RMG Industry Bangladesh – Textile Focus https://textilefocus.com Textile Focus: Textile News, Apparel News, RMG News & Articles Wed, 11 Dec 2024 04:06:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.5 https://textilefocus.com/wp-content/uploads/tf_icon_152x152-1-150x150.png RMG Industry Bangladesh – Textile Focus https://textilefocus.com 32 32 “From Concept to Execution: Integrating the Triple Bottom Line in SaaS Business Strategies and Its Benefits” https://textilefocus.com/from-concept-to-execution-integrating-the-triple-bottom-line-in-saas-business-strategies-and-its-benefits/ Wed, 11 Dec 2024 04:06:13 +0000 https://textilefocus.com/?p=44744 The Ready-Made Garments (RMG) sector plays a pivotal role in global trade, especially in emerging economies like Bangladesh, India, Vietnam, and Cambodia. SaaS solutions are indispensable in addressing operational inefficiencies, compliance challenges, and sustainability concerns within this industry. However, SaaS providers encounter significant hurdles, including resistance to adoption, cost constraints, and scalability issues. This paper […]

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The Ready-Made Garments (RMG) sector plays a pivotal role in global trade, especially in emerging economies like Bangladesh, India, Vietnam, and Cambodia. SaaS solutions are indispensable in addressing operational inefficiencies, compliance challenges, and sustainability concerns within this industry. However, SaaS providers encounter significant hurdles, including resistance to adoption, cost constraints, and scalability issues. This paper delves into these challenges and explores the Triple Bottom Line (TBL) model as a strategic framework to foster sustainable growth and mitigate risks in the RMG sector.

Syed Rifath Noweid Hussain
Figure: Syed Rifath Noweid Hussain

The TBL model, introduced by John Elkington in 1990, redefines business success by expanding its focus beyond financial profit to encompass People (social), Planet (environmental), and Profit (economic) dimensions. This holistic approach encourages businesses to evaluate their impact across these interconnected areas, fostering long-term sustainability and resilience.

For SaaS providers in the RMG sector, the TBL model offers numerous advantages. It addresses adoption resistance by aligning with global trends and enhancing digital literacy through customized training. TBL-driven solutions reduce costs by optimizing operations and providing scalable, adaptable features. They also assist RMG businesses in meeting stringent environmental and labor regulations via advanced monitoring tools. By enabling sustainability tracking and reporting, SaaS providers enhance market competitiveness and help manufacturers meet the expectations of global buyers. Adopting the TBL model promotes economic and environmental sustainability, delivering lasting value for RMG manufacturers.

Integrating the Triple Bottom Line (TBL) Framework into SaaS for the RMG Sector

Aligning SaaS solutions with the TBL framework involves integrating social, environmental, and economic sustainability goals:

  1. Social (People): SaaS platforms can improve labor practices by monitoring compliance with labor laws, ensuring fair wages, and enhancing worker safety. They can also include training modules to boost digital literacy and develop employee skills.
  2. Environmental (Planet): Software can track resource usage (water, energy) and waste, providing actionable insights for optimization. Features for monitoring carbon footprints and pollution levels help RMG businesses minimize environmental impact.
  3. Economic (Profit): SaaS solutions should focus on cost optimization, enhancing supply chain management, and increasing production efficiency, thereby improving profitability. Incorporating sustainability-driven innovations enables businesses to cater to market demand for eco-friendly products.
  4. Collaborative Partnerships: SaaS providers can serve as strategic partners by offering customizable, consultative solutions to help businesses implement TBL principles.
  5. Transparency and Reporting: Platforms should include robust reporting features, enabling RMG businesses to monitor and showcase their TBL performance, ensuring compliance with global sustainability standards.

By adopting TBL principles, SaaS platforms can help RMG businesses achieve sustainable profitability while promoting social and environmental responsibility.

