United News of Bangladesh

Denmark has pledged to continue supporting Bangladesh ready-made garment (RMG) sector and the development of green technology. Denmark stressed partnership with Bangladesh in clean and green technology, expressing a desire to deepen this cooperation, particularly in renewable energy, energy efficiency, circular economy, sustainable water management, climate change adaptation, and information and communication technology (ICT). These remarks came while Christian Brix Møller, Ambassador of Denmark to Bangladesh, met with Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), on Monday at the BGMEA Complex in Dhaka to discuss avenues for collaboration within the ready-made garment (RMG) sector. The discussion focused on the current state of Bangladesh's RMG industry, global market dynamics, emerging challenges, and strategic priorities for sustainable growth. During the meeting, Ambassador Møller reaffirmed Denmark's commitment to allocating 0.7 percent of its GDP to the development of less-developed countries, a pledge consistently honored despite global and domestic political and economic challenges. Key topics of discussion included enhancing sustainability and circularity in the RMG sector and improving energy efficiency within the industry. BGMEA President Mahmud Hasan Khan highlighted the challenges Bangladesh faces in accessing Generalized System of Preferences Plus (GSP+) facilities following its graduation from LDC status, specifically raising concerns about GSP+ threshold criteria. He requested Denmark's support in advocating for Bangladesh's position to EU policymakers. Bangladesh now home to 253 LEED-certified RMG factories Khan also expressed concern over a noticeable decline in garment exports from Bangladesh to the Danish market since the 2023-2024 fiscal year and urged the Ambassador to investigate this trend. Furthermore, he sought the Ambassador's support in encouraging international brands to endorse a Unified Code of Conduct for the apparel sector. The BGMEA President emphasized that such a code would streamline audit processes, alleviate pressure on factories, and foster a more ethical, sustainable, and responsible industry. The meeting also reviewed the progress of ongoing development initiatives in Bangladesh supported by the Danish government, including projects like CREATE, PaCT (Partnership for Cleaner Textile), and SWITCH2CE, all geared towards green transformation and a sustainable industrial economy. Detailed discussions were held regarding energy audits currently being conducted in various industrial factories, particularly in the garment sector, with Danish assistance. Emphasis was placed on ensuring these audits provide accurate and reliable data. Ambassador Møller requested the BGMEA President's cooperation in this regard, noting that the audits would analyze factory energy consumption and recommend energy-saving measures, including the feasibility of rooftop solar projects, benefiting both BGMEA and BKMEA members. BGMEA President Mahmud Hasan Khan extended his sincere gratitude to the Government of Denmark for its continuous support in Bangladesh's development, especially concerning the green transition of the garment sector. Also present at the meeting were BGMEA Vice President Md. Rezwan Selim and Director Sheikh Hossain Muhammad Mustafiz, according to a press release.

US President Donald Trump on Monday slapped a 35% tariff on Bangladeshi goods, 2% lower than his initial rate announced three months ago, but significantly higher than close rival Vietnam (in the field of RMG), which recently secured a trade deal with the US under which its goods will be charged a tariff of 20%.  Trump made the much-anticipated announcement on his Truth Social account, by publishing his letter dated July 7 to Chief Adviser Muhammad Yunus at 2.36am (Tuesday) Bangladesh time. He posted identical letters to other world leaders revealing the tariff rates for their respective countries, which said the new rates would be effective from August 1. Apart from Bangladesh, it was learned on Monday that imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia at 35%, Indonesia at 32%, South Africa and Bosnia and Herzegovina at 30% and Japan, South Korea, Kazakhstan, Malaysia and Tunisia at 25%. More letters may be forthcoming.  The letters warned Trump’s counterparts to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs. “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” Trump wrote in the letter to Yunus. Trump to put 25% tariffs on Japan and South Korea, new import taxes on five other nations A Bangladeshi delegation remains in Washington for last-ditch talks with the US Trade Representative's office, but Trump’s word could be final for now. He did however add: “If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter.”  Meanwhile, the AP reports that following a now well-worn pattern, Trump plans to continue sharing the letters sent to his counterparts on social media and then mail them the documents, a stark departure from the more formal practices of all his predecessors when negotiating trade agreements. The letters are not agreed-to settlements but Trump’s own choice on rates, a sign that the closed-door talks with foreign delegations failed to produce satisfactory results for either side, according to AP. BRICS summit overshadowed by Middle East tensions, condemns tariffs

