United News of Bangladesh

More than 94 percent of active ready-made garment factories in Dhaka and Chattogram have paid Eid-ul-Azha bonuses to workers ahead of the festival, according to a summary report released by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Monday. The report, prepared with data as of May 23, covers a total of 2,134 operational factories across the two zones. Of these, 2,133 factories were found active, of which 2,117 or 99.20 percent have cleared April wages, while 2,021 factories, representing 94.70 percent, have disbursed Eid bonuses. Additionally, 767 factories, or 35.94 percent, have already paid an advance on May salaries. In the Dhaka zone, out of 1,984 active factories, 1,983 (99.95%) paid March wages and 1,983 (99.39%) cleared April salaries. A total of 1,909 factories (95.98%) have paid Eid bonuses, while 690 factories (37.58%) have provided advance wages for May. In Chattogram, all 380 active factories (100%) paid March salaries. Of these, 334 (98.24%) cleared April wages, 352 (91.76%) paid Eid bonuses, and 97 factories (28.53%) have paid advance wages for May. BGMEA data also outlines a staggered worker dispersal plan from Dhaka: 108 factories (6%) released workers on May 24; 664 (37%) on May 25; 771 (43%) are set to do so on May 26; and the remaining 251 factories (14%) on May 27.

Commerce Minister Khandakar Abdul Muktadir on Saturday said Bangladesh’s readymade garment (RMG) and textile industry must prioritise sustainable production, innovation, research and product diversification to maintain its long-term global competitiveness. “Sustainability is no longer just a slogan; it is now an essential condition for the industry’s survival and future growth,” Muktadir said while addressing the Grand Launching Event of Textile Innovation Exchange at a hotel. The minister stressed the need for ensuring efficient use of electricity, gas and water through energy-saving measures, water recycling, circular production systems and improved management practices. Muktadir said although the country’s apparel industry has achieved remarkable success over the past decades, exports still remain heavily dependent on a limited range of products. “It will be difficult to stay ahead in global competition unless we move quickly into high-value-added products such as sportswear, man-made fibre-based garments and technical textiles.” He also said Bangladesh must become more proactive in diversifying products and exploring new export destinations to remain competitive in the European Union market and tackle potential challenges after the country’s graduation from the least developed country (LDC) status. He also underscored the importance of research, design development, skills enhancement and the adoption of modern technologies to take the industry to new heights. Highlighting the textile sector’s contribution to Bangladesh’s economic development, the minister said the industry has been a major driving force behind industrialisation and export growth by generating large-scale employment with relatively low investment. “With proper planning and innovation, the sector still has vast untapped potential.” Referring to the government’s plan to utilise closed industrial units, Muktadir said no funds would be wasted on reviving inefficient factories by retaining outdated machinery. Instead, he said, industry-specific solutions would be adopted, including developing industrial parks, attracting fresh investment through public-private partnerships (PPP) and leasing arrangements. He said decisions in this regard would be taken in consultation with experienced private-sector entrepreneurs. The minister also said promising sectors such as leather, light engineering and shipbuilding would be revitalised through modern technology, skills development and international cooperation. Welcoming the Textile Innovation Exchange initiative, Muktadir said stronger collaboration between industry and academia, along with the exchange of experiences among entrepreneurs, would help make Bangladesh’s textile sector more modern, environmentally friendly and competitive. The minister later inaugurated the Textile Innovation Exchange platform and visited different stalls at the event.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and  German development agency GIZ have signed an agreement to accelerate sustainability, green industrialisation, and digital transparency within the country’s Ready-Made Garment (RMG) sector. A partnership agreement was signed with an 11-point charter of demands and a strategic cooperation framework at a ceremony held today (Sunday) at the BGMEA Complex in the capital. The initiative aims to help the sector navigate mounting global economic pressures and comply with evolving international trade regulations. Under the agreement, both parties will collaborate on enhancing the environmental standards of Bangladeshi factories. Key focus areas include promoting LEED-certified production and reducing the carbon footprint of the apparel industry, addressing the ongoing energy crisis by promoting renewable energy adoption and improving resource management within factories, implementing better waste management and recycling practices to align with global circular fashion trends. A significant portion of the partnership involves the digitalisation of sector monitoring. This includes the implementation of digital audits for national tax returns and the selection of over 87,000 taxpayers for tech-based transparency checks. The project will also focus on a "one-stop service" model for licenses and permits to reduce the time and complexity currently faced by factory owners.

