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Washing raises apparel industry into fashion world

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apparel industry

The washing sub-sector as backward linkage to the garment industry, especially the woven one, has grown fast and helped the country’s main export sector make more value-added fashion wear, insiders said. Garment washing is a technology which is used to modify the outlook, appearance and fashion of garments, especially denim items, and make them comfortable. Over the last one decade, more than 300 new washing units have been set up, raising the total number of plants to some 450 across the country. The washing hubs are mainly located in Dhaka and Narsingdi, they said. Before 1995, there were only a few washing plants in the country and the washing segment used to be done outside the country, especially in Hong Kong and China. Bangladesh Export Oriented Garment Washing Industries Owners Association (BEOGWIOA) started its journey in December 2005 with only 25 members. Now the association boasts some 250 registered with it, its officials said.   The washing industrial units have been playing a supplementing role in earning huge amounts of foreign exchange by the readymade garment sector, they added. “Customers being much fashionable ask the garment manufacturers to apply new technology and processes to make the garments more stylish,” BEOGWIOA president Helal Uddin Ahmed told the FE about the evolution taking place in the clothing industry. Such demands also helped in flourishing the washing industry in the country, he said, adding that washing techniques create new fashions such as tagging, grinding, destroy, permanent wrinkle, deep dye, tie dye, pp spray, hand-crapping and so on. Through these techniques, faded or old-look, colour or tinted effects are created on the garments, he noted. “For denim, wash is a must as it gives style,” said Abdus Salam Murshedy, managing director of Envoy Group. The group’s washing plant is set up with state-of-the art machinery not only to cater internal requirements but also to cater the needs of outside customers, he said, adding it has the capacity of washing 80,000 pieces of garments and 40,000 pieces of denim a day. “Now Bangladesh is rising as a textile powerhouse for denim and few other woven categories, and every year more and more mills are coming up, giving us extra edge and preference in terms of cost and lead time,” said Mostafiz Uddin, managing director of Denim Expert Ltd. Besides, the MD added, “our capacity in washing, among others, also has improved much to satisfy various customers and their requirements”. Md Shafiullah, managing director of Jeans Care, a washing unit at Tejgaon, said his unit is small in size and has the washing capacity of 5,000 pieces of denim while 10,000 to 15,000 pieces of garments can be washed per day if enzyme-washed.   Enzyme washing is a laundering process that uses enzymes to clean clothing or to finish fabrics, especially in the case of jeans and other garments with a worn-in look. In washing segment, a huge quantity of water is being used, he said, adding that some 20,000 litres of water is used in washing 5,000 pieces of denim items in his unit. Almost all woven items are washed while normal wash is done for sweater. In knit sector, some value-added products now use the washing process. As different types of chemicals are used in the process, they also pollute the environment, industry people said. Responding on this problem, the BEOGWIOA president claimed that almost all the member-washing plants of the association have effluent-treatment plant (ETP). Regarding the operation of ETP in all washing plants, Mr Murshedy said there is “blame game” in absence of strong monitoring. Sometimes the industry people are harassed by environment department, industry-insiders alleged.    Mr Helal, however, said the washing sector contributes about 10 per cent of the total RMG-export earnings. “The sector has the potential to grow further and attract more investment if gas is available,” he said, adding that land scarcity is another main obstacle as expansion is not possible and viable in rented buildings following the compliance requirements from the buyers.   Industry people said they need government supports in setting up central ETP in different industrial zones and bank loan with single-digit interest rate. According to the industry-insiders, the sub-sector has created employment for some 120,000 workers and more than Tk 25.0 billion has been invested in this business.

Sweater factory terminates 300 workers, faces demo at Ashulia

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sweater factory terminates 300 workers, faces demo at ashulia

