The International Labour Organisation has set July 31 as the final deadline for the completion of a government-led safety inspection, which is sponsored by the ILO, in the readymade garment factories and after the deadline factory owners will have to bear the cost of safety assessment in their units, an ILO official said. The ILO-sponsored inspection programme missed its previous deadline April 30 due to non-cooperation from some factory owners and inconsistency in information given about factory locations and contact numbers. Recently, the ILO informed the Bangladesh Garment Manufacturers and Exporters Association that in consultation with the government they had set the deadline and this was the final timeframe for the factory owners to complete safety inspection in their units. In a letter, ILO country director Srinivas Reddy urged BGMEA president Atiqul Islam to inform all the factory owners to come forward to enjoy the free of charge safety assessment until the end of this date. ‘….after which the cost of the assessment would have to borne by the building and factory owners,’ he said. Reddy said that they would request the labour ministry to ensure that the completion of safety assessment in the factory would be a requirement or the eligibility of the export licence. After receiving the ILO letter, the BGMEA on Saturday sent a short message to its members asking come under the inspection to avoid complexities over export business. BGMEA officials said the members had been asked to ensure safety assessment in their units under the initiative of European retailers’ group Accord or North American retailers’ platform Alliance or ILO. BGMEA officials said that they had received the letter from the ILO on May 6. According to the ILO information, the initiative conducted all three –– structural, fire and electrical –– safety assessment in 733 factories up to April 30. ‘Based on our current information some 1,700 factories are left to be assessed with 800 pending verification in view of their status (closed or shifted),’ the ILO letter said. ‘Given the importance of drawing the process of preliminary assessment to close and to focus on the follow up and remediation work the ILO in consultation with the MoLE has decided to provide a firm time line for completion – 31 July 2015,’ Reddy said in his letter. After the Rana Plaza building collapse that killed more than 1,100 people, mostly garments workers, in April 2013, EU retailers formed Accord on Fire and Building Safety in Bangladesh while North American retailers formed Alliance for Bangladesh Workers Safety. Both the initiatives launched inspection programmes in the Bangladeshi RMG factories from where their members procure products and the initiatives completed their primary safety assessments in over 1,900 factories. The government in association with the ILO announced a separate inspection programme for rest of the garment factories which were not on the lists of Alliance and Accord. Syed Ahmed, inspector general of the Department of Inspection for Factories and Establishments, told New Age that the three initiatives — Alliance, Accord and the government-ILO –– set targets to complete inspections in about 3,500 export-oriented garment factories and as of May 8, inspections in 2,911 factories had been completed. ‘As per the information of the ILO, our inspectors have been verifying the lists of the factories that claimed closed and provided incorrect contact information,’ he said. Sayed said that the DIFE inspectors found that there were no existence of some factories and a number of factories were shifted to new locations.

Source: https://newagebd.net/118398/no-factory-inspection-without-fee-after-july-31/#sthash.yKV8LsBs.dpuf

The “Bangladesh Denim Expo” starts tomorrow (Monday) at the Radisson Blu Water Garden Hotel in the capital, aiming to showcase Bangladesh’s growth potential in the denim industry globally, reports UNB. Commerce Minister Tofail Ahmed will inaugurate the exposition as the chief guest on Monday while State Minister for Foreign Affairs Shahriar Alam will be the chief guest at its conclusion on Tuesday evening. The main objective of the expo will be not just to promote denim trade in Bangladesh, but also to encourage better business practices that can help raise the living standards of the people of the country, said Chief Initiator of the expo and Managing Director of Denim Expert Ltd, Mostafiz Uddin. “Our primary purpose is to create a platform for denim stakeholders and to make Bangladesh a one-stop sourcing platform for the denim industry, which would benefit those working in the industry set up,” he said. Surplus funds from the expo will be donated to a seed fund for establishing a Denim University in Bangladesh. Twenty-five exclusive denim and jeans-related manufacturers and enterprises from the USA, Spain, Japan, India, Pakistan, Thailand, Turkey, China, San Marino and host Bangladesh will take part in the exposition. Besides, the organisers are expecting good turnout of apparel entrepreneurs, businessmen, fashion professionals and stakeholders of the industry from Europe, USA, and the UK during the expo. A total of four seminars including a special one titled “Made in Bangladesh a new Reality- Vision 2021”, jointly organized with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Denim Expo will be held on the sidelines of the exposition. According to the industry insiders, Bangladesh is the second-largest denim exporter to European markets, and third in the US market. Around 400 factories are exporting nearly 180 million pieces of denim jeans to the world. Bangladesh presently has 25 denim-producing factories with total investment of over $834 million. The next expo is scheduled for next Novermber, according to organisers.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=257561:bangladesh-denim-expo-begins-tomorrow&catid=110:business-others&Itemid=156

