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RMG workers of 29 factories boycott work demanding higher increment

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RMG Bangladesh
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Meanwhile, police said they are working to improve the situation by holding discussions with all parties

Workers of 25 RMG factories in Ashulia abstained from work for the second day demanding a 15% rise in annual increments on 12 December. Photo: Collected

Workers of 25 RMG factories in Ashulia abstained from work for the second day demanding a 15% rise in annual increments on 12 December. Photo: Collected

RMG workers are continuing their protest against the 4% rise in annual increment declared by the government and demanding a 15% rise instead.

Workers of 25 factories continued their boycott today (12 December) as well.

Amid protests for higher pay, the government on Monday (9 December) decided to add a 4% increase to the regular annual increment of 5% for readymade garment (RMG) workers. With the new announcement the RMG workers are now privy to a 9% raise annually.

According to industrial police, although the workers are waging a movement to increase their increment, they are not creating any anarchy except abstaining from work.

Meanwhile, police said they are working to improve the situation by holding discussions with all parties.

According to BGMEA sources, production has been halted at a total of 29 factories in Ashulia.

Among the factories, eight factories have been closed following Section 13(1) of Bangladesh Labour Law, eight others are following Leave with Pay rule and workers of 13 factories have left without working after arriving at the factories in the morning.  

Among the factories where production has been halted are Nassa Group, Trouser Line and Al Muslim, while New Age Apparels was among the factories where general holiday was declared.

Talking to The Business Standard, aggrieved workers said although they have many demands, the primary one among them is a 15% rise in increments.

“Workers don’t know whether there will be any work unless they come to the factory. Workers get an idea what is happening at nearby factories after coming to work. When they get the news that other factories are halting their productions, the workers also abstain from work at their own factories,” said a worker when asked about why they are coming to the factories despite observing work abstention.

Another worker, who did not support the movement, said, “I don’t think there is any reason to wage the movement in such condition of the country while getting a 9% increment. Whatever is happening now is damaging the industry. I’m worried about the future.”

Contacted, Superintendent of Industrial Police-1 Mohammad Mominul Islam Bhuiyan said, “A total of 13 factories have halted their production today, among which 10 factories have declared general holiday. The number of factories halting production yesterday [11 December] were 11.”

RMG workers of 3 Ashulia factories leave work demanding 15% annual increment, Tk25,000 minimum wage

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RMG Bangladesh
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At least three readymade garment (RMG) factories in Ashulia have announced general holidays as workers stopped working over various demands, including a 15% annual increment and a minimum wage of Tk25,000. 

“Workers at the New Age, Al Muslim, and Nasar factories stopped working in the morning and left the factories around 11am over several demands,” an officer from the Ashulia Industrial Police, unwilling to be named

“The authorities of these three factories later declared a holiday. A similar holiday was also declared in another factory yesterday [8 December] due to a work stoppage due to the same demands,” he added. 

Khairul Mamun Mintu, legal secretary of the Bangladesh Garments and Sweater Workers Trade Union Center, said workers in several factories have been on strike since yesterday over demands, including an increment. 

“These demands arose due to the non-implementation of the 18-point agreement reached in the tripartite meeting with the government. These demands include increases in night shift allowances and attendance bonuses,” he explained.

Khairul said such work stoppages are unexpected given that the Reform Commission and the committee formed for wage re-evaluation are working on these issues, and meetings are being held.  

“However, I believe the increments and wage re-evaluation issue should be resolved by December. Otherwise, there is a risk of dissatisfaction spreading again from January onwards,” he added.

Despite multiple attempts, Md Sarwar Alam, the superintendent of Industrial Police-1, could not be reached for a comment on the matter. 

According to sources from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), seven factories in the Ashulia area are either closed, have sent workers on paid leave, or had workers stopping work.

Among the factories affected are NASA Super Garments Limited, NASA Basic Limited, AJ Super Garments Limited, Al Muslim Apparels, and Trouser Line Limited.

Sources indicate that the work stoppage by workers has led to a suspension of production at these factories.