How SaaS Businesses Can Leverage TBL for Growth

  1. Custom Solutions: Develop tailored solutions that address the unique challenges of the RMG sector, such as managing large workforces or meeting global compliance standards.
  2. Collaborations: Partner with sustainable certification bodies, NGOs, or industry associations to integrate compliance tools into the platform.
  3. Thought Leadership: Establish a reputation as sustainability advocates by publishing TBL impact case studies and whitepapers.
  4. Community Engagement: Demonstrate a commitment to “People” through CSR programs like free training modules for RMG workers.

Competitive Advantage

SaaS providers that embrace the TBL framework can position themselves as more than just technology suppliers. By acting as strategic partners, they help RMG manufacturers meet global demands for sustainability, transparency, and innovation, thereby gaining a competitive edge.

Conclusion

The TBL framework provides SaaS businesses with a roadmap to balance profitability with social and environmental responsibility. Companies such as Microsoft and Salesforce exemplify how TBL-aligned strategies enhance market competitiveness while meeting ethical demands. For SaaS providers in the RMG sector, adopting TBL principles ensures sustainable growth, strengthens relationships with buyers, and secures a competitive edge in an evolving global market.

Author: Syed Rifath Noweid Hussain
LinkedIn: www.linkedin.com/in/rifath-noweid-61919a108

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Global brand representatives meet CA’s Special Envoy Lutfey https://textilefocus.com/global-brand-representatives-meet-cas-special-envoy-lutfey/ Sun, 08 Dec 2024 04:17:33 +0000 https://textilefocus.com/?p=44694 He expressed cautious optimism in metrics such as export volumes, remittances and cargo handling that have defied expectations to show double-digit percentage growth versus the previous year Underscoring the importance of the RMG industry, Chief Advisor’s Special Envoy Lutfey Siddiqi has expressed gratitude for the “constructive engagement and contribution” of the foreign buyers’ community through […]

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He expressed cautious optimism in metrics such as export volumes, remittances and cargo handling that have defied expectations to show double-digit percentage growth versus the previous year

Envoy Lutfey

Underscoring the importance of the RMG industry, Chief Advisor’s Special Envoy Lutfey Siddiqi has expressed gratitude for the “constructive engagement and contribution” of the foreign buyers’ community through a period of challenges and changes.

Siddiqi welcomed representatives of global brands and buyers of readymade garments for a dialogue at his office on Thursday (5 December).

He expressed cautious optimism in metrics such as export volumes, remittances and cargo handling that have defied expectations to show double-digit percentage growth versus the previous year.

Other factors such as law and order, labour relations and liquidity appear to be improving but continue to require close monitoring.

Beyond that, structural constraints such as our port infrastructure, energy infrastructure or gaps in skills will take longer to resolve but for which, reforms in our decision-making processes should enable us to move faster than before.       

The buyers’ representatives pointed out that this is the first time that they have had an opportunity to engage directly in this manner with government at a ministerial level. 

They brought up weak brand protection, restrictive credit facilities for imports, and lack of a dedicated green energy plan for this sector as additional issues for the government to focus on.

They expressed full support for the government’s agenda around labour standards and rejected the suggestion that their pricing policies could stand in the way of better wages.

It was also mentioned that global brands with their own observations on the ground are well-placed to help narrate and project the true story of Bangladesh, as it is evolving right now, to the international audience, according to the Chief Adviser’s press wing.

The Special Envoy thanked them for their support, especially on the backdrop of disinformation in certain arenas.

Among others who were present in the meeting were Ziaur Rahman of H&M and Javier Santonja of Inditex.

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Why do you think factory owners are unable to pay their workers? https://textilefocus.com/why-do-you-think-factory-owners-are-unable-to-pay-their-workers/ Tue, 26 Nov 2024 09:17:29 +0000 https://textilefocus.com/?p=44514 Abdullah Hil Rakib: The issue of factory owners being unable to pay their workers is a multifaceted problem that cannot be explained in a single sentence. Several interconnected factors are contributing to this crisis, many of which are rooted in the evolving political and economic landscape. First, there has been a noticeable distinction between the […]

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Black Inspirational Business Qoutes Instagram Post
Figure: Abdullah Hil Rakib, Managing Director, Team Group, and Former Senior Vice President of BGMEA

Abdullah Hil Rakib: The issue of factory owners being unable to pay their workers is a multifaceted problem that cannot be explained in a single sentence. Several interconnected factors are contributing to this crisis, many of which are rooted in the evolving political and economic landscape.

