RMG
Garment industry leaders warn tariffs on yarn may worsen crisis
Leaders of the country’s apparel trade bodies, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), on Monday strongly opposed recent recommendations to restrict yarn imports.
They said any attempt to force the purchase of local yarn through tariff barriers would undermine the global competitiveness of the garment industry and disrupt its integrated supply chain.
The leaders expressed their concern at an emergency press conference at a Dhaka hotel.
Selim Rahman, acting president of BGMEA, said exporters prefer local yarn if its price matches the global market but imposing new tariffs or restrictions to support local mills would create a crisis.
“If local yarn is available at global market rates, we will not import. But trying to force local yarn sales artificially is not a solution. It will only worsen the crisis,” he said.
He urged the government to support the textile sector through cash incentives, reliable energy supply, and favourable tax and interest rates instead of imposing duties on yarn imports.
He warned that BGMEA might take ‘tough measures’ if these concerns are ignored.
Mohammad Hatem, president of BKMEA, said price differences between local and imported yarn have always existed but the situation worsened after the reduction of cash incentives.
He criticised the Commerce Ministry for recommending restrictions on blended and man-made fiber (MMF) yarn, pointing out that local production in these categories is still insufficient. “If you stop yarn imports artificially and people start importing finished fabric instead, what will you do?” Hatem asked.
The BKMEA leader also raised concerns over the shrinking Export Development Fund (EDF) which has been cut from $7 billion to $2 billion under IMF conditions.
He said many businesses still cannot access the remaining funds.
Garment accessories sector posts record $7.45bn export earnings in FY25: BGAPMEA
Hatem expressed frustration over the lack of support from the financial sector.
Highlighting regional competition, he noted that India continues to provide strong incentives to its textile and apparel sectors despite graduating from LDC status.
He questioned why Bangladesh cannot implement similar support to sustain its top-earning export sector during this transition period.
8 days ago
Bangladesh's garment exports to Europe exceed €18 billion, growing over 7.5%
The European Union’s apparel import market witnessed a significant reshuffling in 2025, as Bangladesh’s exports to the bloc climbed to €18.06 billion despite a broader trend of falling unit prices and aggressive competition from China.
According to the latest Eurostat data for the period of January to November 2025, the EU's total apparel imports grew by 3.93 percent, reaching a total value of €82.94 billion. While the market saw a robust 11.60 percent increase in volume, the average unit price for garments fell by 6.88%, signaling a highly competitive, price-sensitive environment for global suppliers.
Bangladesh, the EU's second-largest apparel supplier, saw its export value rise from €16.78 billion in 2024 to €18.06 billion in the first eleven months of 2025—a growth of 7.65 percent. This value growth was largely volume-driven, with an 11.26 percent increase in the quantity of goods shipped, even as the country faced a 3.25 percent decrease in unit prices.
However, data from the end of the period suggests a cooling trend. A comparison between November 2024 and November 2025 reveals a sharp 10.87% drop in export value and a 12.27% decline in unit prices, highlighting the mounting pressure on Bangladeshi manufacturers to lower costs.
Garment accessories sector posts record $7.45bn export earnings in FY25: BGAPMEA
The report highlights a strategic pivot by China. Facing ongoing challenges in the United States market, China has intensified its focus on Europe. Chinese apparel exports to the EU reached €24.42 billion, marking a 6.55 percent growth in value. Most notably, China saw a massive 15.73 percent surge in export volume, supported by a 7.93 percent reduction in unit prices.
The sourcing landscape across Asia showed varying results.
Vietnam recorded a healthy 10.10 percent growth, reaching €4.02 billion. Unlike its neighbors, Vietnam saw a 4.19 percent increase in unit price, likely reflecting a shift toward higher-value garments.
Turkey struggled significantly, facing an 11.31 percent decline in exports to the EU, totaling €7.66 billion.
India, Pakistan, and Cambodia all showed substantial growth rates, contributing to the overall volume surge in the European market.
Global demand crunch pinches RMG, exports stagnant in first 5 months of fiscal at $16bn
"The data reflects a complex environment where volume is up, but margins are being squeezed," noted Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange Ltd.
"While Bangladesh remains a key player, the aggressive pricing strategies from competitors like China and the recent dip in November figures suggest that staying competitive will require a careful balance of volume and value-addition," he said.
10 days ago
Garment accessories sector posts record $7.45bn export earnings in FY25: BGAPMEA
Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) on Wednesday announced a record export earning of $7.45 billion in the 2024-25 fiscal year, with around $1 billion coming from direct exports.
