[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Bangladesh unveils first large-scale water reuse facility in RMG sector

Bangladesh has launched its first large-scale Water Reuse and Improved Wastewater Management Demonstration plant at Fakir Knitwears Ltd. in Narayanganj. The initiative marks a significant step toward reducing freshwater extraction and industrial pollution in the country’s crucial readymade ga

thefinancialexpress.com.bd

Bangladesh unveils first large-scale water reuse facility in RMG sector

FE ONLINE REPORT
Published :
Jul 30, 2025 18:47
Updated :
Jul 30, 2025 18:47

Bangladesh has launched its first large-scale Water Reuse and Improved Wastewater Management Demonstration plant at Fakir Knitwears Ltd. in Narayanganj. The initiative marks a significant step toward reducing freshwater extraction and industrial pollution in the country’s crucial readymade garment (RMG) sector.

The project—co-hosted by Primark, Fakir Knitwears Ltd., and the World Bank’s 2030 Water Resources Group—aims to reduce groundwater use by 30 per cent, supporting both Bangladesh’s Sustainability Water Roadmap 2030 and the UN Sustainable Development Goal 6 (Clean Water and Sanitation).

The state-of-the-art facility will enable the reuse of 438,000 cubic meters of water annually, leading to a 22 per cent reduction in total production water consumption. It has been tested for commercial and technical viability by a global consortium including Primark, H&M Group, and Panta Rei, with support from the UK Government’s SMEP Programme and UNCTAD.

“This facility comes at a time when over 90% of water bodies near industrial areas in Bangladesh are classified as severely polluted,” said Lewys Isaac, representative of Primark, addressing the project launching ceremony at Fakir Knitwears Ltd. “This model provides a pathway to move away from such pollution and towards circular water use.”

Ziaur Rahman, Regional Country Manager of H&M, added, “To build a sustainable environment, we must all work together in unison. Collaboration is key.”

Managing Director of Fakir Group, Fakir Akhtaruzzaman, said, “This initiative reflects our commitment to responsible industrial growth. It will protect water resources for future generations and set a benchmark for others to follow.”

The inaugural ceremony was attended by Robiul Alam, Joint Secretary of the Ministry of Water Resources, as the chief guest. Fakir Mashfiquzzaman Fabi, Director of Fakir Knitwears Ltd., presided over the event. Special guests included Lutful Ahmed, Additional Director General of the Department of Environment, and Dr. Mohammad Lutfur Rahman, Director of the Water Resources Planning Organization (WARPO).

Representatives from BGMEA, BKMEA, the French Development Bank (AFD), KfW Development Bank, and various international development partners were present, signalling strong institutional and industry-wide support.

The project is also the first major demonstration under the National Alliance for Water Reuse and Recycling, formed in May 2025 by the Government of Bangladesh, the World Bank, and WARPO. The alliance aims to scale sustainable water use practices across the country’s export-oriented industries.

The demonstration facility aligns with several national policies and strategies, including the Bangladesh Water Act 2013, the National Water Policy 1999, and the Bangladesh Delta Plan 2100. It is expected to influence broader adoption of water reuse technologies across the industrial sector.

Besides improving environmental outcomes, the project is anticipated to generate green employment opportunities for engineers, technicians, and factory staff through the deployment of advanced water treatment systems.

Industry experts view this development as a replicable and scalable model that strengthens Bangladesh’s position as a leader in sustainable and responsible manufacturing in the global apparel value chain.​

 

[Saif]

BD may face setback as US fashion brands shift focus to emerging rivals

Rising tariff and trade tensions under the Trump administration are driving US fashion companies to look beyond their traditional apparel-sourcing bases-China, Vietnam, and Bangladesh. Instead, countries like Indonesia, India, and Cambodia are emerging as the new front-runners in the shifting glob

thefinancialexpress.com.bd

Tariff tensions shake up sourcing map
BD may face setback as US fashion brands shift focus to emerging rivals

Monira Munni
Published :
Jul 31, 2025 12:55
Updated :
Jul 31, 2025 12:55

Rising tariff and trade tensions under the Trump administration are driving US fashion companies to look beyond their traditional apparel-sourcing bases-China, Vietnam, and Bangladesh.

Instead, countries like Indonesia, India, and Cambodia are emerging as the new front-runners in the shifting global supply chain, according to the 2025 Fashion Industry Benchmarking Study, released on Tuesday.

