BGMEA
BGMEA wants to keep 0.5pc source tax for next 5 years
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to keep the source tax on export earnings unchanged for at least for next five years to help the sector overcome difficult moment.
BGMEA president Faruque Hassan made the appeal during a post-budget press conference at a city hotel on Monday.
BGMEA first vice president Syed Nazrul Islam, senior vice president S.M. Mannan (Kochi), vice president Md. Shahidullah Azim, vice president (finnace) Khandoker Rafiqul Islam and BGMEA directors were present.
The government has proposed increasing the source tax on export profits to 1 per cent from the existing 0.5 per cent in the next fiscal year 2022-2023.
Also read: Bangladesh to stay safe, sustainable apparel sourcing destination: BGMEA
“If the industry sustains, revenue and new employments will be generated,” said the BGMEA chief, noting that the export volume is expected to reach US$ 41 billion in the outgoing fiscal year 2021-2022.
Hassan said overall revenue can be boosted without increasing source tax on expert earnings by raising capacity of the industry.
He also said they want to achieve export target of US$ 45 billion in the next fiscal year.
Also read: BGMEA hopes for continued support of German govt to RMG industry
The BGMEA chief also demanded 10 per cent special incentive on non-cotton garments export in an effort to encourage more export through investment in non-cotton sector.
Bangladesh total RMG exports’ 74 per cent are made of cotton while the global share of total textile consumption is only 25 percent.
The apparel makers say demand for non-cotton products is on the rise due to rapid change in consumers’ lifestyle and increasing demand for sustainable and environment-friendly products.
The BGMEA chief said they had a demand to withdraw 10 per cent tax and they still think it is logical to keep the cash incentives out the tax net as it is not an income through business.
Hassan also demanded zero duty on import of solar panels to promote environment-friendly sustainable growth of the industry. The government has proposed 1 percent import duty on solar panels for the fiscal year 2022-2023.
“This is now an industry of US$ 41 billion with government’s policy support,” he said, hoping that the government will consider the recommendations to help the industry grow further.
On BM Container depot fire, the BGMEA president said most of the containers destroyed in the fire were loaded with garment products. “This (fire) caused more damage to our image than financial loss.”
Bangladesh to stay safe, sustainable apparel sourcing destination: BGMEA
The country's apparel industry is committed to carrying forward the achievements that have earned the sector global accolades as a safe and sustainable industry, said the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
"While our achievements make us immensely proud, they also inspire us to dream bigger and strengthen our tenacity to continue pursuance of excellence to retain the fame of Bangladesh as a safe and sustainable apparel sourcing destination," BGMEA President Faruque Hassan said.
He made the remark while speaking at a discussion on the road to sustainability and a transparent supply chain organised by OAV – German Asia-Pacific Business Association, the German importers, and the Embassy of Bangladesh in Berlin, and hosted by Wünsche Group Friday.
Faruque said Bangladesh has the highest number of LEED Green factories in the world, with 161 green factories certified by the USGBC, of which 48 are platinum-rated and 99 are gold-rated, and these green factories are equipped with all the eco-friendly features and emit 40 percent less carbon than a conventional factory.
The BGMEA has joined the German Green Button initiative which identifies socially and ecologically sustainable textiles that are placed on the market by responsible companies.
"Our commitment is to take the readymade garments (RMG) industry to the next level of sustainability and continue the momentum,'' Faruque said.
"If we talk about the transparency in the supply chain of the industry, we have seen some significant transformation here. All factory inspection reports are now disclosed online which has set a unique example in the world on the issue of workplace safety."
Md Mosharraf Hossain Bhuiyan, ambassador of Bangladesh to Germany, Miran Ali, vice-president of BGMEA, Christian Moritz, managing director of Wunsche Gruppe, Almut Roessner, executive board member of OAV, Dr Michael Arretz, CEO of VFI, Christian Ewert, global director of TEDD – Trusted Experts on Due Diligence, and Md Saiful Islam, commercial counsellor of the Bangladesh Embassy in Berlin, also spoke.
BGMEA directors Barrister Vidiya Amrit Khan, Md Imranur Rahman, Neela Hosna Ara and Chair of BGMEA Standing Committee on Foreign Mission Cell Shams Mahmud were also present.