The figures were unveiled at the inaugural ceremony of the 15th GAPEXPO which opened at the International Convention City Bashundhara (ICCB) in the capital.
The four-day trade show will run until January 17.
BNP Standing Committee Member Amir Khosru Mahmud Chowdhury, National Board of Revenue (NBR) Chairman Abdur Rahman Khan, BGMEA Acting President Selim Rahman, BKMEA President Mohammad Hatem and Bangladesh Association of Banks (BAB) Chairman Abdul Hai Sarker, among others, attended the opening ceremony.
Industry leaders said the accessories and packaging sector has become a backbone of the country’s primary export earner, the ready-made garment (RMG) industry.
They noted that the sector currently employs more than 700,000 people and that BGAPMEA now represents over 2,000 member factories.
Association officials said Bangladesh has made major progress in import substitution.
Previously, sourcing accessories from abroad involved high costs and long lead times but the local industry is now capable of meeting the entire internal demand of the export sector, they said.
Garment sector hits green milestone with record 38 LEED certifications in 2025
The organisers also underscored the importance of the government’s ‘Product of the Year’ initiative, which provides policy support and incentives to promising sectors.
BGAPMEA welcomed the government’s decision to declare paper packaging products as the “Product of the Year” for 2026, calling it a historic milestone that is expected to attract fresh domestic and foreign investment, promote sustainable industrial growth, create new jobs and further boost export earnings.
13 days ago
Global demand crunch pinches RMG, exports stagnant in first 5 months of fiscal at $16bn
Bangladesh's Readymade Garment (RMG) exports saw near-stagnant growth in the first five months of the current fiscal year, clocking in at US$ 16.13 billion for the July–November period of FY 2025–26, an increase of only 0.09 percent over the corresponding period last year.
Data released by the Export Promotion Bureau (EPB) highlights mixed fortunes across key global markets, with a challenging environment in the largest export destination, the European Union (EU), and a notable decline in non-traditional markets.
The slowdown in overall export growth is primarily attributed to a contraction in demand from the EU, which remains the single largest market for Bangladesh's apparel.
European Union (EU): Exports to the EU, which holds a 48.57 percent share of total RMG earnings, reached US$ 7.83 billion. However, this figure represents a year-on-year negative growth of -1.03 percent, signaling softening demand from the major bloc.
United States (USA): Maintaining its position as the second-largest market, the USA provided a crucial source of growth. Exports amounted to US$ 3.22 billion (19.98 percent share), registering a 3.06 percent year-on-year increase.
UK and Canada: Both markets showed positive momentum, with the United Kingdom reporting US$ 1.85 billion (11.46 percent share) with a 3.00 percent growth, and Canada achieving US$ 554.47 million (3.44 percent share) with a robust 6.51 percent year-on-year rise.
Concerns are rising over the performance in emerging destinations. Exports to non-traditional markets, critical for strategic diversification, collectively saw a decline of -3.19 percent over the five-month period.
"The struggle in traditional markets, coupled with a decline in non-traditional territories, underscores the urgent need for a renewed focus on market diversification and enhancing value-addition in our products," a sector analyst noted.
The Woven vs. Knit Divide: Even within the factories, the experience is varied. The Woven segment, which produces higher-value items like shirts and trousers, managed a slight growth of 1.44 percent. This means the tailors and cutting masters specializing in these products are relatively safer.
The Knitwear segment (T-shirts, sweaters), however, saw a contraction of -1.00 percent. Since Knitwear often relies on high-volume, quick-turnaround orders, this decline suggests that casual consumer spending is tightening, leaving factory workers here facing greater instability.
The marginal overall growth of 0.09 percent indicates a period of stagnation for the RMG sector, the country's economic backbone, as manufacturers navigate global headwinds and challenging price negotiations.
1 month ago
Nuvista Pharma joins hands with BGMEA-Olwel to provide digital healthcare for RMG workers
Nuvista Pharma PLC has partnered with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Olwel BD Ltd. to launch a Digital Hospital Pilot Project aimed at improving access to primary healthcare and mental health support for Ready-Made Garments (RMG) workers and their families across Bangladesh.
Nuvista Pharma PLC’s Managing Director S M Rabbur Reza, Olwel BD Ltd Chairman Mojahedul Hoque Abul Hasanat & BGMEA Senior Vice President Inamul Haq Khan signed the MoU on Wednesday.
Through this initiative, Nuvista Pharma will help strengthen access to timely gynecological, reproductive, and specialist healthcare services for workers—particularly women—by supporting a structured referral network and promoting evidence-based care pathways.
