BGMEA
Sustainable fashion: Bangladesh's RMG sector leads with 24 new LEED green factories in 2023
In 2023, Bangladesh's readymade garment (RMG) industry marked a significant stride in sustainable fashion, with 24 of its factories achieving LEED certification.
LEED (Leadership in Energy and Environmental Design), the globally recognized green building rating system, underscores a commitment to environmental responsibility and energy efficiency.
This recent certification brings Bangladesh's total to 206 LEED-certified green factories, a testament to the country's dedication to green initiatives within the garments sector, according to BGMEA Director Mohiuddin Rubel.
The BGMEA (Bangladesh Garment Manufacturers and Exporters Association) reports a breakdown of these certifications, with 76 achieving the highest, platinum rating, and 116 receiving a gold rating.
This progress is particularly notable in the context of the global apparel industry's increasing focus on sustainable practices.
Also read: Bangladesh now boasts 206 LEED-certified green factories: BGMEA
Of the 24 newly LEED-certified factories, a majority, 16, were awarded the prestigious platinum rating, while the remaining 8 achieved a gold rating.
Standout performers in 2023 included S. M. Sourcing with 106 points and Green Textiles Limited Unit 4 scoring 104 points. Also noteworthy are Integra Dresses and Knit Asia Limited, both achieving 99 points, Lida Textile & Dying Limited with 97 points, and Liz Fashion Industry Limited scoring 96 points, as detailed by BGMEA.
This achievement positions Bangladesh as a leader in the global sustainable fashion movement, with 54 out of the 100 LEED-certified green factories worldwide located in the country.
This includes 9 of the top 10, and 18 of the top 20 LEED-certified factories globally, according to BGMEA data.
Mohiuddin Rubel, director at BGMEA, highlights this as a potential catalyst for increased investment and partnership opportunities in the Bangladesh RMG industry.
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The geographic spread of these certifications within Bangladesh further illustrates the RMG industry's widespread commitment to sustainability.
The majority of the 2023 certifications were in Gazipur (15 factories), followed by Dhaka (4), Chattogram (3), and Mymensingh (2). This regional distribution indicates a nationwide embrace of LEED principles in the Bangladesh garments sector.
Currently, over 500 Bangladeshi factories are in the process of obtaining their LEED certification, signaling a robust and ongoing commitment to green practices in the Bangladesh RMG industry.
This move towards sustainable fashion not only aligns with global environmental goals but also positions Bangladesh as a forward-thinking leader in the green manufacturing space.
The significant increase in LEED-certified green factories within Bangladesh's RMG sector in 2023 is a clear indicator of the industry's commitment to sustainable fashion.
With the Bangladesh garments industry taking proactive steps to achieve LEED ratings, it sets a benchmark for environmental stewardship and positions the country as a key player in the global push for more sustainable manufacturing practices.
Also read: Environment-friendly factories, circular economy key to sustainable growth in RMG sector: Speakers
Environment-friendly factories, circular economy key to sustainable growth in RMG sector: Speakers
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Vidiya Amrit Khan has said recycling has always been a part of Bangladesh in a non-systematic and informal way as hand-me-downs or passed on to plastic handlers and fabric segregators.
“We need detailed waste management policy at local, national and international level,” Vidiya Amrit said while speaking at a dialogue titled ‘Circularity, de-carbonization, and competitiveness in Bangladesh’s apparel sector’ held at a hotel in Dhaka on Tuesday night.
Dr. M Masrur Reaz, Chairman and Chief Executive Officer of Policy Exchange Bangladesh, moderated the dialogue.
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LightCastle Partners, a prominent management consulting firm, and Policy Exchange Bangladesh, jointly organized the dialogue that highlighted a number of challenges such as the banks and financial institutions’ lack of meeting 5% ‘green loan’ target.
Other challenges in the sector include attracting the right investments, financial problems for establishing solar factories, the inability of most organizations regarding repayment of loans, and not easy access to loans for small and medium-level organizations.
About 84% of Bangladesh’s export earnings come from this sector. If a circular economy is adopted, Bangladesh may benefit economically, the speakers observed.
