[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Bangladesh’s apparel export to US rose to $7.34b in a decade: US Report

Bangladesh’s apparel export to the USA market increased to US$ 7.34 billion from $5.4 billion in a decade, according to the US Government Office of Textiles and Apparel (OTEXA). The report revealed, apparel imports from Bangladesh to the USA in 2015 were valued at US $5.40 billion, rising to

thefinancialexpress.com.bd

Bangladesh’s apparel export to US rose to $7.34b in a decade: US Report

UNB
Published :
Jun 30, 2025 19:00
Updated :
Jun 30, 2025 19:01

Bangladesh’s apparel export to the USA market increased to US$ 7.34 billion from $5.4 billion in a decade, according to the US Government Office of Textiles and Apparel (OTEXA).

The report revealed, apparel imports from Bangladesh to the USA in 2015 were valued at US $5.40 billion, rising to US $7.34 billion by 2024, reflecting a notable 35.94 percent growth over the same period.

While experiencing a positive trajectory until 2019, the emergence of COVID led to an 11.76 percent decline in 2020 ($5.92 billion was in 2019 and $5.22 billion was in 2020).

Since 2020, Bangladesh has shown impressive growth at 40.45 percent, surpassing the USA’s growth rate of 23.72 percent, according to the report.

The OTEXA stated that in 2015, apparel imports to the USA totalled US $85.16 billion, decreasing to US $79.26 billion by 2024, marking a 6.94 percent decline over the decade.

The trend was consistently positive until 2019, but with the onset of COVID, a significant 23.47 percent drop was observed in 2020 ($83.70 billion was in 2019 and $64.06 billion was in 2020).

Despite the USA showing signs of recovery post-COVID, the economic downturn was substantial, failing to meet the import of 2015 even in 2024.

During US recessions, consumer spending reductions notably impact clothing expenditures, reflecting broader economic shifts impacting the apparel market.

With the USA retail sector heavily reliant on imports (comprising 95 percent of the industry), challenges such as high tariffs (averaging 18.5 percent pre-Trump era), escalating freight costs, and short apparel market lifespans have hindered integration into supply chains.​

 

[Saif]

Reforms, diversification could supercharge RMG exports

Bangladesh's readymade garment (RMG) sector could be on the cusp of a transformative leap, with the potential to earn up to US$94 billion in annual export earnings by 2029, if the country expands into non-traditional markets and embraces manmade fibre (MMF) production. This ambitious amount is exp

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Reforms, diversification could supercharge RMG exports

FE REPORT
Published :
Jul 02, 2025 00:21
Updated :
Jul 02, 2025 00:21

Bangladesh's readymade garment (RMG) sector could be on the cusp of a transformative leap, with the potential to earn up to US$94 billion in annual export earnings by 2029, if the country expands into non-traditional markets and embraces manmade fibre (MMF) production.

This ambitious amount is expected to be achieved at an average annual growth rate of 15 per cent, which would require coordinated reforms across trade, industry, and finance, according to a new diagnostic report jointly released by the World Bank, IFC, and MIGA.

Beyond export earnings, the report outlines how strategic reforms and sectoral investments could create over 664,000 new formal jobs in the domestic paint and textile dye industry, and formalise hundreds of thousands more through the digitalisation of financial services.

Additionally, unlocking housing sector potential could draw US$2.0 billion in private investment into construction and allied industries, providing another major boost to employment and economic resilience, according to findings presented at a high-profile event on Tuesday.

The adoption of reforms in digital financial services (DFS) could create up to 460,000 new jobs, including the formalisation of around 360,000 informal positions, the report said.

The analysis was shared at a dissemination event for the 'Country Private Sector Diagnostic (CPSD) for Bangladesh' report, jointly conducted by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

The event was held at a hotel in Dhaka, with stakeholders from the government and private sector in attendance.

Suhail Kassim, Senior Operations Officer at the World Bank, delivered the sectoral insights virtually.

IFC Country Manager Martin Holtmann, World Bank's new Country Director for Bangladesh and Bhutan Jean Pesme, senior private sector specialist Hosna Ferdous Sumi, and IFC operations officer Miah Rahmat Ali and operations analyst Noor Ahmed Naveed, among others, spoke at the event.

The CPSD identified four key sectors with high growth potential where targeted private investment could stimulate significant economic development are greening the RMG sector, housing for middle-income groups, domestic production of paint and textile dyes, and expansion of digital financial services (DFS).

The report also included an overview of the country's business climate, foreign direct investment (FDI) trends, cross-cutting challenges, and institutional bottlenecks that continue to hinder private sector development.

Electricity shortages topped the list of business obstacles, followed by limited access to finance, corruption, informality, and high tax rates.

Syed Nasim Manzur, President of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), said the most pressing concerns for investors today are policy inconsistency, regulatory overreach, and systemic corruption.

Speaking on the challenges facing the RMG sector, Mr Kassim noted high import duties on non-cotton raw materials such as MMF, a lack of regulation on fabric waste and groundwater use, and low levels of investment in modern technologies.

These, he said, are key constraints to achieving greener and more sustainable production.

He also stressed the need for labour law reforms to ensure continued access to the EU market following Bangladesh's graduation from Least Developed Country (LDC) status, in line with upcoming European green product standards such as the Ecodesign for Sustainable Products Regulation.

To remove market distortions, the report recommended ending the cash incentives for exports of PET (polyethylene terephthalate) bottles and flakes, aligning duties on solar inverters and panels to create a level playing field, and introducing water efficiency certification for RMG firms.

In the paint and dye sector, the CPSD highlighted inconsistent customs classifications on imported inputs and the high cost of inventory holding as major barriers to domestic production.

It recommended digitising customs procedures, revising bonded warehouse policies to permit third-party operations, and improving logistics to reduce trade costs.

For the housing sector, high urban development costs and cumbersome land registration and clearance processes were seen as key hurdles.

The report called for improving access to municipal services, digitalising land records, and expanding access to housing finance to attract long-term investment in affordable housing for the middle class.

In digital financial services, the CPSD suggested policy actions to promote wholesale transactions via mobile financial services and encourage the use of structured finance by removing taxes on assets moved between originators and financing vehicles.

These steps could deepen financial inclusion and make DFS a stronger engine for job creation. The report, while optimistic about Bangladesh's growth potential, underscores the need for regulatory clarity, digital transformation, and an inclusive investment climate to fully unlock the capacity of the private sector.​

 

[Saif]

‘Expansion into non-traditional markets, adoption of MMF to boost annual export by 15pc’

Expansion into non-traditional markets and the adoption of MMF (manmade fibre) could lead to an average annual export growth of 15 per cent, potentially increasing the country’s readymade garment foreign currency earnings to US$94 billion by 2029. Besides, expansion in domestic pain and dye

thefinancialexpress.com.bd

‘Expansion into non-traditional markets, adoption of MMF to boost annual export by 15pc’
Says report prepared by World Bank, IFC, MIGA about Bangladesh

FE ONLINE REPORT
Published :
Jul 01, 2025 19:27
Updated :
Jul 01, 2025 19:30

Expansion into non-traditional markets and the adoption of MMF (manmade fibre) could lead to an average annual export growth of 15 per cent, potentially increasing the country’s readymade garment foreign currency earnings to US$94 billion by 2029.

Besides, expansion in domestic pain and dye production could lead to the creation of over 0.664 million formal jobs within the sector, while up to 0.46 million new jobs with formalising up to 0.36 million informal jobs could be possible if required reforms are made for digital financial services.

Reforms in regulatory, supply-side and demand-side constraints that are hampering private investments in housing could create investment potential of about US$2.0 billion in construction and allied industries.

The statistics were disclosed on Tuesday at a dissemination event on the ‘Bangladesh: Country Private Sector Diagnostic (CPSD) for Bangladesh’ report jointly by the World Bank, IFC and MIGA held in a city hotel.

Suhail Kassim, senior operations officer at the World Bank, shared the sectoral overview at the event virtually while

IFC country manager Martin Holtmann, World Bank’s new country division director for Bangladesh and Bhutan Jean Pesme and senior private sector specialist Hosna Ferdous Sumi and IFC operations officer Miah Rahmat Ali and operations analyst Noor Ahmed Naveed, among others, spoke there.

The CPSD contains a thorough analysis by the WBG, which pinpointed four specific sectors-- greening the Ready-Made Garments (RMG) sector, housing for the middle-income segment, paints and textile dyes and digital financial services that have high growth potential and where private investment can stimulate economic growth and development.

