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Bright prospect for skilled manpower export

The potential of exporting skilled manpower from Bangladesh remains depressingly untapped. Two basic reasons — low skill level and lack of proficiency in languages of the manpower importing countries on the part of workers — are responsible for that. The country has been sending a large number of workers abroad, but the vast majority of them are unskilled. The average earning of an unskilled worker is far lower than a skilled worker. The authorities concerned, thus, have been laying emphasis on boosting export of skilled workers, but they have failed to put in place the right moves to make that happen.

According to a report carried by this newspaper, skilled Bangladeshi workers have been in demand in many developed Asian countries including Japan and South Korea. Skilled manpower is also in high demand in Malaysia, a traditional destination for unskilled Bangladeshi workers. The problem with skilled workers crops up with language proficiency, particularly in countries like Japan where fluency in the Japanese language, known as N-4 Level, is compulsory, along with job skill. This particular level is a prime requirement for consideration as a ‘specified skilled worker’ (SSW). That the Japanese recruiters do not require any particular educational background of the applicants may be seen as an advantage. An SSW receives a monthly wage of Tk 100,000-200,000, while an intern is paid Tk 100,000. SSWs are eligible for 14 categories, but Japan has so far chosen Bangladeshi migrants for care-giving and agriculture sectors. There are around 80 types of jobs in different sectors in Japan. According to Japanese sources, a total of 22,723 Bangladeshis were in Japan as of 2022. Of them, 5,000 were employed in different sectors as skilled workers and professional technical interns.

As the number of skilled workers from the potential countries is feared to drop in the future, the Bangladesh Embassy in Tokyo observes, Japan is expected to be interested to hire workers from Bangladesh, ‘a country with a large demographic dividend’. However, at present China is the leading exporter of manpower to Japan with 700,000, followed by South Korea with 600,000, Vietnam 400,000, Indonesia 250,000, Nepal 200,000 and Myanmar 50,000. Compared to these countries, the share of Bangladesh is pitiable. Bangladesh lags behind in SSWs, since most candidates drop out in the skill test. Bangladeshi workers also find it hard to acclimatise to that country’s culture and work ethics.

The prospects for tapping South Korea as a destination of Bangladeshi skilled manpower also remain high. Bangladesh has been sending semi-skilled workers to Korea since 2008. The language barrier is also daunting here. It is good news that Korea will hire 20,000 workers under its ‘E-7 visa category’ over the next three years for its shipbuilding, iron and cement industries. That country needs welders, masons etc among 40 types of works. It also requires BSc and diploma engineers and architects. It has been learnt that 125 engineers are set to fly to Korea. Encouragingly, Korean language proficiency is not mandatory for the ‘E-7 category’. Meanwhile, about one million Bangladeshis are working in Malaysia. Of them, around 10,000 are skilled workers. According to BMET, Bangladesh sent 1.1 million people abroad in 2022, including just 22.22 per cent skilled workforce. It is thus important for the government to know elaborately the requirement of manpower-importing countries and take measures to produce the right kind of skilled manpower. This would serve the financial interest of both the workers and the country.

RMG workers’ minimum wage: Basic pay percentage waning

Basic payment in the ready-made garment (RMG) workers’ minimum wage structure has been declining in percentage rate since 2006, causing erosion in their earnings and other financial benefits, labour leaders alleged.

In 2006, basic payment of a seventh-grade or entry-level RMG worker was 68 per cent of his/her minimum monthly wage of Tk 1,662.50, which gradually declined to 67 per cent in 2010, 57 per cent in 2013, and 51 per cent in 2018, they explained.

The minimum monthly wage of an entry-level garment worker, fixed in 2018, is Tk 8,000 with Tk 4,100 as basic pay.

Many of the trade unions working in the garment sector are now demanding 65-70 per cent (of the total) as the basic pay, as the new wage board has been formed to review the workers’ wages.

Talking to the FE, Lovely Yesmin, a labour leader, explained that a garment worker does two to five hours overtime a day after her regular work and gets double payment for the additional work.

“The payment is given based on the basic wage. If the basic pay remains low, the owners become gainers by paying less while the workers loss their earnings significantly.”

Besides, other lawful financial benefits, including service benefit, maternity benefit and festival allowances, are also provided based on the basic.

Over the years, the workers are being deprived although the factory owners are earning hefty amounts by getting payments through US dollar. Now they are getting Tk 109 per dollar, she noted.