More than 60 per cent of surveyed US fashion executives plan to expand sourcing from these three emerging players over the next two years.

While Bangladesh remains a key low-cost supplier, especially for basic apparel categories, concerns about future trade restrictions and heavy reliance on Chinese textiles are holding back more substantial expansion, the study revealed.

US fashion companies that are directly affected by the Trump administration's escalating tariffs are considering Indonesia, India, and Cambodia as the most promising sourcing destinations, overtaking three traditional suppliers, including Bangladesh, according to the latest industry study.

"Respondents generally believe that these countries have already developed considerable apparel production capacity and can serve as immediate alternatives to the traditional top three suppliers -- China, Vietnam and Bangladesh," the study noted.

Regarding Bangladesh, around 53 per cent of respondents expressed an interest in expanding apparel sourcing from the country over the next two years, similar to 48 per cent in the 2024 survey.

However, there are mounting concerns that apparel imports from Bangladesh may face future US trade restrictions, driven by its rising trade surplus with the US and a perceived overdependence on Chinese raw textile inputs.

"These concerns appear to hold US fashion companies back from substantially increasing their apparel sourcing from Bangladesh in the context of sourcing diversification and reducing 'China exposure'," the report stated.

On July 7, US President Donald Trump officially notified Bangladesh of a flat 35-percent tariff to be imposed on all Bangladeshi exports.

Previously, on April 2, the US had announced reciprocal tariffs on several countries, including a 37-percent duty on Bangladeshi goods.

However, this was temporarily replaced by a 10-percent flat rate, which was extended until August 1 after expiring on July 9.

Despite the challenges, Bangladesh's share of US apparel imports rose to approximately 10.6 per cent in the first five months of 2025, up from 9.2 per cent during the same period in 2024.

In contrast, Indonesia, India, and Cambodia together accounted for 18.5 per cent of US apparel imports in the same period, compared to 17.1 per cent a year earlier.

"These countries also present relatively lower sourcing risks compared to China, making them attractive options for fashion companies aiming to mitigate supply chain vulnerabilities," the study added.

The report also noted that US fashion firms still view Bangladesh as a reliable destination for low-cost, high-volume basics, such as knit cotton shirts and trousers. However, concerns remain around social and environmental compliance risks.

The twelfth edition of the annual survey was jointly conducted by the United States Fashion Industry Association (USFIA) and the University of Delaware.

It covered executives from 25 leading US fashion brands, retailers, importers, and wholesalers, including several of the largest brands in the country, between April and June 2025.

Tariffs are already affecting operations, the report warned. Over two-thirds of companies surveyed have delayed or cancelled orders.

Suppliers, forced to absorb part of the tariff costs, are now at risk of financial distress or closure.

More than 70 per cent of respondents said higher tariffs have increased sourcing costs, reduced profit margins, and driven up consumer prices. Nearly 50 per cent reported declining sales, and 22 per cent confirmed layoffs in their workforce.

Despite the upheaval, US companies continue to pursue supply chain diversification. In 2025, apparel was sourced from 46 countries, with 60 per cent of respondents indicating plans to expand sourcing, excluding China.

Over 60 per cent of respondents allocated more than 30 per cent of their apparel sourcing to Vietnam and Bangladesh combined this year, up from just one-third in 2024.

At the same time, it has become increasingly common for companies to allocate more than 10 per cent of their sourcing to India, Cambodia, and Indonesia, signalling not only improved production capacity but also their growing importance as long-term supply partners in the global apparel value chain.

When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said each big buyer has their own country risk analysis and business cannot be shifted from Bangladesh overnight.

The competition from Indonesia, India and Cambodia could be a big challenge for Bangladesh if the tariff gaps go higher for Bangladesh than others, he said.

He added that existing internal issues, including high cost of doing business and poor infrastructural bottlenecks, are not addressed timely.​

 

[Bilal9]

BD may face setback as US fashion brands shift focus to emerging rivals

Rising tariff and trade tensions under the Trump administration are driving US fashion companies to look beyond their traditional apparel-sourcing bases-China, Vietnam, and Bangladesh. Instead, countries like Indonesia, India, and Cambodia are emerging as the new front-runners in the shifting glob

thefinancialexpress.com.bd

Tariff tensions shake up sourcing map
BD may face setback as US fashion brands shift focus to emerging rivals

Monira Munni
Published :
Jul 31, 2025 12:55
Updated :
Jul 31, 2025 12:55

View attachment 20898

Rising tariff and trade tensions under the Trump administration are driving US fashion companies to look beyond their traditional apparel-sourcing bases-China, Vietnam, and Bangladesh.

