Nearly all garment factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have resumed operations following the Eid-ul-Fitr holidays. According to a BGMEA statement issued on Saturday, 2,012 out of 2,024 factories – or 99.40 percent – have reopened as of Wednesday. The highest concentration of garment factories is in the Gazipur and Mymensingh regions, where 851 out of 854 units are currently in operation. In Savar, Ashulia and Jirani areas, 399 of 403 factories have resumed production. Besides, 186 factories are operational in Narayanganj, 320 in Demra, and 336 in Chattogram. Business leaders seek strategic negotiations to address tariff challenges BGMEA data also reveals that 2,019 factories have already disbursed salaries for February, with only five factories – four in Dhaka and one in Chattogram – yet to do so. As of now, 2,008 factories have paid salaries for March, either partially or in full. However, 16 factories are still pending full salary payments for the month, and 16 others have only paid partial salaries.

British trade envoy to Bangladesh (Rt. Hon.) Baroness Rosie Winterton of Doncaster DBE on Tuesday said the United Kingdom (UK) is “laser-focused” on building an economic partnership with Bangladesh that will boost two-way trade and investment between the two countries. “From being the third largest market for Bangladeshi ready-made garments to being one of the largest foreign investors in Bangladesh, the UK already has strong foundations to build on and I look forward to solidifying it even further through this visit,” she said. Baroness Winterton’s discussions with key stakeholders will focus on the UK’s work with the interim government on vital economic reforms, the opportunities arising from the commitment to duty free, quota free access to the UK market until 2029 and identifying opportunities to strengthen trade and investment in sectors such as education, aviation, defence and renewable energy.   The UK trade envoy is visiting Dhaka to strengthen and expand the longstanding economic and trade partnership between the UK and Bangladesh.    While in Dhaka, she will be meeting key officials from the interim government of Bangladesh, political parties and business leaders. Dr Yunus to hold breakfast meetings with Chinese, Korean investors to fast-track investment She will also participate in the Bangladesh Investment Summit 2025. She will be joined by Harjinder Kang, His Majesty’s Trade Commissioner to South Asia. On her first visit to Bangladesh as UK Trade Envoy, Baroness Winterton will meet Chief Adviser Prof Muhammad Yunus, Chief Adviser’s Special Envoy on International Affairs Lutfey Siddiqi, Commerce Adviser Sheikh Bashir Uddin and Education Minister Prof Dr Chowdhury Rafiqul Abrar. Her meetings will focus on how the two countries will deepen their trade and investment relationship and deliver mutually beneficial growth and job creation. With Harjinder Kang, she will also meet key stakeholders from the business community and will deliver a keynote speech at the inauguration ceremony of the Bangladesh Investment Summit on April 9 to underscore the UK government’s growth mission. British High Commissioner to Bangladesh Sarah Cooke said the UK is a major economic and trading partner of Bangladesh, and this visit reiterates the UK’s commitment to boosting two-way trade and investment and supporting Bangladesh’s work on vital economic reforms. “I am delighted to welcome the UK Trade Envoy to Bangladesh the Rt. Hon. the Baroness Winterton of Doncaster DBE in her first visit to the country in her new role,” she said. The UK is one of the largest foreign investors in Bangladesh and this visit aims to deepen collaboration in key sectors including education, aviation, defence and renewable energy, said the High Commissioner. Foreign investors express keen interest in Bangladesh: BIDA “The visit will also explore opportunities to increase the presence of UK education institutions. These projects signify major investment opportunities and reflect the UK’s commitment to Bangladesh,” she said. Baroness Winterton of Doncaster was appointed as the United Kingdom Trade Envoy to Bangladesh in January 2025. She plays a key role in strengthening trade and investment ties between the UK and Bangladesh.

The Ministry of Labour and Employment in collaboration with the Department of Inspection for Factories and Establishments (DIFE) has set up a control room to closely monitor labour conditions and address workers’ unrest in both RMG and non-RMG sectors ahead of Eid-ul-Fitr.  The workers can report grievances by calling the toll-free labour helpline at 16357, according to a press release issued by the ministry on Tuesday.