Gas supply to readymade garment (RMG) factories and other industries across the country is set to improve from today (Saturday), said Energy Adviser Muhammad Fouzul Kabir Khan on Saturday. The adviser made the announcement while speaking to journalists after observing the power and energy situation in several industrial zones, including Ashulia and parts of Gazipur. “This would have happened a day or two earlier, but it wasn't possible to unload gas from the ship due to rough seas. Gas supply will increase from today (Saturday). Already, 50 MMSCFD has been added and another 100 to 150 MMSCFD will follow,” he said.  RMG workers stage protest at Kakrail demanding arrears, Eid bonus He also disclosed that four additional LNG cargoes are being brought in to tackle the prevailing gas crisis. During his visit to Towel Tex Limited factory in the Chandra area of Kaliakair Upazila, Gazipur, the adviser acknowledged the concerns raised by industrialists. “We found some truth in the complaints raised by industrial owners regarding gas shortages. We are trying to make adjustments for this,” he said. Explaining the delay in stabilising supply, he added, “Due to unfavourable weather conditions at sea, storage was not possible. We hope the situation will improve by this evening, and it will be monitored.” In addition to efforts to enhance supply, the adviser warned of strict action against illegal gas connections. “Punitive measures will be taken against those involved in illegal gas connections, and such connections will be disconnected,” he said. Earlier, following an inspection of the Dhaka Palli Bidyut Samity-1 office, the advisor addressed the ongoing protests by Palli Bidyut Samity officials and employees. “A meeting will be held tomorrow to discuss the relationship between Palli Bidyut and REB. A committee led by the Vice-Chancellor of BRAC University has been formed. That committee will present its final report tomorrow. We will take necessary action after receiving that report,” he said. He urged stakeholders to refrain from disruptive activities. “We are working on these issues, and they will be resolved quickly. There is no benefit in holding processions and meetings over this. Such actions only cause harm. Earlier, electricity supply was stopped in about 26-27 locations. This was an act of sabotage. For that reason, the government was forced to take some measures.”  RMG workers must be paid bonus by May, salary by early June: Home Adviser The adviser was accompanied during the inspection by Titas Gas Managing Director Parvez Ahmed, Energy Ministry Secretary Saiful Islam, Palli Bidyut Samity Chairman Major General Azim and other senior officials from the ministry and relevant departments.

The European Union's apparel imports saw a 3.63% decline from January to August 2024 compared to the same period in 2023, reflecting a broader global trend of reduced apparel consumption. According to the latest data, total imports dropped from US$ 61.56 billion to US$ 59.32 billion. Bangladesh, one of the leading apparel suppliers to the EU, experienced a 3.53% decrease in exports, with the value of shipments falling to US$ 12.91 billion during this period, according to former BGMEA Director Mohiuddin Rubel. Chinese Textile & Apparel Industry delegation visits BEPZA This decline mirrors the overall drop in EU apparel demand but raises questions about shifting dynamics in global supply chains. China, the largest exporter to the EU, saw its apparel imports decrease by 4.10% to US$ 15.62 billion. Other key suppliers like Turkey and India also faced declines, with Turkey’s exports down by 7.52% to US$ 6.84 billion and India’s down by 2.73% to US$ 3.34 billion. Vietnam reported a 2.09% decrease, with exports totaling US$ 2.65 billion. USITC delegation meets BGMEA leaders, discuss Bangladesh's standing and competitiveness in global apparel market In contrast, some countries bucked the downward trend. Cambodia's exports to the EU surged by 12.78%, Pakistan saw a 7.3% increase, and Morocco experienced a 6.09% rise, signaling a potential shift in sourcing preferences within the global apparel market. These variations among key suppliers suggest nuanced changes in global apparel supply chains.

Chinese telecommunications giant Huawei Technologies is willing to provide technical solutions and support to the RMG industry of Bangladesh in increasing the capacity of renewable energy generation in the sector, says BGMEA on Thursday. A delegation of Huawei Technologies (Bangladesh) Ltd met President of Bangladesh Garment Manufacturers and Exporters association (BGMEA) Faruque Hassan at BGMEA’s Gulshan office recently and expressed their interest. The Huawei delegation included Li Zongsheng (Jason), Board Member;  Liang Weixing, Managing Director for Digital Power Business Group; Najia Samantha Islam, Manager, Public Affairs and Communications; and Md Nur Alam, Account Manager, Bangladesh Digital Power Business. Also read: Huawei recognised 2022 Gartner Peer Insights Customers' Choice for 3rd straight year BGMEA Vice President Miran Ali was also present at the meeting. They had discussions on possible scope of increasing renewable energy usage by using solar plants in the garment industry and how Huawei can provide its technical solutions to achieve the objective. BGMEA President Faruque Hassan mentioned the impressive progress of Bangladesh’s RMG industry in terms of sustainability and continuous strides in pursuing excellence in the area. He said Bangladesh is proud to have the highest number of green garment factories in the world with more factories are in the process of becoming green. Also read: Seeds for the Future winners visit Huawei Bangladesh headquarters “However, instead of becoming complacent, we have continued our efforts in making our RMG industry green more and more with adaptation of environment-friendly and energy and resource efficient technologies,” said the BGMEA chief. A green factory helps to reduce the energy usage by 40 percent and water consumption by more than 30 percent while it also emits less carbon, thus ensuring environmental safety, he said. The BGMEA President requested Huawei Technologies to bring innovative and cost-effective solar plants to garment factories at affordable prices. Read Akij sets up rooftop solar plant with Huawei's technology

