The government is considering tough action against the garment factories that failed to conduct the detailed engineering assessment (DEA) within the timeframe recommended by the teams of engineers concerned, officials have said. The move came following the failure of a good number of factories that were asked to conduct DEA after initial assessment by experts from the Bangladesh University of Engineering and Technology (BUET), they have added. BUET under the government-International Labour Organization (ILO) joint initiative assessed about 500 garment factories and recommended DEA for about 250 factories finding structural flaws there. The inspection programme under the joint initiative started from November, 2013. The BUET engineers’ teams gave six weeks’ time for conducting the DEA. On the other hand, an official review panel also asked 45 more factories to do the same. Of them, about 14 units were yet to start the process. The panel, headed by the DIFE inspector general, was formed in 2013 to decide on shutdown of any garment factory, if found risky or non-compliant during inspection by any of the three initiatives – Accord, Alliance and the government-ILO joint programme. When asked, Syed Ahmed, Inspector General of Department of Inspection for Factories and Establishments (DIFE) said, “From last month the DIFE inspectors started monitoring whether the factories, that have been recommended to conduct DEA, started the process or not.” He said the government would hold a meeting on Thursday next to select a number of firms for the DEA. The firms will be those that have already been and are to be assessed under the National Tripartite Plan of Action. There is an allegation that manufacturers are dilly-dallying with the DEA process. On completion of the selection process, the DIFE would notify those units again to conduct the DEA, he added. “If any of them again fails to comply with the DEA requirement, the government will ultimately shut down those units,” he warned. When contacted, few manufacturers said they were in the process to shift their units located in rented buildings and they informed the DIFE of it.

Source: https://www.thefinancialexpress-bd.com/2015/05/06/91585

Bangladesh became the largest exporter of woven garment items to India in 2014 superseding China, sector insiders said. The country’s export share of woven garments to Indian market reached 29 per cent in 2014 compared to that of 26.96 per cent by China, they added. China, however, remained as the largest knit product exporter to the Indian market. According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported woven products worth $ 85.73 million and knit items worth $27.88 million to India in 2014. But India imported woven items worth $ 80.04 million and knit products worth $ 93.63 million from China in the last calendar year. Bangladesh’s top 10 woven items shipped to India in 2014 included men’s suits, jackets and trousers worth $ 52.40 million while the country fetched $ 19.20 million by exporting men’s shirts to the neighbouring country. Similarly, top 10 knitwear items exported to India last year included T-shirts, singlets and vests worth $ 13.47 million while jerseys, pullovers and cardigans fetched $ 6.89 million. The country’s total apparel exports to India stood at $ 113.61 million, showing a 31.12 per cent growth in 2014 compared to that of 2013, BGMEA data showed. Bangladesh’s apparel export to India was only $ 16.06 million in 2010. Textile and garment industry emerges as a prominent sector in exploring avenue to boost bilateral trade between India and Bangladesh and reducing a huge trade gap, industry people said. People aged between 25 and 50 are the highest population who are 45 per cent of India’s total population and this working age group can be a good target for Bangladesh, they added. India which has about $40 billion apparel market offered duty-free quota of 8.0 million pieces of sensitive garment items since 2008. It was increased by 2.0 million more pieces in April 2011. Later, India has allowed duty-free and quota-free access to 46 items, 45 of them are RMG products. “India is becoming one of the new emerging markets for Bangladesh and with duty-free facility, Bangladesh’s export to the neighbouring country is gradually increasing,” Reaz-bin-Mahmood, vice-president of BGMEA, said. Moreover, the ongoing compliance initiatives taken to ensure workplace safety help the sector gain the customers’ confidence, he said, adding that Bangladesh is still a competitive market for readymade garments due to rising cost in China and shortage of workers there. Faruque Hassan, managing director of Giant Group, said India imports a large volume of woven items as it has many small knit factories. Though Bangladesh enjoys duty-free and quota-free facility for its apparel products in Indian market, there are still some obstacles in the form of countervailing and non-tariff barriers in exporting goods to India, he added. Replying to a query, the BGMEA leader said China which produces fancy and value added knit products especially that of ladies items is playing a leading role in that particular segment in the Indian market. He has expressed the hope that Bangladesh’s knit sector will gradually grab the market. Khondaker Golam Moazzem, additional research director of the Centre for Policy Dialogue (CPD) said, “The most important thing is to introduce Bangladeshi products with that of Indian with its competitiveness in terms of price and other trade related issues.” India has a strong production base and its local suppliers/distributors are one of the challenges in entering the market, he said and stressed the need for more networking and confidence building with them.