It also included an overview of the country context, including a discussion on Foreign Direct Investment (FDI) trends, business environment, cross-cutting constraints to private investment, and the strength of institutional underpinnings for private sector development.​

 

[Saif]

RMG, textile leaders urge gas policy reforms to boost output

Leaders from Bangladesh's leading ready-made garment (RMG) and textile industry associations have urged the government to exempt industrial and captive gas-run facilities from seeking re-approval from Titas Gas Transmission and Distribution Company Ltd during internal rearrangements-provided their

thefinancialexpress.com.bd

RMG, textile leaders urge gas policy reforms to boost output

FE REPORT
Published :
Jul 03, 2025 09:05
Updated :
Jul 03, 2025 09:05

Leaders from Bangladesh's leading ready-made garment (RMG) and textile industry associations have urged the government to exempt industrial and captive gas-run facilities from seeking re-approval from Titas Gas Transmission and Distribution Company Ltd during internal rearrangements-provided their hourly load, monthly load, and outlet pressure remain unchanged.

"Removing the requirement for prior approvals will help the industry adopt more energy-efficient and high-performance machinery. We believe this will significantly boost energy efficiency, enhance production, and contribute to valuable foreign exchange earnings," they added.

The leaders recently made this appeal in a joint letter to Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources.

The industry leaders warned that procedural delays and restrictions in the current gas connection approval process are hurting production and costing the country valuable export earnings.

The appeal-endorsed by Hossain Mehmood, President, Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA), Fazlee Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers & Exporters Association (BGMEA), Anwar-ul-Alam Chowdhury (Parvez), President, Bangladesh Chamber of Industries (BCI), Taskeen Ahmed, President, Dhaka Chamber of Commerce & Industry (DCCI), Mahmud Hasan Khan, President, Bangladesh Garments Manufacturers & Exporters Association (BGMEA) and Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA)-highlights that RMG and textile mills are unable to operate at full capacity due to inadequate gas supply, resulting in up to 40 per cent lower production.

They stated that most factories are established with BIDA's approval and built with significant investment in infrastructure, imported machinery, and utilities, often backed by bank financing. But despite this, companies are unable to fully utilise their installations and meet export targets.

Industry leaders argued that frequent restructuring or machinery replacements are required to improve efficiency or respond to changing buyer demands. However, the current requirement to seek prior approval from gas distribution companies for any rearrangement-even within factory premises-causes unnecessary delays.

They proposed that gas distributors should not interfere in the internal setup of customer premises beyond the RMS (Regulating and Metering Station) room, provided that the approved load and pressure remain unchanged. Additionally, they requested the withdrawal of a previous directive requiring clearance from electricity distribution companies (e.g., Palli Bidyut) for new captive power connections above 10 MW, citing the national grid's unreliable supply.

Other key demands include allowing unused gas load from one industrial unit to be transferred to another under the same ownership and premises without reclassifying it as a new connection.

They also called for permitting load transfers across different premises owned by the same company and introducing a digital application system for gas connections and meter installations, with a fixed processing timeframe of 3-5 working days.

"Authorising regional gas offices to approve load rearrangements would avoid higher-level delays. Establishing an approved list of gas meter brands and models would also simplify procurement and reduce installation times," the letter read.

They further sought automatic approval of low-pressure regulators in areas with chronic pressure shortfalls.

The industry leaders argued that these reforms would enhance energy efficiency, enable the adoption of modern machinery, and allow uninterrupted production-contributing significantly to export growth and foreign exchange earnings.

The letter was also copied to the Adviser to the Ministry of Commerce for information and necessary action.​

 

[Saif]

COTTON IMPORTS: Textile millers for removal of 2pc AIT

Textile millers of the country have urged the government to withdraw a 2 per cent advance income tax imposed on imported cotton recently.

www.newagebd.net

COTTON IMPORTS: Textile millers for removal of 2pc AIT
Staff Correspondent 04 July, 2025, 22:57

A file photo shows a worker overseeing a cotton processing machine at a factory in Habiganj. | New Age photo New Age merchandise

Textile millers of the country have urged the government to withdraw a 2 per cent advance income tax imposed on imported cotton recently.

They also requested the government to exempt specific tax of Tk 5 imposed on per kilogram of domestic production of cotton yarn, manmade fibre and mixed fibre in the budget of the 2025-26financial year, which was Tk 3 per kilogram.

Showkat Aziz Russel, president of the Bangladesh Textile Mills Association, made these requests in separate letters sent to advisers of the finance and commerce ministries, governor of the Bangladesh Bank and chairman of the National Board of Revenue on Thursday.Bangladesh-themed souvenirs

BTMA president Showkat Aziz Russell said that the newly imposed AIT and specific tax on yarn would severely disrupt domestic spinning mills and endanger the sector’s competitiveness.

Recently, the government issued an SRO imposing a 2 per cent AIT on imports of over 150 essentials and capital goods for industries.

The range of items facing 2 per cent AIT included machinery, spares and raw materials for various industries, like the ready-made garment and textiles.

The NBR issued a gazette notification last month, where some major items like cotton, wheat, flour, maize, rice, soya beans, sunflower seeds, mustard seeds, linseed, sugar, bulbs, tubers, jet fuels, kerosene, diesel, furnace oil, LPG, natural gas, petroleum bitumen, iron oxides and zinc sulphate faced a 2 per cent AIT.

Referring to the SRO, the BTMA president said that the decision was made without consulting industry stakeholders and was likely to be ‘self-defeating’ for the sector and the wider economy.

‘Although it may appear to aid revenue mobilisation, in reality, it would be suicidal. The imposition of this AIT would significantly increase production costs, placing our textile mills at a disadvantage compared with competitors in other countries and making it impossible for local textile mills to sustain their businesses under the burden of a 2 per cent AIT,’ he added.

He also said that this 2 per cent AIT on every consignment would effectively accumulate to 29 per cent annually, gradually squeezing the working capital of mills and that could deplete entirely within three years.

Meanwhile, to respond this governmental decision, the BTAM called a press conference scheduled on Saturday, that is today.

Showkat said that Bangladesh did not produce cotton and was entirely dependent on imports and the local mills had the capacity to supply 100 per cent of yarn for the knit sector and 55-60 per cent for woven apparel.Bangladesh-themed souvenirs

He also said that this was accomplished despite challenges like gas and electricity price hikes, dollar crisis, local currency devaluation, rising interest rates and declining export incentives.

‘Such policy decisions, made without consultation, put at risk the $75 billion investment in the textile and apparel sector and undermine the target of reaching $100 billion in export earnings by 2030,’ the BTMA said.

The association called on the government to support the domestic textile sector as a key partner in export growth, rather than weakening its competitiveness through abrupt fiscal measures.​

 

[Saif]

Home textile exports stage comeback

The export of home textile products has witnessed a comeback in the financial year 2024-25 after consecutive negative growth of two FYs, mainly thanks to improved purchase order situation.

www.newagebd.net

Home textile exports stage comeback
Saddam Hossain 05 July, 2025, 22:18

The export of home textile products has witnessed a comeback in the financial year 2024-25 after consecutive negative growth of two FYs, mainly thanks to improved purchase order situation.

According to Export Promotion Bureau data, in FY25, the country earned $871.57 million, representing a narrow positive growth of 2.42 per cent from $851.01 million in FY24.

The home textile sector was regarded as a key emerging player in the country’s export basket.

As export earner, the sector touched the milestone of $1 billion for the first time in FY21 after the readymade garment, jute, and leather.

In that year, the sector earned $1.13 billion, and crossed the billion club for the next FYs too, bagging $1.62 billion in FY22 and $1.09 billion in FY23.

However, due to an abnormal hike in gas prices, supply interruptions, and the Ukraine-Russia war, the sector’s earnings began to fall since FY23.

Following two consecutive years of negative growth, the home textile industry experienced positive growth in FY25.

Since November 2024, export earnings from home textiles have bounced back, sustaining this growth throughout FY25. However, the sector again faced negative growth in June 2025, the last month of FY25.

According to the EPB data, in FY25, bed, kitchen, and toilet lines generated $409.71 million, tents earned $226 million, rags and scrap twine earned $97.96 million, and the remaining $138 million came from other segments of the home textiles industry.

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

Shahjada Rubel, head of business at Momtex, told New Age that exports experienced positive growth, and the factories received a substantial number of purchase orders over the years.New Age merchandise

‘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 ensuring the uninterrupted supply of gas and energy, as well as price reductions, to sustain export growth.

Rashed Mosharraf, executive director (sales, marketing, and operations) of Zaber and Zubair Fashion Ltd, one of the country›s most prominent players in the home textile sector, told New Age that a significant number of irregular orders were cleared last year, which impacted the exports.