Workers of Eurotex Knitwear held a protest by blocking the Dhaka-Narayanganj Link Road in Fatullah on Wednesday. The protest was in response to the abrupt layoff of 27 workers, they said. According to the workers, the layoff decision was made without any prior warning, and the authorities also filed cases against them. As tensions escalated, workers stopped working, prompting an unprovoked attack by senior officials, they added. Several workers sustained injuries during the incident. Ajufer Begum, one of the affected workers, expressed frustration over the layoffs and unpaid wages for the previous month, saying, "They are laying off workers without reason, and even the last month's salary remains unpaid. When we stopped work, we were attacked, and I sustained serious injuries to my hand. We will continue our protest until our demands are met." The protest was supported by the District Garment and Sweater Workers Trade Union Centre, who’s President, MA Shaheen, condemned the actions of the factory owners. He said, “The owners have filed cases against 27 workers, using the police to harass them and inciting local goons against the workers. Our demand is clear — withdraw the false cases and stop the police harassment.” The protesting workers have called for an end to the layoffs and the withdrawal of the cases filed against them. They also demand an immediate halt to intimidation by local goons. Protests, counter-protests in Dhaka over chaos ignited by JCD programme at KUET In response, Selim Badsha, the Inspector of the Industrial Police-4, confirmed that the workers had blocked the road as part of their protest against the layoffs and other demands. Efforts are underway to negotiate a solution to the issue. District Factory and Establishment Inspection Directorate official Rajib Chandra Ghosh said the workers had caused disturbances at various times since August 5, prompting the factory owners to take legal action. In recent talks, the owners confirmed that they would proceed with the legal process and lay off 95 workers under the Labour Law.

Bangladesh's Ready-Made Garment (RMG) exports have shown moderate growth, with the European Union remaining a key market, according to data from the Export Promotion Bureau (EPB) for the July-January period of the fiscal year 2024-25. The EU represented 50.15% of Bangladesh’s total RMG exports, with a total value of US$11.81 billion, Mohiuddin Rubel, former director of BGMEA, said on Sunday while sharing the data. Shipments to the United States reached US$4.47 billion, accounting for 18.99% of the total share, while the UK market was also significant, with exports valued at US$2.5 billion, equivalent to 10.83% of Bangladesh's total RMG exports during the specified timeframe. In terms of growth, our RMG exports to the EU expanded by 13.91% year-over-year, with the USA showing a robust increase of 16.45%. The RMG exports to the UK, however, grew at a more modest rate of 4.55%. Bangladeshi apparel exports to US market grow slightly amid global market pressure Within the EU, Germany emerged as a key market, with Bangladesh’s exports amounting to US$2.97 billion, trailed by Spain at US$2 billion, France at US$1.28 billion, and the Netherlands at US$1.25 billion. The growth rates were particularly notable in Germany (13.47%), the Netherlands (27.3%), Poland (13.7%), Denmark (18.56%), and Sweden (26.7%). Bangladesh's RMG sector also demonstrated growth in non-traditional markets, with an overall increase of 6.42%, signaling potential for further expansion. Among these markets, Japan led with imports totaling US$721 million, followed by Australia at US$512 million, and India at US$427 million. Exports to countries like Turkey and Mexico are also significant, amounting to US$263 million and US$208 million, respectively. While growth in Japan, Australia, India, Turkey, and Mexico is encouraging during this period, exports to Russia, Korea, China, UAE, and Malaysia have declined. The continued growth in exports is heavily reliant on the EU and USA, which remain the primary markets for Bangladesh, highlighting further potential within these regions. The ongoing global trade tensions are reshaping the landscape, presenting opportunities that Bangladesh could capitalize on, provided we possess the necessary productive capacity. Concurrently, there should be a concerted focus on investments in backward linkages to support and enhance our RMG sector's competitiveness and growth potential.