While presenting for a deep dive workshop, Mrinmoy Sobhan, Business Consultant at LightCastle Partners, said that the use of garment products is expected to reach 102 billion items across the world by 2030. “It may increase the emission of greenhouse gases by up to 50%. Bangladesh’s apparel sector produces about 5.77 lakh tonnes of textile waste in a year. “
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Md. Ariful Hoque, Director General of Bangladesh Investment Development Authority (BIDA), said recycled products also need to have enough competitive edge, otherwise consumers will not accept them, according to a media release.
According to the latest report of BGMEA, there are over 200 industry-friendly apparel factories in the country. It is imperative to give attention to the issue of reuse of textile wastage for reducing carbon footprint.
Fazlee Shamim Ehsan, Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Abdullah Hil Rakib, Managing Director of Team Group, Dr. Zaki Uz Zaman, Bangladesh Country Representative of the United Nations Development Organization (UNIDO), Kazi Faisal Bin Seraj, Country Representative of the Asia Foundation, among others, spoke.
On behalf of LightCastle Partners, its Co-founder and Director Zahedul Amin, Business Consultant Samiha Anwar, and other officials spoke.
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According to a report by Denmark-based Fashion Partnership Organization, 2019, Bangladesh exports 60% of its textile wastage annually. But Bangladesh can reduce its 15% demand of total cotton import by reusing its wastage cotton, said a media release.
At the same time, the demand for water in its textile industry will increase threefold compared to its internal demand by 2030. Under the circumstances, it is imperative to ensure the growth of the circular economy for sustainable development in the apparel sector.
While presenting the keynote paper at the dialogue, Faisal Rabbi, Stakeholder Engagement & Public Affairs Manager, H&M, said 60% of our GHG emission is coming from production countries, to achieve our net zero target by 2040 the GHG reduction must happen in production countries like Bangladesh.
The Bangladesh government and the industry here need to align with the goals of fashion brands as they are not just goals set by the brands but a legal requirement for market access going forward.
Brands, retailers, agents urged not to complicate trade with external issues creating confusion
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hasan on Thursday said the rumour that a sanction might have been imposed against Bangladesh caused by the LC clause, is "baseless and incorrect".
LCs are private commercial instrument, not statutory order or notice.
"So this should not be misinterpreted as a measure of trade enforcement or economic sanction. Moreover, the BGMEA did not receive any information from our diplomatic mission or from any official sources to support any sanction or trade measure," said the BGMEA chief in a message to its members, colleagues, friends, and well-wishers.
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He urged all the brands, retailers and their agents not to complicate trade with external issues, particularly not to insert any unnecessary clause creating such confusion.
"We also urge our members not to accept any LCs having such a clause, and to communicate with the respective buyer(s), solicit clarification and amendment if such clause is found in the LC," said Faruque Hassan.
Given all the progresses and initiatives the industry has taken to protect the legitimate rights and wellbeing of the workers, and the sustainability vision 2030, he said they are pursuing through actions, and there is no ground to impose any sanction against Bangladesh as far as the RMG industry is concerned.
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"However, we are also working with our government so that any issues or concerns are addressed through diplomatic efforts that support continued progress within the industry and economic security to the workers," he said.
The much discussed LC was transferred by the ZXY International against a master LC issued by a French buyer named ‘KARIBAN’. ZXY transferred the LC in favour of ‘Knit Concern’, a member of the BGMEA.
The BGMEA collected copy of the LC. It was issued by Standard Chartered Bank l, Dubai.
The LC contains the following text -
“We will not process transactions involving any country, region or party sanctioned by the UN, US, EU, UK. We are not liable for any delay, non-performance or/ disclosure of information for Sanctions Reasons”.
The BGMEA sought clarification from ZXY on such clause.
“We received a formal clarification from ZXY, as well as got a clarification statement by the original buyer KARIBAN, which makes it clear.”
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The clarification envisages:
a) KARIBAN did not insert this clause in its master LC in favor of ZXY International.
b) The clause was inserted by SCB Dubai, which they have been doing in every LC since 30th November 2022.
c) The clause does NOT state that there is any sanction against Bangladesh.
d) ZXY International confirmed that they will remove the clause in the LC, and if required they will issue a fresh LC without that clause.
