[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

https://thefinancialexpress.com.bd/views/columns/countrys-rmg-industry-at-a-crossroads

Country's RMG industry at a crossroads
Sarker Nazrul Islam
Published :
Jan 31, 2025 23:02
Updated :
Jan 31, 2025 23:02

The prevailing volatile situation in the global arena of apparel business has left two options for Bangladesh: either it retains its position as an important apparel hub by boosting its production capacity up to the requirement of buyers or gives room to others competing countries. At a time when Western brands are searching for cheaper sources of apparels as part of their push for moving away from China, the course of action the country's readymade garment sector takes can make or unmake their future. The importers are doing so because of labour cost rise in that country and tariff hike on Chinese exports as an outcome of the Sino-US trade war. This brings a great opportunity for Bangladesh to reinvigorate the sector and there is real ground for its expansion. The apparel sector in Bangladesh has a long history of robust growth since its inception, during which it stayed competitive in the world arena. Even in the tumultuous year of July-August uprising it remained on a healthy growth path with a double-digit expansion rate. But it is a question whether it will be able to reap benefits from the ongoing changes in sourcing.

When such is the dilemma, a report from the Quality Inspection Management (QIMA) published a week ago came with a mixed bag of hope and uncertainty for Bangladesh's RMG sector. On the one hand, as QIMA thinks, Bangladesh's apparel industry may benefit from Western brands' move away from China and US administration's imposition of higher tariff on Vietnamese products considering the country a 'middleman' for China's business. However, beside this prospective note, QIMA alleges a rise in work hour and wage related labour rights violations in Bangladesh.

Though Western brands still see China as a reliable source to build up a buffer stock of China-made apparels to minimise disruption amidst the trade war between two economic giants, the European and US buyers continue search for cheaper alternative sources. A QIMA survey finds that some 67 per cent of EU-based businesses have already started sourcing from countries other than China. In this connection, it can be examined to see how far Bangladesh is ready to reap benefits from the current state of affairs.

Bangladesh with an extensive network of apparel industries, a strong contingent of skilled workers and the professional expertise has a great chance of profiting from the current situation by way of getting more orders diverted to it. But to achieve it, the stakeholders in the country's RMG sector must pursue aggressive market expansion policies. They should also make optimum utilisation of the existing tranquil socio-political environment in the aftermath of the July mass uprising. The RMG sector must also strengthen its capacity and make utmost efforts to win confidence of foreign brands. This is how Bangladesh's apparel sector can get a large share of the pie.

The on-going situation indicates the possibility for Bangladesh to maintain an edge over its rivals. But nothing is easy and free from challenges in this highly competitive world. Bangladesh will have to triumph over its rivals to hold on to its position. Vietnam and India are the strongest rivals of Bangladesh in grabbing a share of the global RMG market likely to be vacated by China. Pakistan and Sri Lanka are rising challengers for the country. While India's apparel exports in last September increased by over 17 per cent, Pakistan and Sri Lanka enjoyed a rise in orders last year.

Bangladesh has more things to be worried about. Some of Bangladesh's garment factories have recently closed operations in the wake of strong workers movement over wage related issues. Some other factories failed to pay their workers in time. Then, there are also the compliance problems.

These are real challenges for Bangladesh's RMG sector. But this is not an exhaustive inventory of the hurdles. There is also QIMA's allegation about rising labour rights violation in the country's RMG factories. According to the above compliance solutions provider, critical issues related to work hours and wages recorded in one-third of Bangladesh's RMG units nearly doubled in 2024 compared to 2023. Even a more serious allegation is that a certain percentage of facilities still tend to resist improvement of factory environment. Labour unrest is a very common problem in the country' RMG hubs. Workers very often come down to the streets to demonstrate over various issues. Production in factories is seriously disrupted in such restive situations.

However, factory owners have their own explanation of workers' movement. They usually attribute workers' strike and work abstention solely to conspiracy by outside forces. Such a possibility cannot be ruled out altogether; but the conspiracy theory fails to explain the whole situation. Only such a one-sided approach without addressing other genuine issues related to workers' rights is unlikely to bring a sustainable solution of the problem and ensure peaceful environment conducive to smooth production.