The “Bangladesh Denim Expo” starts tomorrow (Monday) at the Radisson Blu Water Garden Hotel in the capital, aiming to showcase Bangladesh’s growth potential in the denim industry, reports UNB. Commerce minister Tofail Ahmed will inaugurate the exposition as the chief guest tomorrow morning while state minister for foreign affairs Shahriar Alam will be the chief guest at its conclusion on Tuesday evening. The main objective of the expo will be not just to promote denim trade in Bangladesh, but also to encourage better business practices that can help raise the living standards of the people of the country, said chief initiator of the expo and managing director of Denim Expert Ltd, Mostafiz Uddin. “Our primary purpose is to create a platform for denim stakeholders and to make Bangladesh a one-stop sourcing platform for the denim industry, which would benefit those working in the industry set up,” he said. Surplus funds from the expo will be donated to a seed fund for establishing a Denim University in the country. Twenty-five exclusive denim and jeans-related manufacturers and enterprises from the USA, Spain, Japan, India, Pakistan, Thailand, Turkey, China, San Marino and host Bangladesh will take part in the exposition. Besides, the organisers are expecting good turnout of apparel entrepreneurs, businessmen, fashion professionals and stakeholders of the industry from Europe, USA, and the UK during the expo. A total of four seminars including a special one titled “Made in Bangladesh a new Reality- Vision 2021”, jointly organised by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Denim Expo will be held on the sidelines of the exposition. According to the industry insiders, Bangladesh is the second-largest denim exporter to European markets, and third to the US market. Around 400 factories are exporting nearly 180 million pieces of denim jeans to the world. Bangladesh presently has 25 denim-producing factories with total investment of over $834 million. The next expo is scheduled for next November, according to organisers.

Source: https://www.thefinancialexpress-bd.com/2015/05/10/92108

Businesspeople and economists have urged the government to take steps to spur stubbornly stagnant investment by fixing infrastructure deficits and cutting bank lending rates. Businesses and industries are not being able to do their business amid double digit interest rates, said Syed Manzur Elahi, a former president of the Metropolitan Chamber of Commerce and Industry in Dhaka.“If we can bring the banks’ lending rates down to a single digit it would help immensely,” he said.Elahi said the cost of doing business is going up in Bangladesh compared to China. “Bangladesh can’t go far on the back of cheap labour. If we can give land, gas and electricity to investors, both local and foreign, there will be no dearth of investment.”He spoke at a pre-budget discussion jointly organised by private television channel NTV and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Sonargaon Hotel in Dhaka on Friday.Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue, said the government is enjoying six advantages in formulating the budget for the next fiscal yeaThe advantages are: the inflation is within the central bank’s target of 6-7 percent; banks’ lending rates are on a downward trend; the exchange rates are stable; the budget deficit is within limits; the overall balance of payments is positive; and the lower prices of petroleum and fertiliser at international markets offer the scope to adjust subsidies, he said.Bhattacharya also turned his attention to the challenges the budget will face. He said the government would have to work to bolster revenue generation, disburse and attract more foreign aid and augment public investment to spur private investment.He also called for the need to implement big projects in time, as their implementation cost goes up if they are not finished timely.Bhattacharya criticised the government for not strongly using the tools under its control to spur investment.Because of the failure in administrative reforms, the allocation under the public-private partnership framework has remained unused, the economist also said.“Besides, questions about financial transparency have surfaced over the PPP projects which have been undertaken to date.”

