[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG exports grow 18% in Oct-Dec

Bangladesh’s readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.

www.thedailystar.net

RMG exports grow 18% in Oct-Dec

Bangladesh's readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.

Export earnings for the October-December period of fiscal year 2024-25 (FY25) stood at $10.36 billion, marking a 9 percent increase from the previous quarter.

Year-on-year, it was a growth of 18.6 percent.

"This growth was attributed to the rebound of economic activities in advanced economies along with the peak holiday shopping season in Western markets," said the central bank's quarterly review of RMG released yesterday.

Major US and European retailers typically increase their orders to meet consumer demand, it said.

The report said the apparel sector faced inflationary pressure, disruptions to supply chains, fluctuating fuel prices, and rising transportation costs. However, demand from key export markets remained strong.

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 the 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.

"Over the years, Bangladesh has established itself as one of the world's leading apparel manufacturers," it said.

"The growth of this sector can be attributed to competitive labour costs and a robust supply chain network," the report added.

The RMG sector contributed 11.68 percent to the gross domestic product (GDP) during the quarter.

The BB report said nine countries -- namely the US, Germany, the UK, Spain, France, the Netherlands, Italy, Canada, and Belgium -- were the primary destinations for Bangladesh's RMG exports.

These countries enabled roughly 70 percent of total RMG earnings in the second quarter of FY25.

Earnings from these markets increased by 7.13 percent compared to the preceding quarter.

Of the shipments, knitwear exports grew by 2.61 percent quarter-on-quarter to $5.48 billion.

The growth was 18 percent compared to the same quarter of the previous year, driven by strong demand from the US and European Union.

Woven garment exports rose by 17.23 percent to $4.88 billion, supported by increased consumer spending in the European and US markets.

The BB report said woven garment exports experienced notable growth, leading to a resurgence in consumer spending in major markets, particularly in Europe and the US.

"This uptick was influenced by economic recoveries and a renewed interest in apparel. Moreover, a competitive edge through cost-effective production has been maintained, offering quality woven garments at attractive prices," it said.

The report said the RMG sector continues to be affected by supply chain disruptions and increased raw material costs.

The import value of raw materials such as cotton, synthetic fibres, yarn, and textile fabrics reached $4.03 billion in the second quarter of FY25, accounting for 39 percent of total RMG export earnings.

Net export earnings stood at $6.32 billion, a 12.67 percent rise from the previous quarter.

The BB report said Bangladesh's RMG sector demonstrated strong resilience and steady growth during the October-December period of FY25, driven by increased global demand and production efficiency.

"Looking ahead, the significant performance of the RMG sector will be reaffirmed during the whole of FY25, setting a positive outlook for the coming years and positioning Bangladesh as a leading apparel exporter on the global stage," the report said.​

 

[Saif]

Bangladesh’s strategic edge amid US tariff war

The US-China trade war, along with tariffs on Mexican exports, has created a unique opportunity for Bangladesh’s ready-made garment (RMG) industry.

www.thedailystar.net

Bangladesh’s strategic edge amid US tariff war

The US-China trade war, along with tariffs on Mexican exports, has created a unique opportunity for Bangladesh's ready-made garment (RMG) industry. There is no doubt that the USA will pull out of China and Mexico after the imposition of tariffs, redirecting its sourcing mainly to Bangladesh and Vietnam, and to some extent, to countries such as Pakistan, India, and Indonesia. The key question remains: How much will Bangladesh truly gain? The extent of Bangladesh's benefit depends on how well it prepares to seize this opportunity.

The US has imposed an additional 10% tariff on China and 25% on Mexico, prompting apparel buyers to explore alternative sourcing destinations. Instead of hastily increasing capacity, as it did in the past, Bangladesh should learn from its past to map its current production capabilities and expand in a controlled manner. A data-driven approach will ensure factories align with high-value product categories, rather than overproducing cheap garments that yield lower margins.

Expanding without a clear strategy can lead to inefficiencies. The capacity-mapping focus should be on upgrading facilities, improving worker productivity through training, and adopting new technology. Businesses must avoid increasing capacity without securing sufficient demand or diversifying their product range to meet evolving buyer preferences.