Female workforce in garment industry slips to 53%

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RMG Bangladesh
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The share of women working in Bangladesh’s garment industry decreased over the past decade, with female participation falling to 53 percent in 2023 from 56 percent in 2014, according to a recent study.

It attributed the changes in the distribution of female workers across different segments of the country’s main export earning sector to their increased presence in home textile and woven industries.

However, there was a significant decline in the female participation rate in jacket-making industries, it added.

Kazi Iqbal, research director of the Bangladesh Institute of Development Studies (BIDS), shared these findings at an annual development conference organised by BIDS at the Lakeshore Hotel in Dhaka yesterday.

The study, titled “Technology Upgradation of the RMG Industries in Bangladesh”, noted that women made up more than 80 percent of the garment sector’s workforce during its initial development.

Although this trend prevailed for many years, female participation in garment industries started declining amid a growing reluctance to engage in laborious factory work.

The study also found that second-generation workers are less interested in joining the garments sector.

Besides, the overall number of garment workers decreased over time as professions such as machine operators and their helpers have become obsolete thanks to mechanisation.

On the other hand, the number of factory supervisors and management personnel remained mostly unchanged.

Furthermore, the study informed that an average of between 4.13 and 2.15 workers lost their jobs for each $1 million spent on purchasing new equipment.

But although modern technology enabling automation is displacing labour, such innovations are creating new opportunities for employment, the study said.

Additionally, the study pointed out that the growing capabilities of local firms propelled automation in recent years, reducing the need for labourers to operate machinery.

There was also evidence that the reduction in female participation could have resulted from gender-biased technological transitions for occupations like machine operators.

Moderated by Sajjad Zohir, executive director of the Economic Research Group, a total of four studies were shared at the session.

Presenting a paper on “Supply Chain Dynamics for Sustainable RMG Growth in Bangladesh”, BIDS Research Director Monzur Hossain said the European Union (EU) offers tariff protection for least developed countries (LDC) following their graduation to developing country status.

This includes import subsidies of about 4 percent for fabrics, 8 percent for semi-finished garments and 12 percent for clothing sourced from “Most-Favoured Nations”.

In the post-LDC era, Bangladesh may face tariffs as high as 9.6 percent on exports to the EU, he added.

The study also said Bangladesh may lose 10.8 percent of its garment exports by 2031 due to the elimination of export subsidies following LDC graduation.

This potential loss of export earnings could range from 7 percent to 14 percent in major markets.

For the 9.6 percent tariff in the EU, the production of textiles and apparel items for the trade bloc may decline by about 6.1 percent. So, it is possible that Bangladesh’s negative trade balance with the EU could widen, thereby impacting its gross domestic product (GDP).

As such, the country’s real GDP could contract by about 0.38 percent if developed countries start imposing tariffs, it added. This loss of duty benefits could slash Bangladesh’s total exports by about 6 percent while the apparel sector will likely witness a 14 percent decline.

A study titled “Structural Changes in Industrial Sector of Bangladesh: 2012 to 2019”, presented by BIDS Research Associate Jayed Bin Satter, said female participation has also dropped in the manufacturing sector.

Similarly, the overall share of female business leaders fell, mostly driven by their exit from the garment sector, it added.

Presenting a study on “The State of the Manufacturing Workers in Bangladesh”, BIDS Research Associate Farhin Islam said significant intergenerational effects on workers’ education were observed.

While there is a tendency for real wages to remain flat, collective bargaining has a significant impact on raising wages, improving other benefits and enhancing working conditions.

 Trade unionisation significantly enhances women’s family decision-making power through stronger collective bargaining and advocacy whereas factory-level unions lack sufficient influence on women empowerment.

 The poverty rate among garment workers is significantly lower than that of workers in non-garment sectors and other domestic industries with more stringent compliance requirements.

40% of RMG businesses face LC opening delays: BIDS survey

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RMG Bangladesh
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Amid protests by RMG workers demanding a rise in increment, alongside other benefits, the government today decided to add a 4% hike to the regular annual raise of 5%.