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has described the current period as the most critical in the history of the country's apparel industry, citing a sustained negative growth trend in exports for the first time. In its formal budget proposals for the 2026-27 fiscal, submitted to the National Board of Revenue (NBR) today (Sunday), the association revealed that knitwear export earnings plummeted by 6.42 percent in March 2026 compared to the previous year. BKMEA President Mohammad Hatem said this while placing a budget proposal to the National Board of Revenue (NBR) on behalf of the association, in a formal meeting with the revenue board, held at NBR Building in Agargaon. NBR Chairman Abdur Rahman Khan chaired the event. NBR members Azizur Rahman, Mobinul Kabir and Barrister Mutasim Billah Faruki were present at the meeting. Fazle Shamim Ehsan, Executive President, BKMEA was also present. BKMEA President Mohammad Hatem noted that since August 2025, export earnings have remained on a consistent downward trajectory due to global geopolitical instability, rising shipping risks, and domestic structural challenges. The proposal highlights a sharp rise in "fixed costs" for factories as they are forced to operate well below their production capacity. The association pointed out that while the cost of electricity, gas, and labor has increased significantly, the "unit value" or price offered by international buyers has actually decreased. Hatem also proposed a duty free import facilities of solar panels and solar energy storage system for industrial smooth production to face loadshedding. To prevent further factory closures and maintain international competitiveness, BKMEA placed several strategic demands: i) The association urged the government to reduce the source tax on exports from 1 percent to 0.5 percent and treat it as the final tax liability for at least the next five years. ii) BKMEA proposed a uniform 10% corporate tax rate for all export-oriented industries to ensure a level playing field. iii) A request was made to exempt the 10 percent income tax currently imposed on cash incentives provided by the government. iv) The trade body sought a total waiver of the 1 percent import duty on capital machinery and spare parts, arguing that modernization is essential for survival. v) To promote a "circular economy," the BKMEA proposed withdrawing all VAT and Advance Tax (AT) on the collection and supply of textile waste (jhut) and recycled fibers. The BKMEA emphasized that these proposals are not merely requests for "tax breaks" but are strategic necessities to keep the industry afloat. The association warned that without timely policy intervention, the sector's ability to achieve national export targets and maintain employment for millions of workers would be severely compromised. "This is the first time in our history we are seeing such a prolonged negative growth trend," the BKMEA President Mohammad Hatem stated in the proposal. "The timely decisions of the NBR will determine whether this industry can overcome the current crisis and continue to contribute to the national economy," he added.  

Bangladesh's readymade garment (RMG) exports to the United States – its single largest export destination – faced a setback in early 2026, recording an 8.53 percent decline in January and February, compared to the same period in 2025. According to the latest data from the Office of Textiles and Apparel (OTEXA) of the US Department of Commerce, the downturn was marked by a "double blow" of falling prices and reduced shipment volumes. Unit prices for Bangladeshi apparel dropped by 2.47 percent, while the overall export volume (measured in square meter equivalents) fell by 6.21 percent. The decline in Bangladesh's exports reflects a broader contraction in the US apparel import market, which saw a total decline of 13.47 percent in early 2026. Analysts suggest that high inflation, shifting consumer spending patterns, and inventory adjustments by major US retailers have contributed to this global slowdown. Despite the overall market slump, Bangladesh’s regional rivals—Vietnam and Cambodia—managed to post positive growth, signaling intensifying competition for market share. During the same period, Vietnam’s exports to the US grew by 2.86 percent, while Cambodia recorded a significant surge of 18.43 percent. While traditional competitors are gaining ground, China’s massive decline in the US market continues to create a strategic opening. US fashion companies are accelerating their "China Plus One" sourcing strategies due to geopolitical tensions and trade barriers. Industry experts believe that if Bangladesh can improve its efficiency and diversify its product range, it can capture a larger portion of the vacuum left by China. Mohiuddin Rubel, Former Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Additional Managing Director of Denim Expert Ltd, noted that the current trend highlights the vulnerability of relying solely on basic, low-margin products. "The decline in both volume and unit price is a signal that we must pivot towards high-value-added products and improve our lead times," Rubel said. "While the overall US market is shrinking, the growth of Cambodia and Vietnam shows that buyers are shifting orders to destinations that offer better logistical efficiency or tariff advantages,” he said.

Authorities of two ready-made garment (RMG) factories in Ashulia declared an indefinite shutdown on Wednesday, leaving around 4,000 workers in uncertainty. The owners hung closure notices at the main gates of the factories in the morning, preventing workers from entering the premises. According to workers, the factories—Fashion Forum Ltd in Jamgora area and JA Apparels in Kuturia—were shut down following recent labour unrest. Workers arriving at the factories in the morning found the gates closed and attempted to stage protests but were dispersed by police. Workers alleged that the factories were closed without clearing their dues, leaving thousands of employees in distress. Later, the workers staged a human chain programme in the area, demanding reopening of the factories and payment of their wages and benefits. Additional police have been deployed in front of the factories to avoid any untoward situation. Ashulia Industrial Police-1 Superintendent Mominul Islam said discussions are underway with the factory authorities to reopen the units. Extra police have been deployed to maintain law and order, he added.

