[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG machinery, allied products mega-expo starts Jan 8 in Dhaka

A four-day international trade show on machinery for the garment industry and allied products is set to begin on January 8 in Dhaka. The mega-exhibition is arranged to showcase the apparel industry's latest technology and garments accessories and packaging. The event combining different trade sho

thefinancialexpress.com.bd

RMG machinery, allied products mega-expo starts Jan 8 in Dhaka
UNB
Published :
Jan 05, 2025 22:34
Updated :
Jan 05, 2025 22:34

A four-day international trade show on machinery for the garment industry and allied products is set to begin on January 8 in Dhaka.

The mega-exhibition is arranged to showcase the apparel industry's latest technology and garments accessories and packaging.

The event combining different trade shows will be held from January 8-11 at the International Convention City Bashundhara (ICCB) in the capital. It includes the 22nd edition of Garment Technology Show Bangladesh 2025 (GTB 2025) which is also known as International Tradeshow on Apparel Machinery and Allied Products and the 14th edition of International Garment Accessories and Packaging Expo 2025.

The trade shows will be organised jointly with the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) and ASK Trade and Exhibition Pvt Limited. The GAPEXPO will be showcasing products, types of machinery, and raw materials.

Md Shahriar, president of the BGAPMEA, revealed this at a pre-event press conference in the capital on Sunday.

He said that the garments accessories and packaging industry acts as a backward linkage industry for the country's readymade garment (RMG) sector.

He also said that Bangladesh was fully import-dependent for RMG accessories and packaging materials earlier. Currently, over 60 items are produced locally for export-oriented apparel industries and some are also exporting directly.

He also said that to introduce the sector and to find buyers the GAPEXPO plays a crucial role.

In this year's tradeshow, about 500 exhibitors from 25 countries are showcasing the latest technology in terms of machines and software used in every process of production, he added.​

 

[Saif]

RMG exports grew moderately in 2024 despite headwinds

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB)..This is due to an increasing demand for clothing with the fall of inflation in major

www.thedailystar.net

RMG exports grew moderately in 2024 despite headwinds

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB).

This is due to an increasing demand for clothing with the fall of inflation in major export destinations.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

Exports from the sector grew although many had thought that shipments would be negatively affected by domestic and external challenges.

For instance, garment exports in fact declined by 6.62 percent year-over-year to $2.38 billion in April, which came as a surprise given that the export trend was enjoying positive momentum.

Similarly, garment shipments declined last June by 10.48 percent year-on-year to $2.97 billion after increasing by 1.45 percent in January and 4 percent in March.

In July, apparel exports grew by only 2.89 percent year-on-year to $3.17 billion, as per the EPB data.

However, the exports rebounded strongly from September, growing by 14.61 percent to $3.01 billion that month and by 22.80 percent to $3.29 billion in October.

The trend did not stop there as the garment shipments grew by 16.25 percent to $3.30 billion in November before expanding again by 17.45 percent to $3.77 billion in December.

Exports started rebounding from September as normalcy gradually returned to the industrial zones after the labour unrest ended with factory owners accepting the 18-point demands of garment workers.

Moderate retail sales growth continued in November even as two of the holiday season's busiest shopping days bumped over into December and were not included in the month's totals, according to National Retail Federation (NRF), the largest US retail association.

"November sales increased on top of a strong October and would have been even higher if Thanksgiving Sunday and Cyber Monday hadn't fallen in December," NRF President and CEO Matthew Shay said in a statement.

"Year-over-year gains were solid even as retail prices in many categories are lower this year, showing that consumers are buying more merchandise as the economy continues to grow. We remain confident in our holiday forecast," Shay said.

Total retail sales, excluding automobiles and gasoline, were up 0.15 percent seasonally adjusted month-over-month and up 2.35 percent unadjusted year-over-year in November, according to the Retail Monitor.

That compared with increases of 0.74 percent month-over-month and 4.13 percent year-over-year in October.

