[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Chinese investors urged to invest in man-made fibre

Bangladesh Garment Manufacturers and Exporters Association president Mahmud Hasan Khan Babu on Sunday urged Chinese investors to invest at man-made fibre, technical textile and synthetic fibre sector in Bangladesh...

www.newagebd.net

Chinese investors urged to invest in man-made fibre
Staff Correspondent 27 April, 2026, 01:47

Bangladesh Garment Manufacturers and Exporters Association president Mahmud Hasan Khan Babu on Sunday urged Chinese investors to invest at man-made fibre, technical textile and synthetic fibre sector in Bangladesh.

He said that Bangladesh’s woven fabric import market, valued at $8-9 billion annually, would offer significant opportunities for the Chinese investors.

He revealed it during a meeting with a 20-member high-level delegation from the China Dyeing and Printing Associaation that visited the BGMEA Complex in the capital, said a press release.

The Chinese delegation included senior officials from the China National Textile and Apparel Council and CDPA, along with chairmen and general managers of leading dyeing, printing, finishing, and chemical manufacturing companies.

The BGMEA president said that the Chinese companies could invest either independently or through joint ventures, with BGMEA offering full strategic support.

He also highlighted that, following the signing of an economic partnership agreement with Japan, Chinese investors in Bangladesh could benefit from duty-free access to the Japanese market.

Discussions centred on potential areas of collaboration, particularly Chinese support and direct investment in modernising Bangladesh’s textile sector.

Mahmud Hasan Khan described China as a long-standing and reliable trade partner and a major source of raw materials and machinery for Bangladesh’s garment industry.

The BGMEA president also stressed the importance of technology transfer, particularly in advanced areas such as digital printing and synthetic fabrics.

He called for regular technical training and knowledge-sharing initiatives to enhance local capabilities between the two nations.

They also discussed leveraging China’s expertise in environmentally sustainable dyeing technologies to strengthen Bangladesh’s green transition in the apparel sector.Bangladesh political commentary

To strengthen business connections, the BGMEA asked the Chinese delegation to share detailed profiles and production capacities of participating companies, which would be shared with its members.

The visiting delegation also toured several dyeing and printing factories in Bangladesh during their Dhaka visit, with BGMEA assuring full cooperation.

Both sides expressed a strong commitment to working together to advance the sustainable development of the textile and apparel industries in both countries and to achieve mutual growth.

BGMEA vice-president Shehab Uddoza Chowdhury, directors Majumdar Arifur Rahman, Rumana Rashid, and Mohammad Sohel were also present during the meeting.​

 

[Saif]

The Financial Express | First Financial Daily of Bangladesh

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4 new factories get LEED certification

BSS

Published :
May 03, 2026 17:02
Updated :
May 03, 2026 17:02

Four more ready-made garment (RMG) factories in Bangladesh have achieved Leadership in Energy and Environmental Design (LEED) certification, further consolidating the country’s position as a global leader in sustainable apparel manufacturing.

With the latest additions, Bangladesh now has a total of 284 LEED-certified RMG factories, including 121 with Platinum rating and 144 with Gold rating. Notably, the country is home to 52 of the world’s top 100 highest-rated LEED-certified factories, reflecting significant progress in environmentally responsible industrial practices.

The newly certified factories are: Pahartoli Textiles Limited, Unit-02, located at Ispahani Complex in North Pahartali, Chattogram, secured a Platinum rating under the LEED BD+C: New Construction v4 system with an impressive score of 86 points;

Welldone Apparel Ltd, situated in Baraider Chala, Sreepur, Gazipur, earned a Gold rating under LEED O+M: Existing Buildings v4.1, scoring 75 points.

Everbright Sweater Ltd., based in Kathgora, Zirabo, Ashulia, Savar, Dhaka, achieved a Platinum rating with 83 points under LEED O+M: Existing Buildings v4.1.

Siam Computerized Elastic Industries Ltd.-MUMTEX, located in Surabari, Gazipur, also attained a Platinum rating under the same system, scoring 84 points.

Industry leaders have welcomed the new certifications, noting that they underscore Bangladesh’s commitment to sustainable development, energy efficiency, and environmentally responsible production.

Talking to BSS, Mohiuddin Rubel, former Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Additional Managing Director of Denim Expert Ltd., said the continued growth in LEED-certified factories demonstrates the sector’s proactive approach to adopting green technologies and international standards.