Vietnam has become a leader in synthetic fibre-based garments. Bangladesh has already proved its mettle with cotton-based products; if it wishes to maximise the benefit from the opportunity at hand, it must diversify beyond cotton apparel to capture the growing demand for high-end, man-made fibre (MMF) clothing. Investing in advanced manufacturing capabilities will reduce dependence on volatile cotton prices and ensure higher profitability.

Currently, Bangladesh imports most synthetic fibres, increasing costs. Establishing domestic MMF production will enhance competitiveness while reducing reliance on foreign raw materials. Collaborations with research institutions can help drive innovation and quality improvements in MMF textiles. Existing factories must be encouraged to change their product categories to non-cotton, high-value apparel.

Bangladesh must strengthen its supply chain by investing in ports, energy, and transport networks. Reducing bureaucratic inefficiencies and streamlining regulations will enhance efficiency. Partnerships with logistics providers will minimise lead times, making Bangladesh a viable alternative to China and Mexico.

Ensuring a stable fuel and energy supply is also essential.

A business-friendly environment is key to attracting global investment. Bangladesh should encourage Chinese manufacturers to relocate operations and form joint ventures to bring in advanced technology, in addition to placing orders with the home industry. The current dollar scarcity the country is facing may indeed prove advantageous in this instance.

Mexico benefits from proximity to the US, while other countries dominate non-cotton apparel, often capitalising on LDP (landed duty paid) and DDP (delivery duty paid) terms—the two most preferred terms for US customers—over Bangladesh. Bangladesh can, however, compete through cost-efficient, high-quality production and strong ethical sourcing.

Branding Bangladesh as a sustainable and ethical sourcing destination will be crucial. Buyers prioritise environmental and social responsibility when selecting suppliers. Investments in waste reduction, water conservation, and labour rights will enhance Bangladesh's reputation and appeal to global brands.

It is also crucial for Bangladeshi suppliers to choose their buyers prudently. Similarly, it may be advantageous to convince buyers to send high-end products to Bangladesh by demonstrating profits from saved tariffs. This would create a win-win situation, provided that Bangladeshi suppliers can pitch themselves compellingly.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Association.​

 

[Saif]

Unit prices of Bangladesh’s RMG exports to the EU fell in 2024

Bangladesh’s readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value.

www.thedailystar.net

Unit prices of Bangladesh’s RMG exports to the EU fell in 2024

Bangladesh's readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value.

The South Asian nation's apparel shipments to the EU rose by 4.86 per cent year-on-year to $19.77 billion in 2024, according to Eurostat data.

During this period, Bangladesh exported 1,230.51 million kilogrammes (kg) of readymade garments to the EU, up 10.18 per cent from the previous year's 1,116.77 million kg.

Within a year, the per-unit price fell to $16.07 per kg in 2024 from $16.88 per kg in the previous year, marking a sharp 5 per cent drop.

Meanwhile, the EU's overall apparel imports increased by 1.53 per cent year-on-year in value to reach $92.56 billion in 2024, while the import volume grew by 8.98 per cent, according to Eurostat data.

This resulted in a 6.83 per cent decline in average unit prices, impacting major sourcing countries, including Bangladesh, said Mohiuddin Rubel, additional managing director of Denim Expert Limited.

China remained the largest apparel exporter to the EU, posting a 2.61 per cent export growth to $26.07 billion in 2024. Bangladesh ranked second, followed by Turkey and India.

All four of these countries, along with Vietnam and Cambodia, also saw declines in unit prices.

Bangladesh maintained its position as a key supplier to the EU market, but the decline in unit prices underscores the need for strategies to address profitability concerns amid global price reductions.

Rubel said falling prices highlight the challenges of maintaining profitability.

Several factors contributed to the steady rise in export volume and value growth, including the production of value-added garments, duty-free market access, adherence to workplace safety standards, and the combined efforts of manufacturers and workers.

"These developments bolstered buyers' confidence, enhancing the business environment and fortifying Bangladesh's position as a key player in the export market," he said.