Bangladesh's Readymade Garment (RMG) exports recorded a 3.73 percent year-on-year decline, totaling US$ 25.80 billion during the July–February period of the current fiscal year 2025–26. According to the latest data from the Export Promotion Bureau (EPB), the sector—the backbone of the country’s export earnings—is facing a downward trend across several key markets compared to the same period in the previous fiscal. The European Union (EU) remains the largest destination for Bangladeshi apparel, accounting for nearly half 49.18 percent of total RMG exports.  However, earnings from the EU fell by 5.49 percent, dropping to US$ 12.69 billion. The United States, the second-largest market for Bangladesh, also saw a slight contraction. Exports to the USA reached US$ 5.03 billion, representing a 0.74 percent decrease year-on-year. Bucking the general downward trend, exports to the United Kingdom and Canada showed resilient growth: United Kingdom: Exports rose by 1.22 percent to reach US$ 2.97 billion. Canada: Recorded a growth of 3.08 percent, with export earnings standing at US$ 871.58 million. Earnings from non-traditional markets took a hit, declining by 6.34 percent to US$ 4.24 billion. These markets now hold a 16.44 percent share of the total RMG export basket. In terms of product categories, both major segments saw a decline. Knitwear recorded a 4.56 percent decrease, while Woven Garments posted a 2.79 percent decrease. Mohiuddin Rubel, Additional Managing Director of Denim Expert Ltd. and former Director of BGMEA, noted that the overall performance reflects the ongoing global economic shifts and their subsequent impact on consumer demand in traditional strongholds.

Bangladesh Bank on Tuesday instructed commercial banks to offer special term loans to export-oriented industries to ensure timely payment of workers’ wages for February 2026. The central bank issued a circular citing both global and domestic economic pressures that have strained liquidity and production capacity in the country’s export sector. According to Banking Regulation and Policy Department (BRPD) of Bangladesh Bank, the initiative aims to maintain production momentum and support export growth despite falling orders and delayed shipments. Under the directive, banks can provide term loans to “active” export-oriented units beyond their existing working capital limits. The loan amount cannot exceed the average of the last three months’ wages and allowances paid by the respective factory. Loans will carry prevailing market-based interest rates, with no additional fees, profit charges, or commissions. Repayment must be made in equal monthly or quarterly installments within a maximum of one year including a three-month grace period. Bangladesh Bank defined “export-oriented” industries as those exporting at least 80 percent of their total production. To be considered “active,” an industry must have regularly paid workers’ salaries from November 2025 to January 2026. Eligibility must be certified by trade bodies such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) or the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). To ensure transparency and prevent fund diversion, the circular mandates that the loan amount be credited directly to the bank or Mobile Financial Service (MFS) accounts of the workers, with no cash disbursement through factory management.

Bangladesh’s RMG sector has reached a new milestone in eco-friendly industrialization as two more garment factories have earned the prestigious Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council (USGBC). With these new additions, the total number of LEED-certified garment factories in Bangladesh has risen to 275, further solidifying the country’s position as a global leader in sustainable manufacturing. The two newly certified factories, both located in Gazipur, have demonstrated excellence in environmental safety and resource efficiency: MNR Sweaters Ltd, located in Braidachala, Sreepur, achieved the highest ‘Platinum’ rating with a score of 85 under the 'Existing Building' category. Fashion Floor BD Ltd, located in Godarchala, Telihati, secured a ‘Gold’ certification with a score of 71 under the 'New Construction' category. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) highlighted that out of the 275 certified factories, 116 hold the ‘Platinum’ rating and 140 are ‘Gold’ certified. Notably, Bangladesh now dominates the global landscape by hosting 70 of the world’s top 100 highest-rated green factories. RMG exports down 2.4% y-on-y in first 7 months of fiscal Industry experts attribute this success to advanced measures in energy saving, water management, and waste reduction. Mohiuddin Rubel, former Director of BGMEA and Additional Managing Director of Denim Expert Ltd, stated that this continuous streak of certifications keeps Bangladesh’s RMG industry ahead in the competitive global market. "This trend of sustainable industrialization will be instrumental in boosting future exports and establishing Bangladesh as a responsible and long-term supplier in the global fashion supply chain," experts noted.

Bangladesh’s readymade garment (RMG) exports declined by 2.43 percent year-on-year to US$22.98 billion during July–January of fiscal year 2025–26, according to the latest country-wise export data published by the Export Promotion Bureau (EPB). The European Union (EU) remained the country’s largest export destination for RMG, accounting for 49.35 percent of total exports in the category. Export earnings from the EU stood at US$11.34 billion, marking a 3.98 percent year-on-year decline, said former BGMEA director Mohiuddin Rubel on Monday. The United States retained its position as the second-largest market. RMG exports to the USA amounted to US$4.47 billion, representing 19.46 percent of total RMG exports, with a marginal year-on-year decrease of 0.03 percent. According to EPB data, Bangladesh’s total RMG exports to the United States from February 2025 to January 2026 reached US$7,544.34 million. During this period, total national RMG exports stood at US$38,775.15 million, with the US market accounting for 19.46 percent of the total. Exports to Canada and the United Kingdom posted positive growth during the period. RMG exports to Canada amounted to US$784.17 million, accounting for a 3.41 percent share and showing 4.42 percent year-on-year growth. Exports to the United Kingdom reached US$2.62 billion, representing an 11.38 percent share with 2.55 percent growth. Exports to non-traditional markets stood at US$3.77 billion, accounting for 16.40 percent of total RMG exports, though registering a 4.99 percent year-on-year decline. In terms of product categories, the knitwear segment recorded a 3.13 percent decrease in exports, while the woven segment saw a 1.60 percent decline during the period.