BGMEA president seeks American Apparel & Footwear Association’s support in responsible purchasing practice
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has written to President and CEO of American Apparel & Footwear Association, Stephen Lamar, seeking support in terms of responsible purchasing practices.
“To ensure uninterrupted and smoother operation in the industry, it is important that prices of all goods which will be shipped from 1 December, 2023 are duly adjusted/ up-charged covering the increment in wage component,” BGMEA President Faruque Hassan wrote.
The American Apparel & Footwear Association (AAFA) is a national trade association representing apparel, footwear and other sewn product companies, and their suppliers, which compete in the global market.
From now onward, the BGMEA president said, all business negotiations and deals will have to be made adhering to the new minimum wage policy.
Read: Owners are free to close their garment factories until vandalism ends: BGMEA
“Therefore, I would humbly request you to kindly pursue the AAFA members to collaborate with their Bangladeshi suppliers with due empathy and consideration,” the BGMEA chief wrote in his letter.
“With every effort and action we take, we mean to complement our long term goal, which is to grow mutually and sustainably. We are working with our government relentlessly to ensure more favorable environment for business,” Faruque said.
“You are following the improvements made and progress by the government to create better infrastructure and policies supporting envisioned growth and efficiency. I am sure with your continued support and collaboration we will continue to thrive," said the BGMEA President.
In his letter to Lamar, the BGMEA chief said the minimum wage in 2023 for garment workers was declared by the government on November 7.
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The declaration was made based on the proposal submitted by the Minimum Wage Board, and was widely consulted and agreed by the stakeholders including workers’ and employers’ representatives, he said.
As per the new minimum wage, the gross minimum monthly wage of the 7th grade workers has been set at Tk 12,500, equivalent to around USD 113.63 – a 56.25 percent increase of the gross wage while the basic wage has gone up by 63.41 percent.
The new minimum wages comes at a time when the global economy is going through an unprecedented situation, so is Bangladesh’s economy, said the BGMEA chief.
“The RMG industry in Bangladesh is feeling the heat of this crisis, especially with soaring inflation, all our input costs have increased significantly including fuel, gas, electricity, transportation,” he said.
Read: BGMEA ready to implement new pay structure govt announces by Dec: BGMEA President
From the first of July this year, Bangladesh Bank has increased interest rates which made trade and investment finance more costly.
“You are aware that since 2013, the industry had to make a huge investment to ensure international standard workplace safety, which we have done diligently despite all the difficulties,” he wrote.
“Now to align with global climate action agenda, our factories are making further investment to reduce GHG emission and be more resource efficient. Not only that, for ensuring workplace safety, comfort for our workers and to reduce fatigue, factories are upgrading machine, process and production method,” said the BGMEA president.
“Through all these efforts, Bangladesh has emerged as a reliable, sustainable and one of the most preferred sourcing destinations,” Faruque said, adding that all these initiatives and investments have impact on the business, in relative and absolute term.
Read: BGMEA seeks NBR support to sustain RMG industry's global competitiveness amidst ongoing challenges
“Now, with the increase in the minimum wages, this industry has taken the challenge to ensure better living standards of the workers while maintaining competitiveness,” he said.
The raise in the minimum wage, especially 63.41 percent raise in the basic wage, leads to higher benefit for the workers in terms of overtime benefit, earned leave encashment, festival bonus and other allowances, Faruque said.
“The implementation of the new wage structure would exert a huge financial impact on the factories. This will be challenging for many of our factories to implement the new wage in the current economic and financial circumstances,” he wrote in the letter.
However, Faruque said, ensuring decent living standards of the workers is a top priority for them, as well as for global brands and retailers.
“Since we have accepted the new minimum wage, we will ensure implementation of it, and we need your support in terms of responsible purchasing practice,” the BGMEA president wrote in the letter to the CEO of American Apparel & Footwear Association.
