Safety in the garment sector has improved over the last two years as factory owners started implementing the corrective actions plans recommended by the engineers of two foreign inspection agencies — Accord and Alliance.Factories in Bangladesh producing garments for Accord signatory companies have become safer,” said Rob Wayss, Accord’s executive director for Bangladesh operations.“Safety hazards identified through our inspections are being remediated and will ultimately be completed. There is a lot of work remaining to do to complete the remediation work but progress has been made and this has made factories safer.”After the Rana Plaza building collapse, nearly 200 retailers and brands, mainly European, formed the Accord on Fire and Building Safety in Bangladesh on May 13, 2013 to ensure workplace safety and improve worker rights in the garment sector.The engineers of Accord, a legally binding five-year agreement, formally started factory inspections on February 20 last year and completed preliminary inspections in September.Through two batches of initial inspections — one in Feb-Sept of 2014 and the other in Jan-April of 2015 — Accord has inspected 1,286 factories for fire, electrical, and structural issues, Wayss said in an email interview as they completed two years in Bangladesh. The number does not include the approximately 250 factories producing for both Accord and Alliance brands which the Alliance inspected, he said. “For these factories we are not doing initial inspections but are developing CAPs (corrective action plans) and monitoring and verifying remediation based on the findings from the Alliance conducted inspection.”On providing funds to factory owners for remediation, Wayss said, in order to induce factories to comply with upgrade and remediation requirements of the Accord programme, participating brands and retailers will negotiate commercial terms with their suppliers.He said each signatory company may, at its option, use alternative means to ensure factories have the financial capacity to comply with remediation requirements.Bilateral discussions take place between factory owners and Accord brands to finalise a financial plan for the remediation, he said.In most cases, factory owners are confirming they will fund the remediation costs. In some cases, factory owners are requesting commercial terms and support from Accord brands.”Accord brands have negotiated such support in some cases. These include: commitment to order volumes and long term sourcing; prepayment or accelerated payment of orders, or direct financial support. Accord is also working to establish low-interest remediation loans through various international financial institutions.

Source: https://www.thedailystar.net/business/garment-factories-now-safer-after-inspections-82690

Bangladesh is apprehended to miss the export target for the current fiscal year as it has to earn $7.9bn more in the final two months of FY2014-15. Trade analysts and exporters have feared that it would be quite impossible to fulfill the gap as the last 10-month trend suggests. The dismal export performance is attributed to the country’s political unrest, devaluation of Euro against US dollar, weak demands of global consumers and compliance issues – all putting bar to placing high volume work orders, they said. As per the latest data of Export Promotion Bureau (EPB), during July-April of FY2014-15, Bangladesh fetched $25.30bn in export earning against $33.2bn target, registering a rise of 2.63% compared to the same period a year earlier. The export earning needs to be upped by 23.8% to reach the target. RMG sector, the lifeline of export earnings, failed to reach the target. In July-April Bangladesh earned $20.56bn by exporting clothes against its target of $26.89bn for the current fiscal year. As per the EPB data, the woven sector earned $10.55bn, which is 4.53% less than required to reach target while knitwear earned over $10bn, 6.3% less than required target amount. Among other major sectors, frozen food missed export target by 16.76% followed by tea 22.68%, leather and leather products 19%, shrimp 14.25%, raw jute 13.17% and computer services by 6.6%. “A $33.2bn export target was very easy to achieve but the political unrest stood in the way,” Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy told the Dhaka Tribune. “Bangladesh will be far away from meeting the target on the basis of current growth trend,” CPD additional Research Director Khondaker Golam Moazzem told the Dhaka Tribune. He cited four broad reasons – political unrest in the first part of the year, devaluation of Euro against US dollar, slow demands from the European buyers and compliance issues – as obstacles to meeting the export earnings target. Bangladesh might be able to earn $3bn in the remaining two months by achieving 5% growth, he said, adding that the total export earnings will touch $31bn if it achieves 10% growth, he added. “In January-February period of the current fiscal, exporters failed to net expected orders due to political unrest, which cast shadow on export earnings,” EPB Vice-Chairman Shubhashish Bose told the Dhaka Tribune. Bose added that 10% growth target was set, but due to devaluation of Euro and political stalemate it would not be possible to reach the target. Some sector people also raised question about the growth as they witnessed negative production growth and accounts. “From my perspective and production report, I am doubtful about the growth target as products and earnings from export show meager growth,” an exporter said, preferring not to be named. From the beginning of the year, a jolt had been felt in production because of turbulent political atmosphere in the country, which hit earnings badly, he added. The government dreams to become a middle-income country by 2021 and to earn $50bn from RMG export by the fifth anniversary of Bangladesh’s birth, but it will be unlikely if the export earnings do not reach a desired level, he added.

