 5 imposed on per kilogram of domestic production of cotton yarn, manmade fibre and mixed fibre in the budget of the 2025-26financial year, which was Tk 3 per kilogram.

Showkat Aziz Russel, president of the Bangladesh Textile Mills Association, made these requests in separate letters sent to advisers of the finance and commerce ministries, governor of the Bangladesh Bank and chairman of the National Board of Revenue on Thursday.Bangladesh-themed souvenirs

BTMA president Showkat Aziz Russell said that the newly imposed AIT and specific tax on yarn would severely disrupt domestic spinning mills and endanger the sector’s competitiveness.

Recently, the government issued an SRO imposing a 2 per cent AIT on imports of over 150 essentials and capital goods for industries.

The range of items facing 2 per cent AIT included machinery, spares and raw materials for various industries, like the ready-made garment and textiles.

The NBR issued a gazette notification last month, where some major items like cotton, wheat, flour, maize, rice, soya beans, sunflower seeds, mustard seeds, linseed, sugar, bulbs, tubers, jet fuels, kerosene, diesel, furnace oil, LPG, natural gas, petroleum bitumen, iron oxides and zinc sulphate faced a 2 per cent AIT.

Referring to the SRO, the BTMA president said that the decision was made without consulting industry stakeholders and was likely to be ‘self-defeating’ for the sector and the wider economy.

‘Although it may appear to aid revenue mobilisation, in reality, it would be suicidal. The imposition of this AIT would significantly increase production costs, placing our textile mills at a disadvantage compared with competitors in other countries and making it impossible for local textile mills to sustain their businesses under the burden of a 2 per cent AIT,’ he added.

He also said that this 2 per cent AIT on every consignment would effectively accumulate to 29 per cent annually, gradually squeezing the working capital of mills and that could deplete entirely within three years.

Meanwhile, to respond this governmental decision, the BTAM called a press conference scheduled on Saturday, that is today.

Showkat said that Bangladesh did not produce cotton and was entirely dependent on imports and the local mills had the capacity to supply 100 per cent of yarn for the knit sector and 55-60 per cent for woven apparel.Bangladesh-themed souvenirs

He also said that this was accomplished despite challenges like gas and electricity price hikes, dollar crisis, local currency devaluation, rising interest rates and declining export incentives.

‘Such policy decisions, made without consultation, put at risk the $75 billion investment in the textile and apparel sector and undermine the target of reaching $100 billion in export earnings by 2030,’ the BTMA said.

The association called on the government to support the domestic textile sector as a key partner in export growth, rather than weakening its competitiveness through abrupt fiscal measures.​