A one-stop centre of excellence meant for upgrading both labour and product standards of the country’s apparel industry gets off to a formal start today (Tuesday). Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set up the Centre of Excellence for Bangladesh Apparel Industries (CEBAI). Industry leaders said it is conceived as a one-stop service centre where all skill solutions through skills- and needs-based training will be provided for the stakeholders. “The CEBAI will ensure professional research-based development that has become a prerequisite for planned growth and sustenance. In other way, it would develop a robust network base for the industry,” BGMEA president Md Atiqul Islam told the FE about their initiative for further enhancing the quality of the industry’s world-standard apparel products. He said Commerce Minister Tofail Ahmed would formally launce the centre today (Tuesday) at a city hotel. The chief of the apex chamber of the main export sector said the Centre of Excellence will facilitate enhanced employer engagement in training, which increases the training capacities of TTCs, TSCs, NGOs and enterprises. He said, “The CEBAI will help meet the need for skilled workforce in the garment sector by way of offering training focused on skills in areas where demand is strongest in the industry.” Mr Islam hopes training workers to standards recognized internationally will help employees of RMG sector to earn higher wages. Prime Minister Sheikh Hasina inaugurated the CEBAI during a ceremony held at the Dhaka apparel summit at Bangabandhu International Conference Centre (BICC) in the city last December.

Source: https://thefinancialexpress-bd.com/2015/04/21/89633/print

Nearly 50 claims made by the Rana Plaza victims are yet to be resolved, although two years have already elapsed since the tragic incident, according to the data released on Monday. Rana Plaza Claims Administration (RPCA) said 2,839 out of total 2,871 claims received from injured workers, dependants of the deceased and missing workers have so far been reviewed. The remaining 32 claims and plus approximately 20-30 additional deceased claims are yet to be filed. A press release issued on Monday said the remaining claims will be included in the final instalment. It said the Rana Plaza Coordination Committee (RPCC) till April 8 made payment of Tk 760 million against these claims to the injured workers and family members of the deceased and missing workers. The RPCC was formed comprising members of government, non-governmental organisations, brands, retailers and BGMEA and trade unions with International Labour Organisation (ILO) as neutral to ensure payments to the victims, their families and dependents for losses and needs arising from the accident. Payments are funded by various sources and notably through the Rana Plaza Donors Trust Fund. RPCC said the claim process was established based on ILO standards on employment injury and RPCA calculated the compensation to the beneficiaries on the basis of ILO Convention 121. It also said the amounts awarded to each claimant are different, as they are based on the last salaries of the deceased and missing or injured workers, upgraded retroactively in accordance with the latest wages for the RMG sector issued by the government of Bangladesh in December 2013, the number and age of the dependants in case of deceased and missing workers, and the disability level percentage in case of injured workers.

Source: https://thefinancialexpress-bd.com/2015/04/21/89676

A growing demand for denim worldwide and its rising production cost in China have created a new opportunity for Bangladesh, mainly due to its cheap labour. A large number of brands and retailers including G-Star, Dior, H&M, Tommy Hilfiger, Inditex and Levis have already established their production bases here in Bangladesh while a few more are now planning to explore the potential of the country. Score is one of the companies that want to expand its production in Bangladesh along with its major manufacturing units in China, Turkey and India. “We are now planning to explore Bangladesh which is becoming important all over the world,” Jan Peters, owner and managing director of Score told the FE last week. “The world is always looking at prices and China is becoming more expensive,” he said adding “Bangladesh offers good price and also taxes are low to buy merchandise from the country.” Denim– a sturdy cotton warp-faced twill textile – is used to make clothes for all seasons both for men and women with changes in style and fashion. With the annual turnover of about 800 million euro, the company sells its products mainly in Europe. Regarding labour conditions, he said the situation in Bangladesh is getting better though the world has asked for improving it further. “Bangladesh-the labour-intensive country–is rapidly developing and becoming important for the world mainly due to increasing cost in China,” Han JA Bekke, chairman of the Board of MODINT said. MODINT is a well-known trade association of manufacturers, importers, agents and wholesalers of clothing, fashion accessories, carpet and (interior) textiles with approximate 600 business members including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The businesses have a combined annual turnover of €9 billion in the Netherlands, of which 50 per cent is exported. The association works with its members. The MODINT chairman believed that lots of things are going on in Bangladesh after the Rana Plaza building collapse but more are needed to be done. “We are also working with trade bodies in Bangladesh as to how to improve further,” he said adding, “There are too many initiatives including those of Accord, Alliance and the government which should be combined for successful results.” The FE correspondent talked with the business leaders besides attending the week-long ‘Denim Days’ fair in Amsterdam. The European denim market is worth about 14 billion euro and the Dutch denim industry has its focus in Amsterdam following the headquarters of some well-known Dutch brands as G-Star, Scotch and Soda, as well as offices of some international brands such as Tommy Hilfiger, Pepe Jeans, Levi’s Vintage Clothes and new ones like Denham the Jeanmaker, Kings of Indigo and Glue Jeans. Within the Amsterdam metropolitan area, over 30,000 people in more than 10,000 companies are employed in the fashion industry including major brands such as Calvin Klein, Nike and Karl Lagerfed. The Denim Days Fair took place from April 13 to April 18. During the second edition of the event, more than 40 participants from different countries including China, Thailand, Pakistan, Japan, Italy, Turkey, Spain, the Netherlands, and Hong Kong gathered there to display their latest products. A day-long seminar on ”Kingpins 2029: the Transformers, Jeans Vs Water” was held with the presentation of latest technology for sustainable textile, clothing, packaging, energy and water efficient dying machines, laundry techniques and development of education, innovation, enterprise and networking projects