First, there has been a noticeable distinction between the roles of the current government and an interim government, particularly in how they manage law enforcement post-protests. This shift has significantly affected the industrial sector. In the past, when workers protested, disputes were often resolved through mediation facilitated by law enforcement, particularly the industrial police. However, a leadership vacuum and diminished law enforcement support have created a gap in resolving industrial conflicts effectively.

While the situation has slightly improved since August and September, the sector is far from achieving stability. Coordination issues within law enforcement agencies persist, further exacerbated by structural changes introduced in November 2023. These factors have contributed to the closure of approximately 106 factories, raising critical questions about the sustainability of the industry.

Financially, the sector is under immense pressure. Over the past five years, production costs have surged, with the implementation of the 2023 wage structure alone leading to a 56% increase in wage expenses. For context, in my six factories employing 23,000 workers, the net payroll expense rose by 1.09 billion BDT. While larger industries may manage these costs, small and medium enterprises (SMEs) face significant difficulties in sustaining such financial burdens.

Compounding this is the sharp rise in power costs, which have increased by 286%, alongside persistent power supply inconsistencies. Key facilities, such as dyeing and washing plants, often experience power outages during the day, leading to heightened operational costs. This combination of escalating expenses and erratic power supply has critically disrupted cash flow for many businesses.

The liquidity crisis within banks adds yet another layer to the problem. With delayed transactions and restricted access to capital, factory owners are struggling to meet financial obligations, including payroll. When wage costs increase by 56%, power costs by 286%, and banking liquidity dries up, the challenges become insurmountable for many, threatening the very survival of the industry.

This complex interplay of rising costs, disrupted cash flow, inadequate governance, and external economic pressures has created a perfect storm, leaving many factory owners unable to sustain their operations, let alone pay their workers.

Source: Channel i Talk Show

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RMG Export in October -$3.30 bn, with 22.8% https://textilefocus.com/rmg-export-in-october-3-30-bn-with-22-8/ Mon, 11 Nov 2024 07:21:47 +0000 https://textilefocus.com/?p=44243 The country’s export earnings in October saw a robust growth of 20.60% catching $4.13 billion, up by $0.71 billion compared to $3.42 billion in the same month in 2023. According to data released by the Export Promotion Bureau (EPB), in July-October exports grew by 10.8% to reach $15.79 billion, up by $1.54 from $14.25 billion […]

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The country’s export earnings in October saw a robust growth of 20.60% catching $4.13 billion, up by $0.71 billion compared to $3.42 billion in the same month in 2023.

RMG Export BD 01

According to data released by the Export Promotion Bureau (EPB), in July-October exports grew by 10.8% to reach $15.79 billion, up by $1.54 from $14.25 billion in the same period in 2023. Apparel sector accounted for $12.81 billion of the exports.

In October, the readymade garment (RMG) sector, the country’s highest export earner, and generated $3.30 billion, with 22.8% increase from $2.68 billion in the equivalent period of FY24.

Of the $3.30 billion, knitwear contributed $1.86 billion, a 24.6% increase from $1.50 billion, while woven garments earned $1.44 billion, reflecting a 20.54% increase from $1.20 billion compared to the October of the last fiscal year.

Among other notable sectors, agriculture products experienced positive growth of 7%, reaching $113.1 million, up from $105.8 million in October FY24.

Leather and leather goods witnessed a slight decline of 1%, totaling $83.2 million, while the earnings were $84 million in October 2023.