Several hundred workers of a sweater factory at Ghosbagh of Ashulia, on the outskirt of the capital, demonstrated on Wednesday, protesting against termination of their fellow workers. The authority of Sonia and Sweaters Ltd, a concern of Sonia Group, had allegedly terminated over 300 workers of the factory as they demonstrated to realise their nine-point demand, before Eid-ul Azha vacation, workers said. They said the demands included payment of basic salary according to law during no-work period, Eid bonus, production bonus and realising some other benefits. After Eid, the factory management terminated the workers by a spoken order on Monday without laying off the factory. Witnesses said several hundred workers of the factory also hold a human chain in front of the Ashulia press club, demanding job reinstatement. The workers warned of tougher movement if they were not reinstated. The workers alleged that the owner of the factory, Mahbubur Rahman, was harassing them in their houses by sending local goons. The goons warned the workers not to agitate and advised them to seek job somewhere else. Mahbub did not receive any phone call despite several attempts by New Age. The director of Ashulia industrial police, Md Mustafizur Rahman, told New Age that the sweater factory did not have enough work orders at this moment and that was why they terminated the labourers. Meanwhile, the management of Rock Knitwear Garments Ltd at Doshaid area of Ashulia on Monday declared their unit shut for an unidentified period. The workers said the factory authority did not pay any benefits to them but abruptly closed the factory for an indefinite period. The workers demonstrated in front of the factory for the second consecutive day, on Wednesday. They demanded resumption of the factory or paying their benefits as per law. Mustafizur Rahman said to avoid any untoward incident, they deployed additional policemen at the factory premises and asked both the workers and the authority to settle the dispute.

RMG sustainable sourcing conference due on Sept 29

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RMG Bangladesh
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garments worker

The Kingdom of the Netherlands and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will organise a sustainable sourcing conference in Dhaka to enhance common understanding of sustainable versus unsustainable sourcing from the RMG sector and showcase new sourcing practices The conference titled Sustainable Sourcing in the Garment Sector (SSGS) will be held on September 29 at Hotel Raddission Blu in Dhaka. Commerce Minister Tofail Ahmed is expected to present at the conference as the chief guest while Lilianne Ploumen, minister for Foreign Trade and Development Cooperation of the Netherlands, will attend at the opening session. SSGS will be organised by the Embassy of the Kingdom of the Netherlands in Dhaka in partnership with the International Apparel Federation (IAF) and the Bangladesh Garments Manufacturers and Exporters Association (BGMEA). The conference will emphasise the need for advancing a common understanding on sustainable sourcing practices through promoting multi-stakeholders cooperation and presenting best practices. It will focus on enhancing a mutual understanding of sustainable versus unsustainable sourcing, and to showcase new sourcing practices that will be beneficial for all stakeholders in the garment value chain. In the conference, there will have three sessions – Global trends in garment sector and opportunities for Bangladesh, International framework for sustainable sourcing: setting the outline for future collaboration and Success factors for sustainable production and sourcing. “The prime objective of the conference is to present Bangladesh’s present status in terms of safety, workers rights, production capacity, quality and value addition,” BGMEA senior vice-president Faruq Hassan told the Dhaka Tribune. Manufacturers have done job by improving safety standards. They also installed digital machinery and latest technology to produce products in line with the international standard, said Hassan. Exporters have to invest a lot of money in upgradation and the buyers also have some responsibilities about pricing and above all cooperation. The buyers can help manufactures enhance workers efficiency and productivity, all these issues would be broadly discussed in the conference, said the association leader, who is also the managing director of Giant Group.

BEZA hands over licence for Akij economic zone

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beza hands over licence for akij economic zone

Paban Chowdhury, Executive Chairman of the Bangladesh Economic Zone Authority (BEZA), seen at a ceremony to hand over pre-qualification licence to Akij Group at BEZA office in the city on Wednesday.Bangladesh Economic Zone Authority (BEZA) has awarded prequalification licence to the county’s renowned business group Akij Goup for establishing economic zone in Mymensingh.The economic zone namely ‘Akij Economic Zone’ will be established at Mothbari union in Trishal of Mymensingh over 100 acres of land.BEZA Executive Chairman Paban Chowdhury handed over the pre-qualification license to Akij Group Managing Director Sheikh Bashir Uddin at BEZA office in the city on Wednesday.Executive Members of BEZA Dr. Mohammad Emdadul Haque, Mohammad Abdus and Horiprasad Paul were present at the license giving ceremony.Receiving the pre-qualification license, Akij Group’s MD said that the proposed economic zone will create employment for around 20,000 people and will contribute to the country’s economy.“The economic zone has already got huge enthusiasm from the foreign entrepreneurs and many showed their interest to establish heavy industries in the zone. By attracting foreign direct investment in the country, this economic zone will contribute to the overall economy of the country”, he said.Sheikh Bashir Uddin also said that the economic zone is primarily decided to host particle board mills, box film industry, MDF mills and formal de-hide industries.BEZA executive chairman said the government believes that establishing economic zones through private efforts will attract huge foreign investment in the country using their reputation.