Although Bangladesh’s export volume has grown by over 5 per cent in the last 35 years since 1989-90, the diversification of export products remains elusive, with exports still concentrated in just 8 to 9 major items. Why has Bangladesh been unable to achieve significant export diversification despite sustained efforts? According to Abu Mukhles Alamgir Hossain, Director (Policy and Planning) of the Export Promotion Bureau (EPB), several other promising sectors, such as leather and leather goods, jute and jute products, agricultural and processed products, handicrafts, pharmaceuticals, ICT and ICT-enabled services, and light engineering products, do not receive the same level of policy support and incentives as the readymade garments (RMG) sector. He emphasised that sector-specific policy papers are essential to assess the advantages and disadvantages of diversification while also analysing the strategies of competing nations. Barriers to Export Diversification A range of challenges hinder Bangladesh’s export diversification efforts. These include low technological advancement, inconsistent trade policies, environmental and compliance issues, skill shortages, limited innovation and research & development (R&D), inadequate logistics, intense global competition, and restricted access to finance for small and medium-sized enterprises (SMEs). Alamgir Hossain said that SMEs in Bangladesh struggle due to limited access to affordable credit. High interest rates and collateral requirements create significant barriers to business expansion. “Although SMEs are regarded as the lifeblood of the economy, Bangladesh must prioritise their development if serious about export diversification,” he said. Plastic products can boost export diversification: Commerce Adviser He added that export diversification cannot happen overnight. There is no shortcut to achieving it. Long-term strategies, sector-specific policies, business-friendly customs procedures, and efficient logistics are crucial for ensuring a diversified export sector. Current Export Scenario According to the EPB, Bangladesh exported goods worth Tk 2.94 lakh crore (US$28 billion) in the seven months from July to January, of which Tk 2.46 lakh crore (US$23.5 billion) came from garments alone. During this period in the current 2024-25 fiscal year, total export earnings grew by 11.68 per cent. The ready-made garment sector grew by 12 per cent, with knitwear expanding by 12 per cent and woven garments by 11.97 per cent compared to the same period last year. Bangladesh’s export earnings are still overwhelmingly dependent on the clothing sector. The EPB reports that in the 2023-24 fiscal year, knitwear accounted for 44.6 per cent of exports, woven garments 37.2 per cent, home textiles 3.3 per cent, footwear 2.3 per cent, jute products 1.9 per cent, and fish 1 per cent. Despite expert recommendations and government initiatives to promote export diversification, non-RMG sectors have shown little improvement, continuing their weak performance year after year. Bangladesh’s export products remain concentrated in just eight categories: knitwear, woven garments, agricultural products, leather and leather goods, jute and jute products, home textiles, frozen and live fish and engineering products. Challenges in Expanding Export Markets Bangladesh’s primary export destinations are the European Union, the United States, and the United Kingdom. While these markets are large, they primarily import clothing items from Bangladesh due to the country's expertise in the sector and its competitive pricing, industry insiders say. Reduced regulatory burdens, documentation processes to foster export diversification: Discussants Dr Mohammad Abdur Razzaque, Chairman of the Research and Policy Integration for Development (RAPID) think tank, stressed that the time for serious efforts towards export diversification is now. “Although achieving major export diversification is a long-term process and Bangladesh has been trying for years, there is no alternative but to achieve diversification to sustain the export sector,” he stated. Dr Razzaque, who has also served as a trade expert in the UK and EU, warned that global challenges could lead to declining demand for clothing products in the USA, UK, and EU, as competing countries ramp up their export capacities. Furthermore, he pointed out that US sanctions on China may indirectly affect Bangladesh’s garment sector, given that Bangladesh imports a significant portion of raw materials for garments from China. The evolving global trade landscape poses additional risks. Key Issues Preventing Export Diversification Responding to why Bangladesh has failed to diversify its exports, Dr Razzaque said, “We have not taken the issue of product diversification seriously enough. Compliance is another major concern.” He noted that the potential of the leather sector remains largely untapped due to compliance issues. “Bangladesh had ample time to address compliance challenges in the leather industry, but mismanagement and corruption have kept the sector lagging behind,” he added. Dr Razzaque emphasised the need for improving workforce skills to enhance competitiveness in the global market. He argued that producing diversified and high-end products would provide Bangladesh with a crucial advantage in exports. While Bangladesh’s export sector has seen remarkable growth, its overwhelming reliance on the RMG industry makes it vulnerable to shifts in global demand and competition. Experts suggest BD’s export diversification to tackle upcoming challenges     Addressing barriers such as inadequate policy support for non-RMG sectors, compliance shortcomings, skill gaps, and financial constraints on SMEs is essential for meaningful diversification. Without significant reforms and targeted investment in emerging export industries, Bangladesh risks stagnation in its export growth and long-term economic vulnerability.