He said Bangladesh’s RMG sector, which accounts for the lion’s share of the country’s export earnings, has in recent years placed increasing emphasis on sustainability.

“Factory owners have invested heavily in energy-efficient machinery, water conservation systems, waste management, and improved workplace environments,” he added.

Mohiuddin Rubel emphasized that alongside celebrating these advancements, greater attention should be given to ensuring that such achievements receive proper value and recognition in the global market.

He noted that international buyers and partners should fairly appreciate and support environmentally responsible manufacturers, which would further encourage the growth of sustainable practices in the industry.

The LEED certification, awarded by the U.S. Green Building Council, is globally recognized as a benchmark for green building practices.

Achieving Platinum and Gold ratings requires meeting rigorous criteria in areas such as energy use, indoor environmental quality, sustainable site development, and resource efficiency.

Industry analysts say Bangladesh’s leadership in green garment factories not only enhances its global competitiveness but also responds to growing demand from international buyers for environmentally compliant supply chains.

The steady rise in LEED-certified factories highlights the country’s transition toward a more sustainable and responsible apparel industry, aligning with global climate goals while maintaining its status as one of the world’s top garment exporters.​

 

[Saif]

Apparel makers to seek clarity on US cotton tariff deal

Bangladeshi garment exporters will today ask visiting US trade officials in Dhaka to clarify how a promised zero reciprocal tariff will apply to apparel made with American cotton and other US textile inputs.

www.thedailystar.net

Apparel makers to seek clarity on US cotton tariff deal

USTR officials arrive for talks on reciprocal tariff deal implementation and ongoing investigations into overcapacity and forced labour issues.


Refayet Ullah Mirdha

Bangladeshi garment exporters will today ask visiting US trade officials in Dhaka to clarify how a promised zero reciprocal tariff will apply to apparel made with American cotton and other US textile inputs.

The provision is included in the US-Bangladesh Agreement on Reciprocal Trade signed in February this year, but exporters say they have yet to benefit from it.

“We will raise this issue with the USTR high-ups in the meeting tomorrow [Tuesday],” said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A delegation from the Office of the United States Trade Representative (USTR), led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, will visit Dhaka from May 5 to May 7.

In a statement issued ahead of the visit, the US Embassy in Dhaka said the United States looks forward to partnering on the implementation of the reciprocal trade agreement. The delegation is expected to discuss ways to strengthen trade and investment ties.

Under Article 5.3 of the reciprocal trade agreement, the United States commits to establishing a mechanism allowing certain textile and apparel goods from Bangladesh to enter the American market at a zero reciprocal tariff rate.

The deal says that a to be specified volume of apparel and textile imports from Bangladesh may qualify for the reduced rate. That volume will be determined in relation to the quantity of US-produced cotton and man-made fibre textile inputs exported to Bangladesh.

However, BGMEA President Khan said Bangladesh is not currently enjoying the benefits in the US market.

He said the zero-duty facility would be the main agenda at the scheduled meeting between the visiting officials and BGMEA leaders in Dhaka.

A senior commerce ministry official said the USTR delegation will also meet Commerce Minister Khandakar Abdul Muktadir at the secretariat today. Discussions are expected to cover the reciprocal trade deal, broader bilateral trade matters, labour rights and intellectual property.

The USTR is currently conducting two investigations covering 60 countries, including Bangladesh. One is about forced labour in industrial units, while the other relates to industrial overcapacity that could hurt the US manufacturers.

In a position paper submitted to the commerce ministry recently, BGMEA said the Bangladesh garment industry does not have overproduction capacity that could harm the American manufacturing sector and is free from forced labour, as exporters comply with internationally recognised labour laws.

The association said that in a market-driven economy, production levels constantly adjust to shifts in demand, input costs and supply chain conditions. Determining “excess capacity” without clear parameters or methodology is a major challenge.

According to USTR data, US goods trade with Bangladesh totalled an estimated $11.8 billion in 2025. US imports from Bangladesh stood at $9.5 billion, up 13.3 percent from 2024, while US exports to Bangladesh were $2.3 billion, up 1.4 percent.

The US goods trade deficit with Bangladesh was $7.1 billion in 2025, a 17.9 percent increase from the previous year.

Garments account for 86 percent of Bangladesh’s exports to the United States.

In its position paper, BGMEA said the Bangladesh apparel sector has not expanded suddenly or in a way that would indicate structural excess capacity. The industry growth should be viewed over the long term.

Over the past decade, the sector has followed a steady growth path, it said, driven by global demand and shifting sourcing strategies rather than policy-induced expansion.