Tomoko Nishimoto, ILO Assistant Director General and Regional Director for the Asia-Pacific arrived in Dhaka on Sunday, ahead of the second anniversary of the Rana Plaza disaster.She will meet with Expatriates’ Welfare and Overseas Employment Minister Eng Khandker Mosharraf Hossain and State Minister for Labour M Mujibul Haque Chunnu.In addition, meetings will be held with representatives of employers’ and workers’ organizations as well as development partners.On Wednesday, Nishimoto will participate in the opening session of a national tripartite consultation on social dialogue and industrial relations in Bangladesh.Later that day she will also take part in the inauguration of the Centre of Excellence for the Bangladesh RMG sector.On Thursday, Nishimoto will speak at a high-level commemoration event “Rana Plaza two years on: Towards a safer RMG sector for Bangladesh” organized by the Government of Bangladesh and ILO with support from Canada, the Netherlands and United Kingdom.During her visit Nishimoto will also visit an RMG factory to meet disabled employees who have received skills training.

Source: https://www.observerbd.com/2015/04/20/84591.php

The reproductive health and rights of RMG workers remain uncared for and are yet to be addressed properly in order to boost their productivity, speakers said at a seminar yesterday. They said social barrier, inadequate treatment facility and service-providing agency, plus uncongenial working environment tell upon the reproductive health of the garment workers, particularly women, The speakers observed that apart from those issues, the unwillingness of women garment workers to go for health care services is also largely responsible for them to lag behind. The observation came at a seminar organised by SNV Netherlands Development Organisation at BGMEA conference room yesterday. The speakers said SNV Bangladesh is working on women project in order to provide strategies for the garment factories to address the women health issues. Several NGOs, private sector, service providers, buyers, RMG factory owners and management were present at the seminar. SNV Netherlands, a development organisation with financial aid from the Netherlands government, is trying to improve Bangladesh’s RMG workers’ reproductive health services. “Betterment of lives of low-income population is what we all want. But there is a huge gap in our communication and therefore, we haven’t been able to make a big enough impact,” said Paul Stevens, country director, SNV Bangladesh. Working with Women Project not only seeks sustainability but also offers a platform for sharing the experience gained in order to provide better solution, he added. “The objective of today’s seminar is to keep all stakeholders informed of the SRHR scenario in factories as well as to provide updates on what project is functioning for the betterment of current condition,” said Fartheeba Rahat Khan, team leader, Working with Women Project. The project can help improve the lives of garment workers and thus it will help them increase productivity, said BGMEA Vice- President Reaz-Bin-Mahmood. BGMEA looks forward to the success of the project, hopes Reaz.

