[🇧🇩] Textile & RMG Industry of Bangladesh

[Bilal9]

Trump’s victory: Is Bangladesh awaiting a boost in apparel exports?​

Shuvonkar Karmokar
Dhaka
Updated: 15 Nov 2024, 23: 01

Prothom Alo infographic

The victory of Donald Trump in the US presidential election has ushered a ray of hope for increased demand for Bangladeshi apparel products in the US market.

During his campaign, the US president-elect announced plans to raise import tariffs on Chinese products. If implemented, the move is expected to shift purchase orders away from China, and Bangladesh may receive a share of the redirected orders, said local entrepreneurs.

During Donald Trump’s first term as the US president, Bangladesh experienced a similar benefit as the China-US trade war led to additional purchase orders for Bangladeshi products and subsequent boost in national exports.

Some apparel exporters said there are still two months before Donald Trump’s scheduled assumption in the office, but some of the US buyers are already communicating about placing more orders, leaving a little room for discussion on potential tariff hike on Chinese imports.

The manufacturers are considering it as a sign of new opportunities as well as business. They, however, fear that it will be too tough to expand their business unless the prevailing woes, including energy crisis and banking complications, are solved.

In the first term of Donald Trump, a trade war began between the US and China in 2018, and it started to move away a significant share of US purchase orders from China in 2019. Bangladesh captured a portion of the redirected purchase orders.

In 2019, apparel exports from Bangladesh to the US rose to $5.93 billion, the highest in seven years. In 2022, the figure peaked at $9.72 billion, despite disruptions inflicted by the Covid-19 pandemic. However, it declined in 2023, due to the Russia-Ukraine war.

According to the office of textiles and apparel (OTEXA) under the US department of commerce, apparel exports from China to the US market declined by $11.06 billion over five years from 2018. In the same period, Bangladesh's exports went up by $1.89 billion, while Vietnam’s exports increased by $1.96 billion.

Tariff is likely to be the common tool for Donald Trump to reduce imports from China. During the election campaign, he repeatedly announced his plan to impose a 10–20 per cent tariff on overall US imports, and it will climb to 60 to 100 per cent for Chinese products.

At an Economic Club event in Chicago last month, Trump said, “To me, the most beautiful word in the dictionary is tariff. It's my favorite word.” His policy encourages US domestic manufacturing.

​

Expectations​

SM Sourcing, a garment factory in Gazipur recognized for its eco-friendly facilities, derives 25 per cent of its exports from the US market.

Its owner, Mirza Shams Mahmud, told Prothom Alo, “We are expecting something good in the US market. We have received a forecast for good business from the US buyers. Some buyers are even showing flexibility while fixing prices of garments.”

There are around a thousand buying houses that act as intermediaries between foreign brands and local factories. A significant portion of exports are carried out through buying houses.

Kyaw Sein Thay Dolly, director of the Bangladesh garment buying house association (BGBA), said US buyers and brands took Trump’s tariff plans seriously, while Chinese exporters already started searching for new markets.
In fact, all are making backup plans. Hence, there have been growing queries in Bangladesh factories. India is also preparing to capture the purchase orders, he added.

Apparel exports to the US market started to rebound in the last few months, overcoming backlash of the Covid-19 pandemic. But Bangladesh lags behind its competitors like Vietnam, Cambodia, Pakistan, and India in terms of growth in apparel exports to the US.

While talking to Prothom Alo, Fazlul Hoque, a former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said there are grounds to be optimistic about the US market following the victory of Trump.

Trump is appointing individuals with anti-China stances to key positions in his administration. If tariffs are hiked eventually, the purchase orders will be redirected from China. Vietnam already has higher orders than its capacity, and it has no scope for expansion. On the flip side, Bangladeshi factories are running below their production capacity. To grab the opportunity, the supply of gas and power should be increased, in addition to more cooperation from the banks, he explained.

Expert insight​

Khondaker Ghulam Moazzem, research director of the Centre for Policy Dialogue (CPD), said the current US president, Joe Biden, did not move away from his previous administration's China policy. He maintained the tariffs imposed on Chinese products before 2020.