This partnership reflects Nuvista’s long-standing mission to enhance community health and wellbeing through impactful, accessible healthcare solutions.
S M Rabbur Reza, Managing Director, Nuvista Pharma PLC said, ‘We believe every worker deserves access to timely and quality healthcare. This collaboration allows us to reach RMG workers—especially women with essential services that support both their physical and mental wellbeing.’
Olwel BD Ltd. will operate the digital healthcare platform, providing 24/7 GP consultations, secure electronic health record (EHR) management, follow-up services, and factory-level demonstrations.
Mojahedul Hoque Abul Hasanat, Chairman, Olwel BD Ltd. said, ‘Our mission is to make healthcare accessible anytime and from anywhere. By integrating our digital platform into RMG factories, we aim to remove barriers workers face when seeking care and create a more responsive health ecosystem.’
Chinese delegation meets BGMEA leaders to explore diversified investment opportunities
BGMEA will coordinate factory participation, support HR and compliance teams and ensure effective communication with workers.
Inamul Haq Khan, Senior Vice President BGMEA said, ‘This partnership reflects our commitment to strengthening worker welfare through innovative and impactful healthcare solutions. Bringing digital healthcare directly to workplaces will help reduce untreated health issues and improve overall wellbeing.’
The pilot will begin with 5,000 workers from selected factories and expand to include 10,000 workers within three months. All participants will receive digital healthcare support for one year. Future scale-up will depend on project performance and worker outcomes.
Under the MoU, the three organizations will jointly monitor progress through quarterly reporting, ensuring data confidentiality, service quality and scalability.
This collaboration marks an important milestone in strengthening workplace health systems within Bangladesh’s RMG industry. By combining Nuvista Pharma’s healthcare leadership, Olwel’s digital capabilities and BGMEA’s industry reach, the Digital Hospital Pilot aims to enhance worker wellbeing, reduce absenteeism, and set a new benchmark for accessible healthcare in factories nationwide.
1 month ago
Garment industry pushing for value addition; targets technical textile market
Bangladesh's garment industry is strategically pivoting towards technical textiles, a high-value sector deemed "essential for the continued success" of the country’s manufacturing future.
This information was revealed in a press conference held at a hotel in Dhaka, on Thursday, ahead of ‘Techtextil and Texprocess’ scheduled to be held in April 2026. Ms Afroza, head of operation, Messe Frankfurt SP Bangladesh highlights the issues in the presentation.
This focus was highlighted in a presentation promoting the upcoming Techtextil and Texprocess trade fairs in Frankfurt, Germany.
Technical textiles, defined as materials manufactured primarily for their technical performance and functional properties rather than aesthetics, represent a large and growing global sector.
Frankfurt Fairs Showcase Entire Textile Chain: The twin trade fairs, Techtextil (the leading trade fair for technical textiles) and Texprocess (the top international trade fair for garment and textile machinery), will be held in parallel from April 21 to 24, 2026, in Frankfurt, Germany.
Holding both events together allows visitors to observe the entire value chain, from raw fibers and production to innovative fabrics, their end use, and recycling.
The 2024 edition attracted 1,699 exhibitors from over 50 countries and a total of 35,180 trade visitors. Germany, Italy, and China were the top exhibiting nations at Techtextil 2024.
Technology Focus:Texprocess highlights new technologies focused on boosting efficiency, optimizing resource use, and includes solutions like robot-assisted sewing units and AI-based real-time quality control.
Strategic Importance for Bangladesh: Industry experts view the technical textiles sector as a critical growth area, with increasing demand across diverse fields such as healthcare, automotive, construction, and sports.
Techtextil brings together these various application areas, from car manufacturers to medical engineers. The exhibition itself covers 12 key application areas, including Medtech, Protech, and Sporttech.
Bangladesh’s importance as a strategic sourcing destination for technology and material is underscored by its recognition as one of the five most important countries for visitors to Texprocess, alongside Italy, Morocco, Egypt, and Tunisia.
At the 2024 edition, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Export Promotion Bureau (EPB) organized a dedicated pavilion. Five Bangladeshi companies participated to showcase their potential in the technical textile segment, including Akij Jute Mills, Team Manufacturing Company, Smee Apparels, M & A Sourcing Bangladesh, and NexGen Apparel.
The push into functional textiles marks a major step in the country's efforts to move beyond basic apparel manufacturing toward higher value-added products.
