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‘Bangladesh needs to double its denim export to achieve $100bn target’
Saddam HossainPublish : 08 Nov 2023, 18:43
Apparel manufacturers on Wednesday said that Bangladesh needed to double its denim export to global destinations to achieve its target of $100 billion readymade garment (RMG) export by 2030.
They were speaking at the inaugural ceremony of the 15th edition of the Bangladesh Denim Expo 2023 at the capital’s International Convention City Bashundhara on Wednesday.
Chief guest, Commerce Minister Tipu Munshi said that Bangladesh was the second largest apparel exporting country in the world; but in denim, Bangladesh was the largest exporter both to the EU and USA.
Regarding the recently-declared minimum wages for RMG workers, he said that the government has tried to adjust the minimum wages of garment workers, considering current inflation.
“The prime minister herself has said that the wages will be increased to Tk12,500. Although it will be difficult for the owners to pay, they accepted it,” he added.
He also said that they were giving priority to the welfare of the workers and the prime minister said to give family cards to them, through which they will be able to buy food at an affordable price.
Former BGMEA president Md Siddiqur Rahman said that denim and denim-related products accounts for about one fourth of Bangladesh’s total apparel export.
To fetch the $100 billion apparel export target the country has to double its denim export by 2030, he also said.
Regarding ongoing workers’ unrest, he asked why there were still protests even after their wages were increased.
“The proposal by the owner was Tk10,400 but on the request of the prime minister, the owners accepted to pay Tk12,500, though it will be a difficult task,” he said, adding that if agitations continued, many factories will be closed.
In the current situation, the workers should go back to work, protect their factories and not fall into the trap of provocation, he added.
Implementing new the minimum wage
BGMEA President Faruque Hassan said that the minimum wage was announced the previous day, and it is their priority to implement it.
“I hope the buyers will also help us in this regard,” he added.
Ziaur Rahman, regional country manager, H&M Bangladesh, Pakistan, and Ethiopia, said that H&M is very committed and it's just the government's responsibility to set a minimum wage and H&M welcomes whatever wages the government decides.
“We will pay higher charges for that. Our CEO met the prime minister and we also mentioned that very clearly,” he added.
He also mentioned their commitment to this industry because they have been in this market for a very long time, almost three decades and they work with suppliers strategically and create partnerships.
“Bangladesh is one of the most strategic sourcing destinations for H&M and it will remain so,” he added.
He also said that H&M has decided to reduce CO2 emission by 56% by 2030 and it can’t be done without the supplier.
“We are working with a lot of suppliers and they are doing their best to be sustainable, the recycling is quite visible.
He also said that they have started working with their suppliers on three different innovators they work together with and they put Green Investment Fund (GFI) in place.
“Beyond the only role of buying garments, we need to step forward and we need to go a little bit further, that is about chemical, machineries, new way of working where we will reduce carbon emission, use less water, digitalization, and overall, the efficiencies as well,” he added.
Mostafiz Uddin, chairman of Bangladesh Apparel Exchange (BAE), said that Bangladesh denim industry has huge potential and his organization has been working to unlock the untapped potential of the denim industry.
SM Mannan Kochi, senior vice-president of BGMEA, also spoke at the event, while Mohiuddin Rubel, managing director of the BAE and director of the BGMEA, moderated the event.
A total of 80 exhibitors from 12 countries are participating in the 15th Bangladesh Denim Expo.
About 5,000 visitors from home and abroad registered to attend the 2-day expo.