For a lasting solution to the problem of labour unrest and for the sake of uninterrupted production, a holistic approach will have to be adopted for striking a balance between the interests of both the workers and the factory owners. There are also the compliance issues that need to be addressed with due diligence. RMG factory owners must advance cautiously and with measured steps to face the challenges in the changing apparel sourcing landscape. This changing scenario in the garment manufacturing arena offers the country a great opportunity to boost its industry. Bangladesh must not miss the chance. Now the question is whether the stakeholders are really prepared to make the best possible use of the opportunity.​

 

[Saif]

Textile millers in Bangladesh for banning yarn import thru land ports

The country’s textile sector businesses have requested finance adviser Salehuddin Ahmed to impose a ban on yarn imports using the customs houses of all land ports in the interest of the country’s textile sector...

www.newagebd.net

Textile millers in Bangladesh for banning yarn import thru land ports
Staff Correspondent 01 February, 2025, 22:47

The country’s textile sector businesses have requested finance adviser Salehuddin Ahmed to impose a ban on yarn imports using the customs houses of all land ports in the interest of the country’s textile sector.

Instead of land ports, they have suggested importing yarn through sea ports.

Recently, the Bangladesh Textile Mills Association sent a letter to the adviser signed by Showkat Aziz Russell, president of association.

The letter said that if urgent steps were not taken to ban yarn imports using land ports, the country’s textile sector factories would face irreparable losses, making it impossible for them to conduct business on a competitive market.

Moreover, import dependence on foreign yarn will increase along with a surge in import costs, which will also lead to a hike in unemployment.

The letter also stated that the country’s industry, economy and trade were severely damaged as a result of the post-Covid and Russia-Ukraine wars. The textile sector faced problems due to various reasons, including a hike in gas and electricity prices, dollar crisis, abnormal interest rates, a reduction in cash incentives against exports on the pretext of fulfilling conditions of LDC graduation and the depreciation of the taka.

In the meantime, yarn and fabrics are coming to the local market at dumping prices from India through various land ports using customs houses. As a result, the domestic textile industry has faced new challenges.

Highlighting the harmful aspects of yarn import, the letter said that Benapole, Bhomra, Sona Masjid, Banglabandha and other land ports or customs houses did not have the necessary infrastructure, yarn count measuring equipment, lack of skilled manpower and proper control by the concerned authorities, so import and export trade was not being managed smoothly to a large extent.

The letter stated that since there was permission to import important raw materials like yarn and partial shipment permission, the domestic textile industry, especially the spinning mills, was being severely affected.

Moreover, textile mills are facing unfair competition due to the widespread marketing of unauthorised yarn through false declarations through customs houses when importing yarn through land ports. As a result, the government is being deprived of fair revenue.

Since the decision to allow partial shipments in the import of yarn is in place, this opportunity is being misused and more yarn is being imported under the same LC than is approved multiple times.

In this situation, the letter suggested that to protect the legitimate interests of the domestic textile sector, it was necessary to stop using the customs houses of all land ports and take necessary measures to import yarn only through sea ports.

The letter also said that this would save the country’s valuable foreign exchange.

Moreover, importing yarn from India using sea ports currently takes 13 to 15 days. The sea ports also have high-quality scanners, yarn count measuring machines and necessary infrastructure.​

 

[Saif]

Apparel leads 5.7% export growth in January

The country’s merchandise exports increased by 5.7 percent year-on-year in January, driven by higher shipments of Bangladesh’s key export item, readymade garments.

www.thedailystar.net

Apparel leads 5.7% export growth in January

The country's merchandise exports increased by 5.7 percent year-on-year in January, driven by higher shipments of Bangladesh's key export item, readymade garments.

The country shipped $4.43 billion worth of goods in January, up from $4.19 billion in the same month a year ago, according to Export Promotion Bureau (EPB) data released yesterday.

Garment exports rose 5.57 percent year-on-year to $3.66 billion during the month. However, exports of other traditional items like leather and leather goods, and jute declined.

January's receipts brought total export earnings nearly 12 percent higher, to $28.96 billion in the first seven months of fiscal year (FY) 2024-25. In the same period of FY24, exports stood at $25.93 billion.

Apart from apparel, some products also performed well during the July-January period.

For example, frozen fish shipments increased by 13.19 percent year-on-year to $283.54 million.

During the July-January period, agro exports grew by 10.59 percent to $673.84 million, according to EPB data.

In the first seven months of FY25, shipments of pharmaceuticals also increased by 11.29 percent to $132.44 million.

Plastic goods exports grew by 24.32 percent to $181.79 million. Leather and leather goods exports grew by 34.77 percent to $669.03 million in the July-January period of the current fiscal year.