Export contribution to GDP falling

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export contribution to gdp falling

Exports contribution to the Gross domestic Products (GDP) at current price has continued to decline for the fourth consecutive year as export earnings are not expanding in line with the country’s economic growth Trade analysts and business people have blamed that slow growth of export compared to the economic growth, higher dependency on Ready Made Garments (RMG) and decreasing the export on other sectors are the causes of export decline. According to Export Promotion Bureau (EPB) data, in the last fiscal year Bangladesh earned Tk2,66908.44 corer, which is 15.50% of total GDP of Tk17,29567 corer. As per the provisional data of Bangladesh Bureau of Statistics (BBS), Bangladesh GDP stood at Tk17,29567 corer in the last fiscal year. Of the total GDP, 14.75% came from Agriculture sector, 28.56% from Industry sector and 56.69% from service sectors. “Bangladesh export earnings are driven by apparel sector and 82% of export earnings came from the sector. While, the other export oriented sectors are not performing well. That is why, export contributions to GDP is not increasing in line with the growth of economy,” Faruq Hassan, president of Bangladesh Garments Manufacturers and Exports Association told the Dhaka Tribune. “Currently the export sector is highly dependent on RMG sector, which produce mostly basic and low rate products. The sector contributes to the GDP is over 10%. For more contribution, the government has to concentrate on product diversification and value addition,” said Faruq Hassan. “Export contribution is directly linked with the employment generation and play an important role. That is why, for increasing the export in terms of value and creating more jobs for people, people oriented with the sectors have to concentrate on value addition,” said trade expert. “While, high value items like pharmaceutical, shipbuilding and diversified jute products should bring in consideration as it earn more than tradition and low cost products,” the added. Professor Mustafizur Rahman, executive director of Centre for Policy Dialogue said.“If the export growth is less than the real GDP growth, it is a matter of concern and we have to think about it,” He also suggests to measure GPD on basis of dollar to picturesque the real scenario. Contacted, Commerce Minister Tofail Ahmed said: “The government has taken initiatives to diversify export basket to prompt export oriented sectors in aiming to enlarge export volume,” . “As a part of government initiatives, we are providing cash incentives to pharmaceutical, agriculture and leather sector,” the minister said. Adding that,  the government has given more importance on products and market diversification in the six or five years plan he said: “Bangladesh is gradually entering into the export of value added products and I think, pharmaceutical sector would able to earn $5 billion in next five years, while IT sector will earn $1 billion by 2018.

Gazipur RMG workers go on strike

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RMG Bangladesh
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gazipur rmg workers go on strike

Workers of a garment factory in Tongi BISIC area of Gazipur district went to a strike on Wednesday morning demanding immediate payment of their two months’ outstanding salaries. The workers of Kant Asia Garment Factory went to their workplace in the morning and found the gate locked. Following this, the workers went on a work abstention and brought out a procession and staged a demonstration in front of Tongi Police Station.Later, police dispersed the demonstrating workers.