Owners are free to close their garment factories until vandalism ends: BGMEA
BGMEA President Faruque Hassan on Sunday (November 12, 2023) said the owners of the RMG units can keep their factories closed under the law to protect industry and property until the vandalism is stopped and law enforcement agencies are able to ensure adequate security.
“Every entrepreneur has a constitutional right to protect his own industry and properties from outsiders,” he told a media briefing at BGMEA office at Uttara.
The BGMEA chief repeated that for the sake of the country and the industry, to protect the employment of the worker siblings, if the working brothers and sisters do not work in any factory, leave the factory without working, vandalize the factory, then the factory authorities can keep the factory closed under section 13 (1) of the Labor Act.
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Faruque said as there is currently less work in many factories in the garment sector, buyers have stopped placing new orders; they have asked to stop new recruitment.
“New appointments will be made when the situation improves,” said the BGMEA president.
Faruque urged the government of Bangladesh to identify those who are plotting against this industry and take action.
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“Also give us adequate security to run industries. Politics and economics complement each other. Remittance earning from the expatriates is experiencing a slowdown at the moment. In this situation, the garment industry, one of the main sectors of export earnings, deserves special attention,” he said.
The government on Tuesday announced Tk 12,500 as minimum wage for entry level RMG workers, raising it by 56.25% from the existing one.
State Minister for Labour and Employment Begum Monnujan Sufian announced the new wage structure for RMG workers which will be effective from December 1.
RMG workers unions have rejected the offer and instead asked for an increase of nearly Tk 23,000 a month. Many workers resorted to street protests clashing with police and vandalizing factories.
Owners have announced indefinite shutdown of over 130 factories mainly in Gazipur and Ashulia areas.
Govt announces Tk 12,500 as minimum salary for RMG workers
The unrest for higher wage has left one female worker dead in police firing, dozens injured and arrested.
Deputy Inspector General (DIG) of Industrial Police Md Zakir Hossain Khan on Saturday said they smell a rat behind the unrest in the readymade garment (RMG) industry in Gazipur.
"The government has already announced wages and our notion is that a group is instigating them [RMG workers] to do movement. We are identifying those who are provoking them [demonstrating workers]," he said.
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Prolonged blockades cause visible slump in economic activity
The nationwide blockades for the past few days have dealt a severe blow to the business landscape of Bangladesh, leaving wholesale markets desolate and causing a week-long economic slump.
The impact has spread over areas like New Market, Chandni Market, Eastern Plaza, Elephant Road, Farmgate, Gulistan Market, Shantinagar, Kakrail, Mouchak Market, Rampura-Badda, Mirpur, Dhanmondi, Gulshan-Banani, and Uttara in Dhaka.
Nawabpur, Chawkbazar, Islampur, Babubazar, Shankharibazar, Moulvibazar, and Bangabazar, also witnessed a decline in trade activities.
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Dewan Aminul Islam, President of Dhaka New Market Traders’ Association, said that sales were very low during the blockade.
“There are no buyers. Small traders are suffering more. If the blockade continues, then we will be the most affected,” he said.
Employees at Olympia Bakeryshop in the Baitul Mukarram area similarly report a decline in sales. They have resorted to a shift toward alternative sales strategies within familiar networks.
Sabuj, a tea vendor at Paltan intersection, said his shop faced a significant contraction in sales over the past week.
“I make TK10-12,000 per day. Now it’s Tk2-3,000," he said.
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Farooq Hasan, President of BGMEA, told UNB “The sector was already suffering from a shortage of buyers in the international market. Now, due to internal political instability, we have to face a more difficult situation. As a result, not only the export sector will be affected, but the entire economy of the country will be affected. It will also affect the reserves.”
Mohammad Hatem, Executive President of BKMEA, expressed concern over escalating losses among traders.
“The internal transportation of goods has been severely impeded. Industrial production witnessed a decline.Export sector is especially vulnerable to the ongoing blockade,” he said.
The Exporters Association of Bangladesh (EAB) President, Abdus Salam Murshedi, told UNB that due to the blockade, businesses cannot collect the raw materials stuck at various ports due to the transportation crisis.
Mahbubul Alam, president of Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), called for a collective reconsideration of the ongoing strike blockade.