‘The sector did well despite the political transition, severe fuel and energy shortage, and country’s overall discipline situation,’ he added.

Meanwhile, he stated that the newly imposed 2 per cent advance income tax on cotton imports would severely impact the sector.

‘If the government could provide sufficient policy supports, uninterrupted gas and electricity supply, the sector could again able to earn $1 billion, otherwise we may lose our competitiveness to Pakistan,’ he added.

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, cushion covers, and quilt covers.​

 

[Saif]

Lotus silk: the fabric of the future

Imagine if the next global fashion sensation did not emerge from Paris or Milan but quietly bloomed in a lotus pond in the wetlands of Bangladesh.

www.thedailystar.net

Lotus silk: the fabric of the future
Bangladesh’s wetland wonder weaves a new path for sustainable fashion

Imagine if the next global fashion sensation did not emerge from Paris or Milan but quietly bloomed in a lotus pond in the wetlands of Bangladesh.

It may sound unlikely, but Bangladesh has achieved something extraordinary -- it has produced a new kind of textile called lotus silk. Soft, glossy, and eco-friendly, the fabric is made from the stems of pink lotus flowers that grow in water.

In an era of climate urgency and demand for sustainable alternatives, Bangladesh's innovation -- a rare, biodegradable, and luxurious textile crafted from the pink lotus (Nelumbo nucifera) -- could mark a turning point.

To showcase its potential, a special six-yard-long scarf has already been produced from this lotus yarn. The scarf is currently kept at the office of the Bangladesh National Commission for Unesco in the capital, standing as a symbol of what Bangladesh's wetlands and homegrown ingenuity can offer the world.

To demonstrate its potential, a six-yard scarf has already been made from lotus yarn.

Researchers and experts said for the first time, this special fabric is being made in the country and it could help Bangladesh emerge as a leader in smart and green fashion.

The breakthrough came through a research project titled "Study of Diversity and Conservation of Lotus from Bangladesh," initiated in 2021 by Bengal Plants Research and Development (BPRD), with funding from the Bangladesh National Commission for Unesco.

"This is not just a scientific innovation; it is a cultural renaissance in Bangladesh," said Sikdar Abul Kashem Shamsuddin, chairman of BPRD and lead researcher of the project. "For generations, the lotus has been part of our heritage. Now it is also a part of our sustainable future."


Rakhal Hari Sarker, a supernumerary professor at the Department of Botany at Dhaka University, is the consultant for the project titled "Diversity, Uses, and Conservation of Lotus."

In Faridpur’s Ronkail village, women are being trained to extract lotus threads. PHOTO: COURTESY

He said the lotus petiole has an incredible natural fine filament that can be transformed into high-value fibre with minimal intervention. "It's organic, it's durable and, above all, it's ours," he said.

Researchers said the lotus flower has always been seen as a symbol of purity, but now it is offering something more -- a clean, green solution to one of the world's one of the most polluting industries: textiles.

Lotus fibre cloth may seem like a new idea to many, but people in countries like Thailand, Cambodia, Myanmar, and Vietnam have long made this soft and strong cloth. Buddhist monks in Cambodia and Myanmar wore lotus fibre clothes as a symbol of peace and purity.

The first lotus cloth was reportedly made in Myanmar by Daw Sa Oo. She picked a lotus flower from Inle Lake and noticed threads coming out of its stem, which gave her the idea to weave them into cloth. She later gifted the first lotus robe to a monk.

Inside the stem are sticky threads that, once exposed to air, turn into fine filaments.

Now, lotus fabric has become a growing business that helps rural women earn money while protecting nature.

The transformation from flower to fabric is a careful and eco-friendly process. Lotus petioles (stems) are harvested from wetlands across Bangladesh without uprooting the plant, allowing it to regenerate quickly. Inside the stem are natural sticky threads that, when exposed to air, turn into fine filaments. These are gently hand-rolled, dried, and spun into thread using traditional spinning wheels, often made from bicycle parts.

No chemicals, no fossil fuels, and no pollutants are involved in the process. Even the leftover plant matter is reused as compost or cattle feed. Each metre of lotus silk requires thread from 40,000 stems. A full garment may need up to 120,000 stems. Extracting enough lotus silk for one scarf can take up to two months, and the final product can cost ten times as much as regular silk.

In the village of Ronkail in Faridpur, rural women are now being trained to extract lotus threads, providing income and dignity. "Women who never thought they would be part of a global luxury industry are now expert artisans," said Shamsuddin.

Lotus stems are harvested from wetlands without uprooting the plant.

The process of making lotus silk requires meticulous handwork and craftsmanship rooted in Bangladesh's rich textile heritage. As demand grows, it could create sustainable jobs in wetland areas while preserving biodiversity by protecting lotus-filled wetlands from farming or industrial use.

Uttam Rajbangshi, a supervisor from Ronkail village, said that from July to December, lotus grows in wetlands, and during this time, 16 people, mostly women, make yarn from the stems while four others collect the lotus. The yarn is then sent to the Bangladesh Handloom Board, where it is processed to make cloth and other useful products.

Bangladesh's wetlands, like beels, haors, and rivers, are rich in plant and animal life, but they are under threat due to rapid urban growth. "Bangladesh's beels, haors, and rivers are not just water bodies -- they're biodiversity hubs," said Prof Sarker. "Lotus cultivation can actually help preserve these ecosystems while creating jobs."

The process of turning lotus stems into cloth is eco-friendly. It uses no water, fuel, or harmful chemicals, making it a zero-emission and chemical-free method, said researchers. Even the extra plant parts do not go to waste -- they can be used as natural fertiliser or food for cows, making it part of a circular economy where nothing is wasted.

"Each time we harvest, the plant regenerates stronger," said Prof Sarker. "This is a model of how industry and ecology can work in harmony."

Lotus silk is quickly becoming one of the most sought-after eco-friendly fabrics in the world. Fashion houses in Italy, like Loro Piana, have already introduced jackets made from lotus silk that cost over $5,000. In India, a company called Hero Fashion has created a special white shirt made from lotus fibre, which resists stains and is kind to nature.

In Cambodia, Samatoa Lotus Textiles, a women-led business that won a Unesco award, has turned lotus fibre into a top choice in global fashion. These examples show that Bangladesh could also become a leader in lotus silk if the right steps are taken.

Prof Rakhal Hari Sarker said, "We have the land, the workers, and now the knowledge. If we invest in better research, training, and natural dyeing techniques, we can take lotus silk to the world."

Threads are gently hand-rolled, dried, and spun into thread using spinning wheels.

The price of lotus silk is high, ranging from $2,500 to $4,000 per kilogramme. But with many wetlands full of lotus and skilled hands ready to work, Bangladesh has what it takes to enter the global market. Still, more needs to be done. Bangladesh must build strong systems for research, green production methods, and international promotion to attract fashion brands looking for sustainable materials, said experts.

Researchers said lotus silk is made from a special natural material called cellulose found inside the stems, and the amount depends on the depth of the water. Prof Sarker said research can be carried out to improve the quality and quantity of cellulose in lotus petioles. Techniques of modern plant breeding, such as tissue culture and plant biotechnology, can be applied to increase fibre production.

The entire process used in muslin production has also been applied to lotus fibre. Officials from the Bangladesh Handloom Board and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have underscored its high potential.

Ayub Ali, chief of planning and implementation at the Bangladesh Handloom Board, said, "The yarn obtained from lotus plants is extremely fine and strong -- arguably even better than silk. One of the biggest advantages is that you can extract thread from a lotus plant up to four times a month without harming it."

"You don't even need the flowers; the yarn can be extracted just from the petioles," he added. "This is a completely natural fibre and there is tremendous potential for it in Bangladesh."

Mahmud Hasan Khan, president of the BGMEA, said, "Bangladesh has an abundance of canals and wetlands, so this can be done without major investment. At present, all materials are imported from abroad. If we can source the raw materials locally, that would be fantastic."

He said Bangladesh holds strong potential to advance even further in the global ready-made garment sector.​

 

[Saif]

Spinners demand withdrawal of 2% AIT on cotton import within a week

Textile millers have demanded the withdrawal of the 2 percent advance income tax (AIT) on cotton imports within a week, warning of possible factory closures otherwise..Speaking at a press conference organised by the Bangladesh Textile Mills Association (BTMA) at the Gulshan Club in Dhaka y

www.thedailystar.net

Spinners demand withdrawal of 2% AIT on cotton import within a week

Textile millers have demanded the withdrawal of the 2 percent advance income tax (AIT) on cotton imports within a week, warning of possible factory closures otherwise.

Speaking at a press conference organised by the Bangladesh Textile Mills Association (BTMA) at the Gulshan Club in Dhaka today, they pointed out that the tax was imposed in the budget proposal without consultation with the millers.

