[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

BGMEA seeks foreign ministry’s coop in product, market diversification

A delegation from the Bangladesh Garment Manufacturers and Exporters Association, led by president SM Mannan (Kochi), met foreign minister Hasan Mahmud at the ministry in Dhaka on Tuesday and sought the foreign ministry’s cooperation in product, market diversification for RMG sector...

www.newagebd.net

BGMEA seeks foreign ministry's coop in product, market diversification
United News of Bangladesh . Dhaka 21 May, 2024, 22:05

A delegation from the Bangladesh Garment Manufacturers and Exporters Association, led by president SM Mannan (Kochi), met foreign minister Hasan Mahmud at the ministry in Dhaka on Tuesday and sought the foreign ministry's cooperation in product, market diversification for RMG sector.

The BGMEA delegation included senior vice-president Khandoker Rafiqul Islam, vice-presidents Arshad Jamal (Dipu), Abdullah Hil Rakib, Miran Ali, directors Md Imranur Rahman, Mohammad Sohel Sadat, Shams Mahmud, Rajiv Chowdhury, Md Mohiuddin Rubel, Shehrin Salam Oishee, Md Nurul Islam and Saifuddin Siddiquie Sagar.

They discussed product diversification and strategies to enhance readymade garment exports to new markets.

During the meeting, the BGMEA president emphasised the significance of market and product diversification to reach the goal of achieving $100 billion from garment exports by 2030.

He noted that garment exports to new markets have increased from $847 million to $8,370 million with government policy support over the past 15 years.

The BGMEA seeks the cooperation of Bangladesh's relevant embassies in organising roadshows, networking with buyers, and participating in key fairs to increase exports to new markets, particularly to Brazil, Argentina, Russia, South Africa, Turkey, and ASEAN countries.

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[Saif]

Shipping cost keeps upward trend as Red Sea Crisis lingers

Shafiur Rahman, regional operations manager of G-Star in Bangladesh, needs to send 6,146 pieces of denim trousers weighing 4,404 kilogrammes from a Gazipur-based garment factory to Amsterdam of the Netherlands.

www.thedailystar.net

Shipping cost keeps upward trend as Red Sea Crisis lingers

Shafiur Rahman, regional operations manager of G-Star in Bangladesh, needs to send 6,146 pieces of denim trousers weighing 4,404 kilogrammes from a Gazipur-based garment factory to Amsterdam of the Netherlands.

However, he can't decide whether he will send them by air or sea since the cost has gone up on both routes. The indecision arises because air shipments will cost a lot of money for his company.

Although the transportation of goods through waterways will be relatively cheaper, it would require more time.

The bill is expected to total $17,616, or $4 per kg if the items are sent by air. The rate ranged between $1.50 and $1.6 per kg before the outbreak of the Red Sea Crisis.

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[Saif]

Bangladesh can ship $1 billion woollen sweaters by 2030: exporters

Two Uruguayan wool exporters are currently visiting Bangladesh

www.thedailystar.net

Bangladesh can ship $1 billion woollen sweaters by 2030: exporters
Two Uruguayan wool exporters are currently visiting Bangladesh

Mostafa Q Sobhan, middle, managing director of Dragon Group, poses with two visiting Uruguayan wool exporters after a meeting at Pan Pacific Sonargaon in Dhaka Wednesday. Photo: Collected

Bangladesh has the potential to export $1 billion worth of woollen sweater by 2030 up from the current $100 million as the global market for such items is expanding fast riding on product diversity, a local sweater exporter said Wednesday.

The use of woollen yarn is rising worldwide thanks to the production of diversified yarn from wool, said Mostafa Q Sobhan, managing director of Dragon Group, a Bangladeshi sweater exporting company.

He made the comments in a discussion with two Uruguayan wool exporters at Pan Pacific Sonargaon in Dhaka.

Nearly $20 billion worth of woollen garments are sold annually worldwide now, which is predicted to grow at 5.5 percent every year, Sobhan said.

If the prediction goes right, the global woollen garments market should be worth nearly $30 billion by 2027, he said.

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[Saif]

Garment export to EU slightly up in July-April

Garment export to the European Union (EU) in the July-April period of the current fiscal year grew by 3.66 percent from that in the corresponding period of last fiscal year to reach $19.90 billion.

www.thedailystar.net

Garment export to EU slightly up in July-April

Garment export to the European Union (EU) in the July-April period of the current fiscal year grew by 3.66 percent from that in the corresponding period of last fiscal year to reach $19.90 billion.

