[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Import of RMG raw materials rises by 9.9pc

The country’s imports of raw materials for the readymade garment sector witnessed a growth of 9.9 per cent in the financial year 2024-25, according to Bangladesh Bank data...

www.newagebd.net

Import of RMG raw materials rises by 9.9pc
Staff Correspondent 17 August, 2025, 23:47

File photo shows workers are at duty at a garment factory in the city. | New Age photo

The country’s imports of raw materials for the readymade garment sector witnessed a growth of 9.9 per cent in the financial year 2024-25, according to Bangladesh Bank data.

According to the data, the country imported raw materials for the RMG sector, including raw cotton, yarn, staple, and other accessories, worth $18.44 billion. The amount was $16.78 billion in FY24.

The central bank published the commodity-wise annual import data through the customs records.

In FY25, Bangladesh earned $39.35 billion by exporting RMG products, the highest export-earning sector. This was an 8.84 per cent increase from $36.15 billion in FY24.Bangladesh travel packages

The RMG sector accounted for more than 80 per cent of the country’s $48.28 billion worth of export earnings in FY25, said Export Promotion Bureau data.

The net exports from the RMG sector totaled $20.91 billion in FY25, according to central bank data.

Among the primary raw materials, raw cotton imports experienced a decline of 4.3 per cent to $3.46 billion, down from $ 3.60 billion in FY25.

Bangladesh imported yarn worth $3.61 billion in FY25, 12.3 per cent higher than $3.22 billion in FY24.

Textile and other related articles imports experienced a 16 per cent growth to $8.69 billion in FY25, up from $7.72 billion in FY24, according to the central bank data.

Staple fibre imports stood at $1.53 billion, representing a 10 per cent increase from $1.39 billion in FY24.

In FY25, the country imported dyeing and tanning materials worth $877 million, a 5.2 per cent increase from $833.7 million in FY24, according to Bangladesh Bank data.

Bangladesh Garment Manufacturers and Exporters Association senior vice president Inamul Haq Khan told New Age that the values of exports, imports, and net exports demonstrated the stable situation of the country’s RMG sector.

‘The FY25 was an excellent year for us and we are hopeful that the current FY26 will also be a positive year,’ he added.Bangladesh travel packagesNew Age subscription

The United States has recently revised the reciprocal tariff for Bangladesh to 20 per cent, almost the same as its major competitors, except for India, which has been slapped with a 50 per cent tariff.

Inamul Haq expressed optimism that, for this reason, some orders might shift from India to Bangladesh.

‘Moreover, we are also in a good shape at European and other markets, so import of raw materials might increase in the current FY26,’ he added.

He urged the government to address the domestic bottlenecks, including energy shortage, port and customs issues, ease of doing business, and banking issues, to ensure a better business environment.

‘If we get sufficient policy support, we have the ability to reach targets as we are getting better purchase orders,’ he added.

However, the import of capital machinery experienced a negative growth of 19.1 per cent to $2.81 billion in FY25, compared to $3.48 billion in FY24, according to Bangladesh Bank data.

The other capital goods import also experienced negative growth of 5.9 per cent to $6.7 billion from $7.15 billion in FY24.

Exporters said that this decline was mainly due to political transition and uncertainty, which discouraged entrepreneurs from making new investments.​

 

[Saif]

Reforms and diversification key to boosting RMG

For decades, policy circles and industry stakeholders have repeatedly stressed the need for reforms and diversification to rejuvenate the country's readymade garment (RMG) exports. Reforms essentially imply structural changes in production and operations, with a strategic shift from low-end, mass-v

thefinancialexpress.com.bd

Reforms and diversification key to boosting RMG

Wasi Ahmed
Published :
Aug 20, 2025 00:18
Updated :
Aug 20, 2025 00:18

For decades, policy circles and industry stakeholders have repeatedly stressed the need for reforms and diversification to rejuvenate the country's readymade garment (RMG) exports. Reforms essentially imply structural changes in production and operations, with a strategic shift from low-end, mass-volume products to high-end or semi-high-end categories that effect higher value addition. Diversification, on the other hand, refers not only to broadening the range of apparel products but also to extending export reach beyond the conventional markets of North America and the European Union. Although some progress has been made on both fronts, the pace has been far slower than the required. In today's rapidly changing global trade dynamics -- especially involving apparel exports -- the challenges are more complex than they were a decade ago, forcing Bangladesh at a crossroads.

Despite the difficulties, optimism persists that Bangladesh can still make a transitional leap in apparel exports. A recent diagnostic report prepared jointly by the World Bank, the International Finance Corporation, and the Multilateral Investment Guarantee Agency highlights this potential. According to the report, Bangladesh's RMG sector could generate as much as US$94 billion in annual export earnings by 2029, provided that the industry actively expands into non-traditional markets and embraces manmade fibre (MMF) production in a big way. Achieving this ambitious target would require sustaining an average annual growth rate of 15 per cent -- a formidable challenge that demands wide-ranging, coordinated reforms across trade policy, industrial operations, and financial systems.