In the July-January period, bicycle exports increased by 63.95 percent to $63.04 million. Non-leather footwear exports grew by 34.21 percent to $318.09 million.

Home textile exports grew by 6.22 percent to $493.86 million, and specialised textile shipments increased by 20.19 percent to $229.70 million, according to EPB data.

Man-made filament exports edged up by 24.91 percent to $231.18 million, and cotton and cotton product exports grew by 13.74 percent to $369.39 million.

Handicraft exports grew by 15.18 percent to $23.82 million in July-January of the current fiscal year, EPB data also show.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said apparel exports continued to grow, defying "a lot of domestic and international challenges."

He said that Donald Trump's second term in the White House may benefit apparel exports to the American market from Bangladesh.

During his election campaigns, the US president vowed to impose punishing import tariffs on some countries, including the garment manufacturing powerhouse China.

After assuming office in January this year, he has already levied a 10 percent duty on US imports from China, which pushes up the effective tariff rates to as high as 35 percent.

Hassan said the imposition of a 25 percent duty on Mexican goods will also benefit Bangladesh, as Mexico has become a major garment-producing nation in recent years.

This change followed Trump's decision to impose a 25 percent duty on Chinese goods during his first term. Subsequently, Chinese manufacturers flocked to Mexico to invest and take advantage of duty-free trade benefits under the United States-Mexico-Canada Agreement (USMCA).

From July to January, Bangladesh's RMG exports to the global market saw a 12 percent growth, reaching a total of $23.55 billion.

However, when comparing the July-January RMG export figures of FY 2024-2025 with those from the same period in FY 2022-23, the growth over the two-year period was only 1.38 percent, said Mohiuddin Rubel, a former director of BGMEA, in a written comment.

After experiencing consecutive double-digit growth in the past four months (September-December), the growth in January slowed to 5.57 percent, with a single-month export value of $3.66 billion.

The knitwear sector posted relatively higher growth of 6.62 percent, while woven garment export growth recorded 4.52 percent.

While the growth figures are encouraging, they do not fully reflect the challenges faced by the industry, especially the pressure on prices and costs, said Rubel.

He said further analysis is required to identify the specific factors influencing this trend, such as market-specific performance, product and market concentration, and other variables.

Global trade is estimated to have shrunk considerably last year, leading to intense price competition.

Rubel said that amid the looming trade war, there are some opportunities for the RMG sector.

However, several priorities need to be set to support business operations, including a consistent energy supply and stable financial and banking sectors, he added.​

 

[Bilal9]

I think getting a Swiss/EU lawyer and serving and copyright dispute notice may be the first step. Things will not be that easy unless lawyers get involved.

Amicable behavior won't cut it in business.

 

[Bilal9]

Former BGMEA President Hassan also added that India has not only been providing financial assistance but has also launched an aggressive marketing drive to grab more of the global market.

For example, the country is arranging a mega-expo called "Bharat Tex 2025" in Delhi in February this year. It will be India's largest textile expo and will be designed to attract more buyers and business.

Selim Raihan, a professor of economics at the University of Dhaka and executive director of the South Asian Network on Economic Modeling (Sanem), said it is true that some work orders have shifted from Bangladesh to India because of the political crisis.

However, he added that the Indian government has been trying to increase apparel exports for many years but has not performed well since its labour laws are more stringent and wages are higher compared to Bangladesh.

In India, labour unions are also strong, he explained.

He also added that the incentives that the Indian government is planning to offer to exporters must comply with WTO guidelines. Otherwise, the competitor countries will protest, he said.

What most people seem to forget is that (despite Indian claims against it) Indian factories are much, much smaller than Bangladeshi apparel factories and far less organized. Almost like sweatshops. Bangladeshi factories did not get to be the way they are now (well funded and well organized) by chance, it took two or three decades. They aped the designs of Taiwanese and Korean factories, often the equipment and setup is identical.

Indian factories will still take at least a decade to compete with the efficiency Bangladeshi factories have - even after Billions in investments.

 

[Saif]

RMG exports to US grow after a gap of two years

Garment shipment to the US increased by 0.75% to $7.34 billion

www.thedailystar.net

RMG exports to US grow after a gap of two years
Garment shipment to the US increased by 0.75% to $7.34 billion

Photo: Star

Garment export to the US has grown year-on-year in 2024 after a gap of two years as the sales of apparel in the American market is increasing with the easing of high inflationary pressure.