Bangladesh’s readymade garment (RMG) exports hit an impressive $38.48 billion in 2024, showcasing the sector’s ongoing success. The European Union remained the largest market, accounting for 50.34% of total RMG exports, valued at $19.37 billion. The United States followed with $7.2 billion (18.72%), while the United Kingdom contributed $4.3 billion (11.25%), Mohiuddin Rubel, former director of BGMEA, shared the data. RMG machinery, allied products mega-expo starts Jan 8 in Dhaka Germany, Spain, and France were key markets within the EU, importing $4.83 billion, $3.42 billion, and $2.14 billion worth of RMG products, respectively. Canada also played a notable role, with exports totalling $1.24 billion and a 3.23% market share. Beyond traditional markets, Bangladesh is making notable strides in non-traditional regions. Exports to countries like Japan, Australia, India, Turkey, and Russia amounted to $6.33 billion, or 16.46% of total RMG exports. Japan was the top destination among these markets, with $1.12 billion in exports, followed by Australia at $831 million, India at $606 million, Turkey at $426 million, and Russia at $343 million. Proportion of women in RMG sector declining as few fill mid-to-top level positions This expansion into non-traditional markets is helping to diversify Bangladesh’s export base and strengthen the resilience of its RMG industry on the global stage.

Underscoring the importance of the RMG industry, Chief Advisor’s Special Envoy Lutfey Siddiqi has expressed gratitude for the "constructive engagement and contribution" of the foreign buyers' community through a period of challenges and changes. Siddiqi welcomed representatives of global brands and buyers of readymade garments for a dialogue at his office on Thursday. He expressed cautious optimism in metrics such as export volumes, remittances and cargo handling that have defied expectations to show double-digit percentage growth versus the previous year. Other factors such as law and order, labour relations and liquidity appear to be improving but continue to require close monitoring. Beyond that, structural constraints such as our port infrastructure, energy infrastructure or gaps in skills will take longer to resolve but for which, reforms in our decision-making processes should enable us to move faster than before.        The buyers’ representatives pointed out that this is the first time that they have had an opportunity to engage directly in this manner with government at a ministerial level.  They brought up weak brand protection, restrictive credit facilities for imports, and lack of a dedicated green energy plan for this sector as additional issues for the government to focus on. They expressed full support for the government’s agenda around labour standards and rejected the suggestion that their pricing policies could stand in the way of better wages. It was also mentioned that global brands with their own observations on the ground are well-placed to help narrate and project the true story of Bangladesh, as it is evolving right now, to the international audience, according to the Chief Adviser's press wing. Chief Justice calls for justice as a universal right at RULAA Council The Special Envoy thanked them for their support, especially on the backdrop of disinformation in certain arenas. Among others who were present in the meeting were Ziaur Rahman of H&M and Javier Santonja of Inditex.  