Despite fluctuations throughout the year, with a slow start followed by a surge in the last quarter of 2024, Bangladesh saw substantial year-on-year growth in October, November, and December.

"This positive trend, along with increasing exports, fuelled the current growth trajectory."

While 2024 showed improvement over 2023, earnings still fell short of the levels achieved in 2022.

"Looking ahead, the outlook remains optimistic as work orders are expected to increase, sustaining the growth momentum into 2025. With buyers regaining confidence and expanding their sourcing activities in the country, the growth trend is poised to continue."

Rubel said that while Bangladesh showed resilience in maintaining export volume and value, the data reveals a critical need for strategic shifts for future growth.

"Value addition and market diversification are essential for Bangladesh to secure its competitiveness and safeguard profit margins in the face of persistent global price deflation."​

 

[Saif]

Mental health challenges of female RMG workers

After 1975, Bangladesh saw economic liberalisation leading to the growth of an export-focused ready-made garment (RMG) industry that mainly employs women. With lower wages and little resistance, factory owners maintain a comparatively cheap and stable workforce. The working conditions for these wom

thefinancialexpress.com.bd

Mental health challenges of female RMG workers
Tasfia Rahman
Published :
Feb 26, 2025 22:28
Updated :
Feb 26, 2025 22:28

After 1975, Bangladesh saw economic liberalisation leading to the growth of an export-focused ready-made garment (RMG) industry that mainly employs women. With lower wages and little resistance, factory owners maintain a comparatively cheap and stable workforce. The working conditions for these women are mostly informal, leading to a precarious job environment. The growth of the RMG sector has been influenced by political and economic factors in Bangladesh. Changes in government policies, international buyer pressure, and worker protests have shaped the industry over time.

Recently, there have been significant policy changes in the RMG sector, including updates to minimum wage laws and stricter labour law enforcement following tragedies like the Rana Plaza collapse in 2013. Recent reforms in the RMG sector have been driven by international demands and supply chain regulations. After the Rana Plaza disaster, the Bangladesh government worked with international brands and labour groups to create safety accords. These initiatives aimed to improve factory safety and compliance with regulations. The Accord was followed by the establishment of the RMG Sustainability Council in 2020, which oversees safety measures.

The economic liberalisation of the 1980s coincided with global shifts towards decentralised production. This resulted in more informal jobs with lower wages and fewer benefits. The RMG industry emerged with support from the Bangladeshi government and international institutions. Bangladesh's competitive advantage attracted foreign investment, largely due to a young workforce and weak labour laws. However, this has also led to gender inequalities, with women facing exploitative practices and limited career advancement. About 90 percent of garment workers are women, often uneducated migrants from rural areas, making them vulnerable to exploitation.

Working conditions in Dhaka's garment factories are often poor. Many workers have no formal contracts, leaving work terms unclear and giving employers significant power. Women frequently work over eight hours a day without breaks, especially during peak shipment periods. Factories are often housed in unsuitable buildings due to high land costs. The 2013 Rana Plaza collapse, which killed over 1,000 workers, highlighted these unsafe conditions. Factory spaces are cramped, and access to restrooms is inadequate. Fire safety measures are often lacking, as seen in the 2012 Tazreen Fashion factory fire.

While workers are supposed to have an eight-hour shift six days a week, many work overtime until late at night to meet deadlines. In most cases, there are no formal contracts, leaving job terms ambiguous. Workers sometimes go an entire month without a day off, despite laws stating no one can work more than 10 consecutive days without a break. Breaks are often shorter than required, and most workers are paid at unskilled labourer rates, regardless of their skills or roles.

Gender and labour dynamics within the global economy are essential to understanding the challenges female RMG workers face. Globalisation has intensified gender inequality by embedding patriarchal structures in labour markets. In Bangladesh's RMG sector, this manifests as exploitative practices and limited economic opportunities for women.

There is also a strong connection between labour conditions and mental health, particularly concerning workplace stress. High job demands combined with low autonomy can lead to significant mental health issues. This is especially relevant for women in low- and middle-income countries, where precarious labour conditions and poverty are cyclical. The gendered nature of labour-related mental health disparities highlights the importance of understanding their broader implications.