Speaking at a briefing at the Bangladesh Secretariat this evening,  Labour and Employment Adviser M Sakhawat Hussain said the RMG workers will get the 9% increase in their salary this year. 

The increase will come into effect with their December salaries, he added.

The announcement comes as the RMG industry grapples with frequent worker unrest demanding payment of arrears and increasing wages.

Sakhawat said, “In consideration of the overall situation [in the country], it has been decided to provide a 9% salary increment to the workers of the RMG industry,” he said.

“Of the total increment, the RMG workers will get a 5% regular salary increase as prescribed by the Minimum Wage Board. Besides, the owner and the workers have agreed to another additional 4% increment,” added the adviser.

He said the workers will enjoy the increment in their December salaries.

He also said workers who aren’t eligible for  the yearly increment will also get the additional 4% increase. 

The increase will stay in effect till the next wage board is announced, stated Sakhawat. 

Speaking about the ongoing workers’ unrest in the industry, he said, “Conspiracies are being hatched both at home and abroad. Newspapers of different countries are reporting that now is the time to divert [apparel] buyers from Bangladesh. Many workers are protesting without understanding. Provocation is also coming from many places.”

At the event, Labour Secretary AHM Shafiquzzaman said, “The issue of an increase in the yearly increment was included in the 18-point demands jointly prepared by the owners and workers to improve the labour standards in the apparel sector.”

A committee was later formed to that end. The committee has now submitted its recommendation. “They recommended providing a 4% additional increment in addition to the regular 5% annual increment. Both the workers and owners have agreed to this.”

General Secretary of Bangladesh Garments and Industrial Workers Federation Babul Akhter said the decision was made after five meetings. 

He urged the workers to return to work and maintain production and not to step into any local or foreign conspiracy. 

Bangladesh has been experiencing waves of worker unrest in recent months, particularly in the RMG factories in Savar, Gazipur and Naraynganj industrial areas. Protesters have set fire to factories, attacked owners and clashed with locals in Gazipur during the unrest. Many have been sued and detained. 

Earlier today, at least three RMG factories in Ashulia announced general holidays as workers stopped working over various demands, including a 15% annual increment and a minimum wage of Tk25,000. 

“Workers at the New Age, Al Muslim, and Nasar factories stopped working in the morning and left the factories around 11am over several demands,” an officer from the Ashulia Industrial Police, unwilling to be named, told The Business Standard. 

“The authorities of these three factories later declared a holiday. A similar holiday was also declared in another factory yesterday [8 December] due to a work stoppage due to the same demands,” he added. 

RMG workers to get 9% annual wage increment

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RMG Bangladesh
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Bangladesh’s readymade garment (RMG) workers will get a 9% increase in their wages, Labour and Employment Adviser M Sakhawat Hussain announced on Tuesday.

The annual increment raise will be effective December 1, 2024, and will be reflected in January 2025 wages.

The existing increment for the labourers of the country’s highest export-earning sector is 5%, and the government decided to add a 4% hike to it.

The adviser said the increment will remain effective until the government or the Minimum Wage Board announces a new minimum wage, adding that the previously set 5% annual pay increment, fixed by the Minimum Wage Board, will remain in place.

He clarified that any worker who is supposed to get a yearly increment in December will enjoy the additional increase. Those not supposed to get an increment in December will still get a 4% rise in their wages.

He also said that a vested interest group has been trying to divert buyers away from Bangladesh by publishing negative news in local and foreign newspapers. 

Many workers are protesting without understanding and are being trapped by multidimensional provocation. He urged everyone to address the conspiracy looming against the country’s RMG sector.

Earlier, at their 5th meeting, the Capacity and Implementation Committee on Minimum Wage Revision and Annual Increment recommended an annual 9% increment for the RMG sector.

At the meeting, the labour representatives proposed for a 10% annual increment hike, emphasizing the rising cost of living. In response, the employer representatives proposed an 8% yearly increment due to financial constraints and an aggressively competitive global market.