After more than four decades of development, Bangladesh exported garment products worth $39.3 billion in fiscal year 2024-25, accounting for nearly 7 percent of the global apparel market. It is now the world’s second-largest garment exporter after China.

In 2025, Bangladesh accounted for 10.73 percent of US apparel imports by volume and 10.53 percent by value, according to the American Apparel and Footwear Association (AAFA).

This week, a separate USTR report said Bangladesh has stayed off the latest US intellectual property rights watch lists. However, Washington urged Dhaka to strengthen enforcement to prevent unfair trade practices.

In its annual Special 301 Report, the USTR identified 26 trading partners with concerns over intellectual property protection and enforcement.​

 

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@Krishna with Flute

 

[Saif]

Bangladesh's RMG ascent: creating and climbing the dynamic smile curve

The smile curve is widely used to rank value in global production. At the two ends lie research, design, branding, and market control-the high-value segments. At the bottom lies manufacturing, often portrayed as the lowest-value activity. Bangladesh's ready-made garment (RMG) sector is therefore ro

thefinancialexpress.com.bd

Bangladesh's RMG ascent: creating and climbing the dynamic smile curve
Abdullah A Dewan and Mustafizur Rahman

Published :
May 05, 2026 23:33
Updated :
May 05, 2026 23:33

The smile curve is widely used to rank value in global production. At the two ends lie research, design, branding, and market control-the high-value segments. At the bottom lies manufacturing, often portrayed as the lowest-value activity. Bangladesh's ready-made garment (RMG) sector is therefore routinely placed at this lowest point. The conclusion seems obvious: to move up, the country must move out. This reading is widespread-and fundamentally wrong.

The problem is not with the smile curve itself, but the way it is interpreted. It is typically treated as a static ranking of activities. But production is not static. Industries evolve, productivity rises, technology improves, and firms learn. Once time is introduced, the smile curve ceases to be a picture of hierarchy and becomes a map of development.

In its simplest form, the curve is a timeline. The left side represents value created before production-research, design, and product development. The right side represents value captured after production-branding, logistics, and market control. The middle represents the stage where goods are physically produced.

That middle stage is not a dead zone. It is the most transformative phase of all. Manufacturing is not a trap; it is an entry point.

When Bangladesh entered the garment industry, it did so with limited capital, simple machinery, and an untrained workforce. Productivity was low, and value added per unit was limited. But this position was a starting point, not a permanent condition. Over time, factories expanded, workers gained skills, machinery improved, and production systems became more integrated. Backward linkages in textiles and accessories developed, lead times shortened, and compliance standards rose to global levels. Today, Bangladesh hosts many of the world's leading green garment factories. Millions of jobs have been created, female labour-force participation has expanded, and export earnings have stabilised the macroeconomy.

These changes reflect rising productivity. In economic terms, output depends not only on how much labour (L) and capital (K) are used, but on how efficiently (A) they are combined. This is captured in the production function: Y = A f(L, K), where A represents efficiency-technology, organisation, and accumulated knowledge. The history of Bangladesh's RMG sector is, in large part, the story of the rise of A through learning by doing, capital deepening, and scale expansion.

For this reason, the bottom of the smile curve cannot be flat. A flat bottom would imply no learning, no technological progress, and no economies of scale. The manufacturing segment must be seen as an upward-moving curve-one that rises as productivity and capability accumulate.

This dynamic interpretation changes how we understand industrial development. Firms do not leap from factories into global brands overnight; they move gradually along the value chain.

At the entry stage, firms operate as Original Equipment Manufacturers (OEM), producing according to foreign designs and specifications. As capabilities grow, firms begin to design products themselves-Original Design Manufacturing (ODM). At a more advanced stage, firms develop their own brands and control market access-Original Brand Manufacturing (OBM). Each step increases the share of value retained within the domestic economy.

The key is not moving away from manufacturing, but deepening within it. Building on an existing comparative advantage allows firms to climb the value chain from within rather than abandoning it prematurely. The global apparel market is approaching a trillion dollars, yet Bangladesh's share remains around 6 percent despite being the world's second-largest exporter. This gap itself is an opportunity.

This is where the contrast with successful Asian economies becomes instructive. South Korea began as a contract manufacturer but progressively internalised design, technology, and branding. Taiwan followed a similar path, evolving from assembly into high-value electronics and semiconductors. In each case, manufacturing served as the foundation upon which higher-value activities were built. The difference lies in value capture.

