[🇧🇩] Textile & RMG Industry of Bangladesh

[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.​