Mohammad Khorshed Alam of Shromik Dol, Babul Akhtar of Bangladesh Garment and Industrial Workers Federation, and Kabir Ahmed of Bangladesh Shromik Kalyan Federation signed as labour representatives.

ANM Saifuddin, member of the BGMEA’s assistance committee, and Fazlee Shamim Ehsan, executive president of the BKMEA, signed as employers’ representatives.

SM Enamul Haque, director of DoL, Md Hasibuzzaman, joint IG of DIFE, Raisa Afroz, secretary of Minimum Wage Board, and Mohammad Masukur Shikdar, joint secretary of MoLE, signed as government representatives.

Paying increments to be challenging

Talking to Dhaka Tribune regarding the increment hike, Former BGMEA Director Mohiuddin Rubel said it would be difficult for them to pay the increment because the industry’s capacity is not that high. Production costs have increased, but income has not increased in the same way.

“The price of RMG items has also decreased in the global market. However, since this is a tripartite decision, there is no other way but to accept it,” he added, urging the government to provide the necessary policy support to overcome the pressure the manufacturers will face in implementing this decision.

He also said that it is more viable to make these decisions while keeping in mind the capacity of the manufacturers so that they can implement them.

“It has now become a trend to take to the street with another demand if one demand is met. If they take to the street with another demand tomorrow, it will become impossible to run the business. The government will have to provide support, security, and assurance so that a fair working environment can be ensured,” he added.

He also said that the buyers are responsible and should ensure fair prices. Prices are falling in the global market, and they must adjust their prices.

“If they don’t raise prices but demand ethical production, it will become contradictory. If they pay a fair price, ethical production and sustainability will accelerate,” he added.

Meanwhile, a leading apparel exporter, speaking on condition of anonymity, expressed concerns about the industry’s challenges.

“We feel trapped after investing heavily in this sector, especially as the previous government increased utility costs significantly,” he added, fearing that many factories might struggle to implement further wage increases, especially after the recent major wage adjustments.

He suggested that the government conduct a comprehensive survey to assess the industry’s capacity and the workers’ needs.

He also said the industry’s ongoing struggles with the unreliable supply of quality energy.

“On top of that, the reduction in cash incentives has put exporters in an even tighter corner,” he added.

Talking to Dhaka Tribune, Nazma Akter, president of the Sommilito Garments Sramik Federation, said that the proposed increment is insufficient to meet workers’ basic needs.

She also criticized the process, questioning how labour representatives could demand a 15% annual increment without consulting labour organizations. “Additionally, no government officials communicated with us regarding this matter,” she alleged.

“We urge the government to implement an increment that accounts for inflation, enabling workers to meet their basic needs and maintain proper nutrition. This will not only improve their well-being but also boost productivity,” she added.

On December 4, the factory owners agreed on a 7% increment, and they had previously proposed a 6% where the labour leaders, who earlier proposed a 15% hike, reviewed their proposal and cut the figure to 12%, in the fourth meeting of the committee.

পোশাক শ্রমিকদের বেতন বাড়ছে ৯%

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RMG Bangladesh
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পোশাক শ্রমিকদের জন্য শতকরা ৯ ভাগ বেতন বাড়ানোর সিদ্ধান্ত নিয়েছে অন্তর্বর্তীকালীন সরকার। এ বছর আগের নিয়ম অনুযায়ী প্রতি বছর ৫% ইনক্রিমেন্টের সঙ্গে নিম্নতম মজুরির ৪% যুক্ত করা হলো। ডিসেম্বর থেকেই এটি কার্যকর হবে।

সোমবার (৯ ডিসেম্বর) সন্ধ্যায় সচিবালয়ে সংবাদ সম্মেলনে শ্রমিকদের বেতন বৃদ্ধির খবর জানান অন্তর্বর্তীকালীন সরকারের শ্রম উপদেষ্টা এম সাখাওয়াত হোসেন। 