Ms Yesmin, central committee president of the Readymade Garments Workers Federation, added that the owners are always looking for ways to deprive the workers by paying less.

She demanded Tk 24,000 as the minimum monthly wage for an entry-level garment worker with 70 per cent basic payment.

Touhidur Rahman, chairman of the Bangladesh Garment Workers Unity Council, handed over a memorandum to Liaquet Ali Molla, chairman of the minimum wage board, on August 10, demanding Tk 23,000 as the minimum wage with 65 per cent basic payment.

The council also proposed the authorities concerned to abolish fifth and sixth grades of the pay structure. Mahbubur Rahman Ismail, president of the Bangladesh Textile Garments Workers Federation, in a recent demonstration said percentage of basic payment in the garment workers’ total package has been decreasing since 2006, which is not at all acceptable.

The workers are deprived of getting overtime, gratuity and maternity benefits properly when the rate of basic payment is reduced, he noted.

His union demanded Tk 25,000 as the minimum monthly wage with 65 per cent basic pay, saying the cost of living has gone up significantly.

The labour leaders said although Bangladesh is the second largest RMG exporter after China, its labour cost is the lowest.

RMG export earning along with the factory owners’ income has been increasing, but the workers are struggling to survive amid high inflation with low payment, they added.

They also demanded increasing annual increment to 10 per cent from the existing five per cent as well as abolishing fifth and sixth grades of the pay structure, alleging that the factory owners deprive the workers by keeping them under-graded.

On April 09, the government formed the wage board to review the minimum monthly wage for the garment sector. But, the representatives from workers and owners in the board are yet to make any proposal in this regard until August 10 in the board’s second meeting.

The current minimum monthly wage of an entry-level garment worker is Tk 8,000, fixed in 2018 – up from Tk 5,300, set in 2013.

RMG is the largest foreign currency earning sector that fetched US$ 46.99 billion in the last fiscal year, 2022-23, which is about 84.58 per cent of the country’s total $55.55 billion export earning, according to official data.

munni_fe@yahoo.com

BGMEA for boosting trade, investment with Iraq

Bangladesh and Iraq are keen to achieve trade and investment potentials through deepening bilateral collaboration to bring benefits for both sides.

The interest was expressed when a delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), headed by its President Faruque Hassan, met Khaled Battal Najm Abdullah al-Jughifi, Minister of Industry and Minerals, the government of Iraq, on Monday.

Other members of the delegation were Mohammed Nasir, former vice president (Finance), BGMEA, Nazrul Islam, former director, BGMEA; Sharmeen Hassan Tithi, director, Giant Group; Mohammed Shohel, managing director, Bangla Poshak Ltd; and Mohd Shawket Hossain, director, Bangla; and Nisher Khan, managing director, Banika Fashion Ltd, BSS reported citing a press release.

The meeting was also attended by Ambassador of Bangladesh to Iraq Fazlul Bari, and Ahmed Abdul-Jabbar Ali Al-Karim, Undersecretary of the Ministry of Industry and Minerals for Planning Affairs.

They discussed issues of mutual interests including possible areas of cooperation, environment of doing business, trade and investment opportunities between Bangladesh and Iraq.

They stressed exchanging more visits by trade delegations of both countries to identify potential of trade and investment sectors. Such business interactions would pave the way for enhancing trade between Bangladesh and Iraq, they opined.

The BGMEA President briefed the Iraqi Minister on the investment opportunities being offered by Bangladesh alongside improved infrastructure to support expanding trade and investment.
 
He invited Iraqi businessmen to visit Bangladesh to get a better understanding of the country, its business environment and export products.

Faruque mentioned the developments of Bangladesh’s readymade garment sector with special focus on enhanced capabilities to offer diversified apparel items including high-value ones.

Highlighting the prospect of Bangladesh’s RMG exports to Iraq, he sought the cooperation of the Minister in increasing market share in Iraq.

The BGMEA President called upon the Iraq government through the Minister of Industry and Minerals to make visa and consular services easier and faster for Bangladeshi businessmen to facilitate their travel to Iraq.

Faruque also expressed special thanks to the Minister for showing warm hospitality and providing VIP protocol to him along with the delegation.

Minister Khaled Battal assured the BGMEA delegation of the support and cooperation in exploring business opportunities in Iraq.