Source: https://www.thefinancialexpress-bd.com/2015/05/06/91547

The German consumers should change their attitude of paying low prices for garment items from Bangladesh, said Thomas Prinz, the newly appointed German ambassador to the country.“It is also necessary to influence discussions at home in Germany,” he said at a reception hosted by the Bangladesh German Chamber of Commerce and Industry (BGCCI) yesterday to welcome him. “We are asking Bangladeshi companies to invest in safety and security standards, in fire doors and sprinklers. We are pressing the government to increase minimum wages and to allow trade unions. But what have our consumers and purchasers done?”He said the prices for garment products in Europe are decreasing. “Why can we still buy a T-shirt for 3 euros in Berlin or a pair of trousers for 9 euros?The retailers have founded “powerful” organisations like Accord and Alliance to dictate the standards in global garment trade. “Where are the Accords and Alliances to stop that?” Prinz, who arrived two months ago, said he will focus on economic possibilities and development cooperation between the two countries during his time in Bangladesh. Trade between the two countries has developed exceedingly well in recent years, and now stands at 4.5 billion euros, according to the diplomat.While the bilateral trade volume increased by more than 12 percent last year, it is not balanced at present, he said.Last year, Bangladesh exported goods worth 3.8 billion euros to Germany and imported goods worth 0.6 billion.Garment products accounted for 92 percent of the exports to Germany, followed by seafood at 2.5 percent and leather and leather goods at 2 percent.“I see huge potential for further development. Not only by scaling up but also by diversification,” he said, while highlighting the potential of the country’s shipbuilding and IT sectors.German exports to Bangladesh mainly consist of machinery (46 percent), electro-technical items (16 percent) and chemicals and related products (15 percent), according to Prinz. “Here as well there is potential for development,” he said, while calling for reduction of tariff and non-tariff barriers.New services and new German products can increase Bangladesh’s productivity. For modernisation of Bangladesh’s economy new instruments are needed.”On investment, Prinz said German investment in Bangladesh has for years remained at a modest level, owing to problems such as bureaucracy, corruption, energy shortage, land scarcity, political turmoil, among others.The ambassador hopes that BGCCI will soon be a part of the main German Chamber of Network, as the trade body has already clocked up over 650 members.BGCCI President Sakhawat Abu Khair and Executive Director Daniel Seidl also spoke.In another programme, Sarazeen Bratzler, managing director of SS Solutions and gold partner of SAP, a business management software, said they will set up a training academy in the country soon to train the youth on information technology.Commerce Minister Tofail Ahmed and Prinz were also present at the SAP programme at the same hotel.

Source: https://www.thedailystar.net/business/pay-more-bangladeshi-garments-80678