উপদেষ্টা বলেন, “মালিক শ্রমিকদের সঙ্গে আলোচনা করেই এই সিদ্ধান্ত নেওয়া হয়েছে। এর ফলে বেতন-ভাতা নিয়ে গার্মেন্টে যে অস্থিরতা ছিল তা আর থাকবে না।”

পোশাক খাত নিয়ে দেশে-বিদেশে নানান ষড়যন্ত্র চলছে মন্তব্য করে উপদেষ্টা সাখাওয়াত বলেন, “সেগুলো পাশ কাটিয়ে অন্তর্বর্তীকালীন সরকার এই খাতকে এগিয়ে নিচ্ছে। সরকারের এই সিদ্ধান্তে মালিক-শ্রমিকরা একমত বলে জানিয়েছেন শ্রমিক নেতারা।”

জানা যায়, আজকের বৈঠকে এক পর্যায়ে শ্রমিকপক্ষের প্রতিনিধিরা ইনক্রিমেন্ট ১০% দাবি করেন। তবে মালিকপক্ষ দিতে চান ৮%। পরে সবার সম্মতিক্রমে ৯% ইনক্রিমেন্টের সিদ্ধান্ত চূড়ান্ত হয়। এ বিষয়ে মালিক, শ্রমিক ও সরকারপক্ষের প্রতিনিধিরা এক যৌথ ঘোষণায় স্বাক্ষর করেন।

পোশাক শ্রমিকদের ইনক্রিমেন্ট ৪% বাড়ালো সরকার

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RMG Bangladesh
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তৈরি পোশাক শিল্পের শ্রমিকদের সাধারণ ইনক্রিমেন্ট ৫% এর সঙ্গে আরও ৪% বাড়তি বেতন ঘোষণা করেছে শ্রম মন্ত্রণালয়। ডিসেম্বর মাসের বেতনের সঙ্গে তারা এই বাড়তি বেতন পাবেন বলে জানিয়েছেন শ্রম ও কর্মসংস্থান মন্ত্রণালয়ের উপদেষ্টা ড. এম সাখাওয়াত হোসেন।

ড. এম সাখাওয়াত হোসেন বলেন, সামগ্রিক বিষয় বিবেচনা করে পোশাক খাতের শ্রমিকদের বার্ষিক ইনক্রিমেন্ট ৯% বাড়ানোর সিদ্ধান্ত হয়েছে। এর মধ্যে ৫% ন্যূনতম মজুরি বোর্ডের সিদ্ধান্ত অনুযায়ী, প্রতিবছর যেটি বাড়ানো হয়। আর বাকি ৪% ইনক্রিমেন্ট দিতে মালিক ও শ্রমিক পক্ষ মিলে সম্মত হয়েছে। ডিসেম্বরের বেতনের সঙ্গেই শ্রমিকরা এই বাড়তি মজুরি পাবেন।

সোমবার (৯ ডিসেম্বর) সন্ধ্যায় সচিবালয়ে এক সংবাদ সম্মেলনে এসব তথ্য জানান শ্রম উপদেষ্টা সাখাওয়াত হোসেন।

এসময় শ্রম উপদেষ্টা বলেন, শুধু অভ্যন্তরীণ নয়, দেশের বাইরে থেকেও তৈরি পোশাক নিয়ে ষড়যন্ত্র হচ্ছে। বিভিন্ন দেশের সংবাদপত্রে খবর প্রচারিত হচ্ছে বাংলাদেশ থেকে তৈরি পোশাকের ক্রেতাদের সরিয়ে আনার এখনই সময়। শ্রমিকরা অনেকে না বুঝে আন্দোলন করছে। আবার অনেক জায়গা থেকে উস্কানিও আসছে।

তিনি আরও বলেন, ডিসেম্বরের মাসে যাদের বাৎসরিক ইনক্রিমেন্ট হওয়ার কথা তারা ৯% বাড়তি মজুরি পাবেন। আর যাদের ডিসেম্বরে ইনক্রিমেন্ট হওয়ার কথা নয়, তারা ৪% বাড়তি মজুরি পাবেন। পরবর্তী নতুন মজুরি কাঠামো ঘোষণার আগ পর্যন্ত এই বাড়তি মজুরি পেতে থাকবেন শ্রমিকরা।