BGMEA delegation meets Iraqi trade chamber to explore business potential

A delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) led by President Faruque Hassan met with Engineer Haidar Al-Athari, chairman of the Najaf Chamber of Commerce in Iraq, on 20 August to discuss possible avenues of bilateral trade and investment.

Ambassador of Bangladesh to Iraq Fazlul Bari accompanied the BGMEA delegation which included Mohammed Nasir, former Vice President (Finance) of BGMEA, Nazrul Islam, former Director of BGMEA, Sharmeen Hassan Tithi, director of Giant Group, Mohammed Shohel, managing director of Bangla Poshak Ltd, Md Shawket Hossain, director of Bangla Poshak Ltd and Nisher Khan, managing director of Banika Fashion Ltd.

BGMEA President Faruque Hassan presented an overview of the readymade garment industry of Bangladesh, especially its manufacturing capabilities, product offerings, and the features that make global buyers prefer garments made in Bangladesh.

He highlighted the importance of establishing connections between the traders of Bangladesh and Iraq so that they could explore business opportunities that lie ahead for both countries.

Faruque Hassan also called on the members of the chamber to explore the potential of trade and investment in Bangladesh, especially the import of more garments from the country.

The BGMEA president invited Iraqi businessmen to visit Bangladesh to explore trade and investment opportunities offered by the country.

Chairman of the Iraqi trade chamber Haidar Al-Athari gave a brief presentation on the range of services offered by the chamber and investment opportunities in the Governorate and its economic features at the Iraq level.

He invited the BGMEA delegation to establish partnerships with their peers in Iraq to establish clothing factories.

BGMEA delegation meets Iraqi trade chamber to explore business opportunities

A delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) led by President Faruque Hassan met with Engineer Haidar Al-Athari, Chairman of the Najaf Chamber of Commerce in Iraq on Sunday ( August 20, 2023) to discuss possible avenues of bilateral trade and investment.

The BGMEA delegation was accompanied by Fazlul Bari, ambassador of Bangladesh to Iraq, reports UNB.

The delegation includes Mohammed Nasir, former Vice President (Finance) of BGMEA, Nazrul Islam, former Director of BGMEA, Sharmeen Hassan Tithi, director of Giant Group;  Mohammed Shohel, managing director of Bangla Poshak Ltd, Mohd Shawket Hossain, director of  Bangla Poshak Ltd and Nisher Khan, managing director of Banika Fashion Ltd.

BGMEA President Faruque Hassan presented an overview of the readymade garment industry of Bangladesh, especially its manufacturing capabilities, product offerings, and the features that make global buyers prefer the garments made in Bangladesh.

He highlighted the importance of establishing connections between the traders of Bangladesh and Iraq so that they could explore business opportunities that lie ahead for both countries.

He also called on the members of the chamber to explore the potential of trade and investment in Bangladesh, especially import of more garments from the country.

He invited Iraqi businessmen to visit Bangladesh to explore trade and investment opportunities offered by the country.

Chairman of the Chamber Haidar Al-Athari gave a brief presentation of the range of services offered by the Chamber and investment opportunities in the Governorate and its economic features at the Iraq level.

He invited the delegation to establish partnerships with their peers in Iraq to establish clothing factories.

ABF, Primark CEOs meet BGMEA president to discuss collaboration in RMG dev

A delegation of Associated British Foods (ABF) met with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan to discuss potential collaboration in achieving shared goals around sustainability and opportunities for expanding business bases in Bangladesh.

They discussed issues of mutual interests including collaboration in strengthening partnership with the Bangladeshi suppliers to produce more innovative and value-added products and improve their environmental performance, according to a press release.

During the meeting on 16 August, the BGMEA president provided an overview of the readymade garment industry of Bangladesh, especially with focus on its current standing in the global market, vision, strides in workplace safety, environmental sustainability, and circular fashion. 

He also highlighted the Sustainability Strategic Vision 2030 of Bangladesh’s RMG industry, explaining how it looks into all ESG issues pertinent to the sector and is aligned with the Sustainable Development Goals (SDGs).

Extending thanks to ABF and Primark for choosing Bangladesh as one of the largest sourcing market, Faruque Hassan urged them to increase buying garments, especially high-value items and manmade fibre-based apparels from the country.