In 2023, the garment export sector aimed for $50 billion in 2024 but adjusted expectations to $38.48 billion, marking a 7.23 percent increase from 2023.

The industry confronted challenges like wage protests leading to a 56 percent wage hike, said Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director of Denim Expert.

Even after uncertainties from the national election, there was a 1.45 percent year-on-year growth in garment exports in January, he said.

A 60 percent cut in export incentives, compounded by global economic instability and volatile oil prices, affected consumer behaviour, he said.

Rising energy and transportation costs, along with high bank interest rates, hurt small and medium enterprises, causing closures, he added.

Despite a slight increase in exports in July and August compared to the same months of 2023, the figures for 2024 lagged behind those of 2022.

Rubel also said the outlook for 2025 depends on improved industrial relations and political reforms.

Former BGMEA president Faruque Hassan said garment exports would have been much higher had the challenges not been there. However, he expects 2025 will be a better year as normalcy is returning to the sector.

Exports grew not only in volume, but also value as international retailers' and brands' confidence in Bangladesh has been boosted, and the local currency was devalued, he added.​

 

[Saif]

RMG workers for Eid bonus equal to one month’s wage

Ahead of the Eid-ul-Fitr, to be held at the end of March, garment workers in Dhaka have issued a set of six demands, including a bonus equivalent to one month’s wage, as part of a broader call for fair treatment and improved working conditions.

www.newagebd.net

RMG workers for Eid bonus equal to one month’s wage
United News of Bangladesh . Dhaka 10 January, 2025, 22:43

Ahead of the Eid-ul-Fitr, to be held at the end of March, garment workers in Dhaka have issued a set of six demands, including a bonus equivalent to one month’s wage, as part of a broader call for fair treatment and improved working conditions.

The demands were voiced by the Dhaka Garment Workers’ Wage Increase Struggle Council during a rally held in front of the National Press Club on Friday.

Speakers at the rally highlighted the mounting pressures caused by skyrocketing living costs, arguing that current wages are inadequate to meet even basic needs.

Prices of essential goods keep rising, but the wages remain unchanged; it’s becoming impossible to survive, said one protester.

Workers accused employers of withholding portions of their salaries, forcing many to take on gruelling work schedules of 14-16 hours a day. Despite the labour law stipulation for double overtime pay, they claim employers routinely fail to comply.

The workers also criticised the widespread delay in salary payments. Under the law, wages are to be disbursed by the 7th of each month, but workers allege this deadline is rarely met. Many also condemned the practice of withholding wages until the night before Eid, calling it ‘illegal and inhumane.’

The garment workers outlined six primary demands: set minimum wages in line with rising market prices, limit workdays to 8 hours and enforce double pay for overtime, provide a bonus equivalent to one month’s wages for Eid-ul-Fitr, ensure salaries are paid by the 7th of every month, abolish the practice of withholding wages until just before Eid, enhance workplace safety, ensure job security, introduce equal pay for female workers, and provide health-friendly meals and night allowances for night shifts.

Speakers at the rally demanded fair treatment, better working conditions, and compliance with existing labour laws.​

 

[Saif]

RMG sector must lead renewable energy push

Although not a major carbon-emitting country, Bangladesh can emerge as a global pioneer in carbon reduction as a victim of climate change, experts said at an event yesterday.

www.thedailystar.net

RMG sector must lead renewable energy push
Speakers tell discussion; call on govt to align policies, set timeline to achieve net zero emissions

Speakers at a discussion titled “Pathways to a Just Energy Transition: Balancing Sustainability, Equity, and Industry Growth in the RMG Sector,” at The Daily Star Centre in the capital yesterday. Photo: Star

Although not a major carbon-emitting country, Bangladesh can emerge as a global pioneer in carbon reduction as a victim of climate change, experts said at an event yesterday.

They said the RMG sector should lead this effort, given its potential to increase the use of renewable energy in factories. Additionally, they called on the government to align policies and set a timeline to achieve net zero emissions.