Source: https://www.dhakatribune.com/business/2015/apr/20/call-address-rmg-workers-reproductive-health#sthash.H2EvplQW.dpuf

Chinese investors are keen to establish an industrial park in Bangladesh which involves a huge investment, said Commerce Minister Tofail Ahmed on Sunday. The government will help them in this regard to the hilt, enhancing trade between two countries, he told reporters after a meeting with the Chinese Ambassador Li Jun at the former’s office. Currently, most Bangladesh products enjoy quota-free access to China. A new deal is on the cards, under which all items will get duty-free access to the country, he said. Tofail said, “As Chinese investors are pulling out of readymade garments (RMG) sector in their country, they will extend all-out support to Bangladesh in this sector.” “They are already providing assistance in establishing a garments industrial park at Baushiya in Munshiganj, which will house at least 250 garment factories.” “Employment for 2.5 lakh workers will also be created, taking the country’s garments export to 3 billion US Dollar”, he added. The minister said Bangladesh has exported goods worth 746.20 billion dollar against its import of goods worth 7,544.80 US dollar in 2013-14 fiscal year. Bilateral trade balance is now in favour of China, which is now 6,798.60 US dollar. It is expected to come down once Chinese investment increases in Bangladesh, he said. Terming China a close friend and large development partner, Tofail said the country has been providing assistance in larger development projects of Bangladesh. “It has been assisting in the projects like establishing permanent trade fair campus at Purbachal, garments industrial park at Baushiya, container terminal, Shahjalal fertilizer factory and deep sea port.” “To mark the 40th anniversary of diplomatic ties with China, a high-level Chinese leader will come to Bangladesh to attend the opening ceremony of building Karnaphuly tunnel in Chittagong”, Tofail added. Senior secretary of the commerce ministry Hedayetullah Al-Mamun and other senior officials of the ministry were present on the occasion.

Source: https://www.daily-sun.com/print/metropolis/2015/04/20/499037#sthash.Adrz7XeP.dpuf

The finance ministry is unlikely to entertain a demand for Tk 10 crore by the Federation of Bangladesh Chambers of Commerce and Industry for an under-construction multi-storey building of the organisation in the Dhaka city. A senior finance ministry official said it was not known whether the ministry could entertain the demand made by the FBCCI in the revised budget. There is no allocation for the purpose in the current budget, he said. The FBCCI, the country’s apex chamber body, demanded the fund in an appeal to the commerce ministry for the under-construction building in the city’s Hatkhola area, close to the commercial district Motijheel. Officials said the commerce ministry had lobbied for the FBCCI as the ministry requested the finance ministry to arrange the fund from the block allocation. The commerce ministry forwarded the appeal to the finance ministry last week. Finance ministry officials said the FBCCI was given Tk 10 crore in the last fiscal year for the same purpose. Some of the finance ministry officials raised questions when the FBCCI was allotted with the fund in the last fiscal year. The FBCCI, however, obtained the fund because of the blessings of the present political regime, they said. They said the FBCCI’s fresh demand was not logical as the budgetary allocation should not be given repeatedly to a body which is rich itself. In 2012, the FBCCI demanded Tk 40 crore from the public coffer to construct the multi-storey building in the capital. AK Azad, who was the FBCCI president then, refused to explain why they sought fund from the government when they could easily take loan from banks for the purpose. Finance ministry officials said the Bangladesh Garment Manufacturers and Exporters Association illegally constructed a building with the blessings of successive governments on a water body in the city. Later, the organisation led by the then president Annisul Huq sold out most parts of the BGMEA building to commercial clients, they said. FBCCI leaders said they had no intention to sell any part of the proposed building to be built on some 10 kathas of land. They said the existing FBCCI office at Motijheel could not solve the accommodation problem the organisation has long been facing. The FBCCI laid the foundation stone of the proposed building on May 6, 2012 with finance minister AMA Muhith attending the function. FBCCI officials assessed that the construction cost of the building would be Tk 20 crore-Tk 25 crore.

Source: https://newagebd.net/112989/finance-ministry-unlikely-to-entertain-fbcci-plea-for-fund/#sthash.dE7B0E7l.dpuf

Commerce Minister Tofail Ahmed yesterday said the government has decided to set up a special economic zone for Chinese investors as they are interested to invest more in Bangladesh, reports BSS. Tofail said this while talking to reporters after a meeting with Chinese Ambassador to Bangladesh Li Jun during at his office. Replying to a question, the minister said no specific area has been selected yet for the special economic zone but a suitable place will be chosen soon. Tofail said now there are 17 economic zones in Bangladesh and the Special Economic Zone for China will be chosen from those. The minister also said an agreement will be signed between Bangladesh and China over duty-free facilities of all goods exported to China from Bangladesh. Besides, the Chinese government offered support for some big projects, including container depots and terminals, Tofail said. He said the Chinese Ambassador said China will help Bangladesh become a middle-income country. The minister said a Garment Industrial Park with 250 garment factories will be established in Baushia of Munshiganj district creating jobs for about 2.5 lakh people.
Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=255322:special-economic-zone-for-chinese-investors-tofail&catid=108:business-finance&Itemid=152