"The government should not do business everywhere, as the income of the government will in fact fall if the sector cannot perform well. At the end of the day, the impact of this 2 percent AIT is massive in business," BTMA President Showkat Aziz Russell said on the occasion.

Hossain Mehmood, chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, warned that the 2 percent AIT will increase costs by an additional 7 to 8 percent in the business and push the profit margin further down.

Amal Podder, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), criticised the move, saying the government should have taken such a decision in consultation with industry leaders.

Restrictive policies hinder growth

The call for withdrawal of the AIT comes as the primary textile sector, with an investment value of $23 billion, is facing multifaceted challenges, including increasing reliance on yarn imports from India, low gas pressure, high bank interest rates, declining working capital due to the exchange rate, and the looming US tariffs.

Md Badsha Mia, managing director of Badsha Textiles Ltd, said the government reduced the incentive to only 1.2 percent from 25 percent, hiked the gas price to Tk 32 per unit from Tk 4 per unit, raised the bank interest rate to 15 percent from single digits, and fixed the source tax at 1 percent—for which the sector is now in trouble.

Millers also noted that they suffered huge losses due to a 36 percent devaluation of the taka against the US dollar over the last three years.

Just before the beginning of the Russia-Ukraine war in February 2022, the exchange rate between the taka and the dollar was Tk 85. But the rate gradually reached Tk 122 per US dollar, causing many millers, traders, and importers to lose a massive amount of working capital, and they are now suffering from a capital shortage.

While the Bangladesh government is moving towards more restrictive policies, the Indian government has been giving many incentives to the spinning, weaving, garment, and textile sectors, giving huge advantages to Indian millers in the competition, the millers also pointed out.

For instance, they said Indian millers can sell a kilogram of yarn at Tk 15 less than Bangladeshi millers due to the incentives introduced by the Indian government. This has led to local garment exporters showing interest in purchasing Indian-origin yarn to make garment items.

"When neighbouring countries have been giving a lot of incentives in the name of different developments for the sector, the Bangladesh government is reducing the incentive rate alarmingly, for which many units are about to be closed down," said BTMA Vice-president Md Saleudh Zaman Khan.

He alleged that such restrictive policies will end up destroying the Bangladeshi primary textile sector. "I am tired of talking about all these problems."

BTMA Director Razeeb Haider also echoed a similar sentiment. "Because of faulty policies, a massive amount of yarn comes from India now. The government should immediately reverse the decision to impose 2 percent AIT."

Another BTMA Director, Md Khorshed Alam, said that of the total $23 billion investment in the sector, $18 billion is the banking sector's money.

He called on the government to check the 18 percent pilferage of gas to increase supply to industrial units.

The millers, however, acknowledged that government intervention has recently increased gas supply to the industry.​

 

[Saif]

Textile mills push for withdrawal of AIT on cotton imports

Leaders of the country's primary textile mills demanded immediate withdrawal of recently imposed 2.0 per cent advanced income tax (AIT) on cotton imports to avert factory closures. They also urged the interim government to maintain the 15 per cent corporate tax until 2028 and exempt the specific t

thefinancialexpress.com.bd

Textile mills push for withdrawal of AIT on cotton imports

FE REPORT
Published :
Jul 06, 2025 08:28
Updated :
Jul 06, 2025 08:28

Leaders of the country's primary textile mills demanded immediate withdrawal of recently imposed 2.0 per cent advanced income tax (AIT) on cotton imports to avert factory closures.

They also urged the interim government to maintain the 15 per cent corporate tax until 2028 and exempt the specific tax of Tk 5 per kg at the production stage on cotton yarn, synthetic and other types of fibers.

Bangladesh Textile Mills Association (BTMA) leaders placed the demands at an emergency press conference held at Gulshan Club in the city on Saturday.

BTMA President Showkat Aziz Russell, who has both textile and fabric mills, said the additional costs will force him to import yarn from India instead of sourcing from his own mill.

"Textile industry is at risk and no mills can survive under such a policy," he said, urging the government to immediately reconsider and reverse the tax and VAT decisions.

"If not, the consequences will be irreparable," he warned, posing question as to whether the government is taking such policy to protect the interest of neighbouring country.

The new tax, coupled with additional VAT burdens, wage hikes and reduced export incentives, comes at a time when mills are passing through a critical time amid a severe gas and electricity crisis, BTMA vice president Saleudh Zaman said.

"If the government does not reverse this decision by Monday (July 07), it will backfire and cotton would remain stuck at Chattogram port," he warned.

The tax, applicable on the import of raw materials such as cotton and man-made fibres, is technically adjustable, he said, adding that in reality, there is no incident of getting back the money once it enters the government's account.

Factory will be closed down due to liquidity crisis, he said, alleging that such measures have taken to cripple the spinning mills.

Echoing the same concern, BTMA director Abdullah Al Mamun said, "Neighbouring countries are offering their industries incentives while Bangladesh is putting pressure on its industries."

He said about 90 per cent of mill owners are looking to sell their factories in the present scenario.

Hossain Mehmood, chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA), said 90 per cent of their members use local yarn and that the impacts of AIT and the rise in corporate tax would be severe.

He expressed doubts about whether cotton imports could be increased under the new US tariff regimes while the 2.0 percent AIT remains in place.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Amal Podder and Bangladesh Cotton Association adviser Mohammad Ayub also spoke.​

 

[Saif]

BTMA seeks Withdrawal of 2pc advance income tax

Leaders of the Bangladesh Textile Mills Association on Monday at a meeting urged finance adviser Salehuddin Ahmed to withdraw 2 per cent advance income tax for the import of cotton...

www.newagebd.net

BTMA seeks Withdrawal of 2pc advance income tax
Staff Correspondent 08 July, 2025, 00:54

Leaders of the Bangladesh Textile Mills Association on Monday at a meeting urged finance adviser Salehuddin Ahmed to withdraw 2 per cent advance income tax for the import of cotton.

Led by BTMA president Showkat Aziz Russel told the finance adviser that imposition of the tax by the National Board of Revenue in the current financial year of 2025–26 was not equitable.Bangladesh-themed souvenirs

The finance ministry was expected to review the decision in the 24 hours, said the BTMA president, while talking to reporters after the meeting at the secretariat.

The finance adviser did not make any comment about the meeting held on the 7th day of the new FY26.

NBR chairman Abdur Rahman Khan was present at the meeting.

Officials attending the meeting said that the businesses were asked to maintain the new rate as it was not imposed only for the import of cotton.

The NBR has imposed 2 per cent of advance income tax on imports of over 150 essentials and capital goods for industries, including wheat, flour, maize, rice, soya beans, sunflower seeds, mustard seeds, linseed, sugar, bulbs, tubers, jet fuels, kerosene, diesel, furnace oil, LPG, natural gas, petroleum bitumen, iron oxides and zinc sulphate.

During the meeting, the NBR chairman assured the BTMA leaders of meeting other demands linked to value added tax, said the officials.

The day’s meeting was arranged within 48 hours after the BTMA held a special press conference at the Gulshan Club on Saturday to press home their demands, including withdrawal of 2 per cent advance income tax on cotton import.

BTMA leaders also demanded exemption from a specific tax of Tk 5 imposed per kilogram of domestic production of cotton yarn. They also told the authorities to reconsider the corporate tax decisions.

The textile millers have already questioned whether the move was designed to protect the interests of neighbouring countries at the expense of Bangladesh’s textile industry.Bangladesh-themed souvenirs

The BTMA in its annual report for 2024said that investment in the primary textile sector was around $23 billion and the sector contributed around 13 per cent in the country’s Gross Domestic Product.

According to the annual report, around 100 per cent yarn demand for knit readymade garments and 55–60 per cent yarn demand for woven readymade garments are met by the country’s primary textile that employs around 1.6 million workers, 60 per cent of which are women.​

 

[Saif]

Bangladesh retains second largest RMG exporter ranking amid modest growth

The global apparel market expanded to $557.50 billion in 2024, reflecting a 7.08 per cent year-on-year growth from $520.62 billion, according to the latest data released by the World Trade Organization (WTO). This rebound signals a continued recovery in global demand despite ongoing geopolitical te

thefinancialexpress.com.bd

Apparel market grows to $557.50 billion
Bangladesh retains second largest RMG exporter ranking amid modest growth

Jasim Uddin
Published :
Jul 08, 2025 11:31
Updated :
Jul 08, 2025 11:31

The global apparel market expanded to $557.50 billion in 2024, reflecting a 7.08 per cent year-on-year growth from $520.62 billion, according to the latest data released by the World Trade Organization (WTO). This rebound signals a continued recovery in global demand despite ongoing geopolitical tensions, rising production costs, and lingering post-pandemic challenges.

