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

Most of the country’s export-oriented readymade garment (RMG) factories brought their workers under the health care facility, sector insiders said on Sunday at a programme. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Reaz-Bin-Mahmood said 98 per cent RMG factories ensured medicare for their workers and employees. He was speaking at a seminar on “Sexual & Reproductive Health & Right for Female Garment Worker (SRHR)” organised by SNV Netherlands Development Organisation, held at BGMEA office in the city. He said the industry owners are providing more time for the training of the workers on health care issues. Paul Stevens, Country Director, SNV Bangladesh, said, “Betterment of the lives of the low-income population is what we all want.”

Source: https://www.thefinancialexpress-bd.com/2015/04/20/89538

Canada will be a key garment export destination for Bangladesh in achieving the $50 billion overseas sales target by the end of 2021, Canadian High Commissioner Benoît-Pierre Laramée said yesterday.Currently, Bangladesh is the second largest garment exporting nation after China with shipments of $24.5 billion in the last fiscal year.“Canada has been providing support to Bangladesh to develop workers’ skills and improve working conditions in the sector for higher export of garment items,” Laramee told a group of journalists at the first RMG Meet Up, a regular discussion by the Canada Bangladesh Chamber of Commerce and Industry (CanCham) with leading North American retailers and garment exporters at Westin Hotel in Dhaka.Riding on duty-free benefits to Bangladesh since January 2003, garment exports to Canada have been on the rise in the last decade. Of Bangladesh’s exports to Canada, 96 percent are apparel items.Between July and March, Bangladesh exported goods worth $734.02 million to Canada; it imported goods worth $495.80 million in July-February of the same fiscal year, according to data from the Export Promotion Bureau.In fiscal 2013-14, Bangladesh’s exports to Canada were worth $1.1 billion, while imports were $585.5 million.“A lot of progress in terms of inspection, progress in terms of remediation and transparency has been made in the garment sector after the Rana Plaza building collapse. We see major progress, but the momentum should be maintained,” Laramee said.Bangladesh needs to take ownership of safety measure after the departure of the Accord and Alliance, the two foreign garment factory inspection agencies in the country.After the industrial disasters — Tazreen Fashions fire and Rana Plaza collapse — the Accord and Alliance began factory inspections to develop structural, fire and electrical safety in Bangladesh in 2013.The agencies completed their preliminary inspections in September and will wrap up their activities after five years of operations.Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, said the garment makers have been facing the challenges of poor infrastructure, political crisis, lower worker productivity and a lack of experience of mid-level management.“An inadequate supply of gas and a ban on new gas connections to the factories are the biggest challenges for the garment sector now,” Islam added.The rising cost of production and politicisation of trade unions are other major challenges for the sector, he said. “We are still confident that we will achieve the apparel export target of $50 billion by 2021.”CanCham President Masud Rahman said the chamber has started its new initiative to hold quarterly discussions on ‘Journey to the Next Milestone: Strategy for the RMG Sector’ as garment exports to Canada are on the rise.“The multi-billion dollar garment industry is currently passing through an interesting time. The overall performance of apparel exports in the last year compared to previous years has not been that different.”The growth rate has been around 9 percent over the previous year, which is slightly lower than the past five years’ average of around 12 percent,” he said.Rahman said Bangladesh exported garment products worth $5.4 billion in 2013 to the US — the single largest export destination for the country — which is 9 percent higher than in 2012 and 158 percent higher than in 2003

Source: https://www.thedailystar.net/business/canada-the-next-big-buyer-garment-78143

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) wants Value Added Tax-free import of safety equipment for the next five years. The apex trade body of the clothing industry will place a set of recommendations for the fiscal year 2015-16 at a pre-budget meeting with the National Board of Revenue set to be held on April 26, BGMEA Vice-President Shahidullah Azim told the Dhaka Tribune. If the government withdraws VAT on import, it will help RMG sector ensure safety and security by installing safety equipment as per the requirement of global retailers, said Azim. Due to imposition of VAT on equipment, prices go very high that hinder installation, he added. “We also sought some clarification of issues like VAT and Advance Income Tax (AIT).” The proposal of BGMEA includes continuation of source at tax at 0.30%, 10% income tax for the next five years, incentives for exporters of European Union countries as the price of Euro had been devalued by around 22% last month and suspension of re-audit. BGMEA also wants duty-free import of colour for prefabricated building as it costs higher. The clothing manufacturers will seek loan rescheduling facilities like those that have loan over Tk500 crore. Bangladesh Bank provided loan rescheduling facilities for big borrowers having loans of over Tk500 crore. After the Rana Plaza building collapse, safety issue has become the most challenging for the RMG makers. In the current fiscal year, the government allowed duty-free import of safety equipment to give a cushion to the importers, but they had to pay VAT. According a rough estimate of BGMEA and suppliers, the country’s ready-made garment (RMG) sector needs to spend over Tk2,410 crore on the import of fire equipment—sprinklers and fire doors—to comply with fire safety conditions set by the two retailers’ platforms Accord and Alliance. The sector’s contribution to the national export is over 81%, which amounted to $18.62bn in the first nine months of the current fiscal year. The sector employed over 4.5 million workers, of which 80% are women mostly from rural areas.