Workers of four garment factories in Gazipur blocked two highways in Gazipur on Wednesday, protesting retrenchment of workers and demanding payment of dues and reopening of closed factories. Assistant Police Superintendent of Gazipur Industrial Police Mosharraf Hossain said worker of  Taratex Limited garment factory in Tongi came out of the factory and blocked Dhaka-Mymensingh highway around 9am, demanding their overdue wages. Upon receiving the news, members of law enforcement agencies along with army personnel reached the scene and removed the workers from the highway after an hour. Workers of MM Knitwear Limited in Konabari area staged demonstration and went on work abstention, protesting retrenchment of some workers for their involvement in previous protests. Members of law enforcement reached there swiftly to bring the situation under control. Md. Azizur Rahman, the factory's security in-charge, and police constable Nahid Hossain suffered injuries when police tried to remove them from highway. In Kashimpur’s Sarabo area, workers of Beximco Industrial Park took to Kaliakair-Nabinagar highway, blocking it from 11:30 am to 4 pm. Police remained alert to prevent further disruption, while factory management negotiates with workers’ representatives to address ongoing grievances.

Proactive steps are necessary to support Ready-Made Garment (RMG) workers who are at risk of unemployment as automation continues to grow in Bangladesh’s garment sector. In the next two years, 80% of garment factory owners in Bangladesh plan to invest in automated machines, according to data from research which was presented by LightCastle Partners at a dialogue event held in Gulshan. This was presented at an event at a hotel in the capital’s Gulshan on Monday organised by  LightCastle Partners, an international leading business consultancy firm, in partnership with Policy Exchange Bangladesh. Automation in the sector is expected to grow by over 13% during this period. Despite the increase in efficiency and projected production increases of up to 22%, concerns about rising unemployment persist. Out of an average of 2,250 workers per factory, only 500 are expected to be directly involved with automation processes, leaving many workers at risk. Automation, while presenting challenges for the workforce, is also key to enhancing the industry’s global competitiveness. Govt plans to introduce pension for RMG workers: Asif Advanced technologies can significantly boost productivity, improve quality control, and lower operational costs, ensuring that Bangladesh’s RMG sector maintains its competitive edge internationally. Embracing automation allows the industry to meet increasing demand for high-quality products with shorter lead times—critical for international buyers. Zahedul Amin, co-founder and director of LightCastle Partners, delivered a keynote presentation titled "Future-Proofing RMG: Tackling Automation for Sustainable Growth and Worker Wellbeing." He highlighted the need for a balanced approach that supports industry competitiveness through automation while safeguarding the workforce through upskilling and reskilling initiative. The event emphasized the need for urgent action to address the potential impacts of automation on the workforce, calling for recommendations that ensure sustainable growth while protecting the livelihoods of garment workers. During his presentation, Zahedul Amin shared findings from a recent research that showed 93% of garment operators in Bangladesh are willing to work with automated machines, with 70% of female workers expressing interest in gaining new skills for operating modern machinery. All RMG factories except 3 open in Savar, Ashulia, Gazipur Dr. M Masrur Reaz, Chairman of Policy Exchange Bangladesh, moderated the dialogue, where industry leaders and experts discussed the pressing issues. Kazi Faisal Bin Seraj, Country Representative of The Asia Foundation, delivered the opening remarks, emphasizing the need for collective action to future-proof the RMG industry. The speakers highlighted a range of strategies for ensuring the RMG sector’s resilience in the face of technological changes, including prioritizing the procurement of updated technologies, enhancing occupational safety, and implementing upskilling and reskilling programs to transition workers into new roles. According to data from the Export Promotion Bureau, Bangladesh ranks second globally in ready-made garment exports. In the 2023 fiscal year, Bangladesh exported $47 billion worth of garments. The RMG sector contributed 10.35% to the country’s GDP in 2023, employing 4.1 million workers, 60% of whom are women. As Bangladesh's garment industry faces transformative changes, LightCastle Partners remains at the forefront of developing strategies that combine technological advancement with worker protection, ensuring a sustainable and competitive future for the sector.