200th RMG industry of Bangladesh gets LEED green factory certification

A significant achievement has been gained in the journey towards sustainable industrialisation, as the nation celebrates the certification of its 200th LEED Green Factory by the US Green Building Council (USGBC).
This remarkable milestone underscores Bangladesh’s steadfast commitment to environmental stewardship, economic growth, and global competitiveness.

LEED (Leadership in Energy and Environmental Design) certification is internationally recognised  as a symbol of excellence in sustainable building practices.
These certified green factories adhere to stringent standards, demonstrating a harmonious blend of cutting-edge technologies and eco-conscious practices that prioritise resource efficiency, environmental conservation, and worker well-being, said BGMEA president Faruque Hassan in a statement.
Faruque said, “I am glad to inform you that the number of US Green Building Council’s (USGBC) LEED certified RMG factory in Bangladesh has reached 200. Of these 73 are Platinum, 113 Gold, 10 Silver, and four are certified factories.

Bangladesh is the home of some of the best factories in the world; 13 out of global top 15 LEED green factories are located in Bangladesh,”
In last year 2022, 30 garment factories received LEED certification by USGBC (of those 15 were Platinum and 15 Gold), and this year, so far, 18 factories are LEED certified by USGBC (13 Platinum and 5 Gold). “I hope by the end of this year we will be able to reach a new milestone in number of factory certification in a single year. We have as many as 500 factories still waiting for the USGBC certification,”
To receive the certificate, factories are required to maintain the highest standards regarding carbon emission, energy and water usage, waste management, indoor environmental quality and so on under strict supervision of the USGBC. The attainment of 200 USGBC certified LEED Green Factories stands as a testament to Bangladesh’s resolve in fostering a more sustainable and prosperous future.

The BGMEA President also congratulated his fellow entrepreneurs in the industry for this achievement and the commitment towards making a more resilient, sustainable, and a sustainable industry.
“Despite all the challenges and struggles the industry has been facing, such accomplishment testifies Bangladesh’s determination to forge a sustainable and vibrant industry. As the nation takes the challenge of the modern world, it stands united in its pursuit of a greener and more prosperous tomorrow,” he added.

UK retailer Frasers Group to enhance its e-commerce presence

Frasers Group, the UK-based retail powerhouse known for iconic brands is making significant strides to enhance its e-commerce presence and has revealed plans to amplify its investment in the renowned online fashion retailer, ASOS.

According to an official disclosure to the London Stock Exchange, Frasers Group has elevated its stake in ASOS to 16.8 percent, marking a notable increase from its previous holding of 10.5 percent.

Figure: UK retailer Frasers Group to enhance its e-commerce presence.

Figure: UK retailer Frasers Group to enhance its e-commerce presence.

José Antonio Ramos Calamonte, CEO, Asos said, “We are delivering on our plan to turn the business around: to right-size our stock; to generate cash; to reduce our net debt; and to structurally improve our profitability.”

This strategic move follows closely on the heels of Frasers Group’s earlier investment in ASOS, wherein they secured a 7.4 percent stake at the start of June.

Demonstrating a keen interest in the e-commerce fashion landscape, Frasers Group has been actively expanding its footprint.

Notably, their growing involvement extends to another prominent British online fashion giant, Boohoo Group.

Recent reports from British media highlight Frasers Group’s augmentation of its stake in Boohoo, surging from 6.8 percent to a new holding of 7.8 percent.

The evolving investment landscape underscores Frasers Group’s commitment to shaping and influencing the dynamic realm of online fashion and e-commerce.

Best of Bangladesh show in Netherlands in Sep

A two-day exposition of goods made in Bangladesh titled “Best of Bangladesh” will begin at Gashouder of Westergas in the Netherlands’ Amsterdam on September 4.

The event will showcase the remarkable progress and the potential of different sectors of Bangladesh economy, especially manufacturing.

The Bangladesh Apparel Exchange (BAE) in collaboration with the Bangladesh embassy in the Netherlands will organise the event, the BAE said a statement.

About 40 leading companies of Bangladesh from apparel, textile, agriculture, handicraft, fast-moving consumer goods, digital industry and publication sectors are participating in the event.

The two-day event comprises inauguration, exhibition, networking, panel sessions, denim walkway and immersion visits highlighting Bangladesh as an untapped economic frontier and an unrivalled sourcing destination.