The readymade garment (RMG) industry in Bangladesh has grown over a few decades to become the second largest in the world. The sector is now the key driver of the economy and the country’s development. By 2013, there were approximately five thousand factories in the country. The RMG exports earned $24.5 billion in fiscal year 2013-14 accounting for over 80 per cent of the country’s export earnings. Thirty years of experience and reputation in garment manufacturing has led to the present status of Bangladesh in RMG. The factories have ensured international standard quality and are now adopting environment-friendly and green concepts. There have been rapidly developing backward linkage industries such as washing, dyeing, finishing, embroidery etc. The factories have been versatile in producing different types of apparel products. The country’s vision is now to increase the RMG industry’s global market share from the current 5.0 per cent to 8.0 per cent by 2021. This requires increasing our exports to about US$ 50 billion. Now let’s see the worldwide forecast about competitiveness of Bangladesh’s RMG. As per McKinsey & Co.’s forecast in 2011, Bangladesh is on the radar-screen of all European and US apparel buyers and likely to fetch nearly $45 billion by 2020. In April 2012, the world’s leading strategy consulting firm released a study titled ‘Bangladesh’s Ready Made Garments Landscape: The Challenge of Growth.’ The report forecast that the Bangladesh apparel sector could reach $30 billion by 2015 and $50 billion by 2021. In the Apparel CPO Survey 2013, McKinsey repeated that in the aftermath of Rana Plaza collapse, the RMG sector still holds a competitive position. Thus, the reports suggest that Bangladesh is likely to be the best destination that has the ability to grab the lion’s share of the global RMG market presently held by China. The ‘Benchmarking Study’ published by the US Fashion Industry Associations in June 2014 shows that apparel retailing companies are not leaving Bangladesh, and are committed to compliance there and elsewhere. Among the respondents of the survey, 76.9 per cent currently source from Bangladesh. Despite the recent tragedies (Tazreen Fashions fire and Rana Plaza collapse), Bangladesh is still regarded as a popular sourcing destination with growth potential. About 60 per cent of respondents says they expect to somewhat increase sourcing from Bangladesh in the next two years, and 5.0 per cent says they expect to strongly increase sourcing from the country in the next two years. Another 15 per cent expects no change in their current scale of sourcing. According to HSBC Trade Confidence Index (September 2014), the index rose sharply from  103 in H2 2013 to 141 in H1 2014 – the second highest in the sample of 23 countries – underpinned by strong demand from the West for Bangladeshi garments and textiles. The authorities are introducing more safety regulations in the garment sector and this appears to have provided an additional boost to confidence. According to ITC Trade Map, 18.02 per cent was growth rate of RMG in 2013-2014. It is to be noted that while China is starting to lose its attractiveness in this realm, the sourcing caravan is moving on to the next hotspot. On the other hand ‘China Plus’ issue has once again led a fresh restructure of clothing sourcing countries and, Bangladesh has got a strong footing. The rising production costs, socio-economic and livelihoods uplift, and shift to high-tech industries are some of the reasons why apparel buyers have become increasingly concerned to shifting their sourcing from China to other countries like Bangladesh, Vietnam, Sri Lanka and Cambodia. Chinese apparel-makers and leading global retailers have started shifting their orders to Bangladesh due to the rising labour cost in the country. Bangladesh is considered as the next hot spot for RMG as the country’s ready-made garments industry has identified solid apparel- sourcing opportunities there. Last year’s China raised its minimum labour cost by 23 per cent putting local and foreign garment manufacturers under pressure and forcing them to focus on the countries where labour cost is low like Bangladesh. Japan is now actively seeking to diversify its garment import base away from a focus on China to China Plus whereas Chinese investors themselves are seeking to source from Bangladesh. We are optimistic that the new wave of opportunities and the growth momentum will energise the apparel industry to add new success stories in the coming years. Already new markets have been identified due to better initiatives for raising export growth. To explore and exploit the non-traditional markets, market diversification will not only help Bangladeshi manufacturers reduce dependency on the selected markets, but will also increase their bargaining power in setting product prices. Countries like China, India, Australia, South Korea, South Africa and Russia can be attractive export destinations provided we can properly study their procurement patterns, consumer markets, lifestyles and other relevant economic indicators. In addition, Bangladesh should start working on value addition with fabric designs which take away a substantial portion of its competitive advantage. Institutions on collection of fashion apparels and fabrics from various sources should be set up to participate in setting fashion trends across the world. This can easily enhance returns by 5-10 per cent in the immediate future. Bangladesh’s apparel industry is strongly committed to ethical manufacturing and sustainable development assuring the industry’s commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices. The Bangladesh Institute of Development Studies (BIDS) estimates 13 per cent plus growth in RMG even after Rana Plaza tragedy. The Institute argues that the disaster has focused global attention on issues of workplace safety and labour rights in the country with the government, buyers, international organizations and workers coming together in an unprecedented effort to improve the conditions in the industry. Accord is monitoring working conditions in 1,619 factories and the Alliance is doing the same in another 700. These factories produce 86 per cent of the country’s ready-made garments, which are exported to European and US markets. Both the buyer associations are optimistic Bangladesh’s RMG industry is moving towards a stable position. In the aftermath of the collapse of Rana Plaza, the ILO collaborated with GIZ and Action Aid Bangladesh to carry out an assessment of the needs of the victims. As a result, it was possible to develop a reintegration and rehabilitation programme that met the needs of victims and to identify active partners able to provide such services. The ILO has supported 300 injured workers who received counselling and livelihoods training in collaboration with NGOs Action Aid and BRAC. The RMG sector has responded positively to the various initiatives taken by the government, buyers’ associations, BGMEA (Bangladesh Garment Manufacturers and Exporters Association) and  the BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association).  Better days are ahead of the garment sector.