Last year, meaning from January to December, Bangladesh's garment export to the US grew by 0.75 percent to $7.34 billion, according to data from the US Office of Textiles and Apparel (OTEXA).

Bangladesh's garment export to the US had been decreasing from the severe fallouts of the Covid-19 and the Russia-Ukraine war.

But, in recent months, garment export to the US, Bangladesh's single largest export destination, was showcasing resilience in shipments, and finally it came to the positive territory in December last year.

The country also experienced a 4.86 percent growth in export volume.

However, similar to the overall market trend, Bangladesh faced a 3.94 percent decline in unit price, which has had a direct impact on profitability.

Last year, the US's overall import of apparel grew by 1.71 percent to $77.92 billion, the data said.

China was the largest apparel supplier, registering 0.79 percent year-over-year growth to $16.50 billion.​

 

[Saif]

Current tax system discourages investment, says BKMEA President

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has said the current tax system discourages investment, and called for substantial reforms in the tax structure. The BKMEA president was speaking on Saturday as the chief guest at the biennial general meet

thefinancialexpress.com.bd

Current tax system discourages investment, says BKMEA President
UNB
Published :
Feb 08, 2025 21:14
Updated :
Feb 08, 2025 21:14

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has said the current tax system discourages investment, and called for substantial reforms in the tax structure.

The BKMEA president was speaking on Saturday as the chief guest at the biennial general meeting of the Bangladesh Labour Rights Journalists Forum (BLRJF) at Tamanna World Family Park in Dhaka. BLRJF President Kazi Abdul Hannan chaired the meeting, with its General Secretary Ataur Rahman overseeing the programme.

Hatem said, “The NBR imposed multiple taxes on businessmen. For instance, when raw materials are imported, customs collect advance income tax (AIT) along with duties. At the end of the year, a businessman files a tax return, and upon calculating their business volume, they may find that their tax liability is Tk 40. However, the NBR had already collected Tk 100 as AIT, with the understanding that it would be adjusted against the total tax liability at the end of the year. Similarly, the NBR also imposed a 30 per cent surcharge on a businessman's profits.”

“This complex tax system is discouraging for investors, and current businesses are not interested in expanding into new ventures,” he said.

The interim government must focus on attracting more investment, creating additional jobs, and fostering industrial growth, the BKMEA president said.

He also criticised the increase in gas and electricity prices without ensuring adequate supply to industrial units.

There is a need for formulating actionable policies through consultations with businessmen and other stakeholders, added the BKMEA president.

Hatem, also managing director of MB Knit Fashion Limited, said most businessmen want their workers to receive fair wages. “This will help increase production and foster industry growth. However, international buyers focus only on trade unions. If they do not offer fair and ethical prices for Bangladeshi products, it will be impossible to ensure the rights of workers.”

Also present at the event were BLRJF Joint General Secretary Md Alamgir Hossain, Deputy Director of Programmes at the Bangladesh Labour Foundation (BLF) Mahmudul Hasan Khan, and General Secretary of the Bangladesh Tannery Workers Union Abdul Malek.​

 

[Saif]

Call for global cooperation to tackle unfair purchasing practices in RMG industry

Enforcement authorities in key global markets should work closely with garment supplier countries to tackle unfair purchasing practices with effective measures such as joint inspections, data-sharing agreements and the establishment of international grievance mechanisms. Khondker M Talha, Ambassad

thefinancialexpress.com.bd

Call for global cooperation to tackle unfair purchasing practices in RMG industry
FE REPORT
Published :
Feb 12, 2025 09:57
Updated :
Feb 12, 2025 09:57

Enforcement authorities in key global markets should work closely with garment supplier countries to tackle unfair purchasing practices with effective measures such as joint inspections, data-sharing agreements and the establishment of international grievance mechanisms.

Khondker M Talha, Ambassador of Bangladesh to France and Permanent Delegate to UNESCO, made the remark at a virtual side session at the 2025 OECD Forum on 'Due Diligence in the Garment and Footwear sectors', on Monday.

"For instance, short-term planning, delayed payments, and last-minute order cancellations by buyers disproportionately affect suppliers and workers," he said.

He suggested that regulations in key markets must go beyond mere compliance and tackle the root causes of these issues.

He urged the regulators to mandate equitable cost-sharing mechanisms and enforce fair payment terms to ensure that the financial burden of compliance is not borne solely by suppliers.