China holds the lead, Bangladesh remains in the second place

China retained its position as the world’s leading apparel exporter, registering $165.24 billion in exports—up slightly by 0.30 per cent. Bangladesh held firmly to the second spot with export earnings of $38.48 billion, though its growth remained modest at 0.21 per cent.

Vietnam strengthened its position as a formidable competitor in the global apparel landscape. It posted the highest growth among the top exporters at 9.34 per cent, reaching $33.94 billion in apparel exports.

Other major exporters show mixed trends

Turkey reported exports worth $17.91 billion, while India stood at $16.36 billion. Cambodia, Pakistan, Indonesia, and the United States recorded apparel exports of $9.89 billion, $9.28 billion, $8.73 billion, and $7.00 billion, respectively.

Export growth across these countries varied significantly, ranging from a sharp 24.19 per cent rise to a contraction of 4.42 per cent, underlining the shifting dynamics of global sourcing, reshoring trends, and trade policy uncertainties.

Market share by the country

China accounted for the largest share of global apparel exports at 29.64 per cent, followed by Bangladesh with a 6.90 per cent share.

However, china has 31.64 per cent and Bangladesh holds 7.38 per cent shares in 2023.

Vietnam increased to 6.09 per cent from 5.96 per cent, while Turkey and India held 3.21 per cent and 2.94 per cent shares respectively.

Among other top exporters countries- Cambodia held 1.77 per cent share, Pakistan (1.66 per cent), Indonesia (1.57 per cent), and the USA (1.26 per cent) rounded out the top contributors.

Bangladesh’s challenges and opportunities

Commenting on the data, Mohiuddin Rubel, Former Director of BGMEA and Managing Director of Bangladesh Apparel Exchange, said, “While Bangladesh remains the second-largest apparel exporter globally, the negligible growth in 2024 signals the need for strategic reforms and diversification. Our competitiveness is being tested not only by Vietnam’s dynamic growth but also by the evolving demands of buyers and heightened sustainability expectations.”

He said that Bangladesh must invest in innovation, technology, upskilling, and climate resilience to retain its competitive edge in a rapidly transforming global supply chain.

Despite global headwinds, the apparel trade is showing resilience. However, rising inflation in key markets, shifting sourcing preferences, and regulatory compliance, particularly in sustainability and due diligence, are likely to shape the next phase of industry transformation, he added.

For Bangladesh, maintaining its foothold in traditional markets while exploring opportunities in non-traditional destinations such as Japan, South Korea, Australia, and the Gulf region will be crucial for sustaining growth in the coming years.​

 

[Saif]

Army reaffirms maintaining law and order at garment sector

Bangladesh Army has underscored its commitment to maintaining proper law and order in industrial areas to ensure the continued production of the garment industry since it's the lifelines of the economy.

en.prothomalo.com

Army reaffirms maintaining law and order at garment sector

UNB Dhaka
Published: 08 Jul 2025, 21: 12

Army reaffirms maintaining law and order at garment sector UNB

Bangladesh Army has underscored its commitment to maintaining proper law and order in industrial areas to ensure the continued production of the garment industry since it's the lifelines of the economy.

GOC of the 9th Infantry Division Major General Md. Moin Khan said this during a view exchange meeting on Tuesday between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Board and the General Officer Commanding (GOC) of the 9th Infantry Division and Area Commander, Savar Area, of the Bangladesh Army.

The discussion at BGMEA Complex in Uttara focused on the security of garment factories, particularly issues related to law and order.

BGMEA President Mahmud Hasan Khan led the BGMEA delegation, while Major General Md Moin Khan of the 9th Infantry Division, led the army's representation.

The GOC further stated that they are considering implementing a new method to solve the jhoot (fabric scraps) problem in the garment sector, suggesting that establishing an auction house for jhut could alleviate this issue for factories.

He expressed hope that entrepreneurs would provide accurate information to assist the army in maintaining stable law and order in the industrial sector.

He also urged BGMEA to encourage entrepreneurs to ensure timely payment of wages and benefits.

Maj Gen Khan reassured business owners that the Bangladesh Army stands with the industry in any unforeseen external incidents that could harm factories.

BGMEA President Hasan praised the Bangladesh Army for its patience and prudence in standing by the people during the critical post-student uprising period, and for their involvement in national reconstruction and economic recovery.

He specifically highlighted the army-led joint forces' cooperation in ensuring industrial security, which enabled the garment industry to survive a catastrophic situation. On behalf of the garment industry, he extended sincere gratitude and thanks to the Bangladesh Army for their continued support.

Among those present at the meeting were BGMEA Senior Vice President Enamul Haq Khan (Bablu), Vice President Md. Rezwan Selim, Vice President (Finance) Mizanur Rahman, Vice President Md. Shihab Uddoja Chowdhury, and several directors.

Also in attendance were the Commander of the 81st Infantry Brigade, Bangladesh Army, Commander of the 9th Artillery Brigade, Md. Abul Kalam Siddique, DIG (Operation & Crime), Industrial Police; Md. Israel Howlader, DIG (Administration & Crime), Industrial Police; and representatives from DGFI and NSI. Various chairmen and managing directors of garment factories also participated in the discussion.

The meeting also discussed the possibility of forming a confederation of various labor federations.

Entrepreneurs at the meeting stated that the industry is being held hostage by "jhoot terrorism" (terrorism related to leftover fabric scraps).

They explained that terrorist groups dominating the jhoot sector are forming juvenile gangs, creating an unstable environment in industrial areas, and harassing both factory owners and workers.

Garment entrepreneurs sought the army's cooperation in resolving these issues.​

 

[Saif]

Swisscontact, BKMEA to drive growth in knitting sector

The Bangladesh Knitwear Manufacturers and Exporters Association and Swisscontact have partnered to foster inclusive and sustainable growth in Bangladesh’s knitwear sector...

www.newagebd.net

Swisscontact, BKMEA to drive growth in knitting sector
Staff Correspondent 10 July, 2025, 23:28

New Age file photo

The Bangladesh Knitwear Manufacturers and Exporters Association and Swisscontact have partnered to foster inclusive and sustainable growth in Bangladesh’s knitwear sector.

In this regard, Akhter Hossain Apurbo, vice-president of BKMEA, and Bidowra Tahmin Khan, team leader, InSPIRE of Swisscontact Bangladesh, signed a memorandum of understanding on Thursday, said a press release.

This agreement cements cooperation across three of Swisscontact’s flagship initiatives, including PROGRESS (Promoting Green Growth in the RMG Sector through Skills), supported by the Embassy of Sweden and the Swiss Agency for Development and Cooperation (SDC), InSPIRE (Initiative to Stimulate Private Investment for Resource Efficiency), funded by the Embassy of Sweden to encourage clean energy solutions and greater energy efficiency in the industry, and BYETS (Building Youth Employability through Skills), funded by the Embassy of the Netherlands which equips young people with technical and soft skills in readymade garments.

These initiatives operate across key manufacturing hubs, including Dhaka, Narayanganj, Gazipur and Chattogram.

The release also said that the areas of these joint collaborations would include upskilling of women and youth, improved environmental and social standards, promotion of renewable energy adoption and coordinated outreach to strengthen factory-level sustainability and resilience.

The MoU marks a pivotal step in reinforcing sustainability standards in the knitwear industry — a sector that remains a key driver of Bangladesh’s economic growth and global export strength.​

 

[Saif]

Bangladesh and other Asian garment industries brace for higher US tariffs

Across Asia, unions and industry groups are raising alarms over the impact of higher tariffs by the United States on garment workers. High tariffs might force companies to shut down or move to neighbouring countries that offer lower tariff rates, resulting in a loss of jobs, they say. “The

thefinancialexpress.com.bd

Bangladesh and other Asian garment industries brace for higher US tariffs

REUTERS
Published :
Jul 11, 2025 21:47
Updated :
Jul 11, 2025 21:47

Workers sew garments inside the sewing section of a garment factory in Ashulia, on the outskirts of Dhaka, Bangladesh, Apr 19, 2025. Photo : REUTERS/Fatima Tuj Johora

Across Asia, unions and industry groups are raising alarms over the impact of higher tariffs by the United States on garment workers.

High tariffs might force companies to shut down or move to neighbouring countries that offer lower tariff rates, resulting in a loss of jobs, they say.

“The potential loss of jobs will cut the income and ability for workers to sustain their daily lives,” said Ath Thorn, vice president of the Coalition of Cambodian Apparel Workers’ Democratic Union, which represents 80,000 workers across 40 factories.