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Banking Sector Reforms Needed to Support Weak Banks and Sustain Bangladesh’s RMG Sector https://textilefocus.com/banking-sector-reforms-needed-to-support-weak-banks-and-sustain-bangladeshs-rmg-sector/ Mon, 11 Nov 2024 06:02:50 +0000 https://textilefocus.com/?p=44234 Essential Clothing Ltd., a premier knitwear manufacturer based in Gazipur, Bangladesh, is dedicated to sustainable and ethical production practices. Guided by its motto, “Manufacture clothing responsibly,” the company is a proud member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and is widely respected for its high-quality products. Led by Engr. Md. Saiful Islam […]

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Essential Clothing Ltd., a premier knitwear manufacturer based in Gazipur, Bangladesh, is dedicated to sustainable and ethical production practices. Guided by its motto, “Manufacture clothing responsibly,” the company is a proud member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and is widely respected for its high-quality products. Led by Engr. Md. Saiful Islam Khan, Managing Director, Essential Clothing Ltd who oversees operations from the head office in Uttara, Dhaka, Essential Clothing Ltd. continues to set industry standards, prioritizing both quality and responsibility. Recently, Mr. Khan shared his insights in an interview with Textile Focus, summarized below.

Saiful Islam
Figure: Engr. Md. Saiful Islam Khan, Managing Director, Essential Clothing Ltd

Textile Focus: Given the ongoing unrest in the garment sector, could you share your thoughts on this situation?

Saiful Islam Khan: The garment industry in Bangladesh is experiencing one of its most challenging periods. With nearly 25 years in this sector, and even more exposure due to my family’s business in Chittagong, I can confidently say this may be one of the toughest times in 40-45 years.

This phase began with a movement against the former government, which evolved into calls for governmental change. During this time, our factory faced an 8-day closure between July and August, with no internet access, sending a negative message to buyers and causing considerable concern. We had hoped for stability with an interim government, but buyer reluctance persists. Although the European economy shows signs of improvement, boosting orders slightly, our inability to execute orders on time is eroding buyer trust. I foresee significant impacts, particularly for orders expected in January and February, and if this instability isn’t quickly addressed, it could lead to further losses for our industry.

Textile Focus: How do you view the role of law enforcement agencies in addressing these issues?

Saiful Islam Khan: The new government faces complex challenges. I believe weak law enforcement is at the root of much of the labor unrest and instability. With stronger law enforcement, we wouldn’t be seeing so many labor issues. Recently, we’ve observed unusual demands from workers, some of which are difficult to comprehend given our previous good relationships with employees.

Essential Clothing Ltd

For example, in my factory, aside from wage demands, workers are asking to limit extra hours before Eid and for entertainment provisions like music and dance in the workplace, which are unprofessional demands. I’ve heard that in factories where management is stricter, some managers are being ousted, further complicating the environment. To resolve these issues, law enforcement must play a stronger role. Additionally, labor unrest in one factory shouldn’t disrupt neighboring ones. Organizations like BGMEA and BKMEA need to adopt more mature strategies to address labor unrest effectively.

Textile Focus: How has the current instability in the banking sector impacted the RMG sector?

Saiful Islam Khan: Some banks have weakened over time, affecting their clients. These banks are struggling to provide the necessary funds, adding significant challenges. Every factory has limits on back-to-back L/Cs (Letters of Credit), which are harder to maintain due to inflation and quality standards. Political unrest and other disruptions have delayed shipments and payments, causing L/C limits to freeze. Although we’re receiving new orders, opening L/Cs has become difficult, impacting operations. The garment sector operates on strict timelines, and delays create issues across the board.

We must reform the banking sector to support weaker banks and sustain business operations, as this is crucial for the industry. Additionally, prolonged factory closures, like the 15-20 day shutdown in Ashulia, threaten our ability to pay wages, adding to our concerns.