সংবাদ সম্মেলনে উপস্থিত শ্রম সচিব এ এইচ এম শফিকুজ্জামান বলেন, গত সেপ্টেম্বরে সরকার, মালিক ও শ্রমিকপক্ষ মিলে তৈরি পোশাক খাতের শ্রমমান উন্নয়নে যে ১৮ দফা নির্ধারণ করেছিল, সেখানে ১৮তম দফাতে বার্ষিক ইনক্রিমেন্টের বিষয় ছিল। সে অনুযায়ী শ্রম মন্ত্রণালয় থেকে একটি কমিটি করে দেওয়া হয়। এই কমিটি নির্ধারিত সময়ের চেয়ে ১৫ দিন বাড়তি সময় নিয়ে সুপারিশ করেছে।

বাংলাদেশ গার্মেন্টস অ্যান্ড ইন্ডাস্ট্রিয়াল শ্রমিক ফেডারেশনের সাধারণ সম্পাদক বাবুল আক্তার বলেন, ‘পাঁচটি বৈঠকের পরে সিদ্ধান্ত হয়েছে। তিনি শ্রমিকদের কাজে ফিরে উৎপাদন বজায় রাখা এবং দেশি-বিদেশি কোনো ষড়যন্ত্রে পা না দিতে আহ্বান জানান।

Bangladesh’s apparel share in US market falls by 3.33%

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RMG Bangladesh
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Bangladesh’s exports saw a growth of 11.76% in 5 months from July-November of FY2024-25 compared to the same period of the previous fiscal year.

According to the data of the Export Promotion Bureau (EPB), Bangladesh exported goods worth $ 19.9 billion in the July-November period of the current FY 2024-25, of which 80.97% are readymade garment products.

Bangladesh’s share of apparel exports into the US market decreased by 3.33% year-on-year in the January-October period.

The apparel export share of the Chinese decreased by 1.06% in the US market. India and Vietnam’s apparel exports in the US market grew by 2.68% and 3.93% respectively during this period.

Bangladesh’s ready-made garment (RMG) exports have been growing, and the country is the second-largest exporter of RMGs in the world. Vietnam is Bangladesh’s competitor in the global market and their share rising in the US market indicates the country (Vietnam) is getting an additional advantage, said businessmen of this sector.

In the financial year 2022–2023, Bangladesh’s RMG exports reached $47 billion, up from $42.6 billion in the previous year. In the period from July 2023 to May 2024, RMG exports increased by 2.86% to $43.85 billion.

RMG Export bagged $3.3 bn, fetching a positive growth of 16.25% YoY

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RMG Bangladesh
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Bangladesh’s earnings from merchandise exports witnessed a positive growth of 15.63% year-over-year (YoY) to $4.11 billion in November in the ongoing FY25.

This was $3.56 billion in the same period of last fiscal year.

In November, the readymade garment (RMG) sector, the highest export earner of the country, bagged $3.3 billion, fetching a positive growth of 16.25% YoY against 2023, which was $2.84 billion last year, according to the Export Promotion Bureau (EPB) data published on Wednesday.

The state agency provided this data, reflecting real-time shipment updates as per Asycuda World from the National Board of Revenue (NBR).

According to EPB data, Bangladeshi exporters shipped goods worth $19.9 billion, which was $17.81 billion in the first five months of FY24.

This was YoY growth of 11.76% in July-November of FY25.

In that period, export earnings from almost all major sectors witnessed positive growth.

Breakdown

EPB data also stated that in the July-November period, the RMG sector earned $16.11 billion from its global destinations, which was 12.34% higher than the $14.34 billion earned in FY24.

In this period, knitwear earned $8.95 billion, 12.23% higher than $7.97 billion, and woven earned $7.17 billion, 12.48% higher than $6.37 billion in FY24.