Global economic pressures, particularly from international buyers, significantly impact labour conditions. The shift to low-wage labour in developing countries is well-documented. International buyers often drive down wages and labour standards, affecting worker well-being. In Bangladesh's garment sector, international buyer pressure is pronounced, as seen in comparisons between the effects of buyer power in Bangladesh and Vietnam. Understanding local labour conditions requires considering the global economic forces at play, including pressures from international buyers.

The work is physically demanding, requiring continuous use of machines. This leads to chronic pain and illness, and workers often lack the freedom to take breaks. They face pressure to work overtime to meet shipment deadlines, causing additional stress.

Workers feel alienated from their jobs. Many do not fully understand the production process and thus lack pride in their work. However, some coping mechanisms have emerged due to changes in government regulations, such as improved labour laws, sick leave, and maternity leave, which have contributed to reducing stress levels.

The workplace is not the only source of stress; living conditions also contribute. Workers struggle to find affordable housing near factories, sometimes resulting in long commutes. Limited income restricts transportation options, increasing stress. The government has raised the minimum wage to address labour concerns, but it remains insufficient to cover living expenses. Many workers live in overcrowded conditions. Social support plays a crucial role in coping. Family members often assist with childcare and household responsibilities, providing emotional support. The introduction of mobile financial services allows workers to send money home easily, improving their ability to support their families. Stress and coping mechanisms are shaped by systemic constraints, including poor labour conditions, social stigma, and economic pressures. These factors create a challenging environment for female RMG workers, leading to high levels of stress.

To enhance the well-being of female RMG workers, recommendations include promoting gender equality, reducing stigma, improving workplace culture, integrating mental health services, and ensuring compliance with labour laws. The following actions must be taken:

1. Enhancing Coping Mechanisms: Encourage equal participation of men in household responsibilities through incentives. Educational workshops can promote shared caregiving roles.

2. Removing Stigma: Address negative stereotypes about female RMG workers through community engagement and campaigns that highlight their contributions to the economy.

3. Improving the Workplace Environment: Create a collaborative work culture through peer mentoring and transparency in decision-making processes.

4. Integrating Mental Health Services: Provide accessible mental health support through mobile platforms and on-site counselling.

5. Strengthening Labour Laws: Collaborate with international organisations to enforce labour standards and promote ethical certifications for factories.

The interplay of gender, mental health, labour conditions, and social stigma reveals complex challenges for female RMG workers in Bangladesh. Addressing these issues requires holistic interventions to promote gender equality, mental health support, and transparent labour practices. These recommendations aim for both personal and systemic empowerment.

The writer is Research Fellow, Moulovibari Research and Partnership Hub (MoRPH), Tangail, Bangladesh​

 

[Saif]

RMG workers block Dhaka-Aricha highway in Savar demanding arrears

Despite assurances of paying salaries to workers after iftar today, the officials left the factory without paying their dues

www.thedailystar.net

RMG workers block Dhaka-Aricha highway in Savar demanding arrears

Photo: Star

Workers of a ready-made garment factory blocked the Dhaka-Aricha highway last night demanding payment of two months' arrears.

Hundreds of workers of Pratik Apparels Limited, whose factory is located in Karnpara area, started the protest by blocking the highway around 7:30pm. The workers continued to block the highway till the filing of this report at 10:15pm.

The blockade caused severe traffic congestion on both sides of the highway.

The agitating workers told The Daily Star that despite several strikes like these, the factory owner has not yet paid the workers' salaries.

Despite assurances of paying salaries to workers after iftar today, the officials left the factory without paying their dues.

Later, they blocked the highway.

The aggrieved worker said they will not move from the road until the outstanding dues are paid.

Mohammad Mominul Islam Bhuiyan, superintendent of

Ashulia Industrial Police-1 told The Daily Star that the workers had been staying at the factory premises all day demanding their arrears.

The owner was supposed to pay the salary today but did not. So the workers took to the streets after iftar, he added.