A country that remains confined to low-value segments generates output but retains little of the value created. Margins remain thin, capital accumulation is constrained, technological upgrading slows, and wages cannot rise sustainably. But when firms internalise design, technology, and market access, a larger share of value is retained within the economy, investment capacity increases, and productivity growth becomes self-sustaining.

This global restructuring is already underway. China-the dominant player-has been gradually shifting towards higher-end fashion, design, and technologically sophisticated segments, while also diversifying into other industries. Its share of global apparel exports has declined from roughly 37-38 per cent two decades ago to around 27-28 per cent in recent years. This has given rise to the widely discussed "China-plus-one" strategy, creating a historic opening for countries like Bangladesh, Vietnam, and India to capture additional market share.

This is where the logic intersects with a broader economic balance. When value creation expands, labour income can rise without undermining capital accumulation. Structural balance becomes feasible not through redistribution after inequality emerges, but through value capture at the point of production.

Whether this transition occurs depends not only on industrial capability but on institutional incentives. Where profits depend on productivity and innovation, firms invest in skills, technology, and organisation. Where profits depend on political access, protection, or discretionary allocation of resources, upgrading stalls and remaining at the lowest-value segment becomes a rational equilibrium. The smile curve, therefore, reflects not just industrial structure but the political economy of accumulation.

For Bangladesh, the implication is clear. The country has already demonstrated that manufacturing can transform an agrarian economy into one of the world's leading apparel exporters within a single generation.

To describe this achievement as being "stuck at the bottom" is to misunderstand both the curve and the country's development process.

The next phase does not require abandoning garments. It requires deepening them-through textile innovation, product development, digital supply-chain integration, regional branding, and more direct access to final markets. Each layer of knowledge that becomes domestically embedded raises productivity and expands value capture, shifting the curve upward.

At this stage, the path to ascent becomes operational. The sequence is cumulative. It begins with deepening manufacturing itself-raising productivity through better machinery, worker skills, and factory organisation-followed by strengthening backward linkages so that dependence on imported inputs gradually declines.

Encouragingly, domestic value addition has already risen significantly-from roughly 25 per cent in the early years to around 50 per cent today, particularly in the knitwear segment. This demonstrates that upgrading within manufacturing is already in motion, though the journey remains incomplete, especially in woven garments where import dependence is still high.

As capabilities mature, firms can move into product development and design, shifting from OEM to ODM. The next step is to develop branding, marketing networks, and direct buyer relationships, enabling the transition toward OBM and greater control over market access. At each stage, the objective is to retain a larger share of value within the domestic economy while reinvesting in technology, skills, and innovation. Competitiveness must increasingly rest not on low wages but on rising productivity.

Today, the competition is even more intense. Countries such as Vietnam, India, and Turkey are pairing competitive costs with rising productivity, stronger logistics, and expanding design capabilities.

Vietnam and India, in particular, enjoy structural advantages-Vietnam through deep integration with global value chains driven by foreign direct investment, and India through scale, domestic raw material base (especially cotton), and growing productivity. Both have also secured preferential trade agreements with major markets such as the European Union. Bangladesh, by contrast, faces a structural turning point: upon graduation from Least Developed Country (LDC) status, it will gradually lose duty-free access, facing tariffs of around 12 percent in key markets like the EU and UK. Although temporary extensions may soften the transition, the long-term implication is unavoidable-cost advantage alone will no longer suffice.

In comparison, Bangladesh still relies heavily on low wages and thin margins. This advantage is fragile: when not matched by productivity growth and upgrading, it traps firms in low-value contracts.

The risk is clear. If Bangladesh competes only on cost, it remains confined to the narrowest segment of the value chain; if it raises productivity and capability, it can sustain higher wages while expanding margins. The contest, therefore, is not low wage versus high wage, but low value versus high value.

At the same time, structural transformation may bring its own trade-offs-fewer factories, higher productivity, rising wages, but potentially slower employment growth. This underscores the importance of complementing intra-RMG upgrading with broader, extra-RMG diversification over time.

The smile curve is not a picture of where countries are. It is a map of how they move. Bangladesh is already on that path-and its future lies not in escaping garments, but in deepening them until the curve itself rises.

Dr. Abdullah A. Dewan, Professor Emeritus of Economics, Eastern Michigan University (USA); former physicist and nuclear engineer, Bangladesh Atomic Energy Commission (BAEC).

Dr. Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), Dhaka, Mustafizur​