In this period, knitwear earned $8.95 billion, 12.23% higher than $7.97 billion, and woven earned $7.17 billion, 12.48% higher than $6.37 billion in FY24.

After repeated narrow growths for a long time, home textiles saw a positive growth of 5.03% to $326.83 million in the July-November period of FY25, up from $311.19 million in the same period last fiscal.

In the first five months of FY25, export earnings from agricultural products increased by 8.34% to $495.38 million, up from $457.25 million in the same period last fiscal year.

Export receipts from jute and jute goods experienced negative growth of 9.99% to $341.70 million, down from $379.62 million in July-November of FY24, EPB data stated.

Leather and leather goods experienced positive growth of 7.61% to $466.39 million, up from $433.42 million in the first five months of FY24. 

Another potential export sector, engineering products, fetched a positive growth of 5.70% to $205.80 million, up from $194.71 million in last FY.

Behind the growth

EPB vice chairman Anwar Hossain said that the significant dynamics behind the growth were peak season for RMG shipment (holiday, Christmas, Black Friday, Thanks Giving), completion of backlog orders, year-end inventory management, 1% growth in developed countries, and 2% growth in developing countries, as per Unctad.

Hossain further said that although private investment was sluggish, the economy was not at standstill, and the growth indicated a favourable situation.

Talking to Dhaka Tribune, Mohiuddin Rubel, former BGMEA director, said that the global economy is gradually improving, which accelerated the purchasing practices of the consumers of the export destinations, which impacts exports.

“Moreover, we have the capacity and infrastructure to meet the buyer’s demands. It’s proven. For this, buyers also supported us during our transitional period,” he added.

He also said that buyers trusted and were committed to Bangladeshi manufacturers. They hoped that exports would remain positive in the coming days as the country was also regaining stability.

Another former director of the BGMEA, Shams Mahmud, said that the growth happened riding on the growth of some top exporters, as firm financial footing allowed them to perform well. 
However, small factories are struggling and lack the economic resilience to absorb shocks.

He also said that the apparel sector has made significant progress after addressing the unrest in two major industrial zones—Ashulia and Gazipur. 
However, factories in the Ashulia industrial belt continued to face challenges securing direct orders. The buyers remain hesitant to place orders in this zone due to concerns over the lingering effects of recent unrest.

As a result, these factories are now compelled to sustain their production primarily through subcontracting arrangements, he added.

According to the EPB, the revised export earnings in FY24 was $44.47 billion, which was $55.28 billion in mismatched data.

The Global Toy Market: Bangladesh’s Next Foreign Exchange Giant after RMG

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RMG Bangladesh
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The global toy market is poised for extraordinary growth, with projections by the market analysis firm Statista estimating its value will soar from $102.8 billion in 2023 to approximately $150 billion by 2032. Despite this booming market, Bangladesh remains an underdog in the sector. However, with proper policy support and entrepreneurial initiatives, the country’s toy industry has the potential to become a leading foreign exchange earner, second only to the ready-made garments (RMG) industry.

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Many Bangladeshi businesses have yet to recognize the export potential of the toy industry. Interestingly, several global fashion retailers who already source garments from Bangladesh also run toy lines. This overlap presents an untapped opportunity for Bangladeshi manufacturers. According to the Export Promotion Bureau (EPB), the country’s toy exports reached $77 million in the last fiscal year, serving about 88 countries. While this is a notable achievement, it pales compared to China, which dominates the industry with an 86% global market share, exporting $88.58 billion worth of toys in 2023 alone.

Bangladesh’s toy manufacturing industry, like its RMG sector, produces items tailored to buyer specifications. The toy sector encompasses four primary categories: metal-based, wooden-based, plastic-based, and fabric-based products. However, foreign companies in Bangladesh currently dominate toy exports, with local firms contributing only a small portion.