The remarks were made during a discussion titled "Pathways to a Just Energy Transition: Balancing Sustainability, Equity, and Industry Growth in the RMG Sector," at The Daily Star Centre in the capital.

The event was jointly organised by The Daily Star and Oxfam.

In his keynote presentation, Dr Mohammad Emran Hasan, head of Climate Justice and Natural Resource Rights (CJNRR), said while Bangladesh contributes minimally to global carbon emissions, it is among the most impacted countries globally.

He said the RMG and textile industries could save approximately 1,159 kilotonnes of oil equivalent (KTOE) of energy annually by adopting energy-efficient machinery and conservation measures.

The overall industrial sector in Bangladesh consumes about 3,740 KTOE per year.

Hasan suggested measures such as introducing Solar PV Systems, Net Metering Policy, energy-efficient machinery and processes, automation and digitalisation, green financing initiatives, and access to green bonds to ensure a just energy transition.

Azad Abul Kalam, manager of Just Energy Transition at ActionAid, said policymakers should prioritise energy sovereignty over energy security.

"If they want energy security, they would plan more energy imports, but if they think about energy sovereignty, they would focus on relying on local resources like gas, solar, and wind," he said.

Azad said the ousted government had showcased the power sector as their greatest success, but the Ukraine war exposed its vulnerabilities.

"During that time, when fuel prices spiked globally, the industries faced the most trouble," he said.

Wasiur Rahman Tonmoy, senior coordinator of capacity development at Manusher Jonno Foundation, said, "We analysed 23 policy papers in Bangladesh's power and energy sector. None of the papers incorporated women's access to energy. Moreover, the rights of marginalised people to energy are also overlooked."

Shahriar Ahmed Chowdhury, head of the Centre for Energy Research at United International University, said there were misalignments in government plans for the power and energy sector.

"Local experts were not involved in the process; the planning was injected. Foreign experts introduced unproven technologies into those papers," he said. He said transmission and distribution systems are still not ready to handle solar energy.

Sohanur Rahman, executive coordinator at YouthNet Global, stressed the importance of capacity-building for a green transition.

"As zero carbonisation is one of the major goals of the chief adviser, it is time for Bangladesh to take the lead. We need initiatives to develop green skills and jobs, especially for youths and women," he said.

He also called for mass public consultations and worker-level input in future plans.

Former BGMEA president Faruque Hassan said there are inefficiencies in industrial energy use. "Industries are wasting around 28 percent of their energy. SREDA has initiated energy audits, but these efforts need to expand. Energy-saving technologies can help industries save energy and reduce dependence on imported fuel," he said.

Oxfam Country Director Ashish Damle highlighted global shifts back to fossil fuels, which could impact Bangladesh.

"Bangladesh needs a strong policy commitment. This is the right time to collaborate with the most affected countries and demonstrate leadership," he said.

Dr Munjurul Hannan Khan, executive director of NACOM, pointed out the lack of inter-departmental collaboration.

"Policies from the environment ministry are ignored by the energy ministry and vice versa. We also lack a specific timeline for achieving net-zero targets," he said.

He urged the government to remove taxes on renewable energy.

Shariful Islam, Oxfam's head of Influencing, Communication, Advocacy and Media, conducted the discussion.

Among others, Helvetas Bangladesh's Mohammad Mahmudul Hasan, Laudes Bangladesh's programme manager Faiza Tuba, journalist Mahfuzur Rahman Mishu, and The Daily Star's in-charge of NGOs and Foreign Missions Tanjim Ferdous spoke.​

 

[Saif]

RMG sector: A catalyst for Bangladesh’s energy transition

Experts at a recent event in Dhaka highlighted the potential for Bangladesh to pioneer efforts in carbon reduction, with the ready-made garment (RMG) sector as a central player in this transformation

www.thedailystar.net

RMG sector: A catalyst for Bangladesh’s energy transition

While Bangladesh is not a significant contributor to global carbon emissions, it is one of the most vulnerable countries to the impacts of climate change. This paradox presents a unique opportunity for the nation to position itself as a global leader in climate action. Experts at a recent event in Dhaka highlighted the potential for Bangladesh to pioneer efforts in carbon reduction, with the ready-made garment (RMG) sector as a central player in this transformation.