During his election campaign, Donald Trump declared to impose new tariff on Chinese products. He actually wants to strengthen US domestic industries. Hence, the US will increase tariffs on products that they intend to increase domestic production, he said, adding it is less likely for the garments business to receive more business.

Khondaker Ghulam Moazzem also explained that the investors in China already received a message from the victory of Trump, and some of them will now shift to other places, including Bangladesh and Pakistan.

“We are struggling to ensure proper structural facilities for the current investors. Against such a backdrop, it will be tough to grab the opportunity if infrastructural issues, labor dissatisfaction, and political tension are not addressed,” he added.

*This report appeared on the print and online versions of Prothom Alo and has been rewritten in English by Misbahul Haque

 

[Saif]

Bangladesh’s share in US market rises

Bangladesh’s share in the United States’ denim trouser imports has steadily grown by 6.6 percentage points over the past seven years, increasing from 14.1 per cent in 2017 to 20.7 per cent as of September 2024 although the overall imports of the item by the US declined in the period...

www.newagebd.net

Bangladesh’s share in US market rises
Moinul Haque 30 November, 2024, 22:55

A file photo shows people checking products at a stall at the Bangladesh Denim Expo that was held in the capital Dhaka. Bangladesh’s share in the United States’ denim trouser imports has steadily grown by 6.6 percentage points over the past seven years, increasing from 14.1 per cent in 2017 to 20.7 per cent as of September 2024 although the overall imports of the item by the US declined in the period. | New Age photo

Bangladesh’s share in the United States’ denim trouser imports has steadily grown by 6.6 percentage points over the past seven years, increasing from 14.1 per cent in 2017 to 20.7 per cent as of September 2024 although the overall imports of the item by the US declined in the period.

According to data released by the Office of Textiles and Apparel under the US Department of Commerce, Bangladesh’s export value of denim trousers to the US rose from $495 million in 2017 to a peak of $927 million in 2022.

After a peak in 2022, Bangladesh’s exports fell to $639 million in 2023 and further to $491 million in nine months (January-September) of 2024.

Despite global uncertainties, Bangladesh has remained as one of the top exporters, competing directly with Mexico and surpassing traditional leaders like China.

The OTEXA data showed that Mexico’s share declined from 22.5 per cent in 2017 to 17.1 per cent in 2020, recovering slightly to 20.6 per cent in 2023 and dropping again to 19.6 per cent in September 2024.

China’s market share in the US denim trouser imports dropped significantly, from 25.4 per cent in 2017 to 8.5 per cent in 2022 and 10.3 per cent in September 2024.

The data also suggested that China’s decline was stark, from $892 million in 2017 to $246 million in nine months (January-September) of 2024.

Industry experts said that the trend was aligned with global shifts in sourcing away from China due to rising costs and geopolitical factors, and Bangladesh capitalised on this trend, gaining market share.

Former Bangladesh Garment Manufacturers and Exporters Association vice-president Abdullah Hil Rakib termed the current trend in work orders ‘very good’.

He expressed optimism for 2025, saying that huge work orders were coming and his factory’s outerwear capacity had already been fully booked for that year.

He, however, raised concerns about the rising share in a shrinking market, attributing the decline in the denim market to changing lifestyle preferences and sustainability issues.

Rakib said that consumers were increasingly opting for functional wear, such as activewear, sportswear, and athleisure — categories that cater to women’s needs for both style and performance.

He further explained that denim is often not seen as a sustainable option, as its production required significant water usage.

The OTEXA data also indicated that Pakistan’s market share more than doubled in the past seven years, rising from 6 per cent in 2017 to 12.7 per cent in nine months (January-September) of 2024.

Vietnam’s share in the US denim trouser imports raised from 5.8 per cent in 2017 to 11.5 per in the nine months of 2024.

Square Denim director Syeed Ahmad Chowdhury said that Bangladesh’s increasing share in the US denim trouser market was primarily driven by buyers shifting away from China.

Additionally, Turkey’s drastic reduction in denim production also contributed to this shift, he said.

He said that while the decline of China and Turkey played a role in Bangladesh’s market share growth, it did not imply that manufacturing in Bangladesh had not faced challenges.