2 months ago
Apparel exports to US jump nearly 20% during Jan-Aug period but fall from July to Aug
Bangladesh has posted a strong rebound in the US apparel market, recording a sharp 19.82 percent rise in export value during January–August 2025, according to newly released US trade data.
However, exports from Bangladesh showed a decline, with July figures at $729.81 million dropping to $660.79 million in August, indicating a downward trend.
The latest reciprocal tariff effects are not yet visible in the Otexa data, as Otexa is still reporting August figures, and the tariff was only implemented on 7 August 2025, former Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Mohiuddin Rubel told UNB on Thursday.
The jump pushed Bangladesh’s exports to the US to US$5.64 billion, far ahead of the modest 3.32 percent overall increase in America’s global apparel imports over the same period (January-August).
Industry analysts say the surge was powered primarily by volume growth, supported by stable unit prices.The unit price per piece from Bangladesh saw a slight increase of 1.08 percent, indicating that the growth was largely volume-driven, with suppliers maintaining stable pricing amidst global competition.
Globally, the US imported $53.01 billion in apparel, registering a 3.32 percent rise in value, a 1.41 percent growth in units (SME), and a 1.88 percent increase in unit price.
The impressive gains by Bangladesh and other nations come at a time when the world’s largest apparel exporter, China, is experiencing a dramatic decline.
China’s exports to the US saw a significant negative growth of -25.45 percent in value and a large -18.90 percent drop in pieces shipped. This retreat from the dominant supplier is creating opportunities that are being seized by manufacturers across South and Southeast Asia.
Although Bangladesh and China represented the extremes, other Asian manufacturing hubs showed strong, though varying results.
Cambodia showed the highest overall growth, with its export value soaring by 28.62 percent and pieces shipped seeing a "huge increase" of 37.87 percent.
However, this volume push came at a cost, as its unit price fell by -6.71 percent.
India and Indonesia both recorded robust value growth, rising by 16.09%** and 15.96 percent respectively, reflecting their growing competitiveness.
Vietnam, another major player, registered a solid 15.69 percent increase in value, while maintaining its unit price with a small 0.64 percent rise—a performance similar to Bangladesh's.
Pakistan saw a 13.40 percent rise in value, supported by a 20.25% surge in volume, but like Cambodia, it experienced a -5.70% decline in its unit price.
The data, shared by Mohiuddin Rubel, Managing Director of the Bangladesh Apparel Exchange, indicates a strategic consolidation of Bangladesh’s position in its largest export market — despite marginal contractions in overall US import demand.
2 months ago
Japanese buyers keen to source high-value, fashionable apparel from Bangladesh
Japanese buyers have expressed strong interest in increasing their import of high-value and fashionable apparel from Bangladesh.
A visiting delegation from Japan Textile Importers’ Association (JTIA expressed the interest during a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in Dhaka.
The JTIA delegation included Toshinao Kawai of MN Inter-Fashion Limited, Issei Nozawa of Kowa Company Limited, Shingo Igami of Toyoshima & Co. Limited, Norihiro Komiya, Managing Director of JTIA, and Minami Kojiro of AIT Corporation.
BGMEA President Mahmud Hasan Khan led the discussion joined by Senior Vice President Inamul Haq Khan (Bablu) and other vice presidents and directors.
Mahmud Hasan Khan said Bangladesh’s apparel industry is strategically diversifying its markets identifying Japan as a key and promising destination.
He noted that the sector is steadily moving up the value chain by transitioning from basic cotton items to high-end synthetic and technical textiles, and urged Japanese buyers to expand their sourcing from Bangladesh.
The JTIA delegation praised Bangladesh’s RMG sector for its progress in social and environmental compliance, worker safety, and product quality.
They observed that Bangladesh has become a trusted sourcing hub for high-value and fashionable apparel due to its consistent improvements in manufacturing standards.
To strengthen trade efficiency, the Japanese representatives stressed the importance of shortening lead times and called for streamlined customs procedures and enhanced operational efficiency at Chattogram Port.
BGMEA leaders sought JTIA’s support in simplifying the visa process for Bangladeshi businesspersons visiting Japan.
The delegation assured that they would raise the issue with the relevant Japanese authorities.
BGMEA also requested data-sharing and collaboration on market research to help identify emerging global trends.
The two sides discussed various industry issues including the implications of US tariffs and Bangladesh’s forthcoming graduation from the Least Developed Country (LDC) category.
Mahmud Hasan Khan urged Japan, through the JTIA, to continue granting duty-free market access to Bangladeshi apparel even after LDC graduation in 2026.