"We, along with the army personnel, are at the scene. We are not getting any help from the owner. The workers are demanding their salaries but the owner is not meeting the workers," he added.​

 

[Saif]

Reality is different from perceptions about RMG sector

Bangladesh’s RMG sector has improved, but challenges in wages and rights remain.

www.thedailystar.net

Reality is different from perceptions about RMG sector

For years, discussions about Bangladesh's ready-made garment (RMG) sector have been shaped by narratives that do not always reflect the current reality. While global media often highlights past tragedies or focuses on labour concerns, it overlooks the significant strides made in safety, sustainability, and ethical business practices. However, while acknowledging these improvements, it is equally important to recognise the challenges that remain, particularly regarding workers' rights and fair wages.

As a factory owner, I have seen firsthand the transformation of our industry. Our factories have undergone rigorous upgrades, yet misconceptions persist. Changing perceptions is crucial not only for our reputation but also for ensuring sustainable growth for our workers and businesses alike. We all stand to benefit.

The collapse of Rana Plaza in 2013 was a turning point for Bangladesh's garment industry. In response, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety were introduced, leading to over 38,000 factory inspections and significant remediation efforts. Today, over 1,600 factories have successfully remediated safety issues under the accord, making our factories among the safest in the world.

Despite these advancements, concerns remain about compliance in smaller subcontracting factories, where enforcement is weaker. While larger exporters meet international safety standards, ongoing monitoring is needed to ensure that all workers, regardless of factory size, operate in safe conditions. Standards need to be raised across the board, and I would argue that we are, as an industry, only as good as our weakest link.

The garment sector employs over 4.2 million workers, of whom nearly 60 percent are women, according to a 2023 Bangladesh Bureau of Statistics report. While minimum wages have increased over the years, they remain a contentious issue. In November 2023, the government raised the minimum wage for RMG workers to Tk 12,500 ($113) per month, a 56 percent increase from the previous Tk 8,000 set in 2018. However, worker unions argue that this wage is still not a living wage given rising inflation and living costs.

Efforts to improve working conditions go beyond wages. Several factories have introduced healthcare facilities, childcare centres, and skill development programmes, but these benefits are not yet widespread. A stronger commitment from both government regulators and factory owners is needed to ensure that every garment worker receives fair compensation and a dignified working environment.

Bangladesh is now home to over 200 LEED-certified green garment factories, the highest number in the world. According to the US Green Building Council, investments in solar power, water recycling, and energy-efficient production have positioned Bangladesh as a leader in sustainable apparel manufacturing.

However, challenges persist. Textile dyeing remains a major environmental concern, with rivers suffering from industrial waste. While some factories have installed effluent treatment plants (ETPs), enforcement gaps allow smaller factories to discharge untreated waste. The industry must work collectively to ensure all manufacturers comply with environmental regulations. It only takes a negative report on one factory for us all to be tarred with the same brush.

One of the most effective ways to reshape perceptions is by increasing transparency. International buyers often arrive in Bangladesh with outdated assumptions about factory conditions. Factory tours provide them with firsthand insight into modern, well-equipped facilities that meet and often exceed global safety standards.

However, transparency must extend beyond factory tours. Ensuring that all labour policies are publicly documented, workers have a voice in decision-making, and violations are addressed swiftly will reinforce Bangladesh's reputation as a responsible manufacturing hub. Encouraging direct engagement between buyers and workers, rather than curated visits, will strengthen trust in our commitment to ethical production.

While the industry has made commendable progress, we cannot overlook the areas that still need improvement. Ensuring living wages, enforcing compliance in smaller factories, and addressing environmental concerns must remain priorities.

Bangladesh's RMG sector is a success story; but for it to remain sustainable, we must acknowledge both achievements and challenges. By embracing full transparency, strengthening labour rights, and reinforcing environmental responsibility, we can ensure that our industry is recognised not just for its growth, but for its commitment to fairness and ethical business practices.

As stakeholders, factory owners, workers, policymakers, and international buyers, we have a shared responsibility to uphold the integrity of Bangladesh's most vital industry. Only through collective effort can we truly transform the narrative surrounding our garment sector for both local and global audiences.