The discussion, organised by The Daily Star and Oxfam, emphasised the RMG industry's ability to adopt renewable energy and energy-efficient technologies. This sector alone could save approximately 1,159 kilotonnes of oil equivalent (KTOE) of energy annually, a substantial portion of the 3,740 KTOE consumed by Bangladesh's industrial sector. Initiatives such as solar photovoltaic systems, net metering policies, and green financing are crucial to achieving these goals.

The shift towards renewable energy and sustainability in Bangladesh, however, requires more than just industry-level initiatives. Policymakers must prioritise energy sovereignty over energy security, as highlighted in the report titled, "RMG sector must lead renewable energy push", published on January 14. Focussing on domestic resources like solar, wind, and gas can reduce dependence on volatile global energy markets, a lesson underscored by the economic fallout from the Ukraine war.

While the government has made some strides in addressing energy inefficiencies, a lack of inter-departmental collaboration and the absence of a clear timeline for achieving net-zero emissions remain critical barriers. Experts pointed out that local expertise is often sidelined in favour of foreign consultants, leading to misaligned energy policies and untested technological solutions. The government must integrate local knowledge into its planning and execution processes to ensure long-term success.

Equity in the energy transition also emerged as a pressing concern. Analysis of existing policy frameworks revealed significant gaps in addressing the needs of women and marginalised groups. A just energy transition must be inclusive, incorporating the voices of those most affected by energy policies, particularly workers and local communities.

The global shift back to fossil fuels poses additional challenges for Bangladesh. However, this moment presents an opportunity for the country to collaborate with other climate-affected nations and advocate for stronger international commitments to sustainability. Removing taxes on renewable energy technologies and expanding energy audits across industries are necessary steps to drive this transition.

The RMG sector's leadership in adopting green technologies could serve as a model for other industries. As one of the largest contributors to Bangladesh's economy, this sector holds the potential to inspire a broader national commitment to climate action. Bangladesh's vulnerability to climate change should no longer be seen as a liability but as a call to action.

Hasan Meer is a journalist at The Daily Star​

 

[Saif]

RMG imbroglio

It was no coincidence that the simmering discontent of garment workers burst into full blown labour unrest to synchronise with the July-August mass uprising. Workers who could not press home their demands earlier under a repressive regime known for patronising crony capitalism considered it was the

thefinancialexpress.com.bd

RMG imbroglio
FE
Published :
Jan 13, 2025 21:13
Updated :
Jan 13, 2025 21:13

It was no coincidence that the simmering discontent of garment workers burst into full blown labour unrest to synchronise with the July-August mass uprising. Workers who could not press home their demands earlier under a repressive regime known for patronising crony capitalism considered it was their best chance to align their protests with the anti-discrimination mass movement spearheaded by students. The country was in turmoil and labour unrest continued to deteriorate with both management and workers refusing to see to the greater interest of the RMG industry. Notably, of the more than 4,500 apparel factories, there are 229 LEED-certified green garment factories---highest in the world. These and some other factories boast sound labour-management relations because the authorities there have been considerate enough to pay higher wages and provide various facilities deemed fit to keep workers contended. Unfortunately, the owners of the rest of the garment factories are not equally smart in running their factories.

An incisive government report prepared to identify where things have gone wrong and suggest how the malaise can be addressed does the job more or less comprehensively. The lead story prepared on the basis of the report titled, 'special report on labour unrest in garment sector' and published in The FE's Sunday issue presents quite a disconcerting picture. As if the 1108 incidents of labour unrest that took place between August and December were not enough, there is apprehension of more to come. Of the several reasons that have soured management-workers relations, unpaid wages, retrenchment and refusal to regularise jobs stand out. On the part of management, presumably the smaller and not so well run, the problems stem from shortage of raw materials and work orders. In a competitive market, the smaller units are always at a disadvantage. When industries are restive, their disadvantages compound with dollar crisis leading to limited import of raw materials.