Instead, countries like Indonesia, India, and Cambodia are emerging as the new front-runners in the shifting global supply chain, according to the 2025 Fashion Industry Benchmarking Study, released on Tuesday.

More than 60 per cent of surveyed US fashion executives plan to expand sourcing from these three emerging players over the next two years.

While Bangladesh remains a key low-cost supplier, especially for basic apparel categories, concerns about future trade restrictions and heavy reliance on Chinese textiles are holding back more substantial expansion, the study revealed.

US fashion companies that are directly affected by the Trump administration's escalating tariffs are considering Indonesia, India, and Cambodia as the most promising sourcing destinations, overtaking three traditional suppliers, including Bangladesh, according to the latest industry study.

"Respondents generally believe that these countries have already developed considerable apparel production capacity and can serve as immediate alternatives to the traditional top three suppliers -- China, Vietnam and Bangladesh," the study noted.

Regarding Bangladesh, around 53 per cent of respondents expressed an interest in expanding apparel sourcing from the country over the next two years, similar to 48 per cent in the 2024 survey.

However, there are mounting concerns that apparel imports from Bangladesh may face future US trade restrictions, driven by its rising trade surplus with the US and a perceived overdependence on Chinese raw textile inputs.

"These concerns appear to hold US fashion companies back from substantially increasing their apparel sourcing from Bangladesh in the context of sourcing diversification and reducing 'China exposure'," the report stated.

On July 7, US President Donald Trump officially notified Bangladesh of a flat 35-percent tariff to be imposed on all Bangladeshi exports.

Previously, on April 2, the US had announced reciprocal tariffs on several countries, including a 37-percent duty on Bangladeshi goods.

However, this was temporarily replaced by a 10-percent flat rate, which was extended until August 1 after expiring on July 9.

Despite the challenges, Bangladesh's share of US apparel imports rose to approximately 10.6 per cent in the first five months of 2025, up from 9.2 per cent during the same period in 2024.

In contrast, Indonesia, India, and Cambodia together accounted for 18.5 per cent of US apparel imports in the same period, compared to 17.1 per cent a year earlier.

"These countries also present relatively lower sourcing risks compared to China, making them attractive options for fashion companies aiming to mitigate supply chain vulnerabilities," the study added.

The report also noted that US fashion firms still view Bangladesh as a reliable destination for low-cost, high-volume basics, such as knit cotton shirts and trousers. However, concerns remain around social and environmental compliance risks.

The twelfth edition of the annual survey was jointly conducted by the United States Fashion Industry Association (USFIA) and the University of Delaware.

It covered executives from 25 leading US fashion brands, retailers, importers, and wholesalers, including several of the largest brands in the country, between April and June 2025.

Tariffs are already affecting operations, the report warned. Over two-thirds of companies surveyed have delayed or cancelled orders.

Suppliers, forced to absorb part of the tariff costs, are now at risk of financial distress or closure.

More than 70 per cent of respondents said higher tariffs have increased sourcing costs, reduced profit margins, and driven up consumer prices. Nearly 50 per cent reported declining sales, and 22 per cent confirmed layoffs in their workforce.

Despite the upheaval, US companies continue to pursue supply chain diversification. In 2025, apparel was sourced from 46 countries, with 60 per cent of respondents indicating plans to expand sourcing, excluding China.

Over 60 per cent of respondents allocated more than 30 per cent of their apparel sourcing to Vietnam and Bangladesh combined this year, up from just one-third in 2024.

At the same time, it has become increasingly common for companies to allocate more than 10 per cent of their sourcing to India, Cambodia, and Indonesia, signalling not only improved production capacity but also their growing importance as long-term supply partners in the global apparel value chain.

When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said each big buyer has their own country risk analysis and business cannot be shifted from Bangladesh overnight.

The competition from Indonesia, India and Cambodia could be a big challenge for Bangladesh if the tariff gaps go higher for Bangladesh than others, he said.

He added that existing internal issues, including high cost of doing business and poor infrastructural bottlenecks, are not addressed timely.​

Competition from India and Indonesia is a non-issue (or less of an issue at the very least) when one considers the amount of factory shifts that are taking place from mainland China to avoid export tariffs to the US from China.