Mostafiz Uddin is managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

BKMEA seeks outstanding TK 70 billion cash assistance by 15th Ramadan

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding installment of cash incentives worth TK 70 billion by 15th Ramadan. The trade body for the knitwear subsector argued for the immediate release of the cash ince

thefinancialexpress.com.bd

BKMEA seeks outstanding TK 70 billion cash assistance by 15th Ramadan
FE ONLINE REPORT
Published :
Mar 04, 2025 20:22
Updated :
Mar 04, 2025 20:22

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding installment of cash incentives worth TK 70 billion by 15th Ramadan.

The trade body for the knitwear subsector argued for the immediate release of the cash incentive installment, saying delays could cause serious disruptions in the export-oriented sectors, especially the textile and garment industry.

BKMEA president Mohammad Hatem made the plea in a letter sent to the finance secretary on Tuesday.

In the letter, the BKMEA leader said that until March this year, incentive claims worth about Tk 70 billion in export subsidies or cash assistance have been submitted to the central bank for the fiscal year 2024–25.

Mr Hatem urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by 15th Ramadan before Eid.

He said that the readymade garment industry has been passing a tough time due to a number of challenges, including the changed political situation.

The prolonged labour unrests in various industrial zones have severely disrupted production, leading to factory closures and an abnormal rise in production costs, he added.

"But to maintain buyers' confidence here in the country's export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than actual production costs in many cases," Mr Hatem said.

Despite an increase in orders, many factories are facing liquidity crisis, he said in the letter, highlighting the increasing pressure of wage and festival allowance payments ahead of Eid.

He warned that failure in making timely payments might lead to renewed labour unrests in the industrial sector and sought the government's support, which is crucial in maintaining stability in the sector.

Meanwhile, a commerce ministry report revealed that some 500 RMG factories are at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.​

 

[Saif]

A story of resilience, adaptability & strategic development

Bangladesh's garment industry stands as a perfect example of economic transformation, a testament to how resilience, adaptability, and strategic foresight can reshape a nation's destiny. What began as a modest industry in the 1980s has grown to become the second-largest exporter of garments in the

thefinancialexpress.com.bd

Bangladesh's garment industry
A story of resilience, adaptability & strategic development
Manmohan Parkash
Published :
Mar 04, 2025 23:03
Updated :
Mar 04, 2025 23:03

A worker at a garment factory in Dhaka Photo : FE/Files

Bangladesh's garment industry stands as a perfect example of economic transformation, a testament to how resilience, adaptability, and strategic foresight can reshape a nation's destiny. What began as a modest industry in the 1980s has grown to become the second-largest exporter of garments in the world, following only China. This remarkable rise has not come without challenges, but it is the industry's ability to overcome adversity and evolve in the face of shifting global demands that has defined its success. Today, Bangladesh's garment sector is a symbol of determination, ingenuity, and the power of a nation harnessing its potential.

The first chapter of Bangladesh's garment story is one of sheer resilience. In the early years, the country faced a myriad of challenges: political instability, an underdeveloped infrastructure, and a population with limited skills in manufacturing. However, the most defining challenge came in the form of global competition and domestic hurdles-none more glaring than the 2013 Rana Plaza disaster. The tragedy, though heartbreaking, became a turning point in the country's commitment to improving the safety and welfare of its workers.

In response to this disaster, Bangladesh implemented rigorous reforms in factory safety, worker rights, and compliance with international labour standards. The Accord on Fire and Building Safety and Alliance for Bangladesh Worker Safety initiatives ensured that manufacturers modernised their factories, making them safer and more conducive to long-term sustainability. The tragedy, though a painful chapter, pushed the industry to its limits and forced it to confront issues that many had long overlooked. Yet, in its aftermath, the garment industry stood up stronger, with improved standards that have allowed it to retain its place in the global supply chain.

The garment sector's adaptability is perhaps its greatest strength. Over the years, Bangladesh has exhibited a remarkable ability to adjust to global market shifts and consumer demands, including the rise of fast fashion. Where many other countries failed to keep up, Bangladesh pivoted quickly, utilising its lower labour costs, growing infrastructure, and a labour force eager for work. The country's garment manufacturers became synonymous with quick turnaround times and competitive prices, positioning Bangladesh as a key player in the global fast-fashion sector.

