RMG
CA's special envoy appreciates RMG buyers' role in challenging times
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.
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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.
2 weeks ago
RMG unrest continues in Gazipur, 2 highways blocked
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.
1 month ago
Automation: Stakeholders urged to be proactive amid fears of rising unemployment
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.
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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.
2 months ago
Unlocking China’s market: Strategies for Bangladesh to enhance exports
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.
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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.
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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.
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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.
5 months ago
Bangladesh’s RMG sector sets sustainability benchmark with 12 new “LEED Green Factories” in 2024
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.
6 months ago
PM Hasina advocates for enhanced direct RMG imports by Brazil to strengthen bilateral trade
Prime Minister Sheikh Hasina, in a meeting held on Monday (April 8, 2024) with the visiting Brazilian Foreign Minister Mauro Vieira and his delegation, underscored the significant potential for enhancing bilateral trade between Bangladesh and Brazil.
“There is immense scope to increase bilateral trade between the two countries,” she was quoted as saying.
The meeting took place at the Prime Minister's office, where Sheikh Hasina highlighted the opportunity for Brazil to augment its import of readymade garment (RMG) products directly from Bangladesh, thus eliminating the need for intermediaries and making the process more cost-effective.
The briefing to reporters post-discussion was provided by PM's speechwriter M Nazrul Islam.
He revealed that the Prime Minister expressed a desire to deepen the current bilateral relationship between the two nations. Noting the current trade imbalance heavily skewed in favour of Brazil — with Bangladesh importing substantial amounts of sugar, soybean oil, and cotton from Brazil and exporting only a minimal amount of RMG products in return — she pointed out the considerable scope for Brazil to diversify its imports to include not only more RMG products but also jute, jute goods, leather, and leather goods from Bangladesh.
Reflecting on the historical connections, Prime Minister Hasina remarked on Brazil's significant role as the first country in South America to recognise Bangladesh's independence in 1971, shortly after the Liberation War.
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She emphasised the shared perspectives and stances of Bangladesh and Brazil in various international forums.
The conversation also veered towards sports, with the Prime Minister expressing an interest in Brazilian football and seeking cooperation to elevate the standards of football in Bangladesh.
In a gesture of diplomatic goodwill, the visiting Brazilian Foreign Minister extended an invitation from Brazilian President Luiz Inácio Lula da Silva to Prime Minister Hasina to attend the final meeting of the G20 Task Force for the creation of Global Alliance against Hunger and Poverty in Rio de Janerio on 24th July. The prime minister accepted the invitation.
The G20 is made up of 19 countries and the EU. The 19 countries are: Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, the Russian Federation, Saudi Arabia, South Africa, Turkey, the UK, and the US. Brazil holds the Presidency in 2024.
The discussions further ventured into global political arena, with Vieira commending Bangladesh for its stance against the ongoing conflict in Gaza and aligning with Bangladesh's condemnation of the Israeli aggression as genocide.
“They (Israel) have violated all kinds of international norms, they bombed hospitals, continue killing in the shelter camps… this is not a war, this is genocide,” the PM was quoted as saying.
She mentioned that Israeli forces are not even sparing children, women and the elderly.
Praising the socio-economic progress of Bangladesh under Prime Minister Hasina's leadership, Vieira expressed Brazil's interest in learning from Bangladesh's development experience, noting the similarities between the two populous nations in their battles against poverty and hunger.
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The visit, marked by Vieira's presentation of a Brazil National Football Team jersey to Prime Minister Hasina, bearing her name, underscored the amicable discussions and the mutual desire to explore avenues for cooperation and shared growth.
Leading a delegation of high officials and a robust trade team, this is the Brazilian Foreign Minister’s first visit to Bangladesh, opening new chapters in the bilateral relations between Bangladesh and Brazil.
8 months ago
Danish Ambassador discusses collaboration opportunities in RMG sector with BGMEA chief
Ambassador of Denmark to Bangladesh Christian Brix Møller on Sunday met BGMEA President Faruque Hassan at the BGMEA Complex in and discussed issues of mutual interest.
Their discussions revolved around crucial issues related Bangladesh’s ready-made garments (RMG) industry, focusing on the current status, global market dynamics, challenges, and priorities for sustainable development.
Sammilito Parishad accords warm reception to RMG entrepreneurs who elected MPs in 12th National elections
The meeting also delved into the potential for enhanced collaboration between Denmark and Bangladesh, particularly in the areas of sustainability, circularity, and the integration of energy-efficient technologies within the garment industry.
The meeting also touched upon the preparation of Bangladeshi RMG and textile companies for the upcoming EU Due Diligence, said the BGMEA.
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Faruque Hassan apprised Ambassador Christian Brix Møller of BGMEA’s strategic vision to elevate the RMG industry’s position in the global market through product diversification, innovation, efficiency improvement, and skill development, with a paramount focus on sustainability.
He urged the Danish envoy to facilitate collaboration between BGMEA University of Fashion and Technology (BUFT) and leading Danish fashion institutes to enhance students’ knowledge and skills in key areas such as product and design development, along with the latest manufacturing technologies.
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The meeting was attended by Shams Mahmud, Chair, BGMEA Standing Committee on Foreign Mission Cell, Mohammed Kamal, Chair of BGMEA Standing Committee on Trade Fair, and Sanjay Kumar Naha, Director, Rose Intimates Limited.
Saadia Taufiq Sadi, Senior Trade Adviser, and Ali Asraf Khan, Supply Chain Specialist, from the Danish Embassy in Dhaka, were also present at the meeting.
10 months ago
Sammilito Parishad accords warm reception to RMG entrepreneurs who elected MPs in 12th National elections
The Sammilito Parishad accorded a grand reception to the garment entrepreneurs who have been elected the Members of Parliament during the 12th national elections, acknowledging their significant contributions to the country’s garment sector.