RMG workers empowered, but face new forms of vulnerablity: STUDY

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bangladesh-rmg-worker

Garment industry has socially empowered women workers in Bangladesh to have better control over their own lives, while it has brought newer forms of vulnerability to them, especially in their work and living environment, according to study The study tilted “Vulnerable Empowerment: Capacities and Vulnerabilities of Female Garments Workers in Bangladesh” was released at a function in Dhaka yesterday, organised by Bangladesh Mahila Parishad. Ayesha Khanam, president of Bangladesh Mahila Parishad, presided over the function. Zahid ul Arefin Choudhury, associate professor of Peace and Conflict at the University of Dhaka, Samina Luthfa, assistant professor of Sociology at the University of Dhaka, and Kaberi Gayen, professor of Mass Communication and Journalism at the University of Dhaka, jointly conducted the research. According to the findings, 60%-70% workers think their lives have improved due to employments in the garment industry. The women workers who are 26 years old or more, widow and illiterate are the most vulnerable, the study said. The workers are satisfied with those factories that are structurally safe and most of the workers said the workplace safety is better now than earlier. “Garment sector has brought significant changes, both economically and socially, to the lives of rural women, However, this is normal that workers in all industries may have vulnerabilities. But we have to consider how much the coping-up capacity has increased,” said Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, speaking on the research paper. He added: “It is not possible to end women deprivation only through economic empowerment. We have to change our male chauvinistic attitude.” Economist and ex-adviser to a caretaker government, Wahiduddin Mahmud said garment industry is an alternative mean of women empowerment. “Through this industry, rural women get an identity and opportunity to lead an independent life. Living standard of workers has improved, but due to some vulnerabilities, it cannot be described as a big one.” He said the workers still have to work for additional hours to meet family expenses and remain in pressure. Wahiduddin Mahmud laid emphasis on workers’ training to increase their productivity and efficiency, which in turn can help owners raise wages. Nazneen Ahmed, senior research fellow at the Bangladesh Institute of Development Studies, said there should have a clarification on vulnerabilities as the competitors of Bangladesh will take it as an opportunity to downgrade Bangladesh. In her feedback to the book, she said: “There are vulnerabilities in other industries too. So, we can better understand if there are comparisons with other sectors in this respect.” The research was conducted on the basis of two questions: Are the women garment workers vulnerable? and Have the women garment workers gained capability? The research has broadly focused on theses issues based on the interview of 1,014 garment workers. The garment industry in Bangladesh is perceived both as an empowering sector as well as a sector cursed with accidents and deaths.  The literature shows immense vulnerabilities in the lives of women who work in the sector.

Dhaka, Ankara in negotiations to sign FTA

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dhaka, ankara in negotiations to sign fta

Bangladesh and Turkey are now in negotiations to sign a free trade agreement (FTA) to boost trade relations between the two countries, said Commerce Minister Tofail Ahmed in the city on Tuesday, reports UNB. “Turkey is Bangladesh’s important trade partner. Exports to Turkey will increase if FTA is signed with it,” he told reporters at the Secretariat after his meeting with Turkish Ambassador Devrim Ozturk. The Commerce Minister also laid emphasis on easing rules of origin to make export to Turkey smoother. Rules of origin are used to determine the country of origin of a product for the purpose of international trade. Tofail said the two countries are also in talks to hold the meeting of joint economic commission (JEC). “This meeting will soon be held as Turkey has responded positively.” A senior Commerce Ministry official, however, told UNB that the JEC is likely to be held in mid-November in Dhaka. Bangladesh exported products worth US$ 720 million to Turkey in 2014-2015 fiscal year, while imported products worth US$ 158.90 million during the same period, according to Commerce Ministry data. The trade balance is heavily in favour of Bangladesh and the two-way trade is expected to exceed US$ 2 billion soon if trade cooperation is boosted, said the Commerce Minister. On trial of war criminals, Tofail said the trial of war criminals is going on through a ‘neutral and transparent’ process and it will continue. Referring to recent failed coup attempt in Turkey, he said those found guilty in the failed coup attempt are now in jail and their trial is underway there through a changed policy. The Commerce Minister said the bilateral relations between Bangladesh and Turkey will remain unhurt, and the ties will be strengthened further in the coming days. The Turkish envoy also termed the ties between the two countries deep and strong, and said the relations will continue to grow further. He assured that his government will consider actively two issues— easing rules of origin and signing FTA with Bangladesh. The Ambassador said things will be finalised in the joint economic commission meeting that will be held very soon. Senior commerce secretary Hedayetullah Al Mamoon and additional secretary (FTA) Monoj Kumar Roy were, among others, present.

PM urges US to grant RMG duty-free access

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pm urges us to grant rmg duty-free access