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“Such programs, if prolonged, may lead to a standstill in the wheels of the economy,” he said.
On October 29, a hartal was observed across the country called by BNP and other like-minded opposition parties. After the three-day blockade on October 31, the blockade continued on November 5 and 6, and after the two-day blockade, it continued on November 8 and 9 with a one-day break.
BGMEA President clarifies media report on ‘apparel ban’
Clarifying a media report, BGMEA President Faruque Hassan on Sunday (November 05, 2023) said any attempt to generalize incident on the industry and the country at large is unacceptable.
The news mentions about technical glitches such as choking and ingestion hazard found it specific product item for babies sourced and retailed by specific brand in specific country.
"As the news report mentions about 12 countries withdrawing or recalling apparel made in Bangladesh, there is no reference to such claim, and we could not trace any evidence in support of this claim," he said.
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"We feel the urge to share this clarification so that misrepresentation of the fact is not repeated,' said the BGMEA chief.
He also clarified the reference to OECD which was mentioned in the news report.
OECD maintains a “Global portal on product recalls” and the OECD members’ product recall notices are listed in this portal.
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Product recall for any valid reason is a standard practice and there are hundreds of such recalls listed in the OECD website as of today, said the BGMEA President.
Furthermore, the OECD website mentions “Health Canada recalled more than 200,000 George Brand Sleepers on Wednesday for posing a risk of choking and ingestion.
The recall of the product, sold at Wal-Mart, is for sizes 0-5T and affects two styles for boys and two for girls.
Zipper pulls and foot grips of the sleepers may eventually separate after frequent washing, leading to choking and ingestion hazards, the agency said, adding it has not received any reports of injury in Canada.”
"Therefore, the products were recalled due to certain risk of hazard, which is not the mistake of Bangladeshi manufacturer. Every product made in Bangladesh must pass through a stringent quality control process and laboratory tests including those of consumer health and safety," he said.
All exportable products must meet the standards of the buyers and relevant legal requirement of the export markets.
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Any product failing to comply these health and safety requirement are usually rejected by buyers or denied entrance at the destination port.
"So any misinterpretation like ‘apparel made in Bangladesh is banned in the mentioned countries’ is false," Hassan said.
The alleged products were shipped from Bangladesh in early 2022 and were retailed in Canada from November 2022 to June 2023.
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The product recall notice of Health Canada also mentions that “As of September 21, 2023, the company has not received any reports of incidents or injuries in Canada”.
"I hope this statement of clarification will help all to clear any confusion on this matter and not to be misguided," said the BGMEA Chief.
BGMEA organizes blood donation program to serve humanity
Bangladesh Garments Manufacturers and Exporters Association (BGMEA) in collaboration with Bangladesh Red Crescent Society has organized a blood donation program on 18 June 2023 at BGMEA Complex.
BGMEA President Faruque Hassan has inaugurated this week-long program from 18th June to 24th June while a number of BGMEA officials have donated their blood voluntarily to serve humanity.
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Md. Shahidullah Azim, Vice President of BGMEA; Major General (Rtd.) ATM Abdul Wahab, Chairman of Bangladesh Red Crescent Society; Brigdier General (Dr.) S.M Humayun Kabir (Retd), Director of Holy Family Red Crescent Medical College Hospital and other Chairs from the different standing committees of BGMEA were also present during the inaugural ceremony.
Blood donors are given Donor Cards by the Bangladesh Red Crescent during the program. The donors will get free blood from Red Crescent whenever needed by showing this card.
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BGMEA President Faruque Hassan said “With the aim of building a sustainable industry, the current board of BGMEA has taken the strategic Sustainability Vision 2030 where people have been given the highest priority. Our motto is to forever work for the well-being of the people of Bangladesh and humankind at large, inside and outside the industry.”
“There is a severe shortage of safe blood in our country. Currently, many thalassemia patients, dialysis patients, and chemotherapy patients are not getting blood as per demand. So our program is to encourage people to donate blood voluntarily” he said.
"It is important to increase social awareness about blood donation," he said.