Moreover, the industry has shown a remarkable ability to diversify. While initially focused on basic, low-cost garments, Bangladesh has become adept at producing more sophisticated and fashion-forward items. Today, it manufactures everything from jeans and jackets to sportswear and knitwear, appealing to a wide range of markets, from high-street retailers to luxury brands. This evolution speaks to Bangladesh's ability to understand and respond to the ever-changing nature of the global fashion industry.

The industry's responsiveness to sustainability trends is another testament to its adaptability. In recent years, global buyers have increasingly demanded eco-friendly and ethical practices in production. Bangladesh, ever attuned to the shifts in market expectations, has started investing in green technologies, cleaner production methods, and energy-efficient machinery. Factories are transitioning to sustainable practices, using renewable energy, water recycling, and eco-friendly fabrics. The increasing number of Platinum LEED-certified companies signify the growing commitment to sustainability, aligning with international environmental standards while fostering responsible manufacturing practices. This not only ensures continued market access but also demonstrates that Bangladesh is poised to meet the demands of a more conscientious consumer base.

Strategic foresight has been central to Bangladesh's garment industry success. The government played a crucial role in creating an enabling environment, through the development of Export Processing Zones (EPZs), bonded warehouses, and tax incentives for investors. These measures attracted foreign direct investment (FDI), allowing manufacturers to scale production, upgrade technology, and improve productivity. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also provided a unified platform to advocate for the interests of garment manufacturers, enabling them to negotiate with both domestic and international stakeholders.

A key to the sector's success has been the robust textile supply chain that exists within the country. Bangladesh boasts a large number of textile mills that supply the fabric necessary for garment production. This local textile industry supports the garment sector, reducing reliance on imports and allowing for more cost-effective production. By building this vertically integrated supply chain, Bangladesh has positioned itself as a one-stop-shop for garment production, from fabric manufacturing to finished goods.

Equally important is the role of global market connectivity. Bangladesh has forged long-lasting relationships with international buyers, many of whom have become reliant on the country for high-volume, low-cost, and high-quality production. The country's participation in global trade agreements and its preferential access to major markets, such as the European Union (EU) and the United States (US), have further solidified its place in global supply chains. The access to duty-free imports of raw materials, coupled with competitive labour costs, has helped Bangladesh to remain at the forefront of the global garment industry.

The future of Bangladesh's garment industry is full of potential but also fraught with challenges. Rising labour costs, competition from countries with even lower wages, and pressures for further improvements in working conditions require constant adaptation. However, the industry has proven time and again that it can evolve and overcome adversity.

To remain competitive, Bangladesh must continue its focus on diversifying its product range, investing in cutting-edge technology, and nurturing a more skilled workforce. Moreover, continued investment in sustainability will be essential, as the global market increasingly demands that manufacturers adhere to environmental and ethical standards. Bangladesh is in a good position to lead this charge, as it has already begun to implement green practices and adopt new technologies that ensure it can maintain its position as a global leader in garment production.

The story of Bangladesh's garment industry is not just about cheap labour and low costs-it is a story of resilience, adaptability, and strategic development. Overcoming challenges, responding to global shifts, and continuously evolving to meet the needs of the market have made Bangladesh one of the world's largest and most successful garment exporters. As the world continues to evolve, Bangladesh's garment industry stands as a powerful example of what can be achieved with vision, perseverance, and a relentless pursuit of progress.

Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank (ADB).​

 

[Saif]

Home textile exports witness comeback

The export of home textile products has witnessed a comeback over the past few months, owing to an improved order situation and increased production capacity...

www.newagebd.net

Home textile exports witness comeback
Saddam Hossain 06 March, 2025, 23:04

The export of home textile products has witnessed a comeback over the past few months, owing to an improved order situation and increased production capacity.

According to Export Promotion Bureau data, in the July-February period of the current financial year, the home textile sector earned $578 million, a positive growth of 5.23 per cent from $549.25 million in the same period of FY24.