Among the EU member countries, garment export to Denmark grew by the highest margin of 32 percent, according to data from the Export Promotion Bureau compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Meanwhile, garment export to Poland grew by 20.65 percent followed by 17.51 percent to the Netherlands, 6.07 percent to Spain and 3.42 percent to France.

However, apparel export to Italy declined by 2.45 percent, as per the country-wise garment export data compiled by the BGMEA.

Moreover, garment export to Germany, the largest export market in the EU, amounted to $5.01 billion.

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[Saif]

Intertek launches iCare in Bangladesh to support textile industry

Intertek has launched iCare, an innovative digital platform, in Bangladesh to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish. The company--Intertek, an assurance inspection, product testing and certification com

thefinancialexpress.com.bd

Intertek launches iCare in Bangladesh to support textile industry

Intertek has launched iCare, an innovative digital platform, in Bangladesh to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish.

The company--Intertek, an assurance inspection, product testing and certification company, launched the new platform in Bangladesh on Monday at an event in the capital city following its successful introduction in Türkiye last November and India in March, according to a statement.

Driven by increasing regulatory scrutiny and heightened consumer expectations, there is growing demand among customers for bespoke, end-to-end solutions that can improve transparency and traceability around the processing and testing of lab samples.

iCare is a one-stop science-based Customer Excellence portal that is designed to address these challenges, providing clients with a pioneering, industry-leading solution that will allow them to seamlessly manage and monitor their testing processes from start to finish, added the statement.

iCare would enable customers around the world to submit test requests, view reports and analytics online and connect with in-house teams of experts in just a few clicks, allowing greater transparency for customers regarding their samples and the testing process, it added.

Sandeep Das, President of Global Softlines and Hardlines and Regional Managing Director South Asia at Intertek, said, "iCare's industry-leading capabilities are not only a response to current customer demand but also a testament to Intertek Softlines' commitment to pioneering innovation."

By harnessing advanced technologies and redefining the benchmark for transparency and traceability, iCare sets a new standard for the ATIC industry and solidifies Intertek Softlines' position as an industry leader for customer excellence in the field of quality assurance and testing services, he added.

Neyamul Hasan, Country Managing Director, Intertek Bangladesh and Shelly Lo, Senior Director of Marketing and Innovation for Global Softlines and Hardlines at Intertek, among others, were also present.​

 

[Saif]

Manmade Fibre: Bangladesh’s best bet to become top apparel exporter

Having become the world’s second largest source for apparel items after China, Bangladesh is now pushing for the top spot by adding more value-added products to its export basket.

www.thedailystar.net

Manmade Fibre: Bangladesh's best bet to become top apparel exporter

Photo: Refayet Ullah Mirdha

Having become the world's second largest source for apparel items after China, Bangladesh is now pushing for the top spot by adding more value-added products to its export basket.

Clothes made of manmade fibre (MMF) are playing a particularly vital role in this regard as such highly value-added apparel items have significant demand abroad.

Besides, non-cotton apparel fetches higher prices than cottonwear for being more flexible, durable and functional, with the cost of a T-shirt made from MMF being about double that of one made from cotton.

As such, local garment makers have been diversifying their product base with non-cotton items.

Additionally, they have increased their production capacities, maintained consistency in supply and improved product quality over the past five decades.

Now, about 7.9 percent of all apparel items sold worldwide come from Bangladesh as the country has turned into a reliable source for international clothing retailers and brands.

And with about 29 percent of the country's garment exports comprising MMF products, Bangladesh aims to use this segment to expand its global market share to 12 percent by 2030.

With this in mind, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to increase the country's annual apparel exports to $100 billion within the next six years.

To read the rest of the news, please click on the link above.​

 

[Saif]

Buyers shift to Delhi airport as higher expenses make Dhaka unattractive

The tariff at the largest airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole and Petrapole.

www.thedailystar.net

Buyers shift to Delhi airport as higher expenses make Dhaka unattractive

International clothing retailers and brands sourcing from Bangladesh prefer the Delhi airport to Hazrat Shahjalal International Airport (HSIA) to carry goods owing to the lower tariff offered by India.

The tariff at the largest airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole and Petrapole.

For example, it costs $3 to transport one kilogramme of garment items from the HSIA to destinations in Europe. The charge is $1.2 if the goods are sent via Delhi's Indira Gandhi International Airport.

An elevated level of tariffs, value-added tax, and ground handling and service charges at the HSIA are mainly driving users away from Dhaka.

At the airport, a 72 percent surcharge is imposed for ground handling. If the fee is not paid on time, a 60 percent fine is levied.