Also read: BGMEA hopes for continued support of German govt to RMG industry
BGMEA hopes for continued support of German govt to RMG industry
A delegation of BGMEA headed by President Faruque Hassan met with Dominik Schnichels, Director General of the Trade Department at the German Federal Ministry of Economics and Climate Change, in Germany on Thursday.
The delegation was accompanied by Ambassador of Bangladesh to Germany Md. Mosharraf Hossain Bhuiyan and Md. Saiful Islam, Commercial Counsellor of Bangladesh Embassy in Berlin, included BGMEA Vice President Miran Ali, Directors Barrister Vidiya Amrit Khan, Neela Hosna Ara and Chair of BGMEA Standing Committee on Foreign Mission Cell Shams Mahmud.
They had discussions about various issues related to Bangladesh’s RMG industry including the current situation, opportunities and strategies to face challenges and move forward.
The issue of LDC graduation, its implications on the economy of Bangladesh and preparedness to continue journey forward in the post-LDC era was also discussed in the meeting, according to BGMEA.
They also talked about the future priorities of the industry to retain its export competitiveness in the global market in the post-LDC era.
READ: BGMEA, Wazir Advisors to conduct study on capturing non-cotton market share
BGMEA President Faruque Hassan also apprised Dominik Schnichels of the RMG industry’s paradigm shift in the area of workplace safety and impressive strides in environmental sustainability.
He also briefed him about how the apparel industry of Bangladesh showed remarkable resilience during the Covid-19 pandemic and turned around from the fallout.
The BGMEA President extended sincere thanks to the German government for the cooperation and support extended to Bangladesh during the difficult time of the pandemic.
He expressed hope that German government’s friendly support for the betterment of Bangladesh RMG industry will continue in the coming days.
BGMEA chief meets ILO DG; emphasizes on fair prices
BGMEA President Faruque Hassan has emphasized the need for fair prices to make the apparel industry more sustainable, positively impacting the well-being of garment workers.
Production costs in garment manufacturing have gone up due to increase in prices of yarn, chemicals and other raw materials in the global supply chain and shipping charges, but prices offered by buyers do not reflect the reality and rationality, he said.
His remarks came during a meeting with Guy Ryder, Director-General of the International Labour Organization at the ILO headquarters in Geneva on Tuesday, said the BGMEA on Wednesday.
President of Employers Federation of Bangladesh (BEF) Ardashir Kabir, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem, BGMEA Standing Committee Chair on ILO issue A N M Saifuddin and Secretary-General of BEF Farooq Ahmed were also present in the meeting.
READ: BGMEA, Wazir Advisors to conduct study on capturing non-cotton market share
The delegation apprised the ILO Director-General of the current situation of the ready-made garment industry of Bangladesh, its challenges and opportunities.
They also highlighted how the RMG industry of Bangladesh has gone through the tangible transformation in the areas of workplace safety, labor standards, and environmental sustainability.
With these achievements Bangladesh has earned the global accolades and recognition as a safe and ethical apparel sourcing destinations in the world, they said.
The delegation requested the ILO Director-General to press for the issue of ethical prices in global forums.
BGMEA, Wazir Advisors to conduct study on capturing non-cotton market share
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Wazir Advisors have signed an agreement for conducting a study to identify potential of non-cotton textile and apparel for Bangladesh in the global apparel market.
Another objective of the study titled “Fibre Diversification Study of Non-Cotton Textile and Apparel for Bangladesh in the Global Apparel Market” is to formulate a strategy to develop the country’s overall competitiveness and strength in the area.
Also read:BGMEA launches ‘Cash Incentive Automation System’
BGMEA President Faruque Hassan and Business Director of Wazir Advisors Varun Vaid inked the agreement on behalf of their respective organizations at a signing ceremony held virtually on Sunday.
The objective of the study is to identify potential scope of non-cotton textile and apparel for Bangladesh in the global apparel market and formulate a strategy to develop the country’s overall competitiveness and strength in the area.
It will also identify key challenges for Bangladesh to capture a significant pie of the non-cotton apparel market.
The study will analyze non-cotton product categories in terms of complexities, resources and trade volumes while economic, demand and sustainability rationale of non-cotton apparels will be looked upon.