The report also identified four sectors in Bangladesh with the highest growth potential where private investment could play a transformative role. These include the RMG, middle-income housing, domestic production of textile dyes and paints, and digital financial services. The findings also shed light on broader concerns such as foreign direct investment (FDI) trends, the overall business climate, and cross-cutting regulatory bottlenecks that hinder private sector growth. The clear message is that while Bangladesh's growth prospects remain bright, achieving them will require regulatory clarity, accelerated digital transformation, and establishment of a more inclusive and investment-friendly climate.

The United States, Bangladesh's single largest apparel export destination, is likely to play a particularly pivotal role in this anticipated prospect. Recent tariff actions by the US, targeting multiple countries including some of Bangladesh's competitors, carry important implications for Bangladesh's RMG exports. The US tariffs are largely aimed at curbing Chinese exports. Consequently, many American apparel brands and retailers are now adopting a strategy of geographical diversification in sourcing to reduce over-dependence on China. Rising tariff rates on Chinese apparel and the intensifying strategic rivalry between Washington and Beijing have prompted several leading US fashion companies to scale down their sourcing from China -- some planning to reduce it to single-digit percentages, and others even considering moving out of China altogether.

This geopolitical and trade reorientation presents Bangladesh with a unique window of opportunity. With China's declining market share in the US and the search for alternative sourcing bases, Bangladesh could secure a larger slice of the American apparel market. The numbers tell the story: China's share of the US apparel import market dropped from 37.7 per cent in 2013 to 21.3 per cent in 2023. During the same period, Bangladesh's share rose from 6.0 per cent to 9.0 per cent. Vietnam has also been a major beneficiary, expanding its share from 10 per cent to 17.8 per cent. India, Cambodia and Pakistan, too, recorded modest gains. Clearly, the global sourcing map is shifting and Bangladesh stands to benefit if it can position itself strategically.

The critical question, however, is whether Bangladesh is ready to seize this opportunity. Industry insiders point out that despite clear signals of shifting demand, fresh investment to expand production capacity -- especially in MMF-based and other high-value apparel items -- has been limited. The country still depends heavily on imported raw materials for producing value-added garments, particularly MMF-based products. Without building domestic capacity in this area, Bangladesh risks missing out on lucrative future orders. Moreover, structural challenges such as energy shortages, rising utility costs, and persistent logistics bottlenecks continue to undermine the country's competitive edge.

Local exporters, however, remain cautiously optimistic. They argue that with its existing scale and experience, Bangladesh already has the capability to absorb some of the work orders likely to be diverted from China. The competitive edge lies in cost efficiency, skilled workforce, and a strong reputation as a reliable supplier. But for this to translate into long-term market resilience, the country must urgently address its internal weaknesses. Expansion of investment in MMF production, reliable energy supply, upgrading of port and transport infrastructure and removal of bureaucratic bottlenecks are the key imperatives.

Another important trend is the pricing strategy of US fashion companies. Even amid rising costs from tariffs and supply chain adjustments, these companies have largely avoided widespread retail price hikes. Instead, they have absorbed some of the cost pressures internally while maintaining their sourcing diversification strategy. This signals that buyers are looking for competitive suppliers who can ensure flexibility, speed and quality without significantly raising end prices. Bangladesh's ability to align with this evolving buyer preference will be decisive in slicing greater market shares.

Industry leaders repeatedly emphasise that a strategic shift from low-end to high-value apparel is no longer optional but essential. Bangladesh must move beyond being predominantly a producer of basic garments to one that specialises in design-driven, technologically advanced, and higher-margin items. At the same time, exploring new and emerging markets outside the US and EU is crucial. Countries in East Asia, Latin America, and Africa represent untapped potential that could further diversify Bangladesh's export portfolio and reduce dependence on a few large markets.

The pathway to revamping Bangladesh's RMG sector lies in a dual strategy of reforms and diversification. Reforms must focus on upgrading the industry to produce more high-value products supported by stronger backward linkages in MMF and other inputs. Diversification must go beyond products to include new markets. The opportunities created by the shifting global trade dynamics are real, but seizing them will require vision, investment and matching strategic policy.​

 

[Saif]

Apparel exports to EU rise by 17.9pc in H1

Bangladesh cemented its position as the European Union’s second-largest apparel supplier in the first half of 2025 with exports up 17.9 per cent to 10.29 billion euros, but its growth was eclipsed by China’s 22.3 per cent rise and Cambodia’s 30.4 per cent surge, signalling severer competition in...

www.newagebd.net

Apparel exports to EU rise by 17.9pc in H1
Moinul Haque 20 August, 2025, 00:50

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

Bangladesh cemented its position as the European Union’s second-largest apparel supplier in the first half of 2025 with exports up 17.9 per cent to 10.29 billion euros, but its growth was eclipsed by China’s 22.3 per cent rise and Cambodia’s 30.4 per cent surge, signalling severer competition in the EU market.