Yet good management tries not to accumulate arrears of wages. As many as 67 factories were closed sine die and 77 temporarily during the period, according to the report. The fact is unrest in the RMG belts never got defused ---even notwithstanding the higher wage agreed upon. Many of the factories did not comply with the payment of outstanding dues to their workers within the stipulated time. Then the termination of thousands of workers' jobs from the closed factories owned by some disgraced industrialists of the past regime has not helped the matter. Its socio-economic implications, as hinted at the report, may be dangerous. At a time when industries in general are facing difficulty, such closures have to be avoided at any cost. Getting the mechanism right to run those would be wiser.

The report has indicated instigation by some labour leaders as one of the factors responsible for the unrest. Well, if workers do not get their overdue arrears and wages regularly on a fixed date, they cannot help taking to the street. In this time of outrageous market volatility, even their regular wages hardly prove more than a pittance. If the industry falters, the sign of which is there, both management and workers will suffer. The country's economy will be affected as well because RMG is the number one foreign exchange earner. Before it makes its downhill slippery journey when rivals like Vietnam and India are gaining grounds, let every stakeholder cooperate to realise the high potential of the garment industry.​

 

[Saif]

Govt should make apparel factory owners behave in paying workers

WORKERS of an apparel factory on the Ashulia outskirt of the capital city, reported to have been abstaining from work for several days, had blocked the Dhaka–Tangail Highway on January 13 for five hours, which majorly disrupted traffic. The workers are reported to be pushing for the demand for...

www.newagebd.net

Govt should make apparel factory owners behave in paying workers
15 January, 2025, 00:00

WORKERS of an apparel factory on the Ashulia outskirt of the capital city, reported to have been abstaining from work for several days, had blocked the Dhaka–Tangail Highway on January 13 for five hours, which majorly disrupted traffic. The workers are reported to be pushing for the demand for job termination benefits. The law enforcement agencies used water cannons and charged at the protesters with truncheons to clear the area and ease traffic movement. The workers say that the factory management suspended them and served notices on 453 workers to explain the unrest at the factory that took place in the past week. The management says that it served the notice on the workers in January 9–12 keeping to Section 23 of the labour law that deals with punishment for misconduct and conviction and the workers have been on demonstration demanding job termination benefits keeping to Section 26 of the labour law that deals with the termination of the employment of workers by employers otherwise than by dismissal, etc. A labour leader says that a tripartite negotiation has settled the issue and the owners, who employ 16,000 workers in several of the factories, have agreed to pay the benefits to the workers.

The factory management, however, seeks to say that the workers, who were invited to a feast for the wedding of a member of the owners’ family that had a mismanaged serving of food, went on demonstrations and vandalised the factory. The management says that some leaders provoked the workers even after they had been assured of a proper serving of the food. The management on January 11 filed a case against three of the workers. This serving of food story could very well be an owners’ ploy to lessen the gravity of the failure of the management or this could also be a tipping point of the of the workers’ dissatisfaction that they have worked with in the factory. Such a failure on part of apparel factory management is a well-known issue and the repression of apparel workers continues even after meetings, decisions and measures that have taken place one after another. What ultimately remains beyond such stories is the deprivation that the workers continue to face. Yet, nothing definitive has taken place to stop the exploitation of and repression on the workers. And, the primary onus for all such failures and the unrest that gives birth to the unrest falls more on the owners, who almost always bring up an excuse to cover their failure, and the government, which almost always sides with the owners in protecting their interests.