Regarding the shrinking market share in the US denim market, Syeed said that US demand was growing more slowly than in the EU, with the US being Bangladesh’s single largest destination.

He also mentioned that orders from China and Turkey were increasingly shifting to Bangladesh, Mexico, and Pakistan.​

 

[Saif]

Let the textile tussle begin

A potential shift in US-China trade relations is a rare chance for Bangladesh to take a giant leap forward in the global garment trade.

www.thedailystar.net

Let the textile tussle begin

A surge in demand for Bangladeshi garments would likely lead to job creation, benefitting millions of workers and their families. Photo: Reuters

The return of Donald Trump to power in the United States and the likelihood of increased tariffs on Chinese imports, including textiles, could shift the trade dynamics between these two economic giants dramatically. If Bangladesh plays its cards right, it could emerge as a key beneficiary of this geopolitical shift, solidifying its position in the global garment trade and significantly boosting its presence in the US market.

If Trump raises tariffs on Chinese textiles, US buyers potentially will seek other sources to maintain profitability. Historically, countries like Vietnam, India, and Bangladesh have been the go-to alternatives. However, I believe, Bangladesh has a unique edge. Vietnam is experiencing rising labour costs, and India faces inefficiencies in its garment sector, leaving Bangladesh as one of the most viable options for US retailers. The US is already one of the largest markets for Bangladeshi garments, with imports reaching nearly $10 billion in 2024. If Chinese garments become less cost-competitive, this figure could grow significantly as new buyers enter the market and existing ones increase their orders.

Moreover, I think this shift could, and should, encourage Bangladesh to expand its product range. Traditionally focused on basic apparel like T-shirts and sweaters, the industry could now branch out into higher-value items such as sportswear, outerwear, and technical textiles, opening new revenue streams. A surge in demand for Bangladeshi garments would likely lead to job creation, benefitting millions of workers and their families. The ripple effects could extend to sectors like logistics, packaging, and transportation, contributing to overall GDP growth. However, seizing this opportunity will require Bangladesh to address several critical challenges.

First and foremost, I think Bangladesh must tackle its infrastructure issues. Delays caused by inefficiencies at ports, outdated road networks, and congested transport systems could undermine our ability to meet the demands of international buyers. Improving infrastructure should be a top priority for both the government and private sector. Buyers in the US are unlikely to tolerate shipment delays, especially when alternative suppliers might be more reliable.

In today's global market, buyers care deeply about ethical practices and environmental responsibility. US retailers will be paying close attention to labour standards and factory conditions, and in my view, Bangladesh must ensure it is meeting these expectations to avoid reputational risks and maintain its competitive edge. Additionally, adopting sustainable practices is equally important. Buyers are increasingly drawn to suppliers that use renewable energy and other sustainable factory practices, and Bangladesh could cement its reputation by investing in green technologies. But government policies and investments play a crucial role in this process.

Another issue is our industry's heavy reliance on imported raw materials. Despite our strength in garment production, Bangladesh imports much of its textiles, particularly cotton and synthetic fabrics. This dependency increases costs and lengthens production timelines. I think investing in domestic textile manufacturing could be a game-changer, enabling our industry to reduce costs and improve efficiency while becoming more self-sufficient.

Diversification is another critical step. By moving into higher-value products and niche markets, Bangladesh can increase its revenue and reduce dependence on low-margin items. Additionally, I think proactive trade negotiations with the US will be vital. Securing favourable terms could make Bangladesh an even more attractive sourcing destination for American retailers.

That said, I recognise that Bangladesh isn't the only country with its eyes on this opportunity. Competitors like Vietnam, Indonesia, and even Mexico are also well-positioned to attract buyers seeking alternatives to China. In my opinion, Bangladesh must differentiate itself by emphasising its ability to deliver quality products at competitive prices while ensuring reliability and sustainability.

While we do not yet know what Trump will do—there is talk of a 10 percent tariff on all imports from China—this moment represents a pivotal opportunity for Bangladesh. If managed wisely, the benefits could extend far beyond the garment industry. Increased export earnings could fuel investments in other sectors, such as home textiles and accessories, creating a more diverse economic base.