Source: https://www.thedailystar.net/business/call-steps-boost-investment-81393

Bangladesh is turning into a major source of denim products as international retailers attracted by cheaper prices place higher volumes of denim-based work orders. Bangladesh’s popularity as a denim destination comes on the back of rising denim costs in China, the largest garment supplier worldwide, which is deflecting its buyers towards cheaper options. The overwhelming response by international retailers to the first Bangladesh Denim Expo in November last year proves the strength of the country’s denim sub-sector, said Mostafiz Uddin, managing director of Denim Expert. More than 100 exclusive retailers and brands from Europe and the US have registered to participate in the two-day second denim show that begins at Radisson hotel in Dhaka tomorrow. Mostafiz has been organising the shows. Almost all renowned retailers and brands will participate in the show and Mostafiz is also planning to organise a similarly large scale denim-exclusive exhibition in Europe soon.Besides the retailers, denim producers from India, China, Pakistan, Germany, Thailand, Turkey, the US, Japan, Spain and Thailand will showcase their denim products at the exhibition. Of the total 25 booths at the show, nine are booked by local denim makers. The fair expects more than 350 global invitees and guests.Denim Expert supplies its BlueXonly brand products to boutiques in different European countries, including the Netherlands, Belgium, Hungary and Italy. It makes jeans for both men and women, and 60 percent of its products are sold under its own brand.On the growing strength of the sector, Mostafiz said by 2020 every four out of five denim products in Europe would be sourced from Bangladesh.Currently, 25 denim factories are operating in Bangladesh, who produce around 20 million yards of the fabric every month to meet half of the local demand. The rest is imported. Total investment in the sub-sector stands at Tk 6,500 crore. Five new companies are also setting up factories.Local entrepreneurs supply denim products to major retailers and brands, including H&M, Levi’s, Uniqlo, Nike, Tesco, Wrangler, s.Oliver, Hugo Boss, Puma, Primark, JC Penney and C&A.The global denim market will cross $65 billion in the next four to five years, Mostafiz said, adding that denim will contribute around $2 billion to the country’s garment export target of $50 billion by 2021.Among the global players in the $60 billion denim market, Bangladesh stands behind China, the US, Italy and some Latin American countries.Currently, Bangladesh is the third largest denim exporter to the US after Mexico and China with an 11.3 percent market share, according to the US Department of Commerce.Bangladesh exports denim products worth more than $500 million to Europe a year, according to industry insiders.Anwar-ul-Alam Chowdhury Parvez, managing director of Argon Denims, said the response in the first exhibition was very good.“The brands and retailers could know from the exhibition that Bangladesh is a major player in the global denim market. Our next major business opportunity is denim, as orders are shifting from China to Bangladesh,” Parvez said.He produced 13.21 million yards of denim in 2014 and aims to manufacture 18 million yards this year. “We have huge potential in denim business, but we need an adequate supply of gas and power to utilise it,” he said.

Source: https://www.thedailystar.net/business/denim-opens-big-export-opportunity-81394

About a thousand workers of two garment factories in Ashulia demonstrated in Savar Bus Stand area yesterday pressing home their five-point demand, including reopening a factory and ending random terminating of workers.Workers of NRN Knitting and Garments Ltd and Natural Sweater Village Ltd-2 under the banner of “Garment Workers Trade Union Centre” formed a human chain on the Dhaka-Aricha highway and then brought out a procession from the Rana Plaza collapse site to Pakiza crossing.The workers of NRN Knitting and Garments Ltd said after the recent earthquakes, they had demonstrated demanding the authorities examine the building their factory is house in to find out whether it was fit.Afterwards, the factory management fired two workers, they claimed, adding when they protested the termination of their co-workers, the management again terminated 27 workers on May 3.Md Sarwar Hosen, production manager, admitted that they fired the workers, but said the orders came from higher-ups.While, the other factory workers said the authorities suddenly shut down the factory.Shahadat Hosen, production manager, said the management could not run the factory due to shortage of work-order.Police were deployed in the area and at the factories.

Source: https://www.thedailystar.net/city/garment-workers-protest-random-termination-81433

Bangladesh is aiming to achieve an ambitious rise to $3.5 billion of readymade garments (RMG) exports to Canada by 2021. According to Masud Rahman, chief of the Canada Bangladesh Chamber of Commerce and Industry (CanCham Bangladesh), exports to Canada stood at $1.1 billion in the fiscal year to June 2014, $770 million of which were ready made garments. Bangladesh has hopes of hitting an overall target of $50 billion of overseas sales by the end of 2021 as they become a middle income country. Canada will be one of the key garment export destinations. Bangladesh is currently the 2nd largest RMG exporter in the world behind China. This trend remains true when looking at Canada’s current top RMG import partners. -Business 2 Community