Competitiveness in terms of products, technologies, skill, cost and availability of other resources will be assessed in the study which will also identify challenges that limit Bangladesh’s potential to supply non-cotton products.
It will develop a roadmap for manufacturers, investors, policymakers, development partners and other influencers, detailing approaches and ways to establish a strong presence in the non-cotton textile and apparel market.
BGMEA President Faruque Hassan said cotton has so far driven the country’s growth in the apparel sector.
But the growth of cotton-based products seems to have reached its peak, and there is little scope for growth through the natural fiber because the global fashion trend has drastically shifted from cotton to man-made fibres, he said.
“It is now time for us to tap into this segment, where I believe this study will play a crucial role,” said the BGMEA chief.
Business Director of Wazir Advisors Varun Vaid said global textile demand is rapidly moving towards manmade fibres.
With better functionality, price competitiveness and popularity of categories like sportswear and athleisure; manmade fibres are on a high growth path, he said.
Also read: OECD delegation calls on BGMEA president
“The global trade is also at a cusp of restructuring with China vacating trade shares. Bangladesh can leverage its manufacturing competitiveness and buyer relationship to capitalize these opportunities. But the key aspect will be to present itself as a diversified supplier across categories and fibres,” Vaid said.
BGMEA is right in taking cognizance of such trends and setting the direction for Bangladesh to diversify beyond cotton categories, he said.
With support of BGMEA, Wazir Advisors will develop a framework for the industry to identify & tap opportunities in non-cotton categories.
“The study will act as a guide for the policy makers. It will encompass learnings from global leaders, evolution of industry elsewhere, key enablers – investments, ecosystem, policies and partnerships,” Vaid said.
The study will be funded by IFC’s Partnership for Cleaner Textile (PaCT II) program, supported by the government of Denmark through the Danish International Development Agency (DANIDA) and the Embassy of the Kingdom of the Netherlands in Bangladesh.
BGMEA launches ‘Cash Incentive Automation System’
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has launched its online-based ‘Cash Incentive Automation System’ to make application procedures faster, simpler, transparent and more convenient for garment factories.
It will enable the members of BGMEA to submit their application online for cash incentives provided by the government to encourage and boost RMG exports.
BGMEA President Faruque Hassan inaugurated the ‘Cash Incentive Automation System’ on Saturday.
Also read: BGMEA chief for working harder to safeguard progress, prospects
BGMEA Vice Presidents and Directors were present at the inaugural ceremony held at the conference of BGMEA in Uttara.
Faruque Hassan said the world is going through a digital revolution where adapting to the changing trends with the available technologies is a must to remain competitive in the global market.
Keeping the context in mind, BGMEA has already digitized a number of its services for the members, including Workers’ Biometric Database, UD automation, Cash Incentive Automation System, Membership Management System to ensure quick, efficient and smooth services to all member factories, he said.
Also read: OECD delegation calls on BGMEA president
BGMEA has taken these initiatives in line with the government’s vision of Digital Bangladesh, he added.
Recently BGMEA has been awarded the ‘WITSA Global ICT Excellence Awards’ in the Sustainable Growth/Circular Economy Award category by WITSA for using ‘Biometric Identity and Worker Information Management System’ in 25th WCIT (World Congress on Information Technology).
The BGMEA also won the “Digital Bangladesh Award 2021” for its ‘Biometric Identity and Worker Information Management System’.
Read Huawei Technologies willing to support RMG sector in renewable energy: BGMEA
OECD delegation calls on BGMEA president
The visiting delegation of the Organisation for Economic Co-operation and Development (OECD) paid a courtesy call on BGMEA President Faruque Hassan and discussed different trade-related issues and future challenges of Bangladesh, in anticipation of the country's graduation from the LDC category.
The OECD team led by Dr. Annalisa Primi, Head of Division of Economic Transformation and Development, Development Centre of the organisation visited the BGMEA president’s office in Gulshan on Tuesday, said a press release.
Talk on Bangladesh’s possible implications on the economy and preparedness to continue the growth momentum by defying all the hurdles of the post-LDC era were also discussed.
They also talked about the issue of policy support and other measures needed to retain Bangladesh’s export competitiveness and maintain its standing in the global market in the post-LDC era.