Several countries in Asia have received notice of new tariff rates imposed by the United States to take effect Aug 1, after a 90-day pause on tariffs came to an end.

Manufacturing hubs such as Bangladesh and Cambodia will face high tariffs of 35 percent and 36 percent, respectively, while neighbouring countries are still negotiating with the US government.

US President Donald Trump announced new tariffs through official letters posted on his social media platform, Truth Social, on Jul 8.

The US is the largest garment export destination for Bangladesh. The country’s exports to the US totalled $8.4 billion last year, and of that, garments comprised $7.34 billion.

Also in 2024, Cambodia exported nearly $10 billion worth of goods to the US, which accounted for nearly 40 percent of the nation’s total exports, according to government customs statistics.

More than half of US imports from Cambodia were garments, footwear and travel goods such as luggage and handbags, a sector that makes up nearly half of the country’s export revenue and employs more than 900,000 workers.

Unions and industry groups warn that these workers could be hit hard with job losses if the high tariffs force companies to move to countries under lower tariff rates or shut down altogether.

While Cambodia is looking at a tariff rate reduction from 49 percent in April, anxiety permeates its garment industry, which employs hundreds of thousands of people and is one of the developing nation’s key economic pillars.

Meanwhile, the US and Vietnam have struck a trade agreement that sets 20 percent tariffs on Vietnamese goods.

With a neighbour next door with a significantly lower tariff, many companies may choose to leave Cambodia, said Yang Sophorn, president of the Cambodian Alliance of Trade Unions, which represents thousands of women who support their families as garment workers.

The fear is echoed by experts in Bangladesh, which faces a 35 percent tariff.

Selim Raihan, a professor of economics at the Dhaka University, said if tariff rates on Bangladesh’s competitors like India, Indonesia and Vietnam prove to be lower, Bangladesh would face a serious competitive disadvantage.

Such a disadvantage could make supply chain decision-making more difficult and erode the confidence of buyers and investors, Raihan said.

“As production costs rise and profit margins shrink due to the tariff, many garment factories may be forced to scale back operations or shut down entirely,” Raihan said.

In Bangladesh, the 35 percent tariff announced by the US is more than twice the current 15 percent rate on Bangladeshi goods.

“With more than doubling tariff rates, can you imagine how the cost of the products will rise?” asked Mohiuddun Rubel, a former director of Bangladesh’s garment manufacturers’ association BGMEA and now additional managing director at textile maker Denim Expert Ltd.

The question is what happens to the tariffs for main competitor countries like India and Pakistan, said Rubel.

The US is negotiating a trade deal with India, while reciprocal tariff rates for Pakistan have not been announced yet.

OUTSIZED EFFECT ON WOMEN

Potential layoffs within the garment industry will have an outsized effect on women workers, which Sophorn said would cripple entire families.

“If these women lose their jobs because high tariffs force factories to shut, it will not only impact Cambodia’s economy, but now children may not be able to go to school and ageing parents may not be able to afford medicine,” Sophorn said.

“The situation for women garment workers is already bad, but it will get worse if these tariffs were to come into effect”.

Many of the women she represents have taken bank loans to support their families and work in the garment industry to pay off their debts.

“If they lose their job, it means they will lose everything,” Sophorn said.

Tariffs would directly affect a sizable chunk of the four million workers in Bangladeshi’s garment industry, most of whom are women from low income and rural backgrounds, Raihan said.

Thorn suggested that Cambodia continue negotiations to get the tariffs down or find other ways to export more products, generate more income and create more work.

“If not, we will face problems,” he said.​

 

[Saif]

RMG exports notch 8.84pc growth in FY25

The exports of Bangladeshi Ready Made Garment (RMG) showed a healthy growth of 8.84 per cent in the last fiscal year (FY25), fetching $39.35 billion despite global headwinds. According to the country-wise export data for Bangladesh for the last fiscal year (FY25) released by the Export Promotion B

thefinancialexpress.com.bd

RMG exports notch 8.84pc growth in FY25

Published :
Jul 12, 2025 21:08
Updated :
Jul 12, 2025 21:08

The exports of Bangladeshi Ready Made Garment (RMG) showed a healthy growth of 8.84 per cent in the last fiscal year (FY25), fetching $39.35 billion despite global headwinds.

According to the country-wise export data for Bangladesh for the last fiscal year (FY25) released by the Export Promotion Bureau (EPB), the European Union (EU) was a key market, accounting for 50.10 per cent of Bangladesh’s total RMG exports, valued at $19.71 billion, BSS reports.

Exports to the United States were $7.54 billion (19.18 per cent), while Canada and the UK contributed $1.30 billion (3.31 per cent) and $4.35 billion (11.05 per cent), respectively.

Year-over-year growth in Bangladeshi RMG exports showed increases of 9.10 per cent for the EU, the USA 13.79 per cent, and Canada 12.07 per cent.

The country’s RMG exports to UK saw a modest growth of 3.68 per cent in FY25. In the EU, Germany was the largest market for RMG, with exports at $4.95 billion, followed by Spain $3.40 billion, France $2.16 billion, Netherlands $2.09 billion, Poland $1.70 billion, Italy $1.54 billion and Denmark $1.04 billion.

Even, growth rates were high in several EU countries, such as the Netherlands (21.21 per cent), Sweden (16.41 per cent), Poland (9.77 per cent) and Germany (9.47 per cent).

Bangladesh's RMG exports also saw a 5.61 per cent rise in non-traditional markets, totalling $6.44 billio,n with a 16.36 per cent market share for Bangladesh.

Japan, Australia, and India were the leading markets in this category, with country’s RMG exports to Turkey seeing 25.62 per cent, India 17.39 per cent, and Japan 9.13 per cent growth rate. However, Bangladeshi apparel exports to Russia, Korea, the UAE, and Malaysia have declined.

In the apparel industry, the knitwear sector has shown a remarkable growth of 9.73 per cent, with the woven sector also experiencing an increase of 7.82 per cent.

Since the onset of COVID-19 pandemic, industry insiders said that the global landscape has taken unexpected turns, presenting the country with a cascade of new challenges each day with new issues.

In the realm of traditional markets, Bangladesh’s export performance remains robust, boasting an impressive 84 per cent share of the total apparel exports.

However, the non-traditional market tells a different story, with the current stake standing at a modest 16 per cent.

The International Trade Centre (ITC) reports that the global apparel market reached approximately $500 billion in 2024. Within this, the nontraditional market accounted for about $150 billion.

Bangladesh, holding a 6 per cent share of the nontraditional market, shows significant potential for expansion.

In 2024, Bangladesh contributed 5.50 per cent to Japan's total imports and 11.53 per cent to Australia's total imports, indicating a promising trajectory for growth.​

 

[Saif]

US seeks 40pc value addition requirement, say apparel leaders

The US representatives, during negotiations with the Bangladeshi trade delegation, proposed a 40 per cent local value addition threshold. However, the Bangladeshi delegation is negotiating for a relaxation of this requirement, seeking a lower threshold considering the 'Rules of Origin'. Bangladesh

thefinancialexpress.com.bd

US seeks 40pc value addition requirement, say apparel leaders

FE ONLINE REPORT
Published :
Jul 12, 2025 20:58
Updated :
Jul 12, 2025 20:58

The US representatives, during negotiations with the Bangladeshi trade delegation, proposed a 40 per cent local value addition threshold. However, the Bangladeshi delegation is negotiating for a relaxation of this requirement, seeking a lower threshold considering the 'Rules of Origin'.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan (Babu) said this during a meeting with the Dhaka Reporters’ Unity (DRU) Executive Committee on Saturday afternoon at the BGMEA office in Uttara.

DRU president Abu Saleh Akon and General Secretary Mynul Hasan Sohel also spoke at the discussion.

Talking to Financial Express, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the Bangladesh delegation also urged for duty-free market access for apparel made from US cotton to increase imports of US cotton, aiming to reduce the bilateral trade gap.

The apparel leaders made these statements while referring to their discussion with Commerce Adviser Sk Bashir Uddin on Friday night during a meeting with USTR representatives.

BGMEA President said, "We have tried to meet the chief adviser to discuss the US tariff issue, but that did not happen."

“We had a meeting with four other advisers on the day before yesterday, following that, last night we talked with the commerce adviser over the phone in the middle of his meeting with USTR. He wanted to know if they impose a 40 per cent local value addition, will it be possible to do business?

40per cent threshold is not final yet and some other instruments are also under discussion”, BGMEA president said, adding that the government should engage businessmen in such discussions, which will set their future.