The problem of worker unrest over payment in apparel factories, which has been taking place year after year, may not be resolved unless the government becomes serious enough about protecting the rights of the workers and disciplining the owners of apparel factories. It is time that the government decisively dealt with the issue, rising above owners’ interests, to end the menace once and for all.​

 

[Saif]

https://thefinancialexpress.com.bd/editorial/ensuring-minimum-wage-for-workers

Ensuring minimum wage for workers
Published :
Jan 14, 2025 22:38
Updated :
Jan 14, 2025 22:38

Fixing minimum wage for workers is a tricky issue regardless of the sector of the economy they are employed in. Going by experience, the work of settling minimum wage, even for those in the industries including garment workers, who constitute organised section of the workforce, has proved to be very challenging. Since the minimum wage for RMG workers was first fixed in 1986, it's a long history of struggles that they have been waging to arrive at a wage structure that is rational and humane. The struggle has often been violent and, sometimes, bloody. But had there been recognised workers' unions, or an alternative dispute resolution mechanism for settling emerging issues through negotiations with the factory owners, the atmosphere would be more peaceful, the workers happier and industries more productive. But such an ideal condition is yet to be created in the formal sector of the economy, let alone in the informal one. Laws on workers' rights framed both by the governments and the International Labour Organization (ILO) are in existence. But, as always, the problem lies in their implementation. It is the goodwill of the employers, seriousness as well as efficiency on the part of the officials in charge of labour department of the government and the existence of an effective mechanism for dispute resolution that are required for settling the minimum wage for workers once and for all. In the informal sector of the economy, implementation of the laws on workers' minimum wage is more challenging.

Against this backdrop, the interim government and experts in the related field, reportedly, have thought up an ambitious idea of introducing a national minimum wage for all workers and a uniform labour law. The issues came up for discussion at an event organised jointly by a local policy think tank, namely, the Centre for Policy Dialogue (CPD) and an international donor agency. Attended by the head of the government's labour commission, among others, the discussants at the event suggested, ways to ensure better livelihood, workplace safety and rights of workers.

Notably, in November last year, the interim government formed the Labour Reform Commission in a bid to address various issues related to structural, institutional and operational weaknesses concerning workers' livelihood, rights and their welfare. In this connection, the challenges faced by the Commission in performing its tasks, as admitted by its head at the discussion event in question, say it all. Considering the magnitude of the problems facing the working class, the 90 days' time as allocated for the Commission has proved to be quite inadequate for coming up with a set of watertight recommendations to improve workers' condition. Then comes the issue of the quality of labour rights-related data available and the amount of research done on it previously to work on. Add to that the concern of small businesses in the informal sector which employ some 55 million workers. That is about a quarter of the country's total workforce. But the Commission's work may not appear appealing to the employers of the informal sector. They are hardly willing to do justice to the issues of workers' rights, their workplace safety and so on. In fact, theirs is indeed an area where slavery in the form of enforced or bonded labour exists. Obviously, the talks of job protection, maternity leave, etc., sound fanciful there.

In that case, the Commission should assure the employers in the informal sector of required government assistance so they might extend cooperation to fulfil the former's task. In fine, issues pertinent to workers and employers of both formal and informal sectors of the economy should feature prominently in any recommendations made for the good of workers.​

 

[Saif]

RMG exports reached $38.48 billion last year

Bangladesh exported $7.2 billion worth of garments to the US, its single largest export destination, in 2024, according to data from the Export Promotion Bureau (EPB).

www.thedailystar.net

RMG exports reached $38.48 billion last year
Says EPB data

Bangladesh exported $7.2 billion worth of garments to the US, its single largest export destination, in 2024, according to data from the Export Promotion Bureau (EPB).

The US accounted for 18.72 percent of Bangladesh's total garment exports last year.

The European Union remained the dominant market, accounting for 50.34 percent of total RMG exports, which amounted to US $19.37 billion.

In 2024, Bangladesh's Ready-Made Garment (RMG) exports totalled US $38.48 billion.

The UK contributed US $4.3 billion, representing an 11.25 percent share.

Within the EU, key markets included Germany, which imported US $4.83 billion, followed by Spain with US $3.42 billion, and France with US $2.14 billion.