Leading Exporters and Success Stories

One of the key players in Bangladesh’s toy export market is Sonic (Bangladesh) Limited, a subsidiary of the Hong Kong-based Sonic Group. Operating from the Uttara Export Processing Zone in Nilphamari, Sonic produces over one million die-cast scale models each month, including replicas of international rally-winning cars. These models are primarily exported to European countries like Spain, Germany, and Italy, along with Japan. In 2023, Sonic’s exports totaled $43.17 million, making it the largest toy exporter in Bangladesh.

Another noteworthy company is Cupcake Exports Ltd, a subsidiary of the US-based Cupcake Group. This fabric-based toy manufacturer started operations in 2019 and has grown from employing 65 workers to over 600. Despite challenges like the COVID-19 pandemic and geopolitical tensions, the company’s export value is expected to reach $2.5 million this year. However, the absence of dedicated toy buyer offices in Bangladesh forces companies like Cupcake Exports to conduct business abroad, adding logistical hurdles.

Challenges and Barriers to Growth

While Bangladesh’s toy sector shows promise, several challenges hinder its growth. One major obstacle is the lack of buyer offices within the country, making it difficult for manufacturers to secure large-scale orders. Exporters also face barriers in obtaining the certifications required for producing licensed toys, which are in high demand among international retailers. For instance, companies like Disney require compliance with the Better Work program to manufacture licensed products. Although Bangladesh’s RMG and footwear sectors are part of this program, the toy industry is yet to be included.

Packaging and product testing are additional challenges. Exporters must import packaging materials to meet buyer specifications, and samples often need to be sent abroad for quality testing, increasing production costs and lead times. Addressing these bottlenecks could significantly enhance the competitiveness of Bangladeshi toy manufacturers.

Learning from the RMG Sector

Bangladesh’s RMG sector offers valuable lessons for the toy industry. The expertise gained in dealing with international buyers, managing supply chains, and meeting global standards can be leveraged to scale toy exports. Many established fashion brands that source garments from Bangladesh, such as Walmart and Inditex, also feature toy lines, providing a ready market for local manufacturers.

Policy Support: A Critical Fact

Industry leaders emphasize the importance of government support in realizing the toy sector’s potential. Kamruzzaman Kamal, Marketing Director at PRAN-RFL Group—a key exporter of plastic toys—believes that targeted policies could help Bangladesh emerge as a significant player in the global toy market. PRAN-RFL has already expanded its exports to several countries, producing low-cost toys and tricycles. The company aims to diversify its portfolio by introducing higher-end products for the export market.

To compete with global giants like China, Bangladesh must address wage competitiveness and labor-intensive production. According to Dr. Mashrur Reaz, founder of the think tank Policy Exchange of Bangladesh, rising wages in China are prompting its gradual exit from the low-cost toy market. This shift creates an opportunity for Bangladesh to capture a significant share of the market, provided the right policies are implemented. Dr. Reaz estimates that the sector could generate up to $10 billion in annual exports with proper investment and policy alignment.

Capitalizing on Emerging Trends

The global toy market is not limited to traditional toys; it also includes electronic toys, educational kits, action figures, and board games. Diversifying into these segments could unlock new opportunities for Bangladeshi manufacturers. Engaging with licensing giants like Disney and securing Better Work certification for the toy industry could attract both foreign and local investment.

Additionally, strengthening infrastructure for product testing and certification within Bangladesh would reduce dependency on foreign facilities, streamlining operations and boosting competitiveness. Developing a skilled workforce for the toy industry, much like the initiatives undertaken in the RMG sector, is another critical step.

A Way Forward

With a strategic approach, Bangladesh’s toy industry could replicate the success of its RMG sector. By fostering collaboration between the government, local manufacturers, and international buyers, the sector can overcome existing challenges and establish itself as a key player in the global market. Addressing barriers such as certification, packaging, and testing, while leveraging the expertise gained from the RMG sector, will be instrumental in this journey.

The global toy market’s rapid growth presents an unparalleled opportunity for Bangladesh. With the right mix of policy support, innovation, and entrepreneurial effort, the country can transform its toy industry into a major foreign exchange earner, driving economic growth and enhancing its global standing.

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