Source: https://www.thefinancialexpress-bd.com/2015/04/20/89436

North American buyers on Sunday expressed their willingness to work together with the country’s apparel makers to help address some existing challenges of the local garment industry aiming to boost their sourcing from Bangladesh, officials said. They expressed the keenness at a meeting with leaders of the local apparel makers at a city hotel. Canada Bangladesh Chamber of Commerce and Industry (CanCham) arranged the meeting titled “RMG Meet UP” discussion on “Journey to the Next Milestone: Strategy for the RMG Sector.” The CanCham initiated the informal meeting to arrange quarterly basis between the country’s apparel makers and its North American buyers to facilitate identify and address the industry challenges and thus boost the RMG export there The inaugural meeting of “RMG Meet UP” was attended, among others, by Canadian high commissioner to Dhaka Benoit Pierre Laramee, local representatives of some leading RMG buyers in North American countries, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md Atiqul Islam and CanCham president Masud Rahman. “We will continue arranging the informal meeting on quarterly basis,” Mr Masud Rahman said. “It will help the country to enhance its RMG export and achieve the goal of raising the RMG export to $50 billion by 2021,” he added. At the post-RMG Meet UP briefing, Mr Laramee said that Bangladesh RMG sector improved in different compliance issues. As per its policy for developing countries, he said, Canada would continue its various supports, including tax-free access, for Bangladesh to strengthen its RMG industry’s efficiency, working condition, safety etc. The participants laid stress on enhancing productivity and efficiency of Bangladesh’s apparel industry and working together to achieve its target of enhancing the RMG export to $50 billion by 2021. “The buyers said they will continue focusing on Bangladesh,” Mr Atiqul Islam said at the briefing. The participants also underlined the need for rethinking how to meet the challenge of falling price of apparel items by buyers against the increasing production cost here. The issues they identified to address include infrastructure, power, eco-compliance, working condition, traffic jam, especially from Dhaka to nearest apparel belts like Gazipur, training to the mid-level management, product diversification and publicity of country’s green and clean RMG factories. “The buyers have requested to substitute the roads from Dhaka to Gazipur,” Mr Islam said. They also appreciated resilience of the country’s people saying that the trade here is going on despite the long blockade and frequent hartals. The buyers also expressed their concern about any further incident like Rana Plaza. At the meeting, Mr Masud Rahman said, “CanCham likes to work hand in hand with BGMEA and BKMEA for the cause of RMG Sector.” “Bangladesh’s export to USA totaled $5.4 billion in 2013, a 9 per cent increase from 2012 and up 158 per cent from 2003,” he said. “On the other hand, since January 2003, Canada allowed duty-free access to Bangladeshi products, due to which the country’s exports, especially garment items, have been rising steadily. Of the total exports from Bangladesh to Canada, 96 per cent are apparel items,” the CanCham president said. Bangladesh exported goods worth $1.1 billion to Canada and imported goods worth $585.5 million in fiscal year 2013-14, he said.

Source: https://www.thefinancialexpress-bd.com/2015/04/20/89492