Source: https://www.dhakatribune.com/business/2015/apr/19/bgmea-wants-vat-free-safety-equipment-import#sthash.1Go2jcyl.dpuf

The readymade garment exporters want tax-free import facilities of construction materials and safety equipments to be used to establish factories in the proposed garment village. The Bangladesh Garment Manufacturers and Exporters Association is going to place a set of budget proposals to the National Board of Revenue for the next fiscal year 2015-16 which include increasing the period of reduced rate at tax at 10 per cent up to next five years. ‘We will also place the recommendations for the continuation of source at tax at 0.30 per cent up to next five years,’ BGMEA vice-president Shahidullah Azim told New Age on Saturday. In the budget proposals the BGMEA will seek duty- and value added tax-free import of pre-fabricated building materials and colour for prefabricated buildings, he said. According to the BGMEA leader, the trade body will demand exemption from VAT against utility bills like gas, electricity and water bills. Another BGMEA source said the trade body would want special cash incentive at the rate of 2 per cent against all kinds of garment exports instead of existing 0.25 per cent for next three years. RMG makers will seek special fund in the budget so that entrepreneurs can avail low-interest loan for establishing compliant factories. The pre-budget discussion with the NBR is scheduled to be held on April 26. Azim said that the government allowed duty-free import of safety equipments but due to imposing VAT at the rate of 15 per cent on the items the prices became higher. He also said that they would seek special incentives for exporters of European Union as the exporters were facing losses in the eurozone due to depreciation of the euro by around 22 per cent over the few months. In the pre-budget discussion the garment exporters will place recommendations for loan rescheduling facilities for those who have loan over Tk 500 crore.

Source: https://newagebd.net/112728/bgmea-to-seek-tax-free-import-for-garment-village-factories-in-budget/

The clothing company Benetton has announced it is contributing $1.1m (£740,000) to a compensation fund for the victims of the Rana Plaza disaster, a week before the second anniversary of the Bangladeshi factory building collapse that killed more than 1,100 workers. It makes the Italian firm the last major western fashion retailer that sourced clothing from the eight-floor building in Dhaka to donate to the fund backed by the UN’s International Labour Organisation. However, campaigners are bitterly disappointed that the total remains $8m short of an original $30m target. They had called for Benetton – which promised a donation several weeks ago – to make up the entire balance. The company, which initially denied using any firms located in the factory complex, said it was donating double the amount advised by the accountants PricewaterhouseCoopers (PwC). Rana Plaza: one year on from the Bangladesh factory disaster Read more The PwC report calculated the amount brands should contribute to the fund based on the $30m target and their share of production at the factory. Benetton’s share was 1.8%.

The figure was endorsed separately by Worldwide Responsible Accredited Production (WRAP), a US-based NGO specialising in social compliance through global supply chains. Ineke Zeldenrust, a spokesman for the Clean Clothes Campaign, said: “Benetton had a real opportunity to emerge as a leader and prove that its pledges of empathy, understanding and care for the welfare of the victims were not just some PR spin. Unfortunately, the true colours of Benetton are now revealed.” Zeldenrust questioned the WRAP report, saying: “WRAP is an industry sponsored social auditing and certification organisation with one of the worst track records in the industry. The Garib and Garib factory, for example, that went up in flames in Dhaka in 2010, was WRAP certified at the time.” Benetton’s contribution comes after more than 1m people signed a petition on the campaigning site Avaaz calling for the Italian label to donate alongside other western brands linked to the world’s deadliest clothing industry accident. Benetton faces renewed pressure over Rana Plaza victims’ fund Avaaz’s campaign director, Dalia Hashad, said: “Benetton is not giving nearly enough to ease the death and suffering their clothes have caused.” She said the payment set a precedent for other global brands that had not contributed to the fund, adding: “When workers die, you cannot walk away.” Benetton said its total contribution was $1.6m as it had also helped the victims via its own support programme in partnership with BRAC, an NGO in Bangladesh. The company said it has also agreed to raise working conditions and living standards for workers in the garment industry across its global supply chain. Benetton said it would apply the principles of the Accord on Fire and Building Safety in Bangladesh to producers in other global markets. Marco Airoldi, Benetton’s chief executive, said: “While there is no real redress for the tragic loss of life, we hope that this robust and clear mechanism for calculating compensation could be used more widely. For this reason, we decided to make the PwC report publicly available to all stakeholders.” Rana Plaza: are fashion brands responsible for those they don’t directly employ? On the second anniversary of the disaster on 24 April, the Fashion Revolution campaign will encourage consumers in 68 different countries to ask questions about where their clothes are made. In the UK, it is backed by well-known figures such as the model Lily Cole and the ethical fashion supporter Livia Firth.