A potential shift in US-China trade relations is a rare chance for Bangladesh to take a giant leap forward in the global garment trade. With careful planning, strategic investments, and a commitment to addressing its challenges, Bangladesh can position itself as a key player in the US market and beyond.

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]

Bashir calls for innovation in textile sector to face post-LDC challenges

Sheikh Bashir Uddin, adviser to the Ministries of Textiles, Jute, and Commerce, has urged stakeholders to brace for challenges following Bangladesh’s graduation from least developed country status...

www.newagebd.net

Bashir calls for innovation in textile sector to face post-LDC challenges
United News of Bangladesh . Dhaka 04 December, 2024, 23:06

Sheikh Bashir Uddin, adviser to the Ministries of Textiles, Jute, and Commerce, has urged stakeholders to brace for challenges following Bangladesh’s graduation from least developed country status.

Speaking at the National Textile Day 2024 seminar on Wednesday, he emphasised the need for unity and strategic planning to address potential disruptions in the sector.

‘We have many challenges ahead as an LDC graduate nation. The decision to reduce incentives is the right step. After LDC graduation, incentives will no longer be available, and we will face export market tariffs,’ Bashir Uddin remarked at the event held at the Jute Diversification Promotion Centre at Farmgate in Dhaka.

Bashir Uddin called for increased adoption of solar energy and advanced technologies to reduce costs and enhance efficiency in the textile industry. ‘Solar power is a viable solution to cut expenses in this sector. Additionally, new entrants into the industry must be professionally skilled and academically prepared to drive its growth,’ he said.

The seminar, titled ’Overview of the Textile Sector in Bangladesh: Problems, Prospects, and Smart Way Out,’ was organised by the Ministry of Textiles and Jute. It featured notable experts, policymakers and industry leaders addressing the sector’s current state and future.

Md Abdur Rouf, secretary of the Ministry of Textiles and Jute, presided over the seminar, while Md Shahidul Islam, director general of the Textiles Department, delivered the opening address. Professor Ayub Khan from BGMEA University of Fashion and Technology highlighted the need for a ‘talent bank’ and skill development to ensure sustainable industry growth.

BKMEA president Md Hatem stressed the importance of long-term planning and timely policies to advance the sector. ‘The development of the textile industry requires coordinated efforts and visionary strategies,’ he said.

The event brought together senior officials, including additional secretaries of the Ministry of Textiles and Jute Subrata Sikder, Arifur Rahman Khan and Taslima Kaniz Nahida, along with BTMC chairman Brigadier General Md Ziaul Haque. Stakeholders from various sectors also participated, underscoring the importance of collaboration in addressing industry challenges.​

 

[Saif]

RMG exports to US surge in Oct

Bangladesh’s readymade garment exports to the United States in October 2024 recorded the highest growth marking a 25-per cent increase in quantity and a 26-per cent rise in value compared with those in the same month of 2023.

www.newagebd.net

RMG exports to US surge in Oct
Staff Correspondent 07 December, 2024, 22:46

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

Bangladesh’s readymade garment exports to the United States in October 2024 recorded the highest growth marking a 25-per cent increase in quantity and a 26-per cent rise in value compared with those in the same month of 2023.

The US’ apparel imports from Bangladesh in October 2024 surged to 227.5 million square metres worth $731 million compared with those of 181.8 million square metres worth $578 million in October 2023, according to the data released by the Office of Textiles and Apparel under the US Department of Commerce.

Bangladesh’s apparel exports to the US in September 2024 also recorded substantial growth of 19 per cent to 216.2 million square metres compared with those of 181.7 million square metres shipped in September 2023.

Similarly, the export value in September 2024 climbed to $705.20 million, marking a 19-per cent increase from the $594.44 million achieved during the corresponding month of 2023.

Meanwhile, Bangladesh’s RMG exports to the US in January-October period of 2024 decreased by 3.31 per cent compared with those in the same period of 2023.

This was a sharper decline compared to the overall world import drop of 0.43 per cent, indicating that Bangladesh’s performance was below the global trend.