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TECH-CELL BD LTD hosts Iconic evening focus on Digital Automation for apparel sector https://textilefocus.com/tech-cell-bd-ltd-hosts-iconic-evening-focus-on-digital-automation-for-apparel-sector/ Sat, 12 Oct 2024 04:20:57 +0000 https://textilefocus.com/?p=43653 Tech-Cell BD Ltd is working to develop the garment industry in the country through digital automation. The organization has been running this digital automation since 2019. On Thursday (October 10), they organized an ‘iconic evening’ at Hotel La Méridien in the capital. The event discussed the future of Bangladesh’s garment industry and the impact of […]

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Tech-Cell BD Ltd is working to develop the garment industry in the country through digital automation.

TECH CELL BD LTD

The organization has been running this digital automation since 2019. On Thursday (October 10), they organized an ‘iconic evening’ at Hotel La Méridien in the capital.

The event discussed the future of Bangladesh’s garment industry and the impact of productivity efficiency on garment operations. Top BD garment officials of the country participated in the discussion.

At this time, the current situation in the garment sector was discussed. In particular, the speakers discussed the ongoing problems of the garment sector and the development of the country’s industry in the future.

At this time an agreement was signed with Vietnam. Where Tech Cell BD can sell their machinery in Vietnam.

Tech Cell BD Chairman Ariful Islam, Managing Director, Bappy K Roy and other officials were present at the signing ceremony.

Tech cell BD ltd. started its journey in the year of 2017 with a view to providing a complete solution in the apparel manufacturing process. They focus on Digital Automation solutions for apparel industries aiming to reduce production costs and ensure quality & sustainability.

Tech cell BD ltd. Helps companies reach their optimum goal by enabling them to Develop, manufacture, and take their product to market smarter, faster, more affordably, and in a sustainable manner.

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Joint forces provide support to maintain law and order in garment industry: BGMEA https://textilefocus.com/joint-forces-provide-support-to-maintain-law-and-order-in-garment-industry-bgmea/ Wed, 02 Oct 2024 04:02:10 +0000 https://textilefocus.com/?p=43446 Abdullah Hill Rakib, Acting President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed thanks and gratitude on behalf of the garment industry to the joint forces for their significant role in maintaining law and order within the sector. During a discussion held on September 30 at the BGMEA complex in Uttara, which included […]

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Abdullah Hill Rakib, Acting President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed thanks and gratitude on behalf of the garment industry to the joint forces for their significant role in maintaining law and order within the sector.

BGMEA 40325i4

During a discussion held on September 30 at the BGMEA complex in Uttara, which included representatives from the BGMEA, Army, Industrial Police, Directorate General of Forces Intelligence (DGFI), National Security Intelligence (NSI), Border Guard Bangladesh (BGB), and garment factory owners, Abdullah Hil Rakib noted the substantial improvements in the labor situation due to the cooperation and support from the joint forces. This support has allowed factories to remain operational during this situation.

Although the workers’ 18-point demands have been acknowledged, some factories have experienced disturbances due to false rumours and instigations from vested quarters. However, the number of such incidents is few. Whenever issues arised, the joint forces promptly intervene to resolve problems and ensure factory operations continue smoothly.

The meeting was chaired by BGMEA Acting President Abdullah Hil Rakib and attended by Deputy Inspector General (DIG) of the Industrial Police Sibgat Ullah; DIG of Operations of the Industrial Police Md. Ashrafuzzaman; CO of RAB-1 Lt. Col. Mohammad Zahidul Karim; and Wing Commander of RAB-4 Md. Rokonuzzaman, representatives of DGFI and law enforcement agencies. BGMEA Vice President Asif Ashraf and Directors Haroon Ar Rashid, Mesbah Uddin Khan, Md. Mohiuddin Rubel, Md. Nurul Islam, and Md. Rezaul Alam (Miru) also participated in the meeting.

The meeting expressed deep condolences for the recent death of a worker at Mango Tex Limited, which occurred amid a clash. Earlier that day, the owners had been discussing workers’ demands at the Mondol Group factory, attended by military personnel. During that time, false rumors about the deaths of two Mondol Group workers emerged, prompting violence as outside parties gathered and later escalated to violence, resulting in injuries to 11 individuals, including workers and law enforcement officials, who are now receiving medical care.

