[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

BGMEA seeks clarity on US raw material usage formula for duty waiver

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday sought clarification on the formula for calculating US raw material usage and mechanisms to ensure transparency and traceability throughout the supply chain to get the recently announced duty waiver on American raw

thefinancialexpress.com.bd

BGMEA seeks clarity on US raw material usage formula for duty waiver

FE Online Report
Published :
Aug 13, 2025 22:22
Updated :
Aug 13, 2025 22:22

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday sought clarification on the formula for calculating US raw material usage and mechanisms to ensure transparency and traceability throughout the supply chain to get the recently announced duty waiver on American raw materials usage.

It also discussed the possibility of establishing a warehouse near Chattogram Port to expedite cotton imports from the United States.

The requests were made when a delegation from the US Embassy in Dhaka met with BGMEA President Mahmud Hasan Khan at his BGMEA Complex office in Dhaka city, according to a statement.

The US Embassy delegation included Labour Attaché Leena Khan, Foreign Commercial Service Attaché Paul G Frost, Foreign Agricultural Service Attaché Erin Covert, and Economic Officer Richard Rasmussen. From BGMEA, Senior Vice President Inamul Haq Khan, Vice President Md Rezwan Selim, Vice President (Finance) Mijanur Rahman, Vice President Vidiya Amrit Khan, and Directors Mohammad Abdur Rahim, Faisal Samad, and Sheikh Hossain Muhammad Mustafiz attended the meeting.

A key topic of the meeting was a recent US executive order that allows garments exported from Bangladesh to be proportionately exempt from a newly imposed additional 20 per cent duty, provided that at least 20 per cent of the raw materials used in these garments are sourced from the United States, the statement added.

Welcoming the initiative, BGMEA President Mahmud Hasan Khan said that the Bangladesh apparel industry is highly interested in utilising this facility.

The meeting also discussed the possibility of setting up the warehouse as a Bangladeshi initiative, a US initiative, or a joint venture, saying that it would help reduce lead time in the garment industry.

In addition to cotton, the BGMEA leaders expressed interest in importing man-made fiberes such as polyester and nylon from the United States (if produced by the US textile sector). They requested more detailed information on this from the US Embassy.

During the meeting, various issues of mutual interest were discussed, with a particular focus on strengthening bilateral trade relations between the United States and Bangladesh, centring around increasing exports of Bangladeshi ready-made garments (RMG) to the US market and enhancing overall economic cooperation.

In response, Foreign Commercial Service Attaché Paul G Frost said they would talk to relevant US government departments and provide further details.

The meeting also discussed potential collaboration between BGMEA and the US Cotton Council.

Paul G Frost mentioned that the embassy would discuss this with the US government's textile department and provide feedback to BGMEA.

Issues regarding the domestic gas and electricity situation were also discussed.

BGMEA leaders expressed hope that Bangladesh would be able to import LNG gas from the United States in the future. The issue of labour rights also received due attention during the meeting.

BGMEA President Mr Khan said that maintaining stable labour conditions in the garment sector is a top priority.

He informed the US delegation that since taking office, his board has engaged in dialogue with 81 workers' federations to establish harmonious industrial relations.

He also briefed the delegation on the progress of legal reforms aimed at ensuring labour rights and welfare.

The US delegation emphasised that aligning Bangladesh's labour laws with international standards is an international expectation, supported by the ILO, the European Union, and others.

BGMEA leaders stressed the importance of maintaining close communication with the US Embassy on labour-related matters to ensure clarity and avoid any misunderstandings.

The US side encouraged BGMEA to participate in SelectUSA, a major US investment promotion event scheduled to take place in May 2026, as an avenue to expand exports and build networks with American buyers.

Both parties expressed optimism about strengthening future economic partnerships and mutual cooperation between the two countries.​

 

[Saif]

Prospect bright for Bangladeshi MMF-based RMG exports to US, say exporters

Bangladeshi manmade fibre (MMF)-based garment exports to the US, which remained almost static during the last two years, will get a boost amid the duty tension among the major producing countries, provided local challenges are addressed, industry insiders said. They said now is the right time to i

thefinancialexpress.com.bd

Prospect bright for Bangladeshi MMF-based RMG exports to US, say exporters

Monira Munni
Published :
Aug 14, 2025 10:00
Updated :
Aug 14, 2025 10:00

Bangladeshi manmade fibre (MMF)-based garment exports to the US, which remained almost static during the last two years, will get a boost amid the duty tension among the major producing countries, provided local challenges are addressed, industry insiders said.