The BGMEA President gave an overview of the garment industry’s contribution to the socioeconomic development of Bangladesh, especially through export earnings and employment generation for millions of people.
READ: BGMEA chief for working harder to safeguard progress, prospects
He apprised the OECD team about how Bangladesh’s RMG industry has undergone massive transformation over the last few years to become one of the safest industries while making impressive strides in the area of environmental sustainability.
He also briefed them about the unprecedented impacts of Covid-19 on the apparel industry of Bangladesh, how the sector faced the challenges and turned around.
Faruque Hassan also shed light on the RMG industry’s future priorities, including changing business model, upgrading business capabilities and embracing innovation to address future challenges of the RMG industry, especially after LDC graduation.
Daniel Robert Gay, Adviser on Trade and Economic Development, Structural Policies and Innovation Unit, OECD Development Centre, Dr. Manuel Toselli, Economist, Structural Policies and Innovation Unit, OECD Development Centre; Ms. Mereseini Bower, Inter-regional Adviser, Economic Analysis and Policy Division, Department of Economic and Social Affairs at the United Nations (UN); and Md. Mazedul Islam, Development Coordination Officer at UN Bangladesh were present at the meeting.
BGMEA Vice President Miran Ali, Director Tanvir Ahmed and Chair of BGMEA Standing Committee on Foreign Mission Cell Shams Mahmud also attended the meeting.
BGMEA chief for working harder to safeguard progress, prospects
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has said it is now time for them to leapfrog to the next level of growth as they have achieved a certain level of growth and momentum.
“Our progress and prospects have made us one of the most sustainable sourcing partners to the west and we have to work harder for safeguarding it,” he said.
The BGMEA chief made the remarks at a press conference while announcing that the 37th IAF World Fashion Convention will be held in Dhaka in November this year.
The International Apparel Federation (IAF) will host the Convention in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Also read: Huawei Technologies willing to support RMG sector in renewable energy: BGMEA
The “Made in Bangladesh Week” will be held concurrently in Dhaka on November 12-18.
Secretary General of IAF Matthijs Crietee, BKMEA Vice President Fazlee Shamim Ehsan, BGMEA First Vice President Syed Nazrul Islam, Vice President Shahidullah Azim, Vice President (Finance) Khandoker Rafiqul Islam, Vice President Md. Nasir Uddin, Vice President Miran Ali, Vice President Rakibul Alam Chowdhury, Directors Barrister Shehrin Salam Oishee, Asif Ashraf, Md. Khosru Chowdhury, Inamul Haq Khan (Bablu), Barrister Vidiya Amrit Khan, Md. Imranur Rahman, and Neela Hosna Ara, BKMEA Vice President Md. Akhter Hossain Apurbo were present at the press conference which was moderated by BGMEA Director Mohiuddin Rubel.
They also unveiled the logos of the 37th IAF World Fashion Convention and the Made in Bangladesh Week.
The IAF convention will be a three-day event where in the first day, a board meeting of all the IAF Board of Directors will be held.
A daylong conference, to be participated by local and international speakers, will also be a part of this convention.
The speakers including brands, retailers, suppliers, industry leaders, and academic will shed lights on the current and future business trends, challenges, possible solutions, with an aim to make industry-wide efforts to create a better fashion industry for all.
The annual World Fashion Convention will bring together the IAF membership, including apparel industry associations representing 40 countries, leading brands and other stakeholders.
The convention will provide an opportunity for delegates and participants to network, to learn and to gain insights into the future direction of the industry.
The Made in Bangladesh Week”, which will be organized by BGMEA, aims to promote the apparel industry of Bangladesh locally and globally by showcasing the compelling stories of the ready-made garments sector, especially its impressive strides in the areas of workplace safety, environmental sustainability and workers’ wellbeing.
Alongside sketching the encouraging stories, the potential of Bangladesh’s RMG industry, its strengths, capabilities and future priorities to remain a preferred and competitive choice for global buyers will be highlighted among global stakeholders and audience.
Also read: Growing export-import creating demands for more containers: BGMEA
The weeklong event will include 37th IAF World Fashion Convention, 3rd Dhaka Apparel Summit, Bangladesh Apparel Exposition, Denim Expo, award ceremonies like - Sustainable Fashion Award & Fashion Photography Award, Fashion & Cultural Festival and Global Launching of BGMEA Innovation Center.