Other competitor countries, such as Vietnam, India, and Cambodia, experienced positive growth in apparel exports to the US during the period.

Bangladesh’s apparel exports to the US in the first 10 months of 20-24 declined to $6.15 billion compared with those of $6.36 billion in the same period of 2023.

In terms of volume, Bangladesh exported 1.96 billion square metres of apparel from January to October period of 2024 with 1.6 per cent growth.

The OTEXA data showed that Bangladesh retained a substantial share of 9.12 per cent, positioning it as the third-largest apparel exporter to the US after China 20.83 per cent and Vietnam 18.88 per cent.

The US’ apparel imports from Vietnam grew by 3.87 per cent to $ 12.70 billion in January-October of 2024, while the imports from China declined by 1.41 per cent to $14.03 billion.

The OTEXA data showed that the US’ apparel imports from Cambodia grew by 12.86 per cent to $3.22 billion in the first 10 months of 2024 compared with those of $2.86 billion in the same period in 2023.

India’s RMG exports to the US market increased by 2.68 per cent to $4.05 billion, while those of Pakistan grew by 4.44 per cent to $1.80 billion in the same period.​

 

[Saif]

All sides for 9% raise in minimum garment wage

A state-run annual increment and wage review committee yesterday recommended that the government raise the minimum wage of garment workers by 9 percent.

www.thedailystar.net

All sides for 9% raise in minimum garment wage

photo: Star/file

A state-run annual increment and wage review committee yesterday recommended that the government raise the minimum wage of garment workers by 9 percent.

The workers had been seeking 10 percent to address yearly inflation in the country while staging demonstrations in August and September over an 18-point demand.

However, the garment factory owners offered 8 percent during recent tripartite meetings organised by the Ministry of Labour and Employment.

One such meeting yesterday settled on 9 percent, according to an agreement signed by the committee's Chairman Md Sabur Hossain alongside representatives of the workers and factory owners.

The labour ministry will now have to finalise the rate and issue a circular to bring it into effect.

A tripartite meeting yesterday settled on a 9 percent increase to the minimum wage for garment workers, according to an agreement signed by Md Sabur Hossain, increment and wage review committee chairman, as well as workers' representatives and factory owners

This will enable workers to receive revised salaries based on the increment from January next year.

Other benefits will also take into account the annual increment as per the Labour Law (amended) of 2006, the agreement said.

In previous years, the increment was fixed at 5 percent.

Over 99 percent of factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have implemented the previous minimum wage, as promised by the factory owners, according to a report from the Ministry of Labour and Employment.

In late November last year, the minimum wage board finalised Tk 12,500 as the minimum monthly salary for garment workers.

According to the report, at least 2,121 factories out of 2,140 had implemented the minimum wage by October this year, with the remaining 19 yet to comply.​

 

[Saif]

Bangladeshi garment workers at risk from extreme heat: study

Workers in some of the world’s biggest garment manufacturing hubs in Bangladesh, Vietnam, and Pakistan are increasingly exposed to extreme heat as climate change pushes temperatures up, a report found on Sunday, a problem multinational retailers and brands will have to help address.

www.thedailystar.net

Bangladeshi garment workers at risk from extreme heat: study

Workers at a garment factory are making jeans in Dhaka. Photo: Reuters

xWorkers in some of the world's biggest garment manufacturing hubs in Bangladesh, Vietnam, and Pakistan are increasingly exposed to extreme heat as climate change pushes temperatures up, a report found on Sunday, a problem multinational retailers and brands will have to help address.

New European Union regulations make retailers selling in the bloc, like Inditex, H&M and Nike, legally liable for conditions at their suppliers, putting pressure on them to help fund improvements to cool factories they source from.

In Dhaka, Hanoi, Ho Chi Minh City, Phnom Penh and Karachi, the number of days with "wet-bulb" temperatures - a measurement that accounts for air temperature as well as humidity - above 30.5 degrees Celsius jumped by 42 percent in 2020-2024 compared to 2005-2009, researchers at Cornell University's Global Labor Institute found.

Above that threshold, the International Labor Organisation recommends as much rest as work in any given hour to maintain safe core body temperature levels.