Source: https://www.dhakatribune.com/business/2015/may/13/exports-set-miss-target#sthash.2XkS3OsK.dpuf

The country’s export earnings in the financial year 2014-15 is set to fall around $2 billion short of target as readymade garment exports witnessed sluggish growth because of restructuring of the garment sector and also political turmoil, economists and exporters said. The export earnings in the first 10 months of the FY15 stood at $25.30 billion, which is 5.71 per cent short of the target of $26.83 billion, according to the Export Promotion Bureau data released on Tuesday. With the current trend of $2.3 billion-$2.8 billion monthly export, the country may fetch at best $5.8 billion in the remaining two months of the fiscal year taking the total export earnings to around $31 billion, around $2 billion short of annual target of $33.20 billion, estimated the analysts. The government has set the export earnings growth target at 10.02 per cent for the current financial year 2014-15 — the lowest target rate since the FY09 when the goal was 15.50 per cent. The data showed that during July-April of the FY15 country’s export earnings growth was 2.63 higher than the same period of the FY14. It is unlikely to reach $33.20 billion export earnings target in the FY15 as the export of readymade garments has lost its space in the US market and political unrest hit export oriented sector from the beginning of the year, Centre pr Policy Dialogue executive director Mustafizur Rahman told New Age on Tuesday. ‘Export earnings in the current financial year may fall short of target by $2 billion and the earnings growth will be near to 4 per cent,’ he said. Mustafiz said that deprecation of euro was one of the reasons for the shortfall in export earnings target. ‘Reaching $33.20 billion export target will be impossible because of the political unrest and due to the impact of back-to-back Rana Plaza collapse and Tazreen Fashion fire incidents,’ Exporters Association of Bangladesh president Abdus Salam Murshedy told New Age. He said that the country’s readymade garment sector witnessed a slowdown in the financial year as global retailers started safety inspections in the sector following the Rana Plaza building collapse. During the period many small and medium factories were forced to suspend their productions as they failed to meet tough conditions enforced by the retailers’ platforms, Murshedy said. ‘We are not concerned about the missing of export earnings target, but we are hopeful that we could overcome the situation as we are developing our industry,’ he said. Earnings from readymade garments in July-April period fetched $20.56 billion against its target of $26.89 billion for the current fiscal year. As per the EPB data, export earnings from woven fall short of target by 4.53 per cent to $10.55 billion in the first 10 months of current financial year while knitwear exports stood at $10 billion which is 6.3 per cent short of its target. According to Anwar-ul-Alam Chowdhury Parvez, a former president of the Bangladesh Garment Manufacturers and Exporters Association, it is obvious that if the RMG sector fails to achieve its target, the overall export earnings will miss the target as the RMG sector contributes to 81 per cent of the total export earnings. ‘It is not surprising that the export earnings in the current fiscal year may fall short of its target as the safety inspection of European and North American retailer groups is holding the sector back,’ he said. The country’s export earnings also missed its target by 1.06 per cent in the FY14. In the FY14, the exports grew by 11.65 per cent to $30.17 billion year-on-year missing the target of $30.5 billion, according to the EPB data.

Source: https://newagebd.net/119228/export-earning-set-to-fall-2b-short-of-target/#sthash.CCcJpbAH.dpuf

A female readymade garments factory worker was gang-raped in her factory bus in Dhondi area of Sonargaon upazila on Monday night. Sub-inspector of Sonargaon police station Md Aminul Islam said that the victim and other female workers were returning to residences in Dhondi area of Sonargaon from Araihazar upazila by their factory bus. They all were workers of Fakir Garments Factory in Araihazar upazila. When all but the victim got down from the bus, the bus driver Chandu Mia, his helper Rubel and other associates raped the girl in the vehicle. The girl became unconscious and the rapists fled leaving at a nearby house on the road. The bus started journey at 10.30 pm after the factory was closed and dropped passengers in different areas. Police being informed conducted a raid on Tuesday and arrested bus helper Rubel. OC of Sonargaon police station Kamrul Islam admitting the fact said that the drive will continue to arrest the culprits.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=257999:rmg-worker-gang-raped-in-bus-in-nganj&catid=136:metropolitan-others&Itemid=175