Additionally, exports to Canada reached US $1.24 billion, accounting for 3.23 percent of the market.

Bangladesh is also making notable progress in non-traditional markets like Japan and Australia, reflecting efforts to diversify.

Non-traditional markets contributed US $6.33 billion, or 16.46 percent of total RMG exports.

Among these markets, Japan led with US $1.12 billion, followed by Australia at US $831 million, India at US $606 million, Turkey at US $426 million, and Russia at US $343 million.​

 

[Bilal9]

RMG exports grew moderately in 2024 despite headwinds

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB)..This is due to an increasing demand for clothing with the fall of inflation in major

www.thedailystar.net

RMG exports grew moderately in 2024 despite headwinds

View attachment 12704

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB).

This is due to an increasing demand for clothing with the fall of inflation in major export destinations.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

Exports from the sector grew although many had thought that shipments would be negatively affected by domestic and external challenges.

For instance, garment exports in fact declined by 6.62 percent year-over-year to $2.38 billion in April, which came as a surprise given that the export trend was enjoying positive momentum.

Similarly, garment shipments declined last June by 10.48 percent year-on-year to $2.97 billion after increasing by 1.45 percent in January and 4 percent in March.

In July, apparel exports grew by only 2.89 percent year-on-year to $3.17 billion, as per the EPB data.

However, the exports rebounded strongly from September, growing by 14.61 percent to $3.01 billion that month and by 22.80 percent to $3.29 billion in October.

The trend did not stop there as the garment shipments grew by 16.25 percent to $3.30 billion in November before expanding again by 17.45 percent to $3.77 billion in December.

Exports started rebounding from September as normalcy gradually returned to the industrial zones after the labour unrest ended with factory owners accepting the 18-point demands of garment workers.

Moderate retail sales growth continued in November even as two of the holiday season's busiest shopping days bumped over into December and were not included in the month's totals, according to National Retail Federation (NRF), the largest US retail association.

"November sales increased on top of a strong October and would have been even higher if Thanksgiving Sunday and Cyber Monday hadn't fallen in December," NRF President and CEO Matthew Shay said in a statement.

"Year-over-year gains were solid even as retail prices in many categories are lower this year, showing that consumers are buying more merchandise as the economy continues to grow. We remain confident in our holiday forecast," Shay said.

Total retail sales, excluding automobiles and gasoline, were up 0.15 percent seasonally adjusted month-over-month and up 2.35 percent unadjusted year-over-year in November, according to the Retail Monitor.

That compared with increases of 0.74 percent month-over-month and 4.13 percent year-over-year in October.

In 2023, the garment export sector aimed for $50 billion in 2024 but adjusted expectations to $38.48 billion, marking a 7.23 percent increase from 2023.

The industry confronted challenges like wage protests leading to a 56 percent wage hike, said Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director of Denim Expert.

Even after uncertainties from the national election, there was a 1.45 percent year-on-year growth in garment exports in January, he said.

A 60 percent cut in export incentives, compounded by global economic instability and volatile oil prices, affected consumer behaviour, he said.

Rising energy and transportation costs, along with high bank interest rates, hurt small and medium enterprises, causing closures, he added.

Despite a slight increase in exports in July and August compared to the same months of 2023, the figures for 2024 lagged behind those of 2022.

Rubel also said the outlook for 2025 depends on improved industrial relations and political reforms.

Former BGMEA president Faruque Hassan said garment exports would have been much higher had the challenges not been there. However, he expects 2025 will be a better year as normalcy is returning to the sector.

Exports grew not only in volume, but also value as international retailers' and brands' confidence in Bangladesh has been boosted, and the local currency was devalued, he added.​

The fact that exports grew at double digits for the last four months of last year is indication that exports are on a roll. Another indication is the number of heavy cargo carriers at the airport, with several dozens moving exports everyday - for the spring season apparel market.