The report identified only three retailers - Nike, Levi's, and VF Corp - which specifically include protocols to protect workers from heat exhaustion in their supplier codes of conduct.

"We've been talking to brands for ages now about this issue, and they're only now starting to turn their attention to it," Jason Judd, executive director at Cornell University's Global Labor Institute, told Reuters.

"If a brand or retailer knows that temperatures in a production area are excessively high or doing damage to worker health, then they're obligated under this new set of rules to do something about it," he added.

The EU Corporate Sustainability Due Diligence Directive came into force in July and will start applying to large companies from mid-2027.

Fixes to cool factories could include better ventilation and water evaporative cooling systems, instead of energy-intensive and expensive air conditioning that would increase manufacturers' carbon emissions.

Some factory owners would likely be willing to make such investments themselves, given how heat stress significantly impacts productivity, Judd said, but the EU rules highlight brands' responsibility to address the issue too.

The report also urged retailers and brands to invest in higher wages and health protections so that workers can manage the risk of missing work days due to heatwaves.

Extreme heat and flooding could erase $65 billion in apparel export earnings from Bangladesh, Cambodia, Pakistan and Vietnam by 2030, research from asset manager Schroders and the Global Labor Institute found last year.​

 

[Saif]

US Trade Representative, BGMEA discuss RMG issues

US Trade Representative Brendan Lynch and Trade Policy Analyst for South and Central Asia Emily Ashby met with the leadership of the Bangladesh Garment Manufacturers and Exporters Association at a hotel in Dhaka on Tuesday...

www.newagebd.net

US Trade Representative, BGMEA discuss RMG issues
Bangladesh Sangbad Sangstha . Dhaka 10 December, 2024, 22:33

New Age file photo

US Trade Representative Brendan Lynch and Trade Policy Analyst for South and Central Asia Emily Ashby met with the leadership of the Bangladesh Garment Manufacturers and Exporters Association at a hotel in Dhaka on Tuesday.

The meeting focused on key issues of bilateral trade, with particular emphasis on the US-Bangladesh Trade and Investment Cooperation Forum Agreement.

Administrator Anwar Hossain led the BGMEA delegation. Other members of the delegation included former BGMEA president Faruque Hassan, former senior vice-president Abdullah Hil Rakib, BGMEA support committee members InamulHaq Khan Bablu, Asif Ashraf and ANM Saifuddin, said a press release.

During the meeting, BGMEA Administrator Anwar Hossain provided an overview of the remarkable progress made by Bangladesh’s readymade garment industry in recent years.

The BGMEA leaders also highlighted progress made by the industry in workplace safety, workers’ rights, labour law reforms, and environmental sustainability.

They also reiterated the industry’s commitment to continuing its efforts to ensure that the RMG sector grows responsibly while meeting international standards.

Both the US and BGMEA representatives expressed commitment to continued collaboration, working towards a more sustainable and worker-friendly future for Bangladesh’s RMG sector.

The meeting underscored the importance of productive dialogue through TICFA to further enhance bilateral trade and investment opportunities.​

 

[Saif]

Unrest in RMG sector created: M Shakhawat

Labour and employment adviser M Shakhawat Hussain has said the industrial sector is going through some sort of unrest. In particular, the unrest prevailing in the readymade garment (RMG) sector was created. The ousted government and their friend nation together are creating some problems. The...

en.prothomalo.com

Unrest in RMG sector created: M Shakhawat
Staff Correspondent
Dhaka
Updated: 11 Dec 2024, 19: 56

Labour and employment adviser M Sakhawat Hussain File photo

Labour and employment adviser M Shakhawat Hussain has said the industrial sector is going through some sort of unrest.

In particular, the unrest prevailing in the readymade garment (RMG) sector was created. The ousted government and their friend nation together are creating some problems. The workers too are creating some problems without understanding.

M Shakhwat Hussain made the remarks at an event titled ‘Nagorik Utsab’ organised on voter awareness and civic activism. The Hunger Project Bangladesh and Shushashoner Jonno Nagorik (SHUJAN) jointly organised the event at Bangladesh Investment Development Authority (BIDA) auditorium in the capital’s Agargaon on Wednesday.