They said now is the right time to invest in the backward linkage textile sector, especially MMF-based garment manufacturing.

Bangladesh is currently in an advantageous position with a 20 per cent additional duty for exporting to the US and can grab a larger share of work orders shifting from China and India, they also said.

They further added Vietnam is not increasing its garment production capacity, while Bangladesh has the capacity and can further enhance it if the required policy support is provided.

According to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported MMF-based garments worth $1.54 billion to the US in 2024, which was almost the same - $1.55 billion - in 2023.

Such exports were only $764.92 million in 2020.

Abdullah Hil Nakib, deputy managing director of Team Group, told The Financial Express MMF-based apparels account for $1.2-1.3 billion of the $7.50 billion Bangladeshi garments exported to the US on average.

Most of the required raw materials to make such clothes are imported mainly from China, he said.

Due to the trade and duty war between the US and China, orders from the latter will shift to other destinations, he said.

"Now we have a scope to choose and go for high-value-added items made with MMF."

He said his company's exports of MMF apparel items like jackets and outerwear have been increasing for the last couple of years.

Nakib, however, said MMF garments are mostly exported to the European Union (EU).

The EU imposes one regulation after another, including ESG and other due diligence requirements, and this encourages local exporters to diversify their destinations, he said.

Though sourcing raw materials from China may have some disadvantages for exporting products to the US, he said it is high time Bangladesh prepared itself by handling the least developed country (LDC) graduation challenges.

The US cut the additional duty on Bangladesh's exports to 20 per cent from 35 per cent, which is now equal to, or on a more equal footing with, the major competitors.

The rate is lower than China's 30 per cent and India's 25 per cent.

Bangladeshi garment exports to the US will face tariffs of 36.5 per cent and 52 per cent for cotton-based and MMF-based items, respectively.

The rates include 20 per cent reciprocal tariff on top of the existing 16.5 per cent and 32 per cent tariffs, respectively.

Shovon Islam, managing director of Sparrow Group, said Bangladesh could gain a competitive edge in MMF garment manufacturing if raw materials are sourced locally.

Sayeed Ahmed Chowdhury, director at Square Denim, said they mostly blend MMF with other materials, such as cotton, due to the absence of local raw materials despite huge demand.

He, however, said a good number of entrepreneurs are investing in the MMF segment to grab a share of the growing global demand.

Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell said following the successful reciprocal tariff negotiations with the US, Bangladesh is now in a stronger position.

As a result, local exporters are receiving more queries from buyers, he said.

"There is optimism about future business, and we want to invest further. Now is the high time to invest in the textile sector," he added.

BTMA former president A Matin Chowdhury, however, stressed diversification in the textile sector to manufacture blended, as well as MMF- and non-cotton-based, yarns and fabrics to sustain business in the long run and face the emerging challenges.

According to industry insiders, Bangladesh's synthetic yarn industry is small and cannot meet the domestic demand for MMF yarns.

That is why the country imports most of the manmade yarns and fibres used in apparel exports, they said.

Till 2023, Bangladesh had 19 synthetic spinning mills, including eight acrylic ones, they added.

The synthetic yarn industry commonly imports pellets for mixing and blends synthetic fibres with natural ones to create blended yarns.

Insiders expect that the demand for such yarns will increase in the future.

To meet this demand, they are working on increasing the domestic supply of MMF yarns and seeking the required policy support from the government.

With respect to fibre types, cotton garments account for the majority of US imports by value and share, although the product mix between cotton and synthetic garments changed gradually between 2013 and 2023, according to a United States International Trade Commission report.