The Accord on Fire and Building Safety in Bangladesh, a platform of European retailers, foundmodest cracks in three factories in its post-earthquake safety assessment in 61 factories. After the 7.9 earthquakes that hit Nepal on April 25, the Accord launched inspection to identify the immediate impact of the earthquake and will inspect approximately 200 factories, which were deemed structurally the most vulnerable from its initial inspections. “We’ve so far inspected 61 factories after the earthquake and found modest cracks in three of those factories,” Brad Loewen, chief safety inspector of Accord on Fire and Building Safety, told the Dhaka Tribune. The Accord is following up with the factories, the brands, labour partners, and the Inspector General to ensure that they are made safe, he said. The factory owners have to hire engineers to investigate the cracks, to check whether it could pose any threat to the workers’ safety or not, said Brad. “The owners have already been asked to look into matter.” Accord Executive Director Rob Wayss said, “The Accord is implementing measures to determine if buildings, we have inspected and which are producing for Accord signatory companies have been structurally affected by the earthquakes.” ‘We’ve requested those factories which required a detailed engineering assessment from the Accord initial structural inspection to have the engineers their company is working with on the DEA to conduct an immediate impact inspection to determine if the earthquake has caused any structural damage to the building where the factory is housed,’ said Rob. The platform also requested its signatory companies to share any related information they have obtained regarding the listed factories with the assigned Accord case handler. The safety issues came under spotlight after the Rana Plaza factory that killed over 1,135 workers and injured over 2,500 people on April 24, 2013.

Source: https://www.dhakatribune.com/business/2015/may/05/accord-finds-modest-cracks-three-rmg-factories#sthash.Ms1beXwZ.dpuf

An uncertainty looms large over the jobs and five months’ dues of 1,200 workers in Swan Garments Limited after the factory owner shut the factory without any prior notice and his subsequent suicide last week. The garment workers are now faced with a precarious situation following the unnatural death of the factory owner, Ming Yuen Hon (Toby), who took his own life. Abu Bakar, inspector (investigation) of Vatara Police Station, confirmed the death and an unnatural death case has been filed in this connection. The untimely demise of the managing director put the Swan Garment workers and the factory itself in a fix as none claims to be the heir to the property. On April 9, Ming Yuen Hon tried to flee Bangladesh without making payments and arrears to the workers, but was caught by his employees. “We caught him at the Airport and brought him back to the factory. After that he paid us a one-month salary,” said Jahangir Alam, line chief of the factory. Later on April 10, the factory owner hung a notice that said the factory had been declared closed, Jahangir added. “We were working in the factory and there was enough work order to run the factory, but over the last few months, the owner had been subcontracting his work orders,” Sharifa, an operator of Swan Garment, told the Dhaka Tribune. She alleged that the factory owner had a bad intention and he delayed making payment, that resulted in five-month dues. “Now it has become very tough to lead our lives as we did not have a single penny,” said Roksana, a worker of the factory. She said she failed to pay her house rent and tuition fees for her child over the past three months. “If we do not get the dues, we have to starve and leave Dhaka silently.” BGMEA President Atiqul Islam told the Dhaka Tribune, “We have discussed the issue with the Ministry of Labour and called for necessary steps to pay the workers dues.” The factory owner has assets and the government can pay the workers through the sale of his properties as there is none to inherit the garment factory other than the government, added Atiqul. The labour leaders and BGMEA in a meeting decided to meet the government to resolve the issue while the garment workers demanded quick disposal of the issue. Meanwhile, at least five RMG workers of Swan Garment received injures while police charged baton to bar them from staging demonstration in front of BGMEA Bhaban. According to workers, at least five of them were injured in police attack. The workers were trying to make their voices for five-month salaries and job benefits heard. Sub-Inspector of City Special Branch (SB) Obaidur Rahman told the Dhaka Tribune two workers sustained injuries while police charged baton to disperse the workers to clear the gate of BGMEA Bhaban to let an ambassador out. At around 11am, the workers of the factory gathered in front BGMEA headquarters to realise their salaries of the last five months.