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has signed an agreement with LightCastle Partners for conducting a feasibility study on “Establishing a Virtual Marketplace Platform for the RMG sector”. The study will analyze the gaps in policies, market potential and readiness of the sector, and include a suitable business model and an action plan to implement operations.  Also read: BGMEA claiming 100 percent salaries, bonuses paid to RMG workforce Faruque Hassan, President of BGMEA said revolution in digital technologies has led notable changes in business landscape, creating new trends and opportunities, especially rapid rise in online marketplace.  "Companies have been increasingly going online with advancement of digital technologies and the Covid-19 accelerated the pace of digital transformation, leading to a boom in the digital and e-commerce sectors," he said.  Adaption to the changing trade is the key to sustain and seize new opportunities, said the BGMEA chief.  Developing a virtual market platform will boost sales of the RMG sector and rebound from the effects of the pandemic. Also read: Bangladesh to retain fame as safe, sustainable apparel sourcing destination: BGMEA "This study will help to identify the challenges and opportunities of the sector to establish an online marketplace.” Zahedul Amin, Co-founder & Director, LightCastle Partners, said Bangladesh’s apparel sector must retain its competitiveness advantage by harnessing technology driven market development, in order to leap frog ahead of its competitors. The key officials from LightCastle Partners Ivdad Ahmed Khan Mojlish, Managing Director, Zahedul Amin, Co-founder and Director and Rafayet Khan, Business Consultant were present during the agreement signing.  The study will be funded by IFC’s Partnership for Cleaner Textile (PaCT II) program, supported by the government of Denmark through the Danish International Development Agency (DANIDA) and the Embassy of the Kingdom of the Netherlands in Bangladesh. 

A delegation of BGMEA headed by President Faruque Hassan met with President of Amfori Linda Kromjong and Senior Legal Advisor – Trade and Customs Stuart Newman in Brussels on Tuesday. This is for the first time any delegation from BGMEA visited the Amfori headquarters and held a high-level meeting with the leadership of Amfori which represents over 2,400 retailers, importers, brands and associations from more than 40 countries, said a media release. BGMEA Vice President Miran Ali and Directors Asif Ashraf, Tanvir Ahmed and Abdullah Hil Rakib were present at the meeting. READ: BGMEA for promoting RMG industry globally They discussed possible areas of collaboration between BGMEA and Amfori to enable the RMG industry of Bangladesh to pursue more excellence in social and environmental sustainability. The discussions covered a range of issues related to the textile and apparel industry, its challenges and opportunities. They highlighted the success stories of the industry, especially its world-class standards in workplace safety and transparency. The BGMEA leaders requested the Amfori’s support in its working with the European Commission with regard to the Everything But Arms facility for Bangladesh. READ: Repair roads in industrial areas, reduce traffic jam, BGMEA urges RHD They also urged Amfori to promote Bangladesh as a safe and sustainable apparel-sourcing destination among its members.