The Bangladesh embassy in Paris organised the virtual session in collaboration with Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The session, moderated by Olivia Windham Stewart, an independent business and human rights specialist, focused on aligning Bangladesh's RMG industry with the "Three Zeros" framework -- Zero Poverty, Zero Unemployment, and Zero Net Carbon Emissions -- proposed by Nobel Laureate Professor Muhammad Yunus.

This transformative framework aims to drive inclusive growth, environmental sustainability, and ethical practices in the garment sector, which contributes over 80 per cent of Bangladesh's total exports and employs more than 4 million workers, predominantly women.

While significant progress has been made, gaps and inconsistencies in current regulations remain a challenge, Mr Talha said. "For instance, the lack of harmonised global standards often leads to conflicting compliance requirements, increasing the burden on suppliers."

Furthermore, the absence of enforceable mechanisms to ensure fair pricing and payment terms undermines the sustainability of the supply chain, he added. To address these gaps, he recommended harmonised global regulations that mandate responsible purchasing practices and ensure shared accountability between buyers and suppliers.

Other suggestions included technical and financial support from international partners to help suppliers meet compliance requirements, particularly small and medium enterprises (SMEs) and enhanced data transparency to monitor purchasing practices and ensure that buyers adhere to fair pricing and payment terms.

Highlighting Bangladesh's remarkable progress in improving workplace safety since the Rana Plaza tragedy in 2013, Mr Talha emphasized the government's commitment to integrating the "Three Zeros" framework into national policies, including labour law reforms, green factory initiatives, and sustainable export strategies.

He also underscored the importance of fair pricing and ethical purchasing practices by global brands to ensure the sustainability of the RMG sector and urged the OECD and international partners to provide technical and financial assistance to support capacity building, data transparency, and worker empowerment programs to build a fair and inclusive global supply chain that upholds human rights, promotes sustainability, and ensures equitable benefits for all stakeholders.

BGMEA representative Miran Ali said, "We must ensure that the flow of business to Bangladesh does not come at the expense of our resources unless our workers receive a better deal and there is social justice. At the same time, social justice must align with responsible production. That is the balance we must strike."

"Locally, we need to set certain minimum standards for doing business," he said, adding that they would ensure that anyone who does business with Bangladesh upholds these standards.

Sharing insights from the perspective of global brands, Bismuth Sebastien, Chairman of Celio, France, said his company has been present in Bangladesh for more than 20 years, operating with a social and sourcing office that employs over 45 people.

He emphasised the importance of partnerships with suppliers in achieving sustainability goals and commended Bangladesh's efforts towards green manufacturing and labour rights reforms.​

 

[Saif]

RMG must evolve beyond cheap labour

THE ready-made garments sector has been the backbone of Bangladesh’s economy for decades, transforming the country into a global hub for apparel manufacturing. From its humble beginnings in the late 1970s, the industry has grown to become the second-largest apparel exporter in the world...

www.newagebd.net

RMG must evolve beyond cheap labour
12 February, 2025, 00:00

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj. | New Age photo

The industry needs better trade agreements, smoother customs processing, infrastructure improvements, and incentives for sustainability investments, writes Asif Hossain

THE ready-made garments sector has been the backbone of Bangladesh’s economy for decades, transforming the country into a global hub for apparel manufacturing. From its humble beginnings in the late 1970s, the industry has grown to become the second-largest apparel exporter in the world, contributing over 80 per cent of Bangladesh’s total exports and employing more than four million workers, the majority of whom are women.

In 2024, Bangladesh’s RMG exports experienced a 7.23 per cent growth, reaching $38.48 billion, up from $35.89 billion in 2023. This growth significantly contributed to the country’s total exports hitting $50 billion. Notably, exports to non-traditional markets reached $6.33 billion, reflecting efforts to reduce dependency on the US and European markets. Despite these achievements, the industry faces major challenges in an increasingly competitive and evolving global trade environment.

With rising labour costs, changing consumer preferences, sustainability concerns, and stiff competition from emerging players, Bangladesh’s RMG sector must innovate, adapt, and diversify to sustain its growth and relevance. The sector, once lauded for its low production costs, can no longer rely solely on cheap labour to remain competitive. It is imperative to shift towards value-added production and improved working conditions to ensure long-term sustainability.