Source: https://www.dhakatribune.com/business/2015/may/05/swan-workers-uncertain-about-getting-5-month-dues#sthash.kSIpST0u.dpuf

The Accord on Fire and Building Safety in Bangladesh, a consortium of European retailers, has found simple cracks in three factory buildings during a post-earthquake safety assessment in 61 factories in the last nine days. The platform will conduct inspections to identify the immediate impact of the April 25 earthquake at roughly 200 factories which were deemed structurally the most vulnerable from its initial inspections. Bangladesh felt multiple foreshocks and aftershocks of the powerful earthquake of 7.9 magnitude that jolted Nepal and some parts of India and China. ‘As of this afternoon, we have inspected 61 factories. We have issues in three of those factories and are following up with the factories, the brands, our labour partners, and the Inspector General [of the Department of Inspection for Factories and Establishments] to ensure that they are made safe,’ said an official of Accord on Monday. He said that simple cracks were found in three factories and Accord had asked the owners of the units to hire engineers to ensure whether the cracks are risky. ‘Accord is implementing measures to determine if the buildings we have inspected and which are producing for Accord signatory companies have been structurally affected by the earthquake,’ Rob Wayss, executive director of Accord, told New Age. He said that all 11 Accord structural engineers were in the field doing immediate impact inspections at the factories and they were utilising an internationally-recognised inspection for these immediate inspections. Accord has formally communicated with the owners or management of the inspected factories requesting them to provide information on the impact of the earthquake on their buildings and on any precautionary measures or investigations they have done since. ‘We have expressly requested those factories which required a detailed engineering assessment from the Accord initial structural inspection to have the engineers their companies are working with on the DEA to conduct an immediate impact inspection to determine if the earthquake has caused any structural damage to the building where the factory is housed,’ Rob said. After the Rana Plaza factory collapse on April 24, 2013 that killed more than 1,100 people, mostly garment workers, Western retailers and apparel brands, reacting to public outrage, began a major push to improve safety at the Bangladeshi factories they do business with. The EU brands and retailers including H&M, Carrefour and Mango, as well as 14 American companies formed Accord and the platform started safety inspection in more than 1,500 garment factories that supply to the Accord’s members. During the inspection the structural integrity in 17 buildings was found below an acceptable level of safety and the platform recommended a government-set review panel for temporary evacuation of the buildings. As per the recommendation of the Accord, 24 factories in nine buildings were closed while four factories in five buildings were partially closed. North American retailers formed another platform, Alliance for Bangladesh Worker Safety that inspected 600 RMG units.

Source: https://newagebd.net/116933/accord-detects-cracks-in-3-factory-buildings/#sthash.nMs4nR2g.dpuf

The garment manufacturing sector in Bangladesh has a new slogan: “$50 billion by 2021.” It’s an ambitious vision to reach $50bn in exports by 2021, the 50th anniversary of the Republic of Bangladesh. In December, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Brand Forum Bangladesh held a summit to develop a “collaborative and coordinated approach” to achieving this goal. Bangladeshi government and industry leaders are determined, and international partners, including the US government, have pledged to support their ambition. Today the Bangladeshi garment industry is worth $25bn. The NYU Stern Center for Business and Human Rights looked at recent export data and industry trends to assess whether the industry could double in the next six years. To make the $50bn target, Bangladesh will have to grow exports by 10.9% annually (assuming they can reach their projections this year). Over the past six years the garment industry has grown by an average of 13.9% annually – which makes $50bn by 2021 seem within reach. But there are a few caveats to consider Rethinking the growth rate: The average growth rate of 13.9% over the last six years is skewed by a 43% jump in garment exports between 2010 and 2011 – a jump we’re unlikely to see again. Excluding that year, export growth averaged just 8.8% during the other five years. Looking forward, a more accurate annual estimate might be somewhat lower than 13.9%.
#Counting on global demand: To meet their projections, Bangladesh will have to outperform the global apparel industry. The Asia-Pacific apparel export market is expected to grow by 9% annually through 2017, while the global apparel industry is expected to grow by just 5.1% through 2018. To achieve 10.9% growth, Bangladesh will have to gain market share from competitors like China and India all while they seek to grow their own garment exports.
#This year’s setback: Over the last three months, the World Bank estimated political unrest cost Bangladesh’s economy $2.2bn. Partially as a result, fiscal year 2014-15 began on a low note, with garment exports achieving an annualized growth rate of just 3.2%. The more Bangladesh struggles to meet near-term growth projections because of instability, the less confidence we can have that the garment sector will meet its long term targets consistently. Addressing weak infrastructure: In 2014, the World Economic Forum rated Bangladesh’s infrastructure 127th out of 144 countries evaluated. In order to accommodate an additional $25bn in RMG exports, the Bangladeshi government will need to make considerable infrastructure investments in the coming years. Our assessment is that a valuation of $50bn by 2021 is achievable, but far from guaranteed. To stay on track toward this goal, Bangladesh can’t afford the unsustainability that political unrest, poor working conditions and inadequate infrastructure bring to the garment sector. To make the “$50 billion by 2021” slogan a reality, the garment industry in Bangladesh will have to adopt another refrain since Rana Plaza: “Business as usual is not an option.”