During the meeting, garment owners expressed concern that the current unrest is being fueled by vested interests. They expressed appreciation for the joint forces’ assistance in maintaining operational stability and requested enhanced security measures to further improve the law and order situation, essential for industrial functioning. They urged the joint forces to take action against those inciting disorder.

The joint forces assured that they would implement adequate security measures in industrial areas and encouraged entrepreneurs to keep all garment factories operational.

Another Meeting Held with Labor Federations

Following the earlier discussion, another meeting was held with leaders of various labour organizations in the garment sector, which included participants from the first meeting.

On behalf of the joint forces, labour leaders were urged to fully support the garment industry and to communicate to workers that any damage to factories would ultimately harm them and the country as a whole.

During the meeting, all parties committed to collaborating to ensure congenial atmosphere in the sector.

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Urgent Need for Reform and Stability in Bangladesh’s RMG Sector https://textilefocus.com/urgent-need-for-reform-and-stability-in-bangladeshs-rmg-sector/ Tue, 01 Oct 2024 04:42:42 +0000 https://textilefocus.com/?p=43428 The Ready-Made Garment (RMG) sector in Bangladesh, the lifeblood of the country’s economy, is currently navigating one of the most difficult periods in its history. Factory owners are working tirelessly to make up for production losses caused by months of nationwide protests, labor unrest, and curfews. These disruptions, exacerbated by the ousting of the previous […]

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The Ready-Made Garment (RMG) sector in Bangladesh, the lifeblood of the country’s economy, is currently navigating one of the most difficult periods in its history. Factory owners are working tirelessly to make up for production losses caused by months of nationwide protests, labor unrest, and curfews. These disruptions, exacerbated by the ousting of the previous government, have placed immense pressure on manufacturers, particularly during the peak shipping season for Western orders ahead of Christmas. Factories are running 24/7 to recover lost time from July, August, and September, which are critical months for securing bookings for autumn and winter collections.

Bangladeshs RMG Sector

Despite the sector’s resilience over the years, the recent unrest—culminating in the tragic death of a worker in Ashulia on 30 September—highlights the fragility of labor relations within the industry. The clash that led to the worker’s death and the injury of five others is a stark reminder of the deepening tension between factory owners and workers. Although many demands have been met, including the much-publicized 18-point list, instability persists.

BGMEA Director Shovon Islam noted that despite the efforts to meet worker demands, protests continue, often fueled by rumors and the exploitation of law and order weaknesses. He also suggested that some trade union leaders might be benefiting financially from external conspiracies aimed at destabilizing the industry. The situation has become untenable, with daily factory closures in areas like Ashulia, Zirani, and Zirabo, resulting in the loss of an estimated $6.5 lakh daily.

Current Challenges for Factory Owners

Today, many factory owners are caught in a storm of rising bank interest rates, unmanageable loans, and labor unrest. Salaries need to be paid at the end of each month, but with high-interest bank loans looming over them, many owners are finding it increasingly difficult to meet these obligations. While workers’ demands are understandable, the financial realities of running a factory amidst unrest are dire.

Additionally, the unrest is causing severe shipment delays, which lead to canceled orders. Over a month of halted production has exacerbated the problem, with factories closing daily in industrial belts like Ashulia, Zirani, and Zirabo. BGMEA Director Mohiuddin Rubel noted, “Our image is getting tarnished for sure alongside huge financial losses. If the situation continues, this will cause further problems. The industry has so far lost $3 billion due to the month-long demonstrations.”

At a recent press conference, Abdullah Hil Rakib, Senior Vice President of the BGMEA, called for enhanced security in these areas to protect factory operations and ensure the safety of workers.