He proposed that this could be achieved through an Economic Partnership Agreement (EPA) or a Preferential Trade Agreement (PTA).
The meeting concluded with both sides agreeing to maintain close cooperation and work jointly to expand Bangladesh’s apparel exports to Japan.
2 months ago
BGMEA secures special healthcare benefits for members
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has taken a significant step to encourage its members, officials, staff, and their families to seek quality health and diagnostic services domestically instead of traveling abroad for treatment.
To this end, the BGMEA on Thursday signed Memoranda of Understanding (MoUs) with 10 top-tier healthcare providers, comprising nine renowned hospitals and one diagnostic center.
Under these MoUs, BGMEA members, employees, and their dependents will now be able to receive advanced medical treatment and diagnostic services from these institutions at special discounted rates.
The signing ceremony, presided over by BGMEA President Mahmud Hasan Khan, was held at the BGMEA Complex in Uttara.
Attendees at the event included Senior Vice President Inamul Haq Khan, First Vice President Selim Rahman, Vice President Md. Rezwan Selim
Vice President (Finance) Mizanur Rahman, Directors Shah Raiyed Chowdhury (who coordinated the event), Faisal Samad, Md. Hasib Uddin, Nafis-Ud-Doula, and Enamul Aziz Chowdhury.
The institutions that signed the MoUs are:
1. Bangladesh Eye Hospital and Institute Ltd.
2. Dhaka Central International Medical College and Hospital
3. Labaid Group Ltd.
4. Labaid Cancer Hospital and Super Specialty Center
5. LifePlus Bangladesh Ltd. Digital Healthcare Platform
6. Popular Diagnostic Centre Ltd.
7. Praava Health Bangladesh Ltd.
8. Samorita Hospital Ltd.
9. United Hospital Ltd.
10. United Healthcare Services Ltd.
BGMEA President Mahmud Hasan Khan signed the MoUs on behalf of the association.
Commitment to Affordable Care: In a significant announcement at the event, BGMEA President Mahmud Hasan Khan revealed that the BGMEA has taken the initiative to establish a hospital in the Gazipur/Ashulia region to provide quality and affordable medical care to the valued workers of the ready-made garment (RMG) sector.
He stated that the signed partnership with the country's leading hospitals and diagnostic centers marks the initial phase of this larger project, with these institutions being involved in the hospital's operation.
2 months ago
Bangladesh, US join hands to weave a brighter future for use of American cotton in apparel sector
Bangladesh's apparel industry and a high-level delegation of US cotton exporters have agreed to enhance cooperation to leverage a new American executive order that offers proportional tariff concessions for garments made with US raw materials.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Cotton USA delegation agreed on the issue during a meeting held at BGMEA Complex in Uttara on Tuesday (November 4).
The meeting focused on utilizing the newly announced US tariff facility to expand bilateral trade and significantly increase the use of American cotton in Bangladesh's textile sector.
Under the recent US executive order, Bangladeshi apparel exports to the United States are eligible for a proportional waiver on new additional duties if they contain a minimum of 20 percent US-origin raw materials (such as cotton).
BGMEA President Mahmud Hasan Khan welcomed the opportunity, stating, "This new tariff concession creates enormous opportunities for our industry, as it will make our products more competitive in the global market."
However, Hasan noted that BGMEA is yet to receive clear guidelines on the procedural steps for local spinners and garment factories to claim this benefit.
He urged the US delegation to swiftly secure the necessary clarification from the US administration, enabling entrepreneurs to immediately prepare to utilize the advantage.
Currently, approximately 10 percent of Bangladesh’s imported cotton originates from the United States. The BGMEA President expressed confidence that this share could be doubled or even tripled with a change in mindset and a strategic approach.
He proposed joint research and knowledge-sharing initiatives to inform spinners and manufacturers about the superior quality and comparative advantages of American cotton, thereby encouraging a higher volume of imports. The US delegation welcomed the proposal and committed to collaboration on this front.
Logistics and Documentation Hurdles
The discussions also highlighted challenges in the trade flow, with the US delegation citing obstacles and complexities in preparing commercial documentation for cotton exports to Bangladesh. They requested BGMEA's assistance in resolving these issues.
In response, the BGMEA President asked the US representatives to provide specific details in writing, assuring them that BGMEA would promptly escalate the matter to the Ministry of Commerce to ensure a swift resolution of the complications.
Representatives from Cotton Council International emphasized that the US cotton, known for its sustainability, reliability, and high quality, is perfectly positioned to help Bangladeshi exporters enhance product quality and maximize the new tariff advantage in the US market.
2 months ago