Entrepreneurs on Sunday demanded  an end to the existing discrimination in tariff rates on the import of fire safety equipment. They made the demand at the first meeting of the FBCCI Standing Committee on Fire Safety, Disaster and Explosion held at FBCCI. They were referring to the fact that the government has only allowed tax benefits for the import of fire safety equipment to the garment sector .  But the image of Bangladesh abroad is tarnished when fires break out in other industries as well.  Moreover, they said, workers in all sectors have equal rights to safety and security.  Therefore, there should be no such discrimination in the tariff rate on the import of fire safety equipment, they demanded. Also read: FBCCI to work for restoring confidence in e-commerce sector The committee chairman Md. Niaz Ali Chisty said it is important for factories in all sectors to have fire protection systems to ensure safe industrialization in the country.  But other than the garment industry, other industrialists have to bear the heavy tax burden of importing these much-needed equipment, he said. The total tax incidence is 58.6 percent in fire door, fire alarm cable and hose reel imports, 37 percent in gate valve, 26.2 percent in fire pump and fire alarm system (detector), 11.05 percent in fire extinguisher and 31 percent in ABC dry powder, he informed. Due to high tax incidence, he said, it is often not possible for small and medium entrepreneurs to take adequate fire protection measures. Hence, he demanded equal benefits for all sectors like the readymade garment industry. Separate permits, required for the import of carbon dioxide, foam, dry powder and other fire-resistant gases and chemicals result in harassment and time delay for the importers. As there is no BSTI laboratory in Chattogram, chemicals have to be sent to Dhaka for testing, which takes an additional 8 to 10 days. Prices have risen due to fares at ports and containers for those days. Speaking as the chief guest at the meeting, FBCCI Vice President Md. Amin Helaly said that the development of Bangladesh has been largely informal. But now it is time to ensure security to the industry.  He urged the standing committee to prepare an action plan to ensure fire safety in the factory.  He also recommended starting sector-based training by preparing a training manual. At the same time, the vice-president urged the importers to take initiative to manufacture fire safety equipment locally. Abu Motaleb, director-in-charge of the committee, said there could be various reasons behind the fire at the factory.  Also read: Automobile industry lacks policy to grow in Bangladesh: FBCCI But first of all, the owner is blamed. He said the standing committee would soon submit a policy to the FBCCI identifying the problems and action plan to ensure fire safety in the factory, he added. A sub-committee is also formed at the meeting to formulate that policy. During the meeting, Brig Gen. (retd) Abu Nayeem Md Shahidullah, advisor of FBCCI's Safety Council, said that FBCCI has already contacted ILO to start safety training in the industry. The government is also considering setting up a national level one-stop service in order to provide all fire safety certificates and permits, he informed. FBCCI Director Harun Or Rashid, Secretary General Mohammad Mahfuzul Hoque, Standing Committee Co-Chairman Md. Wahid Uddin, Mohammed Shahjahan, Abul Hossain, M Mahmudur Rashid, Zakir Uddin Ahmed, Mohammad Shamsul Haque Jamil, Mohammad Awlad Husain Rajib, Mohammad Monzur Alam, Tanjir Ahmmed Tohin and other members of the committee were present in the meeting.

Leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have sought government support in addressing RMG sector’s challenges. Leaders of BGMEA headed by President Faruque Hassan met with M. Tofazzel Hossain Miah, Senior Secretary at the Prime Minister’s Office in Dhaka on Sunday and discussed the relevant issues, said the apex body of the apparel sector on Monday. BGMEA Vice Presidents Shahidullah Azim, Khandoker Rafiqul Islam and Md. Nasir Uddin were present at the meeting. They apprised the senior secretary about the present business situation and challenges being faced particularly by the RMG industry in Bangladesh and possible course of actions to deal with the challenges. Faruque Hassan especially drew the attention to the issues and problems which are being faced by the garment industry. READ: 6th BGMEA Cup begins on Jan 20 He said the apparel industry of Bangladesh is passing a very important period when many challenges are on one side and enormous opportunities on the other side. He urged for government initiatives and effective actions in tackling the challenges and making use of the opportunities. The BGMEA leaders also requested for government steps to further improve ease of doing business, especially addressing the bottlenecks, reducing time, process and cost in all criteria of the doing business. READ: It's high time to focus more on value-added, high-end apparels: BGMEA The senior secretary listened to the BGMEA leaders and assured of cooperation and support in dealing with the issues and problems.

Multiple audits are not only waste of time and money, but also create audit fatigue making compliance difficult for enterprises, according to BGMEA,  the apex body of the apparel industry. This has led to growing calls for converging the protocols to audit garment factories in the industry, it said. Against such a backdrop, a committee has been formed jointly by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) for working on a unified code of conduct for RMG industry. Read: Bangladesh’s next development phase to depend hugely on industrialisation: BGMEA The leaders of BGMEA and BKMEA held a meeting on Sunday where they had discussions on the issue of unified code of conduct and formed the committee. BGMEA President Faruque Hassan presided over the meeting which was also attended by BGMEA Vice President Shahidullah Azim, Vice President Miran Ali, Director Asif Ashraf, BKMEA Executive President Mohammad Hatem, Vice President Fazlee Shamim Ehsan, Vice President Md. Akhter Hossain Apurbo, and Director Imran Kader Turjo. The 11-member committee headed by BGMEA Vice President Miran Ali will carry out thorough assessment of feasibility of a common code of conduct for social audits including national laws, rules, and policies and international conventions such UNGP along with buyers code of conduct and third-party audit protocols. Read:Monthly RMG production capacity to reach $7/8bn soon: BGMEA The committee will take cognizance of the local context while adhering to local and international principles with utmost consideration. The committee will also engage with international stakeholders including brands, trade associations, academia and social partners to formulate a feasible path to end the audit fatigue.