BGMEA chief also alleged that one of the government representatives failed to negotiate effectively, wasting two valuable months, before another representative was included in the negotiation process.

He further questioned how the government could ignore the largest stakeholder if it truly intends to address such an important issue.

"Now the government is giving excuses, citing a Non-Disclosure Agreement (NDA)," he added.

"We also raised this issue in the meeting the day before yesterday. While we are negotiating for a reduction in US tariffs, how can the government impose a 2% AIT on cotton imports — one of the major export items of the USA?"

"If this message reaches the US government, they might say, 'You're asking us to reduce the trade deficit by buying more cotton.' Isn't that a contradictory move?" questioned the BGMEA President.

Referring to the commerce adviser, BKMEA president Mohammad Hatem said the negotiations were very fruitful, but some issues will take further discussion at the ministerial meeting.

If the 40per cent value addition requirement is enforced, Bangladesh's woven exports to the US market will be severely affected; however, the knitwear and denim sector will not be affected, he added.​

 

[Saif]

Apparel exports to US rose 14% in FY25

Bangladesh’s garment exporters registered the highest growth in shipments to the United States (US) in the just-concluded 2024-25 fiscal year, thanks to the shifting of work orders from other countries, mainly China.

www.thedailystar.net

Apparel exports to US rose 14% in FY25

Bangladesh's garment exporters registered the highest growth in shipments to the United States (US) in the just-concluded 2024-25 fiscal year, thanks to the shifting of work orders from other countries, mainly China.

Bangladesh shipped $7.54 billion worth of apparel to the US in the last fiscal year, posting a 14 percent year-on-year growth.

With the spike, the share of exports to the US in overall garment shipments edged up nearly one percentage point to 19.18 percent year-on-year in FY25, according to the Export Promotion Bureau (EPB).

"Many American buyers increased sourcing from Bangladesh in the last fiscal year after shipments from Vietnam got stuck. US trade tensions with China also made some buyers source from us," said Shams Mahmud, managing director of Shasha Denims Ltd, a leading apparel exporter.

In FY25, woven garments accounted for the majority of the shipments to the US, the single biggest market for Bangladesh. Exports of woven items grew 13 percent year-on-year to $4.94 billion in FY25.

But knitwear makers' exports soared 15 percent year-on-year to $2.59 billion during the period.

Overall, Bangladesh sent over $39 billion worth of apparel in FY25, posting nearly a 9 percent growth.

The European Union (EU) bought half of the garments sold by the South Asian country, the world's second-largest apparel exporter after China.

In FY25, garment exports to the EU expanded 9 percent year-on-year to $19.7 billion.

Within the EU market, where Bangladesh's goods get duty-free entry, Germany was the biggest destination, followed by Spain, France, and the Netherlands, according to EPB data.

Apart from the US and EU, the UK, Canada, and Japan were the largest markets for apparel in the last fiscal year.

Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange, an initiative to promote local apparel and textiles, said that since the onset of Covid-19, the global landscape has taken unexpected turns, presenting a cascade of new challenges each day.

"Our performance remains robust in the traditional markets, boasting an impressive 84 percent share of our total apparel exports. However, the non-traditional market tells a different story, with our current stake standing at a modest 16 percent."

Exporters define the EU, US, UK, and Canada as traditional markets, while the rest—including Japan, Australia, and India—as non-traditional ones.

According to the EPB, Bangladesh's RMG exports to non-traditional markets increased 6 percent year-on-year to $6.44 billion in FY25.

Rubel said the US economy recovered faster than the EU. Besides, US purchases from China declined, which benefitted Bangladesh.

"We invested in factories and compliance. Now, a lot depends on the resolution of the tariff issue with the US," he said, referring to the government's negotiation with the Trump administration over its plan to impose a 35 percent tariff on Bangladesh's exports.

Mahmud said the worst-affected countries would focus on the EU markets because of Trump's tariffs.

"So, there will be a knock-on effect, and a price war may unfold in the EU market," he said. "In the US, consumer demand is likely to shrink due to the higher import cost. A price war is also likely in the American market."​

 

[Saif]

Chattogram’s garment factories fear fallout from US tariffs

Owners of Chattogram-based readymade garment factories, many of which do business with buyers in the United States, are worried about a US tariff hike to 35 percent set to take effect on August 1.

www.thedailystar.net

Chattogram’s garment factories fear fallout from US tariffs

Apparel exports from Bangladesh reached $39.34 billion in the just concluded fiscal year of 2024-25, data from Export Promotion Bureau and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) shows. US accounts for over 19 percent of the country’s total apparel exports. Photo: Star/file

Owners of Chattogram-based readymade garment factories, many of which do business with buyers in the United States, are worried about a US tariff hike to 35 percent set to take effect on August 1.

They, however, are still hopeful that the Bangladesh government will be able to negotiate a reduction. Otherwise, the future is bleak, they said.

Though the country's RMG sector commenced its journey from Chattogram in early 80s, the number of factories in the port city has dropped in the past decade, with many either shutting down or shifting to Dhaka or elsewhere.

Currently, over 300 factories remain operational in Chattogram.

Around 200 factories take orders directly from buyers or brands, and the others work under subcontracts, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and export processing zones (EPZs).

It is difficult to find accurate data regarding the export volume of the factories in Chattogram. Market insiders opine it is over 9 percent of the total exports.

Apparel export from Bangladesh reached $39.34 billion in the just-concluded fiscal year of 2024-25, data from the Export Promotion Bureau and BGMEA shows.

This was 81.49 percent of the country's total export earnings worth $48.28 billion in the year.

And Bangladesh's garment exports to the US accounted for over 19 percent of total apparel exports.

Market insiders said most of the factories in Chattogram are engaged in business with US buyers.

Asian Apparels Group has 18 readymade garment factories in Chattogram, and 95 percent of its exports are destined for the US market. In 2024, the group's exports to the US market amounted to $300 million.

Deputy Managing Director Sakeef Ahmed Salam opines that Chattogram-based garment factories are more engaged in business with US buyers compared to those in Dhaka.

He said US buyers have already asked them to bear a good portion of the extra tariff on work orders currently under negotiation.

Moreover, many US buyers are not releasing purchase orders for products informed of earlier, the production of which could have started in July or August, as they opted to wait for the final tariff rate, he said.

In the absence of purchase orders, they are not able to start purchasing the required accessories and raw materials, he said.

BGMEA Director SM Abu Tayyab said most of the garment factories in Chattogram are dependent on the US market, and the trade has been running for long.

Last year, Tayyab's factory, Independent Apparels Ltd, exported around $60 million worth of sportswear and kidswear, and 90 percent of it was destined for the US market.

"Even if the US imposes a 30 percent tariff instead of 35 percent, a good number of these factories would not survive," he said.

If the US tariff can be lowered to that for Vietnam, meaning 20 percent, only then will Bangladeshi factories be able to compete, said Tayyab.

"Otherwise, US buyers would shift their orders to Vietnam and even to India, as the sector in the neighbouring country has been developing over the last 10 years," he said.

He underscored the need for reducing the tariff through bilateral talks this week.

Most of the 60 RMG factories located inside Chattogram Export Processing Zone (CEPZ) are more or less dependent on the US market.

Syed M Tanvir, managing director of leading denim exporter Pacific Jeans Group, which has eight factories in the CEPZ, said the factories would surely face an immediate impact.

Bangladeshi garment products would become 35 percent more expensive compared to current rates, he said.

He, however, prefers to wait a bit longer to assess the overall impact until the tariff figures are fixed for other competitive sources like India, Pakistan, Egypt, and Jordan.

Tanvir stressed the need for strategies for the factories to individually deal with their customers and face the challenges in the coming days.​

 

[Saif]

Reducing the costs of just transition for Bangladesh's RMG workers

Climate change is no longer only an environmental phenomenon. It is now the greatest justice challenge of our time. Its worst impacts are suffered by those least responsible, especially low-paid workers in the Global South. In Bangladesh, the ready-made garment (RMG) sector is home to over 4 millio

thefinancialexpress.com.bd

Reducing the costs of just transition for Bangladesh's RMG workers

Nayma Akther Jahan and Haseeb Md. Irfanullah
Published :
Jul 15, 2025 22:54
Updated :
Jul 15, 2025 22:54

Climate change is no longer only an environmental phenomenon. It is now the greatest justice challenge of our time. Its worst impacts are suffered by those least responsible, especially low-paid workers in the Global South. In Bangladesh, the ready-made garment (RMG) sector is home to over 4 million workers, of whom over half are female. These workers find themselves caught between the double forces of climate change and economic transformation, with rising health risks and job insecurity in the face of a global shift towards a low-carbon economy.

