Global buyers of Bangladeshi apparel have called for improved law and order, and labour situation to fully utilise the country’s competitive edges like huge capacity and low cost.
According to many of them, huge production capacity and low cost are among the strength of Bangladesh’s garment industry for which apparel buyers are sourcing from the country though prevailing labour unrest in the country’s major industrial belts is still a challenge.
A four-decades-old Bangladesh’s garment industry is a matured one and it needs to address labour grievances and improve ties between workers and owners to close the gap, said Ziaur Rahman, H&M regional country manager for Bangladesh, Pakistan and Ethiopia.
Labour-related issues or demands should be settled in the table, he said while addressing a panel discussion at the two- day ‘Bangladesh Denim Expo’ that kicked off at International Convention City Bashundhara in the city on Monday.
Bangladesh Apparel Exchange organised the 17th edition of the show to showcase Bangladesh’s dynamic denim industry, bringing together over 44 exhibitors from different countries, including Bangladesh, India, Pakistan, China, Turkey, Spain and Italy.
Mr Rahman also called for investing in mid-level management and embracing modern technology.
Bangladesh is far behind in terms of innovation and development of products, except a few, based on design and trend, he said, explaining that Turkey comes up to his company with its latest development while the situation is reverse for Bangladesh as the latter is ready to produce what buyers ask for.
Another official from an EU-based buyer said that despite all existing challenges, Bangladesh has huge potential and opportunity to get more work orders as there is hardly other destinations that come up with such large capacity and low cost.
The representative said law and order situation must be improved further and labour-related issues should be addressed to sustain the growth and bag more orders.
A buyer representative said that in the long run the labour unrest might have a negative impact on buyers’ confidence and if any buyer shift orders, it is difficult to bring back which according to the official might need at least three years.
None of the buyers, however, have shifted their orders from Bangladesh during the student uprising and the labour unrest, they claimed.
Meantime, at least 30 garment factories in Ashulia, Savar and Gazipur industrial belts suspended operations on Monday for labour unrest over various demands, especially for unpaid wages, hike in annual pay and other allowances.
Participants at the show said they are getting good response from buyers.
The H&M country manager said that exports in September 2024 was higher than that in September 2023.
Speaking at the panel discussion, Showkat Aziz Russel, president of Bangladesh Textile Mills Association, said he can see a good prospect provided with uninterrupted gas supply.
Citing data, he said some $22 billion have so far been invested in the country’s primary textile sector that can produce 55 million yards of denim fabric a month.
According to data compiled by the BGMEA based on eurostat, Bangladesh fetched $571.99 million from denim products shipments to the EU during the January-June period of 2024, marking a 5.29-percent growth over the corresponding period of 2023.
Turkey and Pakistan are second and third largest denim exporter to the EU.
Turkey recorded 6.18-percent negative growth to fetch $464.66 million and Pakistan earned $340.76 million marking 2.51-percent growth there.
Bangladesh’s denim exports to the US during the first half of the current calendar year, however, recorded 4.30-percent negative growth and earned $281.70 million, according to OTEXA data.
Mexico, second largest denim exporter to the US, recorded a 4.92-percent decline during the period to fetch $297.64 million while Pakistan, third largest, marked 11.99-percent growth to the USA and earned $184.73 million during the January-June period of 2024.