Neither India nor Indonesia has the labor cost advantage Bangladesh has on apparel and other things like Toys and Footwear. In the case of India, red tape is even more of a barrier for exports.

This is the elephant in the room no one wants to talk about, but is very real.

 

[Saif]

Competition from India and Indonesia is a non-issue (or less of an issue at the very least) when one considers the amount of factory shifts that are taking place from mainland China to avoid export tariffs to the US from China.

Neither India nor Indonesia has the labor cost advantage Bangladesh has on apparel and other things like Toys and Footwear. In the case of India, red tape is even more of a barrier for exports.

This is the elephant in the room no one wants to talk about, but is very real.

Good observation, Bilal bhai

 

[Saif]

Why the US tariff cut matters for Bangladesh’s apparel industry

The recent reduction in US tariffs on Bangladeshi apparel exports marks a significant turning point for our industry—and perhaps one of the most promising windows of opportunity we’ve seen in recent years. Initially, the proposed 35 per cent tariff was nothing short of alarming. It thr

thefinancialexpress.com.bd

Why the US tariff cut matters for Bangladesh’s apparel industry

SHARIF ZAHIR
Published :
Aug 01, 2025 19:05
Updated :
Aug 01, 2025 19:05

The recent reduction in US tariffs on Bangladeshi apparel exports marks a significant turning point for our industry—and perhaps one of the most promising windows of opportunity we’ve seen in recent years.

Initially, the proposed 35 per cent tariff was nothing short of alarming. It threatened to undercut our competitiveness in our single most important export market. But thanks to timely diplomatic engagement and strong government efforts, the tariffs have now been reduced to around 20 per cent—a rate that, while still substantial, restores a degree of balance to the global trade playing field.

This revised rate allows us to remain competitive. At Ananta Apparels, which exports over $465 million annually—$170 million of which goes to the United States—we see this decision as a lifeline. Without this adjustment, the consequences could have been disastrous. Now, Insha’Allah, we are confident that we can continue serving our American partners without major disruption.

Some may argue that Bangladesh should shift its focus to other markets. But let us be clear: the US market is irreplaceable. It is vast, stable, and has been the foundation upon which much of the apparel success of countries like China and Vietnam has been built. Now that Chinese apparel faces tariffs exceeding 34 per cent—including the existing 30 per cent—we may be witnessing a reordering of global sourcing patterns. Bangladesh stands to benefit significantly.

To seize this opportunity, however, we must be ready. Bangladesh’s apparel industry is mature. We have decades of experience, deep-rooted infrastructure, and a growing capability in producing value-added goods. Where countries like China and Vietnam once dominated niche categories such as sportswear, performance apparel, and high-end outerwear, we now have a chance to step up and fill that gap.

But capitalising on this shift will require strategic thinking beyond the factory floor. Trade is no longer just about product and price—it is increasingly shaped by geopolitics and long-term policy alignment. For example, if part of a broader trade strategy involves importing LNG from the United States, I see that not as a liability but as a form of strategic engagement. The same applies to aircraft procurement. Boeing aircraft deliveries take at least six years. These are not transactional purchases; they reflect long-term diplomatic partnerships. Bangladesh’s decision to purchase 25 Boeing aircraft aligns with this broader vision, as do similar decisions by countries like India.

Even in agriculture, US products—whether corn, wheat, or cotton—tend to command a premium due to their quality. We have seen this in our operations. US cotton, while slightly more expensive, offers consistent and superior quality, making it ideal for premium garments and performance textiles.

What is even more relevant now is the US government’s new policy supporting its cotton farmers. American retailers are now eligible for duty waivers if they use at least 20 per cent US cotton in their garment sourcing. That means buyers can enjoy zero tariffs on a portion of their FOB value if US cotton is used. This is a game-changer—especially for Bangladesh, which can position itself as a high-quality, duty-advantaged sourcing destination if we align smartly with such programmes.

In short, the recent tariff reduction is not just a relief—it is an inflexion point. But to turn it into long-term growth, we must act decisively. That means improving value addition, strengthening compliance and sustainability standards, negotiating better trade facilitation, and deepening strategic ties with key partners such as the United States.

The future of our RMG sector will not be determined solely by volume—it will be shaped by our ability to adapt, align, and lead. The opportunity is here. The question is: are we ready to rise to it?

Sharif Zahir is the Managing Director of Ananta Apparels and Chairman of United Commercial Bank Limited.​