Prime Minister Sheikh Hasina has stressed the need for the US government to give readymade garment (RMG) products from Bangladesh duty-free and quota-free access to its market in order to help expand the apparel industry base of her country, reports bdnews24.com. She said this move would also be vital for the US in helping to increase employment and promote empowerment of more women, thereby establishing a modern society in Bangladesh. Her remarks came at a luncheon meeting hosted by the Business Council of International Understanding (BCIU) at Hotel Waldorf Astoria in New York on Monday, according to Press Secretary to the Prime Minister Ihsanul Karim. She said 52 other countries, including Australia, Canada, New Zealand, China, Japan and India as also the European Union, have provided Bangladesh with duty and quota-free access to their markets. The US, she noted, should be just as fair. Bangladesh used to enjoy duty-free access to the US market for around 5,000 items under the preferential trade scheme. But such trade benefits for Bangladesh were revoked in mid-2013 in the aftermath of the Rana Plaza building collapse and Tazreen Fashions fire, which left more than 1,200 people dead. The suspension, however, did not directly hit Bangladesh’s garment exports, as garments were not among the products that enjoyed the facility. Sheikh Hasina on Monday also urged US businesses and investors to become Bangladesh’s partner in trade and development. She said Bangladesh was ready for US investment in power, energy, especially renewable and green energy; shipbuilding and recycling, automobile and light engineering, chemical fertilisers, agro-processing, pharmaceuticals, ceramic and plastic goods, ICT, marine resources extraction’ tourism, medical equipments, telecommunications and knowledge based high tech industries. Sketching a clear picture of the facilities to be provided for US businesses, the prime minister said relations between the US and Bangladesh had become stronger since her administration came to power in 2009. US Secretary of State John Kerry’s recent visit to Bangladesh had also had a positive impact on the business ties of both countries, she added. Mentioning that American companies were still the largest investors in Bangladesh, Hasina said they invested $500 million or 25 percent of the total FDI last year. In trade, the US is still the largest single country destination of Bangladeshi products, she said. The quantum of bilateral trade between the two countries reached $7 billion last year, she continued. “It could be more if the high tariffs and compliance issues on Bangladeshi apparel to US market were removed.” After suspending GSP facilities, the US had rolled out a 16-point action plan to improve working conditions in the readymade garment factories in Bangladesh. The Bangladesh government has repeatedly stressed that all the recommendations have been complied with. Washington acknowledges the progress made so far but says more needs to be done to get the GSP privileges back.

Garment exports to India on the rise

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garment exports to india on the rise

Garment exports to India rose 30.86 percent year-on-year to $136.43 million in fiscal 2015-16 thanks to rising demand from Western brands operating in the neighbouring country. Of the total earnings, woven items brought in $102.18 million and knitwear $34.26 million, according to Export Promotion Bureau of Bangladesh. Although Bangladeshi goods enjoy duty-free benefit in the Indian market, garment exports to India did not rise much due to the imposition of 12.5 percent countervailing duty on apparel items from Bangladesh. Bangladeshi garment exporters also face provincial taxes and non-tariff barriers in India, which has an apparel market worth nearly $40 billion. Though India in 2011 allowed duty-free benefit to almost all Bangladeshi goods except 25 alcoholic and beverage items, it imposed the countervailing duty on apparel, Bangladesh’s main export item, the following year. However, garment exports to India have been showing signs of pickup from last year when many Western clothing retailers started operating in that market. US retail giant Walmart and Swedish retailer H&M opened a good few stores in India in the last few years. Walmart India owns and operates 21 Best Price Modern Wholesale stores in nine states across India and plans to open another 50 by 2020, according to its website. H&M said it would double the number of its stores in India by the yearend from six now.“It is a big advantage for us that the foreign retailers are operating in India. Our garment exports to the Indian market will increase further in near future due to the presence of such retail giants in India,” said MA Jabbar, managing director of DBL Group, a leading garment exporter. Foreign retailers buy a lot of garment items from Bangladesh for Indian customers, especially for the rising middle class, he said. Bangladeshi garment items are popular in India because of low prices and better quality, Jabbar added. “We are performing very well in knitwear export to India because of the varieties of this product,” he said.Similar is the view of Faruque Hassan, vice-president of Bangladesh Garment Manufacturers and Exporters Association, the garment makers’ platform. Garment exports to India have been rising mainly from last year thanks to the Western retail giants operating in India, he said. Many Indian companies that have retail chains in India tied up with the foreign retailers to grab the market, he said. “We are far ahead of India in knitwear. This is an advantage for us,” he said.Hassan said garment makers are also inspired by the stimulus package the government has offered to them for exporting to new destinations like India, Japan and China.Except the US, the EU and Canada, all other markets are considered as new destinations. The government has been paying cash incentives to garment makers, who export to the new destinations, at 3 percent of the export value since 2009. In fiscal 2015-16, Bangladesh exported goods worth $689.82 million to India, which is 30.82 percent higher than the previous year. The amounts were $527.16 million in 2014-15 and $456.63 million in 2013-14.

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