Source: https://www.theguardian.com/world/2015/apr/17/rana-plaza-disaster-benetton-donates-victims-fund-bangladesh

The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has set an ambitious target for the textile sector to reach US$50 billion exports by 2021. Similarly, the leather sector expects that relocation of tanneries to the Savar Industrial Estate could boost their export revenues from $1.0 billion to $5.0 billion in the next five years. All these targets are achievable if policies are favourable to address structural deficiencies so that efficient use of resources is ensured. Development of export industries and increase of production, with strong impacts on environment and especially on water resources, are now the concerns.  Experts have agreed that in order to maintain long-term impact on the economy and continuing operation of heavy industries in such a small land, water resources have been posing a challenge. Water resources governance needs supporting actions, among others, for maintaining health of communities in and around production areas. A recent study done by 2030 Water Resources Group (WRG) shows that if business-as-usual continues, this will result in an additional water demand of over 9,500 megaliters (one megalitre is equivalent to one million litres) per day by 2030 which is equivalent to the annual water needs of a population of approximately 75 million in Bangladesh. We would need to think about an increase in water demand with a rise in population in the country to the extent of 27 million by 2030. Environmental management and pollution in the industrial sector, especially in textile and leather sectors, would be at high risk in the absence of efficient water use. Growth of these sectors would compound the problem. Simple and low-cost measures could reduce water use by up to 20 per cent which will lower future infrastructure investment and operational expenditure by up to $7.0 billion. Keeping an eye on all these issues, setting up of central effluent treatment plants (CETPs), public-private partnerships, engaging policy-makers and commercial banks to improve Green Fund are some of the prescriptions. Some studies have also suggested for reducing or waiving duties on import of water metres and water minimisation/conservation equipment, increasing competition in water market and reducing cost of water and effluent treatment plants. In respect of finance and environmental sustainability, an effort is going on to create a task force in this respect. The task force will help take stock of all important legal acts/policies and to recommend strict enforcement for compliance as well as rationalising water use, use of ETPs, differentiated water tariffs, etc. WATER ACT 2013: What are the relevant laws, rules and regulations taking care of water issues? The main law is the Water Act 2013 which is the most important water policy in the country. It supersedes all previous policies. Other overlapping and interconnected policies  for taking care of water are the Disaster Management Act 2012, the Coastal Development Strategy 2006, the Coastal Zone Policy 2005 and the Bangladesh Forests Act.   There is a National Water Resources Council (headed by the Prime Minister). An executive committee is working for this council. The Ministry of Local Government, Rural Development and Cooperatives and the Ministry of Water Resources are also the other ministries to take care of these issues. The Water Resources Planning Organisation (WARPO) is under the Ministry of Water Resources. Different departments, authorities, and commission are working under the Council.  Besides, the Ministry of Planning, the Ministry of Industries, the Department of Environment, the Bangladesh Agricultural Development Corporation and the National River Protection Commission are other institutions/ministries connected to water resource maintenance and governance. Policy documents are sometimes not clear about the mandate and powers of individual water institutions. There are scopes for conflicts where it is not clear which agency is responsible for implementation of particular activities. The Ministry of Industries (MOI) is almost absent in water policy discussion.  In respect of penalties, the PRI studies also have shown that penalties for non-compliance are too low to be effective, and the mechanisms for pursuing penalties have opportunities for improvement. In that respect review of the penalties could be an issue. COORDINATED EFFORTS: Agriculture as the number one user of water needs stronger regulation for its efficient use.  While the government support for CETP and ETP investment is important for industrial sectors, there is a serious need for coordinated efforts to address these very important issues. Mandate, scope of work and responsibilities should be clear to all. In a recent seminar, all these issues were discussed. It was observed that the WARPO lacks the status and mandate for necessary coordination among all relevant ministries. The Ministry of Industries is not included in the  National Water Resources Council (NWRC). Representatives from the private sector like FBCCI, BGMEA and BKMEA are also not included. The Board of Investment (BOI) could have a role to play in this committee. Metering has been mentioned as another alternative for firms to restrict wastage of water resources. Without entrepreneurial will to take care of environment, metering will not be able to provide better results. In several developed and developing countries, they are planned for zero-wastage and moving towards a ‘Circular Economy’, meaning a zero-waste programme through recycling and preventing losses.  The ‘Circular Economy’ considers the whole value chain potentials and it requires supports from all research and innovation chain, integration of science and society for the second life of a product. We need to have a legislative proposal  to review re-cycling and other waste related targets. We would need to use more surface water (now 30 per cent only) instead of going for underground water (70 per cent). Presently water of only one river is treated; more rivers should come under this purview. In order to cover the whole country, area of the authority of the WASA could be increased. Its technical capacities should be enhanced and appointment of its Chairman not be politically motivated. Some studies show, water treatment cost is 5-10 times higher in China than ours while cost of waste water treatment is about 2-3 times higher. A PRI study suggested differential water pricing based on location as has been practiced in China.  It could be done based on industrial concentration, because it simply determines that more concentration of industrial firms in a specific place can cause more harm to the environment. The PRI has come up with a very important topic to address structural deficiencies of our textile sector which is our pride. Inefficient resource use (water and power) and poor environmental practices are some of the  common areas.  In order to address all these issues and attain long term sustainability of the industrial sector, a platform is required where other stakeholders and professionals can come together to recommend actions for efficient use of resources specially water which presently seems to be abundant but if we are not cautious, our industries will suffer for its inefficient use.