Source: https://www.dhakatribune.com/business/2015/may/04/bangladeshs-50bn-rmg-export-target-2021#sthash.IKJQ5C75.dpuf

Japanese and Chinese authorities will finalise setting up several economic zones in four months as part of a bid to bolster foreign direct investment in Bangladesh. Besides, India authorities are now conducting surveys to build a number of dedicated economic zones of their own in Bangladesh. Paban Chowdhury, executive chairman of Bangladesh Economic Zones Authority (BEZA), told the Dhaka Tribune yesterday: “If there was no unrest here over the last four months, the Indian authorities would have already finished the studies to choose investment zones in Bangladesh.” The Japanese are expected to finalise their decision by June 30 on chosing two locations for building their own economic zones in Bangladesh. Similar decisions are expected from the Chinese by the end of August, Paban said. “But the investment decisions from these two Asian countries will depend on political stability here,” he added. BEZA has already acquired 206 and 279 hectares of land in Gazipur and Narsingdhi respectively for the Japanese; and 341 and 3,122 hectares in Anwara and Mirsarai in Chittagong respectively for the Chinese investors. The proposed name for the Chinese investors is “Chinese Economic and Industrial Zones.” This came up in a recently meeting of the BEZA with PM Sheikh Hasina in the chair. The Chinese authorities will bring gas from Myanmar for powering up the industries set up in economic zones in Chittagong. Paban Chowdhury said: “We will develop infrastructure outside the economic zones. But the investors from the relevant countries will have to carry out the developments needed on the inside.” The Indian authorities have shown intersts about setting up industrial zones in Jamalpur, Panchagarh and Sirajganj. In 2010, the government decided to offer 22 economic zones to both local and foreign investors. BEZA is now highlighting 17 of these locations saying they are more or less ready to take in investments. BEZA has so far issued operational licenses to local private investors AK Khan Group and Abdul Monem Ltd. Meghna Group, a local conglomerate, is trying to acquire license for two zones. Bangladesh Garments Manufacturers and Exporters Association (BGMEA) will develop yet another private special economic zone in Munshiganj. The interested local and foreign developers will sign 50-year contracts for getting hold of each of these economic zones. According to a draft policy, a license will cost a local investor Tk5,000 crore and a non-refundable $20,000 dollars. The Prime Minister’s Office has prepared a draft incorporating 20 types of incentives relating mostly to customs, VAT and income tax. Foreign investors will be able to repatriate 100% of their profits which existing rules do not allow. Economist AB Miza Azizul Islam told the Dhaka Tribune that Bangladesh needs $35bn investment every year to attain a 8% year-on-year economic growth and graduate to a middle-income country by 2021. “That is why the government has taken the initiative to build the economic zones to attract more foreign investment. But without political stability in the country, none of these will work. “We cannot but wonder why the Koreans, the first foreign investors to set up their export processing zone in Bangladesh, have been treated so shoddily. “One part of the more than 1,000 hectares of land allotted to the KEPZ will be reacquired by the government for what appears to be violations by Korean firms. This hardly garners confidence among prospective foreign investors,” said Mirza Azizul Islam, who was a finance adviser to a former caretaker government.