A total of 1,65,000 tonnes of cargoes were shipped from the HSIA In July-March of the current fiscal year, according to data from the civil aviation and tourism ministry. Of the quantity, 1,34,000 tonnes were garment items and 30,000 tonnes were vegetables, fruits and other items.

In 2022-23, some 1,67,000 tonnes of cargoes were sent abroad via the airport. This included 142,000 tonnes of garment products and 24,000 tonnes of fruits, vegetables, and allied food items.

Kazi Wahidul Alam, an aviation expert, said more than 8,000 tonnes of cargoes, especially those containing garment items, were diverted from the HSIA to Delhi last year because of higher tariffs.

"The volume is higher this year as buyers are increasingly finding Delhi airport more competitive for their business," he said, adding that 50 tonnes of cargoes are redirected from the HSIA to Delhi every day on average.

Owing to the higher charges, local airlines, freight forwarders, courier companies, ground handlers, and many other related sectors are losing business.

At least eight private airlines that tried to do business on the domestic routes of Bangladesh could not become competitive because of escalated high tariffs, Alam said.

Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, described the freight charge at the Dhaka airport as extremely high.

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[Saif]

RMG export prices fall by 16% in 8 months: BGMEA

Apparel’s demand decreases among end consumers hit hard by high inflation, it says

www.thedailystar.net

RMG export prices fall by 16% in 8 months: BGMEA
Apparel's demand decreases among end consumers hit hard by high inflation, it says

Export prices of Bangladeshi garment items fell by 8 percent to as high as 16 percent year-on-year in the last eight months thanks to a fall in demand among consumers because of high inflationary pressure.

Not only the prices of apparels shipped from Bangladesh have fallen, but also the export of garments witnessed a falling trend in volume in major markets, according to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

For instance, apparel import from the US declined by 7 percent and from the European Union it experienced a 13 percent fall in the July-April period of 2023-24 fiscal year, the BGMEA data also said.

Garment export increased by 4.97 percent year-on-year in the 10 months to April this year, down from the 9.09 percent year-on-year growth posted in the same period previous year.

However, the bank interest rate rose by 15 percent and the cost of production by 50 percent in the last five years, BGMEA President SM Mannan Kochi said at a meeting with the reporters of different print, televisions and online media outlets at Pan Pacific Sonargaon in Dhaka today.

The cost of production has increased because of price hikes of gas, power and wages of the workers, he said.

Kochi also said the government's decision of not allowing making investment outside of the export processing zones (EPZs) and the special economic zones (SEZs) will have a negative impact on the inflow of investment in the country.


He urged the government for reviewing the decision and giving go-ahead to making investment and setting up factories outside of the SEZs and EPZs so new investments come and new factories are set up.​

 

[Saif]

Over 450 textile, RMG units cut freshwater usage by 35b litres

Over 450 textiles and readymade garment factories in Bangladesh under IFC-led programme ‘Partnership for Cleaner Textile’ have reduced freshwater consumption by 35 billion litres and cut wastewater discharge by 29 billion litres annually...

www.newagebd.net

Over 450 textile, RMG units cut freshwater usage by 35b litres
Staff Correspondent 02 June, 2024, 22:36

A file photo shows workers sewing clothes at a readymade garment factory at Savar, on the outskirts of Dhaka. | New Age photo

Over 450 textiles and readymade garment factories in Bangladesh under IFC-led programme 'Partnership for Cleaner Textile' have reduced freshwater consumption by 35 billion litres and cut wastewater discharge by 29 billion litres annually.

On the occasion of the 10-year anniversary of the PaCT programme, International Finance Corporation stated that freshwater saved through the reduced consumption under the initiative could meet the annual water need of over 1.9 million people.

Now, these factories save 3.8 million megawatt hours in energy per year and have reduced carbon emissions by 7,23,617 tonnes annually — equivalent to removing nearly 1,60,000 cars from the road each year.

To bring systemic and positive change to the textile value chain in Bangladesh, IFC's partnership for PaCT programme has catalysed transformative change over the last 10 years, contributing to the sector's competitiveness and environmental sustainability, the statement said.

The advisory programme PaCT — supported by Denmark and the Netherlands —is spearheaded by IFC and implemented in collaboration with the Bangladesh Garment Manufacturers and Exporters Association.

Over the years, PaCT has also been working with leading partners, including VF Corp, PUMA, Levi Strauss & Co and TESCO.

'Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable energy,' said Denmark ambassador to Bangladesh Christian Brix Moller.

