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.

Bangladesh faces significant hurdles in benefitting from duty-free market access to China, the world’s second-largest economy, due to various systemic and strategic issues. Business leaders emphasize the necessity of signing a Free Trade Agreement (FTA) with China to boost Bangladeshi exports. A recent study by the Research and Policy Integration for Development (RAPID) revealed that Bangladesh could potentially earn an additional $27 billion by exporting quality and diversified goods to China, provided its market share increases to 1 percent. However, the report also identifies several critical barriers preventing this growth. Bangladesh to seek $7 billion fund from China to boost trade in business summit during PM's visit One primary obstacle is Bangladesh’s heavy reliance on the ready-made garment (RMG) sector. Although China imports $10 billion worth of garment items, Bangladesh’s inability to meet high-quality standards limit its export success. “China is the top garment exporter to the USA, EU, and UK, while Bangladesh’s exports rely 84 percent on garments,” noted Dr. MA Razzaque, Chairman of RAPID. Dr. Razzaque highlighted that China prefers high-quality garments from Italy and other European countries, importing around $10 billion of such products. To penetrate the Chinese market, Bangladesh must diversify its exports and improve product quality. He emphasized the need for aggressive policies, including attracting China-oriented investments and signing trade agreements. Bangladesh holds the right to decide on Teesta project; China to accept any decision: Ambassador Yao Other significant barriers are: - Lack of integration with Chinese retailers. - Insufficient participation in marketing, sales, and after-sale services. - Cultural and language barriers. - Stringent Chinese labeling and packaging regulations. Dr. Razzaque also pointed out the price competitiveness issue, noting that Chinese products often have lower prices than similar quality Bangladeshi products. The burgeoning e-commerce sector in China represents another challenge, as Bangladeshi entrepreneurs need better skills to tap into this market effectively. Dr. Razzaque suggests that encouraging Chinese investors to set up manufacturing hubs in Bangladesh could be a strategic move. These factories could produce goods for export back to China and other countries, thus boosting Bangladesh’s export volumes. PM Hasina’s upcoming visit to boost China-Bangladesh cooperation on bilateral, regional and global issues, says Ambassador Al-Mamun Mridha, General Secretary of the Bangladesh China Chamber of Commerce and Industry (BCCCI), echoed these sentiments. He mentioned that some Chinese investors are considering shifting their manufacturing industries to Bangladesh, recognizing it as a significant market for Chinese products. To attract more Chinese investment, Bangladesh is organizing a trade and investment summit in Beijing during Prime Minister Sheikh Hasina’s state visit from July 8 to 10. Mridha hopes that establishing Chinese factories in Bangladesh will eventually increase the volume of Bangladeshi exports to China. Currently, Bangladesh imports around $24 billion annually from China, while its exports to China remain below $1 billion. To address this trade imbalance, Bangladesh plans to offer lucrative incentives to Chinese investors in sectors such as ceramics, leather, pharmaceuticals, electric cars, high-end garments, and household appliances. Enhancing Bangladesh’s access to the Chinese market requires strategic diversification, quality improvements, and strong bilateral trade agreements. The upcoming summit and potential Chinese investments could pave the way for increased exports, ultimately benefiting Bangladesh’s economy.

In the first five months of 2024, Bangladesh's readymade garment (RMG) industry has achieved a significant milestone in sustainable fashion, with 12 factories earning LEED certification. LEED (Leadership in Energy and Environmental Design) is a globally recognized green building rating system that emphasizes environmental responsibility and energy efficiency. This recent accomplishment brings Bangladesh's total to 218 LEED-certified green factories, underscoring the country's commitment to green initiatives within the garment sector, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Mohiuddin Rubel. RMG Sustainability Council holds meeting to discuss issues affecting industry Of the 218 certified factories, 84 have achieved the highest, platinum rating, 120 have earned gold, 10 silver, and 4 are certified, as reported by the BGMEA. In the first five months of 2024, eight of the newly certified factories received the platinum rating, while the remaining four were awarded gold. Notable performers include S.M. Sourcing with 106 points and Green Textiles Limited Unit 4 with 104 points. Other high scorers include Integra Dresses and Knit Asia Limited, both achieving 99 points, Remi Holdings Ltd with 97 points, and Fatullah Apparels, also scoring 97 points. Bangladesh’s achievement positions the country as a leader in the global sustainable fashion movement, with 56 out of the 100 LEED-certified green factories worldwide located here, according to BGMEA. This includes 9 of the top 10 and 18 of the top 20 LEED-certified factories globally, based on BGMEA data. RMG exports up by almost 5pc in FY 2023-24 The geographic distribution of these certifications within Bangladesh illustrates the RMG industry's widespread commitment to sustainability. By proactively achieving LEED ratings, Bangladesh's garments industry is setting a benchmark for environmental stewardship, positioning the country as a key player in the global push for more sustainable manufacturing practices.