Source: https://www.dhakatribune.com/bangladesh/2015/may/04/chinese-japanese-economic-zones-soon-be-reality

Export earnings from the country’s garment sector are likely to fall short of the target by at least $1 billion in the current fiscal due to the political turmoil that rocked the country for over three months, exporters said. According to information, country’s garment sector—knitwear and woven—was set to bring $19549 million during the July-March period of the current fiscal year while it fetched $18626.28 million experiencing 9 percent shortfall of the target. Woven garment was set to bring $9605.11 million while it fetched $9068.88 million, which is 5.58 percent shortfall of the target. Knitwear sub sector was set to bring $ 9943.91 million during the July-March period while it fetched $9557.40 million, around 3.83 percent shortfall of the target. According to sources, garment sector is set to bring $27 billion out of the country’s overall export target of $33.2 billion in this fiscal year. “Garment export will likely to experience $1 billion shortfall of the target at the end of this fiscal year,” said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, blaming aftermaths of Rana Plaza collapse and political violence for it. He, however, blamed devaluation of dollar and euro currencies for such bad state of garment export. EPB data said export earning of readymade garment sector in the last fiscal year was $24491.81 million against the set target of $24147 million. In the fiscal year 2012-2013, the sector had earned $21515 million while it was set to bring $21538 million. It needs around 10 percent growth in bagging revenue for the sector during the remaining months to make up the shortages, said Shahidullah Azim, vice-president of BGMEA, adding that it would be tough to achieve. Garment makers, however, blamed the political violence that took place during January-March period this year. They said the political turmoil had hampered smooth operation and discouraged the retailers from giving work orders here. Talking to this correspondent, an administrative officer of a local office of the Netherlands based buying house said work orders have dropped by 20 to 30 percent during the January-March period of the current fiscal year.

Source: https://www.daily-sun.com/print/back-page/2015/05/04/501278#sthash.r92eL9au.dpuf

Industries Minister Amir Hossain Amu has said the expansion of technical and vocational education and training for the youth has consolidated the position of Bangladeshis in the Middle East, Malaysia and European labour markets, reports UNB. The minister said this while speaking at the closing ceremony of the three-day international conference on ‘Technical and Vocational Education and Training (TVET) for Sustainable Development’ at Radisson Blu Water Garden Hotel on Saturday night. Amu said the government is considering the country’s huge manpower a strong element of the national economy as it ‘creates industries, entrepreneurs, workers and domestic market’. That is why, he added, the government has continued its efforts to create skilled and efficient manpower capable of surviving the competition in the international labour market. The industries minister said the government is considering enhancement of skills a key weapon of poverty alleviation and socio-economic development and for which it has constituted the National Skill Council (NSC). He said initiatives have been taken to implement three projects on technical and vocational education and training in cooperation with the European Commission, Asian Development Bank and World Bank. Amu said the government has already established many technical schools and colleges at Upazila level and strengthened the activities of the existing training centres as technical education played a key role in poverty alleviation. He said the government would consider every recommendation coming out from the international conference with high importance. State Minister for Foreign Affairs M Shahriar Alam spoke at the programme as a special guest. He said around 400,000 diploma engineers have been created in the country in the last 44 years. He said several ministers, including Prime Minister Sheikh Hasina, joined different sessions of the conference as it has given technical and vocation education the utmost priority. Giving diploma engineers a high complement, he said: “Eighty-five per cent of the development works are done by you guys.” CPSC Faculty Consultant G Kulanthaivel and IDEB President AKMA Hamid and General Secretary Md Shamsur Rahman also spoke on the occasion. The Institution of Diploma Engineers, Bangladesh (IDEB) and Colombo Plan Staff College (CPSC), Manila organised the conference in cooperation with the education ministry, Canada and the World Bank.

Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=256873:bangladeshs-position-getting-better-in-intl-labour-market&catid=110:business-others&Itemid=156