 

[Saif]

Chinese firms bullish on Bangladesh’s manmade fibre

Chinese textile companies are optimistic about increasing exports of manmade fibre (MMF) to Bangladesh as the country’s garment makers have been diversifying their products in line with changing global demand over the past few years.

www.thedailystar.net

Chinese firms bullish on Bangladesh’s manmade fibre

Chinese textile companies are optimistic about increasing exports of manmade fibre (MMF) to Bangladesh as the country's garment makers have been diversifying their products in line with changing global demand over the past few years.

Apparel made from artificial fabrics, such as polyester, is in high demand abroad and offers higher export earnings than comparatively lower value-added clothing items made from traditional fibres like cotton.

As such, nearly 30 percent of all locally made garments are now MMF products, reflecting their critical role in the industry.

Non-cotton garments are particularly lucrative, fetching higher prices than traditional cottonwear for having better flexibility, durability, and functionality. For instance, the cost of an MMF T-shirt is roughly double that of a cotton T-shirt.

So, Bangladeshi garment makers have been diversifying their product base with non-cotton items, increasing production capacities, ensuring consistent supply, and improving quality over the past five decades.

Today, Bangladesh accounts for approximately 7.9 percent of global apparel sales, establishing itself as a reliable source for international retailers and brands. With 30 percent of its garment exports comprising MMF products, the country aims to expand its global market share to 12 percent by 2030.

"We are focusing on MMF as demand in Bangladesh is on the rise, with local garment makers gradually shifting to MMF from cotton to increase their share of high-value products in the global market," said William Yan, head of sales at Guangdong Jinlong Fabric Technology Co Ltd.


She was speaking with The Daily Star at the Dhaka International Yarn and Fabric Show (DIFS), organised by CEMS-Global USA at the International Convention City Bashundhara in the Kuril area of Dhaka yesterday.

People visit a stall at the Dhaka International Yarn and Fabric Show at the International Convention City Bashundhara. Photo: Collected

According to Yan, they have 12 clients in Bangladesh that regularly purchase fabrics from them. Previously, these clients would import only cotton fabric, but in recent years, they have started purchasing MMF.

"Although the number of visitors is very low, those who want to do business with us came to make inquiries," she added.

Yan also mentioned that their exports to Bangladesh, particularly MMF, have been increasing gradually.

Echoing the same, Victoria, sales manager at Shishishi Yaming Dress and Weaving Co Ltd, said they have already secured 10 clients in Bangladesh for MMF.

She added that they are focusing solely on MMF at this expo to attract new clients.

Victoria also appreciated local producers, noting that they understand the future market of readymade garments and are working to increase their market share worldwide.

Against this backdrop, she said she foresees a bright future for her company in Bangladesh.

Vivien Zhang, general manager (sales) at Shaoxing Anyue Textiles Co Ltd, highlighted the growing importance of Bangladesh in their business strategy.

"We export a huge quantity of MMF to Bangladesh every year, and this demand continues to grow," she said.

Zhang noted that the company currently has five dedicated clients in Bangladesh who are instrumental in expanding their client base in the region.

According to Zhang, Shaoxing Anyue Textiles is keen to see Bangladeshi garment manufacturers increase their MMF usage as it would not only help their company sustain its business but also foster further development of the textile sector.

She emphasised the mutual benefits of this collaboration, stating that greater adoption of MMF could significantly contribute to the efficiency and sustainability of Bangladesh's apparel industry, paving the way for long-term growth and stronger partnerships.

Anthea, sales manager at Shaoxing Huiyi Textile Co Ltd, and May Lin, head of marketing at Shanghai Haofan Industrial Co Ltd, expressed optimism about future business prospects with Bangladesh.

Both companies see significant potential in the country's growing textile and apparel sector, which has motivated their participation in the DIFS, she said.

Anthea emphasised the importance of such fairs in fostering partnerships and showcasing innovative textile solutions, while May Lin highlighted Bangladesh's expanding role as a key market for high-quality fabrics and yarns.​