In countries like Bangladesh, where the majority of RMG employees work in informal or semi-formal environments, they are especially vulnerable due to the absence of safety nets like healthcare or unemployment insurance. Decarbonisation is necessary to prevent a global disaster. But if it is not planned fairly, it may have negative economic effects. As a recent study by the Ethical Trading Initiative (ETI) showed migration, mental health crises, and child labour have all grown as a result of poorly managed transitions in various contexts. As a high energy consumer, the RMG sector must be part of the solution. However, despite allocating Tk 43,000 crores for environment and climate programs in FY 2025-26, most funds go to infrastructure and adaptation, not worker resilience or green industrial transformation.

A just transition is not only an economic plan, but also a moral requirement. According to the ILO's Just Transition guidelines, if early and inclusive investments are made, the green transition could provide over 24 million jobs worldwide by 2030. Inaction might have disastrous consequences for the county's RMG sector such as lost money, decreased productivity, and a growing gender poverty gap . The RMG industry is making encouraging strides, as seen by the 229 factories that have obtained worldwide green building certifications. However, social fairness and environmental benefits must coexist. For a just transition Bangladesh needs to implement policies that safeguard workers' rights, earnings, and well-being while guaranteeing a sustainable economic future in order to fulfill its climate obligations.

Against this backdrop, to ensure a worker-friendly and inclusive transition, Bangladesh must take four feasible actions.

1. Enhance climate literacy and workers' rights: Government departments, trade unions, and NGOs must collaborate on factory-focused campaign programmes to create advocacy for climate hazards. Information about heat stress, occupational illness, and their rights under the law must be available to workers in understandable language. The programmes must be integrated with the National Adaptation Plan of Bangladesh (NAP, 2023-2050), which already focuses on community-based resilience. As the RMG sector transforms to green production, employees ought to be provided with new skills. Public-private initiatives, such as the Skills for Employment Investment Programme (SEIP), need to be expanded to fields of energy efficiency, circular production, sustainable materials, and waste reduction.

2. Improve workplace health and safety standards: Extreme heat must be officially classified as an occupational hazard in the labour regulations. Regulation reform must impose a minimum set of protections-ventilation equipment, shaded rest areas, emergency medical care, and cooling shelters. The department of inspection of factories and establishments( DIFE) needs a bigger workforce and more robust digital monitoring equipment, and local clinics must be equipped to treat illnesses and injuries related to climate as also recognised in the ILO Guidelines .

3. Mobilise climate finance for factories: Small and medium-sized enterprises in the RMG sector, all of which operate in an informal structure, have limited resources to invest in green technology. A Green Transition Fund under the Bangladesh Climate Change Trust Fund (BCCTF) must be established that provides soft loans, tax benefits, and technical support. As envisaged in Bangladesh NAP, partnership with the global Green Climate Fund (GCF) and development financial institutions will unlock concessional finance and knowledge sharing.

4. Enact fair purchasing practices by global brands: Global brands demand carbon-neutral supply chains, but aren't willing to pay for the transition. Bangladesh must push for enforceable agreements that force brands to pay for the sustainability cost. Equally, while the 2021 International Accord made fire and building safety everyone's business, a new Climate Accord must make green supply chains mean no job cuts or wage repression.

These recommendations align with the current national priorities, our Nationally Determined Contributions (NDC), the NAP, and the expressed focus of the 2025-26 budget on climate resilience. However, institutional coordination, and worker-focused approaches to climate governance are lacking. There is the need to accommodate all these in an inclusive package.

Nayma Akther Jahan is a Lecturer & Research Associate, and Dr. Haseeb Md. Irfanullah is a Visiting Research Fellow of the Center for Sustainable Development (CSD) at the University of Liberal Arts Bangladesh (ULAB), Dhaka.​

 

[Saif]

Direct buying may boost RMG exports

Direct cotton sourcing from US farmers could boost apparel exports to the country amid rising trade tensions and tariff uncertainties, said a Bangladeshi-born American entrepreneur on Thursday. American cotton farmers wield political influence through their Congressional representatives and senato

thefinancialexpress.com.bd

Direct buying may boost RMG exports

FE REPORT
Published :
Jul 18, 2025 10:48
Updated :
Jul 18, 2025 10:48

Direct cotton sourcing from US farmers could boost apparel exports to the country amid rising trade tensions and tariff uncertainties, said a Bangladeshi-born American entrepreneur on Thursday.

American cotton farmers wield political influence through their Congressional representatives and senators from cotton-growing states, said Aswar Rahman, chief executive officer of AmeriBangla Corporation, a platform connecting US farmers and Bangladeshi mills through fair pricing and a transparent supply chain.

He made the statement at a high-level trade meeting held at The Westin Dhaka.

The cotton sourcing process currently involves nine intermediaries from farmers to millers, he said.

But AmeriBangla aims to enable direct cotton imports from American farmers, bypassing the merchant syndicates that dominate global cotton trade, by connecting farmers, ginners, and millers, he explained.

"It could be a strategic alliance between American cotton farmers and Bangladesh's ready-made garment (RMG) sector, which could potentially reshape the sourcing model and trade dynamics between the two nations," said Mr Rahman.

"Bangladesh's future in the US market may hinge on this direct sourcing model," he also said.

"If our spinners and millers adopt American cotton on a large scale, we can align ourselves with powerful agricultural constituencies in the US who have real influence in Congress," he added.

According to him, what makes this partnership unique is the role of American cotton farmers, a politically-powerful constituency often overlooked in international trade discussions.

"If we can bring American farmers to the negotiation table, it will be a game changer," said Mr Rahman. "No one in Washington wants to antagonise their farmers."

Under the proposed framework, American farmers may advocate in Congress - and even directly to President Donald Trump - for tariff relief for Bangladeshi apparels in exchange for guaranteed demand from the country's RMG sector, he said.

He also mentioned that the strategic partnership includes five core elements - a streamlined ordering system for Bangladeshi mills to buy directly from US farmers, permission to establish a bonded warehouse in Bangladesh for duty-free cotton storage, commitment to sourcing the majority of cotton from American producers, tariff advocacy by US cotton farmers on behalf of Bangladeshi exporters, and joint demand generation campaigns in the US market to promote garments made with American cotton.

Starting with the harvest of August 2025, selected Bangladeshi spinners and composite factories are expected to place their first direct orders, said Mr Rahman.

He confirmed that six Bangladeshi companies are already in the process of finalising agreements.

Mohammad Rashed, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, "If they offer country-specific facilities, it may help promote American cotton as its price is higher compared to others. However, the industry will need at least 18 months to fully prepare for direct buying on a large scale."

AmeriBangla has also sought government approval to set up a bonded warehouse in Bangladesh with the capacity to store up to one million bales of American cotton.

The facility would require land equivalent to 13 cricket fields, as well as ensure year-round supply stability and faster access for local spinners.

To build brand value around garments made from American cotton, AmeriBangla plans to open a dedicated showroom in Manhattan, showcasing products labelled "Made with American Cotton, Sewn in Bangladesh".

Mr Rahman cited a recent study that showed US consumers are willing to pay up to 17 per cent more for clothes made with American cotton.

As early as December 2025, major US retailers are expected to receive regulatory incentives to source only American cotton-made apparels.

"We believe there is over 80 per cent chance that the use of US-grown cotton will be encouraged - if not mandated - by year end," Mr Rahman said.

"Bangladeshi exporters must adapt now to retain their competitiveness in the US market," he added.

Bangladesh currently exports over $10.6 billion worth of goods to the US annually, which is growing at an 8 per cent compound annual growth rate (CAGR).

Meanwhile, US cotton sales to Bangladesh stand at over $2 billion annually.

The new sourcing model is expected to significantly increase this figure while helping Bangladeshi exporters maintain preferential access to their top market.

AmeriBangla also urged the Bangladesh government to revise import and warehouse regulations to allow cotton farmers and networking platforms to establish bonded warehouses - a key enabler for a smooth execution of the direct buying model.

"In this chaos, there is opportunity," Mr Rahman noted.

"Opportunities multiply as they are seized, and this partnership could be the one that secures our industry's future in the US," he added.

Among others, BKMEA Director Minhajul Haque, Ha-Meem Group Director Sajid Azad and CEO Muhammad Amin, Hoorain Fabrics Ltd Chief Marketing Officer Abdul Hakim, True Group Marketing Director Tareq Mamun Chawdhury, Divine Group Head of Business Development Khurshid Alam, Marubeni Group Deputy General Manager Md Arifuzzaman, and AmeriBangla Senior Advisor Brigadier General (retd) Ali Ahmed Khan were present at the event.​