Faruque Hassan said, “The 37th IAF World Fashion Convention will play an important role in initiating a greater collaboration with key actors in the supply chain including buyers and suppliers and global stakeholders to ensure more sustainable manufacturing and sourcing.”
He said the “Made in Bangladesh Week” will provide a unique opportunity to showcase the impressive strides of Bangladesh’s RMG industry along with its continuous strive to pursue excellence in business capabilities to strengthen its standing as a safe, sustainable and competitive industry in the world.”
Secretary General of IAF Matthijs Crietee said, "Perhaps more than ever before garment manufacturers play a pivotal role in the industry transformation we all need. So on the international stage presented by the 37th IAF World Fashion Convention, the Bangladeshi apparel industry will show itself as a source of solutions to the industry’s current major challenges.”
Huawei Technologies willing to support RMG sector in renewable energy: BGMEA
Chinese telecommunications giant Huawei Technologies is willing to provide technical solutions and support to the RMG industry of Bangladesh in increasing the capacity of renewable energy generation in the sector, says BGMEA on Thursday.
A delegation of Huawei Technologies (Bangladesh) Ltd met President of Bangladesh Garment Manufacturers and Exporters association (BGMEA) Faruque Hassan at BGMEA’s Gulshan office recently and expressed their interest.
The Huawei delegation included Li Zongsheng (Jason), Board Member; Liang Weixing, Managing Director for Digital Power Business Group; Najia Samantha Islam, Manager, Public Affairs and Communications; and Md Nur Alam, Account Manager, Bangladesh Digital Power Business.
Also read: Huawei recognised 2022 Gartner Peer Insights Customers' Choice for 3rd straight year
BGMEA Vice President Miran Ali was also present at the meeting.
They had discussions on possible scope of increasing renewable energy usage by using solar plants in the garment industry and how Huawei can provide its technical solutions to achieve the objective.
BGMEA President Faruque Hassan mentioned the impressive progress of Bangladesh’s RMG industry in terms of sustainability and continuous strides in pursuing excellence in the area.
He said Bangladesh is proud to have the highest number of green garment factories in the world with more factories are in the process of becoming green.
Also read: Seeds for the Future winners visit Huawei Bangladesh headquarters
“However, instead of becoming complacent, we have continued our efforts in making our RMG industry green more and more with adaptation of environment-friendly and energy and resource efficient technologies,” said the BGMEA chief.
A green factory helps to reduce the energy usage by 40 percent and water consumption by more than 30 percent while it also emits less carbon, thus ensuring environmental safety, he said.
The BGMEA President requested Huawei Technologies to bring innovative and cost-effective solar plants to garment factories at affordable prices.
Read Akij sets up rooftop solar plant with Huawei's technology
Growing export-import creating demands for more containers: BGMEA
Bangladesh garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan has said the volume of Bangladesh’s export-import is increasing, creating demand for more containers to make timely shipment of goods.
As a deep sea port is yet to get ready in Bangladesh, he said, traders have to depend on the sea ports of Colombo and Singapore for international shipment.
In such circumstances, the BGMEA chief said, Indian sea ports could be a feasible alternative for Bangladesh to handle increasing volume of exports and imports.
Also read: BGMEA urges Aldi to source more high-end apparel from Bangladesh
The issues came up when Yousuf Shahriar, President and Country Head of Adani Group Bangladesh, met the BGMEA President at BGMEA’s Gulshan office on Wednesday, BGMEA said in a media release on Thursday.
BGMEA Vice President Miran Ali, Director Abdullah Hil Rakib, Capt Mohit Chaturvedi, Head – India Container Sales Business Development, Adani Ports and SEZ Ltd were also present on the occasion.
Also read: BGMEA claiming 100 percent salaries, bonuses paid to RMG workforce
They had discussions on various trade issues, especially the current global shipping situation and its outlook, scope of using Indian sea ports for international shipment of Bangladeshi export-import cargoes.
Faruque Hassan requested the Adani Group to extend necessary shipping and other logistic services to Bangladeshi trades so that they can export and import cargoes through using Indian ports.