According to IFC, the PaCT programme was launched to support the entire textile value chain — spinning, weaving, wet processing and garment factories — in adopting cleaner production practices.

The programme engaged with brands, technology suppliers, industrial associations, financial institutions and the government to bring about systemic and positive environmental changes in Bangladesh's textile sector, contributing to its long-term competitiveness and environmental sustainability.

To read the rest of the news, please click on the link above.​

 

[Bilal9]

RMG sees 10% growth in new markets

Bangladesh's RMG sector exhibited an overall growth of 4.97% during the fiscal 2023-24

Bangladesh' ready-made garment exports to new markets witnessed robust growth of 10%, reaching a total of $7.70 billion in July-April of FY24, compared to $7 billion in the equivalent period of the previous fiscal year.

Among major newly explored markets, shipments to Japan rose to $1.4 billion, reflecting a 6.14% increase. While exports to Australia and South Korea showed substantial rises of 17.18% and 14.73%, respectively.

Bangladesh' RMG exports to the Middle East markets also showcased notable growth. Exports to Saudi Arabia increased by 58%, while Turkey and the UAE recorded growth rates of 54% and 41.96%, respectively.

According to Export Promotion Bureau (EPB) data, overall exports to global markets reached an impressive total of $40.49 billion, compared to $38.57 billion in the first ten months of FY23.

"We have already achieved double-digit growth in these new markets," he said. "Our market share in the new markets has reached close to 20%. If the government continues its policy support, especially cash incentives, until 2029, our market share in new markets will be higher, which will help diversify our markets."

Kochi emphasized that Japan, Australia, South Korea, China, Russia, and other Middle East markets have the potential for further growth. He urged the government to introduce alternative incentives for apparel exports, similar to those provided by competitor countries, to enhance competitiveness.
The BGMEA president noted that India has been providing various incentives to its exporters, although the country only graduated from LDC status in 2007.
Bangladesh's RMG sector exhibited an overall growth of 4.97% during the fiscal 2023-24. According to EPB data, exports to the EU totaled $19.90 billion, with 3.66% growth, driven by strong performances in several key EU markets.

RMG exports to Spain, France, the Netherlands, Poland, and Denmark grew by 6.07%, 3.42%, 17.51%, 20.65%, and 32%, respectively.

Apparel exports from Bangladesh to the UK and Canada reached $4.8 billion and $1.26 million, respectively.

Speaking about the RMG sector, the BGMEA president said, "When our Europe-America market began to recover post-Covid, our business slowed down again due to the Ukraine-Russia war. Our exports have suffered to some extent, but we still managed to maintain growth compared to other competing countries."

However, apparel exports to neighboring India declined by 22.44%. This decline has been noticeable since August 2023.

 

[Saif]

However, apparel exports to neighboring India declined by 22.44%. This decline has been noticeable since August 2023.

India's penny pinching bureaucrats are the main culprits for the decline of Bangladesh's exports to India. This I call exploitation of Bangladesh by our big neighbor---India.

 

[Saif]

SBTi debate has major implications for RMG suppliers

The carbon offsetting schemes that have been discredited in the past could be improved

www.thedailystar.net

SBTi debate has major implications for RMG suppliers

VISUAL: STAR

A row has broken out about the Science Based Targets initiative (SBTi), a corporate climate action organisation, which could have significant implications for garment manufacturers around the world, depending on how it plays out. The SBTi is the world's best-known initiative that supports global enterprises in their efforts to reduce carbon emissions in line with sciences aligned with global agreements such as the Paris Agreement. Many of the world's largest fashion brands have set science-based targets for 2030 and beyond.

The biggest challenge in meeting these targets has been in reducing Scope 3 emissions—in supply chains, essentially. For fashion brands, reducing the amount of CO2 emissions related to garment production and textile processing is a huge task, especially given that so much of this manufacturing takes place in countries that use "dirty" energy such as fuel and gas.

Up until now, the SBTi has indicated that in order to meet their science-based targets, signatories must make absolute reductions in their carbon emissions. In order to do this, they would need to support their supply chains in the transition to renewable energy sources.

This is no easy task. It also explains why fashion brands have been in prolonged conversations with their suppliers in recent years to look at how they can measure and reduce carbon emissions.

Recently, however, the SBTi issued a statement suggesting they would, moving forward, allow voluntary carbon offsetting schemes to contribute to CO2 emissions reduction targets in supply chains. This news was significant for the fashion industry as many brands are indeed struggling to reduce Scope 3 emissions while also hitting business growth targets.

To read the rest of the news, please click on the link above.​