Apparel export growth slowed last month as industry people say compliance requirement and recent political turmoil ate into income. Exports proceeds slowed down to 1.16 per cent in April, compared with the same period last year, the Export Promotion Bureau said. Exports of ready-made garment in July and August 2014 witnessed a 0.07 and 4.23 per cent growth compared to that of the same period of 2013 while the receipts fell by 2.06 and 9.69 per cent in the next two months-September and October, the bureau data showed . But earning from overseas sales rebounded in November with 9.71 per cent growth in the same year and slowed down to 2.38 per cent in December again in 2014 while it has been maintaining a moderate growth since January of the year. Income from exports of apparel products recorded a significant growth of over 7.0 per cent in the first three months of the calendar year. Knitwear earnings stood at $10.0 billion and woven fetched $10.55 billion during the July-April of the current fiscal year 2014-15. But both the sectors failed to achieve the targets by 6.31 per cent and 4.53 per cent set for the period. The overall earnings in April 2015 stood at $2.39 billion against $ 2.41 billion year-ago period marking a 0.55 per cent negative growth. The earnings also fell short of the target by 11.36 per cent, data showed. The total earnings during the first 10 months of the current fiscal stood at $ 25.30 billion showing a 2.63 per cent growth compared to the same period last fiscal. The country also failed to achieve the target set for the period by 5.71 per cent. Md Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the recent political turmoil and the compliance issues had a negative impact on April growth. Knit export fell significantly in April after the scarcity of orders mainly due to the recent political turmoil, he said, adding: “Buyers followed ‘wait and watch’ approach and placed work orders at a reduced volume at the end of last year as the safety drive went on.” But with the completion of initial inspection by Accord and Alliance, buyers are regaining their confidence in Bangladesh, he said. He added that buyers are gradually increasing work orders in recent times as political turbulence eased.

Source: https://www.thefinancialexpress-bd.com/2015/05/13/92481

Trade and Investment Cooperation Framework Agreement (TICFA) has turned into a meaningless arrangement as the country is yet to reap any trade facility from the US government, Commerce Minister Tofail Ahmed said here yesterday. “Despite Bangladesh signed the TICFA, we are yet to get any sort of trade and investment benefits from the USA government under the framework,” he told the inaugural ceremony of a two-day Bangladesh Denim Expo held at a city hotel. The exhibition kicked off with an aim to fetch US$7bn of the brand fabric’s global market share within 2021. “It would be meaningless until and unless we can achieve something under TICFA, which has already become a platform for nothing but holding meetings only,” Tofail said. Strongly criticising the US government for not restoring the GSP facilities, Toail said, “Unfortunately we did not get any trade and investment benefit from the US government in the last five years, rather it suspended Generalised System of Preferences (GSP) of our products to the US market even after the signing of the TICFA.” EU Head of Delegation and Ambassador to Bangladesh Pierre Mayaudon said, “It’s not only about prices, rather the European consumers are very much directly connected with Bangladeshi workers and that is why we had reacted very strongly two years back.” He repeatedly called for compliance with the conditions set in the sustainability compact signed to improve workplace safety and workers’ rights in the RMG sector. Canadian High Commissioner to Bangladesh Benoit Pierre Laramee said, “Price and quality are no longer factors for the Canadian customers.” Rather, what the customers want is that the workers are respected, treated with dignity and their rights and safety ensured, he added. Regarding denim, he observed: “As denim has tremendous potentials, investment is necessary to grab more market share. Bangladesh Denim can play a lead role in achieving the US$50bn target.” Criticising Accord’s recent activities in connection with the termination of workers in a factory, BGMEA President MdAtiqul Islam accused the Accord’s Executive Director Rob Wayss of over exercising his power, which is beyond his jurisdiction. He also alleged that Wayss asked the factory owner to re-appoint the sacked workers, or else, he warned the owner of blacklisting the factory by its buyers. Twenty-five exclusive denim and jeans manufacturers and enterprises from the USA, Spain, Japan, India, Pakistan, Thailand, Turkey, China, San Marino and Bangladesh are taking part in the exposition. “The show aims not only to promote denim trade in Bangladesh but also to encourage greater business practice to raise the living standard of the people in the country,” said Managing Director of Denim Expert Ltd and also organiser of the Expo MostafizUddin. According to the industry insiders, Bangladesh is the second largest denim exporter in European markets while it is holding the third largest position in the USA market. Around 400 factories are exporting nearly 180 million pieces of denim jeans to the world. Bangladesh currently has 25 denim producing factories with total investment of over $834m. After this show, the next Bangladesh Denim Expo will be held on November11-12 this year.

Source: https://www.dhakatribune.com/business/2015/may/12/tofail-ticfa-fails-bring-benefits#sthash.Lo4Fnu6c.dpuf