Referring to the anarchy in the RMG sector, M Shakhawat Hussain said, “The workers are not creating the problem. They are being used to create problems. It is quite unfortunate. We have to be aware of those who are instigating to create unrest inside the country from outside.”

He also talked about the national election. He said, “So far, the country witnessed four national elections which were more or less acceptable globally.”

Criticising the three national polls held under the Awami League government, the labour adviser said, “You don’t need to go abroad to learn how to ruin an electoral system. These elections were the last nails on the coffin of democracy. We have already seen the consequences. Each and every infrastructure has been destroyed.”

“The general election was considered a festival once. However, the people of the country were deprived of their voting rights. A credible election must be participatory, which means the voters have an active participation in the polls,” he added.

He hoped that the next election will be an exceptional one.

Shakhawat Hussain further said, “Those who will participate in the upcoming polls might have taken lessons from the last three elections. If they hadn’t, that would be unfortunate.”

SHUJAN acting president justice MA Matin said, “We have to raise awareness among the people. People have some birthrights. When the spirit of democracy is prevalent, there is no need for governance and law. When that spirit is dead, then even the laws won’t be enough to uphold that spirit.”

SHUJAN secretary and chief of the reform commission on the electoral system, Badiul Alam Majumder said, “Everybody has some liability for where we are standing today. In this case, politicians have more responsibilities. They didn’t fulfill their commitments. Justice Habibur Rahman said the country was in the hands of gamblers.”

He went on saying, “A reform within the political parties is quite essential to get rid of this situation. And it should not be imposed on them; rather the political parties should come forward with some reform initiatives. However, no attempts will be successful if the citizens do not raise their voice as they are the owners of the state.”

Badiul Alam further said they were expecting the caretaker government system to be resumed through a court verdict on 17 December. Everyone should act as watchdog so this system does not get discarded ever again, he said.​

 

[Bilal9]

9% salary increment for RMG workers, effective from 1st December, 2024​

BTJ News Desk
11/12/202401
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Government of Bangladesh has announced a 9% wage increment for ready-made garment workers, effective from 1st December. This decision follows extensive negotiations between employers, workers, and government representatives, aiming to resolve wage-related unrest in the garment sector.

The agreement was finalized during the fifth meeting of the committee on minimum wage revaluation and annual wage increases, chaired by Additional Secretary Md. Sabur Hossain. Initially, workers demanded a 10% increment while employers proposed 8%. A consensus was reached at 9%, with all parties signing a joint declaration.

The meeting included representatives from various stakeholders, including the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and labor unions. Labor Secretary AHM Shafiquzzaman emphasized that the decision aligns with the previously agreed 18-point plan to enhance labor standards in the sector.

Union leader Babul Akhter urged workers to return to work and maintain production, emphasizing unity against potential conspiracies. The wage increment reflects a collaborative effort to address workers’ demands and stabilize the industry, contributing to improved labor conditions in Bangladesh’s vital RMG sector.

 

[Bilal9]

RMG net export earnings exceed 70%​

BTJ Desk Report
03/12/2023
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For the third consecutive quarter ending in September 2023, Bangladesh’s net export earnings from the shipment of readymade garments (RMG) constituted over 70 % of gross export receipts. In July-September of fiscal year 2023-24, the net export receipt of the RMG sector reached $8.2 billion, making up 70.78 % of the total gross export earnings of $11.61 billion during that period. This indicates an increasing trend, with net export earnings rising from 51.49 % in the same period of the previous fiscal year.

The expansion of the backward linkage industry, reducing the need for imported materials, has contributed to this positive trend, according to the Bangladesh Bank. The BB report highlighted the challenges faced by the RMG sector, including domestic political unrest, global geopolitical conflicts, energy price hikes, and cotton price fluctuations. Despite these challenges, the RMG sector contributed 10.35 % to Bangladesh’s gross domestic product.

The top destinations for Bangladesh’s apparel exports during this period were the United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium. Going forward, the central bank review anticipates challenges for apparel exports due to subdued economic activities, higher inflation, higher interest rates, geopolitical uncertainties, weak productivity growth, and a complex financial environment.