The home textile sector was regarded as an emerging player in the country’s export baskets. It touched the milestone of $1 billion in export earnings as the third player, after the readymade garment, along with jute and leather.

In FY21, the sector crossed $1 billion in exports for the first time and in FY22, it bagged $1.62 billion.

However, due to an abnormal hike in gas prices and the Ukraine-Russia war, the sector’s earnings started falling. In FY23, the sector earned $1.09 billion and in FY24, the earnings dropped to $851 million.

Throughout the timeframe of more than one year, the monthly exports remained negative.

However, since November 2024, export earnings from home textiles bounced back. In July-January of FY25, the sector earned $494 million, in July-December $410.81 million and in July-November $326.83.

The EPB data stated that the sector’s earnings maintained positive growth between 5 per cent and 9 per cent throughout these months.

Momtex Limited is one of the major exporters of home textile products, with 7,500 employees and a production capacity of 6 million metres per month.

Shahjada Rubel, head of business at Momtex, told New Age that exports experienced positive growth and the factories had a handsome amount of purchase orders.

‘Due to a hike in duties in China, a number of Chinese companies shifted their production facilities in Bangladesh which impacted our exports’, he added.

However, he said, the government must focus on uninterrupted supply of gas and energy and price reductions to sustain export growth.

Industry insiders said that home textiles was one of Bangladesh’s first-line export sectors, with the ability to produce bulk products, which had also accelerated the country’s rise to global leadership.

The country’s home textile export basket includes bed linen, bed sheets and other bedroom textiles, bath linen, carpets and rugs, blankets, kitchen linen, curtains, cushions and cushion covers and quilt covers.

Talking to New Age, Mohammed Ayub Khan, senior vice-chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, said that due to the reasonable prices of yarn, the factories increased their production.​

 

[Saif]

RMG manufacturers want separate ministry

The manufacturers of the country’s readymade garment sector demanded a separate ministry for sustainable RMG and textile sector.

www.newagebd.net

RMG manufacturers want separate ministry
Staff Correspondent 08 March, 2025, 23:11

The manufacturers of the country’s readymade garment sector demanded a separate ministry for sustainable RMG and textile sector.

They also said that the RMG sector is a major source of export earnings as a single sector, but it has to face new challenges from global and local perspectives. To address these challenges, it requires a long-term policy, for which a separate ministry is necessary.

They were speaking at an Iftar event organized by the Bangladesh Garment Manufacturers and Exporters Association’s election-centric panel, Forum, in the capital on Saturday.

Mahmud Hasan Khan Babu, forum panel leader and managing director of Rising Group, said that the garment sector needs policy support for a certain period of time.

‘Domestic and foreign conspiracies are always going against this sector and a vested interest group is creating anarchy in the name of worker’s unrest at different times. It should be investigated whether politics is involved behind this,’ he added.

He also said that the entrepreneurs of this sector should be freed from customs inspections and harassment.

Rashid Ahmed Hossaini, secretary general of the Forum, said that they have learned about the identification of 700 fake voters through media outlets.

‘Their voting rights have been canceled. This is very shameful that this sector has fake voters. We want the next election to be transparent and acceptable. We should remember that the economy cannot be sustained in Bangladesh without this sector. And BGMEA cannot be turned into a party office of any particular political party,’ he added.

Former BGMEA President Anisur Rahman Sinha said that the government may have less knowledge about business, and it is the responsibility of businesses to assist the government.

‘BGMEA, as an organization, has to take a role in highlighting and resolving any problems being created.

Another former president, Anwar-ul-Alam Chowdhury (Parvez), said that BGMEA needs skilled leadership to deal with the crisis.

Rubana Huq, another former BGMEA president, said that the manufacturers want relief from many years of garbage. A transparent vote to restore the balance is necessary.

Moreover, a factory can become sick for reasons beyond its control, but there is no exit policy.

‘We urge the government to formulate a detailed exit policy. Moreover, the manufacturers should increase their bargaining with foreign buyers for fair prices,’ she added.

Meanwhile, the BGMEA election for the 2025-27 tenure is scheduled for May 28, according to the election schedule announced on Saturday.​