Roots of garment industry

THE journey of Bangladesh’s RMG industry began in the late 1970s, when a few pioneering entrepreneurs recognised the potential of export-orientated garment manufacturing. One of the first major players in the industry was Desh Garments, which collaborated with South Korean firm Daewoo to train Bangladeshi workers in modern apparel production techniques. This knowledge transfer laid the foundation for the rapid expansion of the sector.

In the 1980s and 1990s, the industry experienced exponential growth, largely driven by low labour costs, duty-free access to European markets under the generalised system of preferences, and an abundance of skilled yet affordable workers. Foreign buyers, particularly from the US and Europe, turned to Bangladesh as a preferred sourcing destination due to its competitive pricing.

The multi-fibre arrangement, which regulated global textile and apparel trade through a quota system, further boosted Bangladesh’s RMG sector. However, when the multi-fibre arrangement was phased out in 2005, many feared that Bangladesh’s apparel industry would collapse. Instead, it proved its resilience, continuing to expand due to its well-established supply chain, growing workforce, and strong relationships with international buyers.

Tragedies like the Rana Plaza collapse in 2013, however, exposed the vulnerabilities of the industry — particularly concerning worker safety and factory compliance. This led to global pressure for better labour rights, workplace safety, and sustainability standards. Since then, Bangladesh has made some progress in improving factory conditions with the introduction of accord and alliance safety measures.

Emerging challenges

DESPITE its historical success, Bangladesh’s garment sector now faces several challenges. First, global competition is fiercer than ever. Countries like Vietnam, India, and Ethiopia are emerging as strong alternatives for international buyers. Vietnam in particular benefits from free trade agreements with the European Union and other key markets, while Bangladesh still faces tariffs on many exports. Without new trade agreements, Bangladeshi manufacturers risk losing their competitive edge.

Second, sustainability and compliance pressures are increasing. Global brands are prioritising eco-friendly production, ethical labour practices, and transparency. Buyers now demand not only low-cost production but also assurances that garments are made in socially responsible and environmentally sustainable ways. Bangladesh has made strides in this area, with the highest number of LEED-certified green factories in the world, but more needs to be done to maintain buyer confidence.

Third, economic slowdowns in western markets pose a significant threat. Inflation, economic downturns, and shifting consumer habits in Europe and the US have led to reduced orders for Bangladeshi factories. Over-reliance on these markets makes the industry vulnerable to global financial fluctuations. Expanding into new markets, such as Africa, Latin America, and the Middle East, could help diversify risk and create new opportunities.

Fourth, infrastructure and logistics remain major obstacles. High lead times, port delays, energy shortages, and inefficiencies in supply chain management continue to put Bangladesh at a disadvantage compared to competitors. In an era where fast delivery is crucial for global brands, improving logistics and transportation networks is essential.

Roadmap ahead

DESPITE these challenges, Bangladesh can secure its future in the global apparel trade by taking key strategic steps.

The industry must move up the value chain by investing in high-value garments such as sportswear, technical textiles and fashion innovation. The demand for functional and performance wear is growing worldwide, and Bangladesh can tap into this market by focusing on research, product development, and skilled labour.

Sustainable manufacturing should be a top priority. Bangladesh’s green factories have already set a global benchmark, but the industry must further reduce waste, adopt circular fashion techniques, and implement advanced water and energy-saving technologies to meet global sustainability standards.

Market diversification is crucial. Expanding into Africa, Latin America, and the Middle East will reduce dependence on traditional buyers and create new growth opportunities. Exploring regional trade agreements can also open doors to new export markets.

Investment in automation and digital transformation is essential. While Bangladesh remains a labour-intensive manufacturing hub, the future of the industry will depend on smart factories, artificial intelligence-driven supply chains, and digital technologies. Competitor nations are already moving in this direction, and Bangladesh must train its workforce and upgrade its manufacturing capabilities to keep pace.

Government policy support will be key in this transformation. The industry needs better trade agreements, smoother customs processing, infrastructure improvements, and incentives for sustainability investments. Public-private collaboration will play a crucial role in ensuring that the RMG sector remains resilient in the face of global disruptions.

Bangladesh’s RMG industry has come a long way, but its future depends on adaptation and innovation. The challenges are real, but so are the opportunities. By investing in sustainability, diversifying markets, embracing technology, and improving efficiency, the sector can not only survive but thrive in the ever-evolving global apparel trade. The world is changing — Bangladesh must change with it.

The time to act is now.

Asif Hossain is a merchandiser at Urmi Group.​