According to Eurostat data released on Monday, EU apparel imports from Bangladesh rose to 10.29 billion euros in January–June 2025, up from €8.73 billion in the same period of 2024.

Knitwear was the main driver, rising by 21.1 per cent to 6.03 billion euros, while woven garments increased by 13.6 per cent to 4.26 billion euros.

Exporters said the higher growth showed that EU demand for garments was rising and the market there was improving, but they were concerned about growing competition among major producers following the US’s new tariffs on many Asian garment-producing countries.

They said the high US tariffs, especially on India and China, had pushed these countries to focus more on the EU to make up for losses in the US market.

The year started strongly, with exports in January 2025 reaching 1.91 billion euros, a 61 per cent rise from 1.19 billion euros in January 2024.

February followed with 1.66 billion euros, 28 per cent higher than a year earlier, and in March exports rose further to 2.11 billion euros, an 18 percent increase.

In April 2025, Bangladesh’s apparel exports to the EU stood at 1.86 billion euros, just six per cent higher than April 2024.Bangladesh history book

In May, exports fell to 1.42 billion euros, 11 per cent lower than the 1.59 billion euros of the previous year, marking the first monthly drop in the year.

June saw a small recovery, with exports rising to 1.33 billion euros, 19 per cent higher year-on-year, although still slightly below May on a monthly basis.

Bangladesh Knitwear Manufacturers and Exporters Association former president Fazlul Hoque said the overall growth showed the market was improving, as almost all major producing countries had double-digit growth.

He said that Bangladesh could do better if there was no internal problems, such as factory closures and banking difficulties, which had slowed further growth.

Fazlu, also managing director of Plummy Fashions Ltd, said that because of trade tensions between China and the US, China was losing US market share.Bangladesh history book

He warned that China was increasing its focus on the EU and would continue to do so, and that India would likely follow, making competition in the market very strong.

When compared with other leading suppliers, Bangladesh’s growth in the first six months of 2025was higher than the EU’s overall apparel import expansion of 12.3 per cent.

Data showed that the EU apparel imports increased to 43.39 billion euros in the first half of 2025, up from 38.64 billion euros in the same period of 2024.

Knitwear led the gains with a 14.7 per cent rise to 21.87 billion euros, while woven apparel grew 10 per cent to 21.51 billion euros.

Other competitors also showed solid improvements but did not match Bangladesh’s overall momentum.

China reinforced its dominance as the EU’s largest supplier, with exports rising 22.3 per cent from 9.20 billion euros in H1 2024 to 11.26 billion euros in H1 2025.Bangladesh history book

Cambodia led growth among major exporters, with EU apparel imports rising 30.4 per cent from 1.59 billion euros in H1 2024 to 2.07 billion euros in H1 2025.

India increased its apparel exports to the EU by 15.4 per cent to 2.70 billion euros in January-June of 2025.

Pakistan grew by 16.6 per cent to 1.86 billion euros, recording balanced gains across knit and woven segments.

Vietnam maintained strong double-digit expansion, up 17.3 per cent to 2.02 billion euros, broadly in line with Bangladesh’s percentage increase.

Turkey, traditionally an important supplier due to its geographical proximity, was the only major exporter to see a decline in the EU market.

EU apparel imports in the first half of 2025 from Turkey fell by 7 per cent to 4.27 billion euros, with both knit and woven categories in contraction​

 

[Bilal9]

Industrialist Nurul Islam Babul's daughter took the helm of Jamuna Group after he passed, she also heads part of BGMEA.

Story on their recent $100 Million (first tranche of total $500 Million) investment in synthetic (PET) fabric production.

 

[Bilal9]

2 new factories receive LEED platinum certification​

Bangladesh now has 68 factories ranked among the top 100 highest-rated LEED-certified garment units globally​

The country's apparel export earnings were more than 2% lower in September compared to that year-on-year. It exported $485 million in September last year. Photo: Mumit M/TBS

Bangladesh's ready-made garment (RMG) sector has achieved another milestone in its sustainability journey as two more factories have received LEED platinum certification from the US Green Building Council (USGBC).

With the inclusion of the two new factories, the total number of LEED-certified garment factories in the country now stands at 263, comprising 111 Platinum and 133 Gold certified units.

In addition, Bangladesh now has 68 factories ranked among the top 100 highest-rated LEED-certified garment units globally, further strengthening its position as a global leader in green industrialization.

The newly certified factories are A. G. Dresses Ltd and Fin Bangla Apparels Ltd.

Talking to BSS, former BGMEA director Mohiuddin Rubel said this achievement is a testament to the vision and resilience of Bangladesh's apparel entrepreneurs.

"By investing in green buildings and sustainable practices, they are not only reducing environmental impact but also enhancing efficiency, cutting costs, and strengthening Bangladesh's reputation as a responsible and forward-looking sourcing destination," he said.

Rubel, also the managing director of Bangladesh Apparel Exchange and additional managing director at Denim Expert Ltd, said, "Their commitment ensures that our industry remains globally competitive, aligns with emerging sustainability regulations, and continues to drive inclusive growth for our people and economy."