Bangladesh’s garment industry is moving forward, aiming to reach an export target of $50 billion by 2021, when the country will celebrate its golden jubilee of Independence.In fiscal 2013-14, the apparel industry exported goods worth $24.49 billion, the amount being 81.16 percent of the country’s total export earnings.However, let’s take a moment to look back. The Rana Plaza building collapse was a tragic incident in the history of the country’s garment industry. Before that, there was the Tazreen Fashions accident in 2012. These incidents remind us of how a lack of safety can take the lives of so many, and account for the loss of machinery, buildings and other assets.However, the industry is undergoing a transformation as these incidents made all the stakeholders aware of the significance of safety issues.As the industry is labour-intensive, thousands of families depend on the incomes of garment workers. Meanwhile, the materials used in garment factories are flammable. So, all the parties associated with the industry want to ensure safety. Sufficient safety equipment reduces the rate of accidents.Two aspects are notable while talking about safety — one is building and fire safety and the other is workers’ safety.At present, there are initiatives being taken from three sides. One is from the national level, which is known as the National Tripartite Plan of Action (NTPA).The NTPA agreement on fire safety and structural integrity in the garment sector is signed by the government, employers and workers. Bangladesh University of Engineering and Technology (Buet) is also involved in measuring safety standards in the buildings or workplaceThe second initiative has been taken by 100 retailers, mainly European, known as ‘Accord’, which is working on building and fire safety. Thirdly, there is the ‘Alliance’ of North American buyers that is working to ensure workers’ safety.Now the question comes, how these three parties will work on a combined platform if they have different requirements.Thus, there are the ‘minimum common standards/parameters’ that have been finalised considering the three parties’ requirements, which have to be followed by the factories.The common standards will be implemented one by one in collaboration with the International Labour Organisation, Alliance, Accord, experts from Buet, and the NTPA.By 2014, the Accord and Alliance have completed their first phase of inspection. The good news is, less than 1.5 percent of factories were found to be unsafe among all the factories inspected. Those factories have been closed down for relocation.On the other hand, the NTPA is conducting inspection and it will continue to do so as it is a continuous process. Out of 3,500 plus factories, a total of 2,325 have been inspected by the NTPA. In their inspection, they found most factories to be safe and they need fewer corrective action plans.Implementing the plan involving fire safety equipment is a costly one. Thus, the issue of financing is still important for the remediation process. There was strong pressure from the private sector entrepreneurs to reduce import tax on fire safety equipment.The high import tax discourages factory owners in terms of ensuring fire safety. For example, the tax on fire extinguishers was 15.32 percent, while it was 154.74 percent on emergency lights and exit signs. But imports of fire doors, emergency exit lights and other safety equipment were announced duty-free in the last budget. So, this change will definitely accelerate the process of ensuring safety.Another effective approach was from Bangladesh Garment Manufacturers and Exporters Association (BGMEA). It arranged a big gathering styled the Apparel Summit along with the Safety Expo, which were very effective in terms of future guidance. For example, questions like what steps should be taken next and what improvements and modifications are needed were answered.At the Apparel Summit, BGMEA President Atiqul Islam mentioned that Bangladesh’s present share of the global garment market is 5 percent and if the country wants to materialise its Vision 2021, it needs to grab 8 percent of the global market. He expects the industry to grab a further 3 percent of the market share with the help of enthusiastic entrepreneurs and the workforce.To sum up, we can say that ensuring safety for the workers and workplace is a continuous process. The government, foreign stakeholders, and garment entrepreneurs are performing their duty. At the same time, we need safety awareness among the workers as well.
Source: https://www.thedailystar.net/business/workplace-safety-ensure-better-future-apparel-sector-77956