In 2013, MMF garments made up 17.0 per cent of the US apparel imports from Bangladesh. By 2023, the share grew to 25.3 per cent, the report said.​

 

[Saif]

https://thefinancialexpress.com.bd/trade/11th-yarn-fabrics-accessories-show-kicks-off-in-dhaka

11th Yarn, Fabrics & Accessories Show kicks off in Dhaka

FE Online Desk
Published :
Aug 14, 2025 18:17
Updated :
Aug 14, 2025 18:17

The 11th Bangladesh Yarn, Fabrics & Accessories Show 2025 has begun today (Thursday) at the International Convention City Bashundhara (ICCB).

The four-day international trade show is bringing the country’s RMG sector an opportunity to source their requirements of yarn, fabric and garment accessories from international suppliers showcasing at the show, according to a media release.

The 11th edition of this show, organised by ASK Trade & Exhibitions Pvt. Ltd, features participation from over 100 overseas companies showcasing their latest collections of yarn, fabrics and accessories to the RMG sector of Bangladesh.

The event is targeted at garment manufacturers and exporters, buying houses and fabric importers, enabling them to source from overseas suppliers right at their doorsteps, the release says.

The inauguration ceremony was graced by Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), as the chief guest.

Also present at the event were Md. Shahriar, President of the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA); Kazi Mizanur Rahman, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA); and Tipu Sultan Bhuiyan, Managing Director of ASK Trade & Exhibitions.

At the event, Mohammad Hatem emphasised arranging such exhibitions more frequently to showcase the capabilities of Bangladesh’s textile sector to global buyers.

He also remarked, “With stalls of various international companies under one roof, such fairs allow buyers to select products directly from suppliers without any 3rd party. As a result, high-quality products can be purchased at comparatively lower costs.”

Tipu Sultan Bhuiyan, Managing Director of ASK Trade & Exhibitions Pvt. Ltd said, “Fabric sourcing being a dynamic activity, access to new innovation and new suppliers is always vital to the exporters, and the 11th edition of the International Yarn, Fabrics & Accessories Sourcing Show is aimed at achieving this objective.”

A wide range of yarns, coloured spun yarn, blended yarns for the manufacture of woven and knitted garments, the latest collections in knitted and woven fashion fabrics, plush fabric, TR suit fabric, wool suit fabric, fashion printed fabric, knitted sports functional fabric, home fabric, toy fabric, and post-process hot stamping, embroidery, composite, film, flocking and garment accessories are on display at the show, the release adds.

The show is open to all business visitors between 11 am to 7 pm.​

 

[Saif]

Bangladesh emerges as top T-shirt exporter to the US market

Bangladesh has emerged this year as the top exporter of T-shirts to the US market, overtaking Nicaragua, Honduras and China to claim the top position

en.prothomalo.com

First 6 months of the year
Bangladesh emerges as top T-shirt exporter to the US market
Published: 14 Aug 2025, 14: 47

Despite the pressure of reciprocal ¬tariffs, Bangladesh has emerged this year as the top exporter of T-shirts to the US market. For the first time, Bangladesh has overtaken leading T-shirt exporters such as Nicaragua, Honduras and China to claim the top position.

According to the United States International Trade Commission, in the first six months of the current year, the US imported T-shirts worth a total of USD 3.52 billion from 117 countries. Of this, T-shirts worth USD 373.2 million came from Bangladesh. In the same period, Nicaragua, last year’s top exporter, shipped T-shirts worth USD 361.2 million.

Bangladesh had never before been the leading exporter of T-shirts to the US market. For 36 years (1989–2024), the market had been dominated by T-shirts from Honduras, Nicaragua, Hong Kong, Jamaica, Mexico and China. Except for China and Hong Kong, most of these top-ranking countries had enjoyed tariff benefits due to trade agreements with the US. But this changed at the start of the year.

On 2 April, the Trump administration imposed an additional minimum 10 per cent tariff on imports from all countries. This meant that Nicaragua and Honduras, despite their previous tariff advantages, also had to pay at least the minimum tariff on T-shirts. Managing to tackle this first wave of tariff pressure, Bangladesh's T-shirts have risen to first place in the US market.

Meanwhile, from 7 August, Trump’s reciprocal tariffs at varying rates for different countries came into effect. The impact of these tariffs is not yet known. However, exporters believe that even after the implementation of the reciprocal tariffs, Bangladesh remains in a favorable position compared to its competitors. They point out that the retaliatory tariff on Bangladeshi products is 20 per cent, the same as Vietnam’s.