The special event was hosted in the Grand Ballroom of Radisson Blu Water Garden in Dhaka on January 26.
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The Sammilito Parishad extended hearty congratulations to the elected MPs, recognizing their role in the growth and prosperity of the garment industry.
The current state of the garment industry was discussed at the reception program, said a media release.
Cooperation of the elected MPs was sought in building a sustainable garment industry in Bangladesh.
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The 18 entrepreneurs of the garment sector who have been elected Members of Parliament in the 12th National Elections of Bangladesh are -- Salman Fazlur Rahman MP, Vice Chairman, Beximco Group, Tipu Munshi MP, Managing Director of Sepal Group; A K M Salim Osman MP, Chairman, Wisdom Attires Ltd; Abdus Salam Murshedy MP, Managing Director, Envoy Group; Md Tazul Islam MP, Founder, Fabian Group; Nasrul Hamid MP, Managing Director, Hamid Group; Md. Shahriar Alam MP, Founder, Renaissance Group; Morshed Alam MP, Chairman, Bengal Group; AK Azad MP, Managing Director, Ha-Meem Group; Abdus Salam MP, Founder Chairman, Well Group; Anisul Islam Mahmud MP, Chairman, Shasha Denims; Chayan Islam MP, Chairman, Sparrow Group; Abdul Momin Mondol MP, Managing Director, Mondol Group; Fayzur Rahman (Badal) MP, Managing Director, Tusuka Group; Md. Khosru Chowdhury MP, Chairman, Nipa Group; Dewan Zahid Ahmed MP of Axis Knitwear Ltd; Md. Mojibor Rahman MP of Smart Group; and Md Abdul Wadud MP of A&A Fashion Sweaters Ltd.
Tipu Munshi MP, President of Sammilito Parishad, chaired the event which attended by Md. Atiqul Islam, General Secretary of Sammilito Parishad and Mayor of Dhaka North City Corporation (DNCC) Md. Siddiqur Rahman, former President of BGMEA and also the Chief Election Coordinator of the Sammilito Parishad for the BGMEA Election 2024-2026.
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Former Presidents of BGMEA Redwan Ahmed, Mostafa Golam Quddus, Engineer Kutubuddin Ahmed, Quazi Moniruzzaman, S.M. Fazlul Hoque, Md. Shafiul islam Mohiuddin, BGMEA President Faruque Hassan, Senior Vice President of BGEMA and Panel Leader of Sammilito Parishad S. M. Mannan (Kochi) were also present at the event.
A good number of RMG entrepreneurs also attended the event.
10 months ago
RMG workers in Gazipur demonstrate for wages set by govt, gridlock on Dhaka-Tangail highway
Gridlock was formed as vehicular movement on Dhaka-Tangail highway remained suspended for over an hour due to workers of garment factories demonstrating in Gazipur’s Konabari area, demanding payment of salaries as per the wages set by the government.
Mohammad Ziaul Islam, officer-in-charge of Konabari Police Station, said workers of garment factories in the Konabari area took to the street around 8 am to press home their six-point demand including payment of salary as per the government-announced wage structure.
Read: Focus on value addition in RMG industry needed more to enhance global competitiveness: BGMEA President
The other demands include an eight-hour workday instead of ten hours.
A long tailback has been created on both sides of the Dhaka-Tangail highway following the demonstration.
However, vehicular movement normalised as police drove the demonstrating workers away from the highway after assuring them of taking steps regarding their demands.
Read: Despite anticipated challenges in 2024, int’l market demand for RMG products could rise: BGMEA Director
11 months ago
Bangladesh top garment exporter in UK market in Jan-Oct: BGMEA
Bangladesh has retained the status of the top exporter of garment items in the UK market in consideration of quantity in the period of January–October 2023.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) revealing the UK’s import data showed Bangladesh exported 178.39 million kilogrammes (kgs) of garment items to the UK while China shipped 159.25 million kg.
In this regard, BGMEA President Faruque Hassan told UNB that considering the performance of the UK sourcing countries, China is at the top. It is followed by Bangladesh, Turkey, India, and Pakistan.
Bangladesh had secured its position as the top garment supplier in Europe in terms of volume (quantity) in 2022.
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“Our position in the UK market remains the same because, in 2022, the UK's imports from Bangladesh exceeded imports from China, and this trend continues in the first 10 months of 2023,” he said.
However, Bangladesh's share of the UK's total apparel imports is 23 percent in terms of value and 28 percent in terms of volume, said Faruque.
“So far, we have been able to secure our position through potential cost savings, timely product delivery, and maintaining quality, which has kept us ahead of the competition in the fashion world,” said BGMEA President.
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He said that the UK market still has opportunities as they approach the saturation point, and the global trade policy and competitive landscape will change over the coming decades. The key to capturing more global market share and sustaining growth will be to shift to higher-value products and higher-value markets by acquiring capabilities in backward and forward linkage industries.
Bangladesh can add higher value by moving into the mid-high price segment of the market, where a T-shirt or a polo shirt can fetch higher FOB revenue only because of the complex process (e.g., advanced fabrication, embroidery, printing, even functionality), he said.
Incidentally, it would also like to mention that, considering the average price of UK apparel imports, Bangladesh offers the lowest price compared to other competitors.
“Our average price is 21.39 percent lower than China, 32 percent lower than Turkey, and even 26.75 percent lower than India. This not only proves that we are not competitive in the global market, but at the same time, our absence in the mid-high price segment of the market is starkly evident. At this point, we need to strategise to capture the mid-high price segment to take the industry forward,” said BGMEA President.
Despite anticipated challenges in 2024, int’l market demand for RMG products could rise: BGMEA Director
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11 months ago