Bangladesh’s RMG products cheaper than India, Sri Lanka

Bangladesh is struggling to move beyond low-end readymade garment (RMG) products while exporting to the United States (US) and European markets. The situation has turned so acute that the country now ranks third on the list of low-cost RMG product exporting countries, following China and Pakistan.

Now, Bangladesh is the world’s second-largest exporter of RMG products, but its lower-ranked competitors, including India, Vietnam, Sri Lanka, Turkey, Indonesia, and Morocco, are selling products at comparatively higher prices.

The scenario was obtained in an analysis on the markets in the US and European Union (EU) countries.

In 2022, China turned out to be the top exporter with RMG product exports worth USD 182 billion, followed by Bangladesh with exports of USD 45.71 billion.

However, the two major markets showed some discrepancies in product prices. According to the EU statistical office, Eurostat, the average price of clothing exported to the EU in 2022 was USD 22.48 per kilogram (kg). Bangladesh exported RMG products to the market at USD 17.27 per kg, while India and Sri Lanka received prices of USD 23.27 and USD 28.54 per kg respectively. Pakistan exported products at a rate of USD 14.47 per kg. 

The US office of textiles and apparel (OTEXA) also presented a similar price chart. Here, the average price of clothing imported from different countries was at USD 3.21 per square meter. Bangladesh exported RMG products at a price of USD 3.10 per square meter, while India and Sri Lanka got prices of USD 3.80 and USD 4.26 per square meter respectively. Also ReadRMG exports: Bangladesh earned USD 3.95b in July, says BGMEA 

In the US market, China exported clothes at a strikingly low price of USD 2.02 per square meter, while Pakistan at USD 3.03 per square meter. Fazlul Haque, former president of  Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “Of course this is unfavourable for us. In fact, it will not be an exaggeration to describe it as disastrous. The prices of the clothing we manufacture are lower compared to other nations due to our poor bargaining skills.” 

“We enjoy a duty-free privilege for garment exports to the EU market and we were supposed to get higher prices for our products, compared to the nations without the advantage. But we are receiving prices lower by around 15 to 16 per cent in the EU market,” he added. 

The former BKMEA leader further said, “When we offer a clothing item for USD 10, India is selling the same item at USD 12. Actually, India is getting good prices due to its adept bargaining skills. In the coming days, the wages of our garment workers will go up, in addition to other expenses. Then, our entrepreneurs must enhance their bargaining skills to keep their business afloat.”

Lack of diversity

The garment industry in Bangladesh is largely dependent on a few sectors, with 80 per cent of apparel exports stemming from just five certain sectors. The total apparel exports totaled at USD 46.99 billion in the fiscal year 2022-23, where exports of trousers, T-shirts, knitted shirts, sweaters, regular shirts and blouses, and underwear constituted USD 37.75 billion.

However, there are some RMG factories that export high-end products, including blazers, jeans pants, jackets, and T-shirts. For instance, Snowtex Group gets USD 10 to 50 for a jacket. 

SM Khaled, managing director of Snowtex Group, said, “Our factories are making investments to scale up productivity, in addition to producing high-value garments. It is expected to be completed by next 5 to 10 years and then the export of high-end clothing items will increase.” Also ReadBangladesh looks to scale up position as high-value RMG exporter

He pointed out a number of setbacks, saying, “We are now lagging behind in terms of developing the linkage industry for RMG product exports. We do not have a deep sea port and the large ships cannot navigate to Chattogram. Our exports take longer compared to countries like Vietnam and China. Hence, our entrepreneurs have no choice but to offer lower prices to the clients.” 

According to Eurostat data, Bangladesh exported garments weighing 1.32 million kg to the EU in the previous year, with an average price of USD 17.27 per kg. Earlier, the export price for per kg clothing was at USD 15.42 in 2021. Here, the export value rose by nearly 11.95 per cent in the EU market, while the rate is 13 per cent for the US market.   

Despite the rise, Bangladesh still remains at the lower end of the list when it comes to clothing prices.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), said, “Our export basket is predominantly ruled by low-end garment products. In contrast, the export baskets of China, Vietnam, and Indonesia are mainly filled with high-value products. The factories here have expanded their production capacity without conducting a comprehensive market analysis. They now require regular purchase orders to sustain their extensive workforce. Foreign buyers capitalise on this weakness and enjoy advantages during price negotiation.” 

RMG BANGLADESH NEWS