He urged all member factories of BGMEA, and BKMEA as well as all commercial, government and private organizations to come forward and save the lives of people by promoting voluntary blood donation program.
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It’s important to mention that Bangladesh Red Crescent Society as a government-approved blood donation center has been carrying out blood collection and distribution activities through its various blood banks for a long time.
BGMEA President expressed his sincere thanks to the Bangladesh Red Crescent Society on behalf of the garment industry for doing such a great program across the country.
Bangladesh-Australia have huge opportunities to expand trade: BGMEA President
Bangladesh and Australia have immense potential to enhance bilateral trade by further deepening collaboration and cooperation, said Faruque Hassan, President of BGMEA.
Trade between the two countries had grown considerably over the past years and more opportunities still lie ahead that could benefit both sides if reaped together, he said.
He came up with the observations during a meeting with Tim Watts, Assistant Minister for Foreign Affairs of the Australian government, in Dhaka on May 15.
Brendan Hodgson, Director, Bangladesh, Sri Lanka and Maldives Section at Australian Department of Foreign Affairs and Trade; Megan Jones, Assistant Secretary, Indian Ocean and South Asia RegionalAustralian Department of Foreign Affairs and Trade, Australia; and Louisa Bochner, Adviser, office of the Assistant Minister for Foreign Affairs ; Jeremy Bruer, Australian High Commissioner to Bangladesh were also present at the meeting.
The meeting was also attended by Zunaid Ahmed Palak, MP, State Minister for the ICT Division, Government of Bangladesh; Mohibul Hasan Chowdhury, MP, Deputy Minister for Education, Government of Bangladesh; and Russell T. Ahmed, President of Bangladesh Association of Software and Information Services (BASIS).
They had discussions about different issues, including potential areas of expanding trade and investment between Australia and Bangladesh.
Issues relevant to Bangladesh’s RMG industry including its prospects and preparedness to continue the growth momentum were discussed during the meeting.
BGMEA President Faruque Hassan briefed the Australian Assistant Minister for Foreign Affairs about the huge progress made by Bangladesh’s RMG industry in terms of workplace safety, environmental sustainability, and workers' rights and welfare.
He said Bangladesh was interested in importing more cotton and wool from Australia to meet the growing demand of the RMG and textile industry.
The BGMEA President informed the Australian Assistant Minister for Foreign Affairs about about the BGMEA’s initiative to organize the Bangladesh Apparel Summit in Australia on 18th July 2023 and called on him to expend support in organizing the event.
He also sought cooperation from Australia in developing knowledge and skills of the students of BGMEA University of Fashion and Technology (BUFT) in textile, apparel, fashion, design and business through collaboration with leading Australian universities and fashion institutes.
He expressed thanks to the Australian government for its decision to continue duty-free market access for Bangladesh. “It would support Bangladesh in maintaining the momentum of its economic growth after the LDC graduation,” Faruque Hassan added.
Building up a resilient, sustainable business model needed to overcome future challenges: BGMEA chief
BGMEA President Faruque Hassan has said they need more support from the advanced economy in terms of product and fiber diversification, innovation, technological upgradation, reskilling and up skilling their people.
"We need to put emphasize on building up a resilient and sustainable business model to overcome the future challenges," he said while speaking at the 4th edition of Sustainable Apparel Forum on Thursday.
Faruque Hassan said they have established BGMEA Centre of innovation, efficiency and OSH.
The centre will works as an exchange hub of industry wide best practices as it endeavors to disseminate knowledge to beneficiary groups continuously in the area of product development, efficiency, use of technologies, process upgradation, environmental sustainability and social innovation.
"We need assistance from all of our esteemed stakeholder to make this center more vibrant and useful," said the BGMEA chief.
"So please come forward, collaborate, and exchange knowledge and expertise to ensure more decent employments, and build a resilient and sustainable fashion industry," he said.
Commerce Minister Tipu Munshi spoke as the chief guest.
The BGMEA chief said they have ensured 100% safety in terms of fire, structural and electrical remediation within the workplace which has restored global confidence in them.
"We have taken a number of initiatives to ensure the better wellbeing of our workers," he said.