Source: https://www.observerbd.com/2015/05/07/87403.php#sthash.O5iebMwo.dpuf

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has blacklisted Seduka Jeans Inc USA, one of its buyers from the United States, for not paying dues to its sources in Bangladesh. The decision was taken after a request from the foreign exchange policy department of the Bangladesh Bank, said a leader of BGMEA in Dhaka. “This (Seduka Jeans Inc) is a fraudulent company. They have not paid their dues to the producers and that’s why it has been blacklisted,” BGMEA Vice President Shahidullah Azim told reporters. The decision to blacklist the company was taken to avoid further harassment of Bangladeshi companies by Seduka. Central bank officials said that Seduka had sourced apparels from a Bangladeshi company, but did not pay for it. Bangladesh Bank had looked in to the matter after the exporter complained. In 2013, an LC was opened by Excelsior Garments Ltd with the state-owned Sonali Bank against a buying order from Seduka Jeans Inc. An LC or Letter of Credit is a written commitment to pay, by a buyer’s or importer’s bank to the seller’s or exporter’s bank. It guarantees payment of a specified sum in a specified currency, provided the seller meets conditions and submits the prescribed documents within a fixed timeframe. The LC was valued at $48,816 but Seduka paid $25,321.25 less than the committed amount.

Source: https://www.observerbd.com/2015/05/07/87401.php#sthash.TZPkiHDy.dpuf

Apparel owners on Wednesday agreed to give 0.03 per cent of their total export earnings which stand at Tk 72crore annually to the Bangladesh Labour Welfare Foundation. The money will be used for the welfare of workers. Following a series of meetings between the apparel owners and the government, Commerce minister Tofail Ahmed made the announcement on Wednesday afternoon. “The government finalized the Labour Rules-2015 for enforcement of Bangladesh Labour Law (Amendment) Bill 2013″ at a meeting at Probashi Kalyan Bhaban in the city. Apparel owners and senior ministers of the government were present in the meeting,” he said. Under the rules, if workers are injured or killed in accidents, they will get Tk two lakh each from the welfare fund. The joint meeting was presided over by Expatriates Welfare and Overseas Employment Minister Khandker Mosharraf Hossain. Shipping Minister Shahjahan Khan, Information Minister Hasanul Haq Inu and State Minister for Labour and Employment Mojibul Haque Chunnu, among others, were present on the occasion. The law was passed on July 15, 2013 in Jatiya Sangsad (Parliament) through amendments to the Labour Act 2006. After enactment of the amended law, a government committee was formed (chaired by the expatriates welfare and overseas employment minister) to discuss with labour leaders to finalize the draft labour rules. Before finalizing the law the government sat with all stakeholders including workers and owners of factories and industries to take their opinions. “Government enacted the labour law 2013, which has drawn appreciation from all over the world,” the Commerce Minister claimed.

Source: https://www.observerbd.com/2015/05/07/87512.php#sthash.CepypjaH.dpuf

Global buyers of Bangladeshi apparel products have recently expressed concern over the outflow of brand items to the local market and sought cooperation from the garment exporters to protect the image of the brands. Buyers raised the issue repeatedly at the Buyers’ Forum meeting in the capital as the products made for international buyers are being sold in the local market with the labels of the noted brands. At a meeting of the Buyers’ Forum on Monday buyers alleged that the image of their brands were being hampered as leakage is taking place from some factories and left-over products are being made available in the local market in Bangladesh, meeting sources said. They also alleged that some of the manufacturers which are not involved with the export business were using fabricated tags in low quality products and selling those in the local market. According to the sources, the leakage of brand items from the factory and fabricated tags were the prime concern for the buyers and they thought the issues should be resolved to protect the image of the global brands. Responding the call from the buyers, Bangladesh Garment Manufacturers and Exporters Association has recently issued a circular to its members asking for better disposal of the left-overs so that no leakage takes place. To maintain good business relationship with the buyers, it is very important that all factory owners extend support to the buyers to resolve the issue, the BGMEA circular said. ‘We strongly feel that the precautionary measures which we follow to dispose of the left-overs have to be more closely monitored to ensure that no leakage takes place,’ the BGMEA vice president Shahidullah Azim told new Age on Tuesday. The BGMEA suggested its members that if necessary, they may consult with buyers’ agent for better disposal of the left-overs, he said. At the meeting, Azim called upon the buyers to take back the excess products on payment and arrange destruction of the defective items by burning those after paying for the cost of production. If the buyers take back the left-overs, no leakage of brand products would take place in the local market, he said. The BGMEA leader admitted that some of the brand products were being leaked from the factories and being sold in local market with the tags of renowned global brands. On the other hand, a section of dishonest business people were using fabricated tags of the global brands and marketing low quality products in the local market but BGMEA has nothing to do as they were not members of the association, Azim said.

Source: https://newagebd.net/117558/rmg-buyers-concerned-over-brand-image/#sthash.TdUmz6l1.dpuf