In contrast, India’s tariff rate is 50 per cent and China’s is 30 per cent, making Bangladesh’s rate lower than both. Nicaragua, a competitor in the T-shirt market, now has to pay an 18 per cent retaliatory tariff as well. This means that, having lost its duty-free advantage, Nicaragua must now compete to export to the US.

Asked whether Bangladesh would be able to hold on to the top spot in T-shirt exports, Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Prothom Alo: “It is good news for us that in the first six months of the year, Bangladesh has risen to the top in T-shirt exports to the US market. However, after the reciprocal tariffs came into force on 7 August, there is a risk that this position could change. While Bangladesh’s standing is relatively good compared to competing countries, if consumer demand in the US falls, our exports could be negatively affected.”

The US is Bangladesh’s single largest export market. According to the National Board of Revenue (NBR), the country exported goods worth USD 8.76 billion to the US in the 2024–25 fiscal. Bangladesh ships a wide variety of apparel items to this market, including T-shirts.

Beyond the US, Bangladesh also leads its competitors in T-shirt exports to many countries, including Germany, Spain, France, the United Kingdom, Poland, Italy, Denmark, Canada — and even neighboring India.

Competitive pricing
There are two types of T-shirts depending on the fabric: cotton T-shirts and those made from synthetic fibre. Typically, synthetic fibre T-shirts are more expensive. Prices also vary depending on quality. Even so, data from the United States International Trade Commission offers an idea of the average export price per T-shirt by country.

According to this data, in the first six months of the current year, each T-shirt exported from Bangladesh fetched an average of USD 1.76. In the same period, Nicaragua, last year’s leader, exported each T-shirt at USD 1.65. This means Bangladesh has taken the lead by exporting T-shirts at a higher average price than Nicaragua. From Honduras, the average was USD 2.10 per T-shirt; from Vietnam, USD 2.68; from India, USD 1.81; from China, USD 1.63; and from Pakistan, USD 1.50.

Based on these average prices, Bangladesh’s per-piece export price is higher than that of China, Nicaragua, and Pakistan, but lower than those of competitors such as Vietnam, Honduras, and India.

Global exports and Bangladesh’s position
According to the United States International Trade Commission, last year the global T-shirt export market was worth USD 56.82 billion, covering shipments from one country to another. Bangladesh ranks just after China in global T-shirt exports. Among all categories of apparel Bangladesh exported worldwide last year, T-shirts topped the list.

According to the National Board of Revenue (NBR), in the last fiscal year Bangladesh exported T-shirts worth USD 7.45 billion to 158 countries. After Germany and Spain, the United States was the third-largest export destination.

Beyond the US, Bangladesh also leads its competitors in T-shirt exports to many countries, including Germany, Spain, France, the United Kingdom, Poland, Italy, Denmark, Canada — and even neighboring India. Now, based on figures from the past six months, the US has joined this list.

Top T-shirt export destinations
Germany is the largest single destination for Bangladesh’s T-shirts. In the 2024–25 fiscal, Bangladesh exported T-shirts worth USD 1.05 billion there. Spain ranked second, importing T-shirts worth USD 890 million, while the United States ranked third with imports worth USD 850 million. In the last fiscal year, Bangladeshi exporters shipped T-shirts to 158 countries, with the US accounting for about 11 percent of total exports.

According to NBR data, 811 factories and companies exported T-shirts to the US in the last fiscal year. The largest exporter was GAB Limited of Savar, which shipped USD 155 million worth of T-shirts to the US. In second place was another Savar-based company, SDS International, with exports worth USD 71.8 million. Ayesha Clothing Co. ranked third, exporting USD 46.7 million worth of T-shirts.

Other companies in the top ten were: Knit Asia Ltd. of Savar (USD 37.5 million), Divine Intimates of Chattogram (USD 16.2 million), Ratul Apparels of Gazipur (USD 13.4 million), Taqwa Fabrics (USD 12.5 million) and JM Fabrics (USD 10.1 million), Impress-Newtex Composite Textiles of Tangail (USD 9.4 million), and York Fashion of Chandpur (USD 9.1 million).​