Bangladesh’s Progress in Fire and Building Safety

Bangladesh has made significant progress over the years in addressing fire and building safety issues within the RMG sector, especially after the tragic Rana Plaza collapse and other factory disasters that garnered global attention. Stylish Garments Ltd. Chairman Salauddin Chowdhury emphasized that although there have been improvements, more needs to be done. He noted that “Bangladesh has some of the safest factories now, but further progress is needed.” The country has been striving to regain Generalized System of Preferences (GSP) facilities from the United States since they were suspended, but has not yet succeeded in doing so. Restoring these facilities is crucial for maintaining the competitiveness of Bangladesh’s garment industry in the global market.

Shams Mahmud, Managing Director of Shasha Denims, whose buyers include multinational giants like H&M and Marks & Spencer, also shared an optimistic view of the improving situation. “The labor situation has now stabilized and almost all factories are back in production. We are part of a global supply chain. Most of the orders we take are time-sensitive. Hopefully, with the improving law and order situation, we will be able to deliver goods on time,” Mahmud said.

The Need for Stability and an Exit Policy

While meeting workers’ demands is essential, the current unrest shows there are deeper, systemic issues at play. One of the critical gaps in Bangladesh’s RMG sector is the absence of a structured exit policy for businesses. As someone who has experienced the devastating effects of such a shortfall firsthand, I understand the need for this reform. When our buyer went bankrupt, our family business of 40 years was forced to close despite its capabilities. Without buyer protection or risk mitigation, we were left without a lifeline.

An exit policy would provide businesses with a framework for closing operations smoothly when necessary, ensuring fair treatment for workers, settling financial obligations, and allowing owners to transition without enduring financial and emotional ruin. For many factory owners currently facing overwhelming bank loans, shrinking margins, and labor unrest, an exit policy could be a lifeline.

The lack of such a policy leaves businesses like ours vulnerable to unforeseen challenges. My family lost two brothers in the aftermath of our company’s collapse—a toll that still haunts us today. Unfortunately, other owners in Bangladesh are now facing similar struggles, without the policy support to navigate their difficult situations.

The Importance of an Exit Policy

The absence of a structured exit policy in the RMG sector is a critical flaw that needs to be addressed. An exit policy would provide a clear framework for companies facing crises, allowing them to close down operations in an orderly manner. This includes ensuring fair treatment of workers, settling financial obligations, and providing owners with a pathway to mitigate losses. Without it, businesses are left to struggle, often leading to devastating financial and emotional consequences. For my family, the weight of these pressures took the lives of two of my brothers and left lasting scars that still affect us today.

A Call for Urgent Reforms

The RMG sector needs urgent reforms to address these challenges head-on. The government and policymakers must act quickly to introduce an exit policy that protects businesses from collapse while ensuring workers’ rights are upheld. This policy could provide the stability needed to prevent further unrest and allow the industry to recover.

Business owners cannot continue bearing the weight of unbearable loans and operational pressures without support. If the situation does not improve, more owners will face closure, affecting the livelihoods of millions of workers and the broader economy. It is essential that both investors and workers are protected through better financial safeguards and a more structured business environment.

To the Next Generation

This is also a message to the younger generation and industry experts. You are the most dynamic and talented professionals the RMG industry has ever seen. While I may not have all the answers or knowledge to guide you, I hope my experiences and thoughts can offer some insight. The future of the RMG sector is in your hands, and I believe you have the strength to lead it towards a brighter future.

I apologize if my words hurt anyone’s feelings, but I felt compelled to share my perspective. I am just a small boat in a vast ocean, sharing my thoughts. May Allah (SWT) bless us all and save this industry. Together, we can build a more resilient, stable, and fair future for Bangladesh’s RMG sector.

Md Salauddin
Director, Reaz Garments Ltd.
Advisor, Garments and Textile Merchandiser Blog

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Professional Icon: Engr. Tarun Kumar Mistry, Director of Operations, Chaity Group https://textilefocus.com/professional-icon-engr-tarun-kumar-mistry-director-of-operation-chaity-group/ Tue, 17 Sep 2024 05:33:43 +0000 https://textilefocus.com/?p=43167 The Ready-Made Garment (RMG) sector stands as the largest contributor to Bangladesh’s export earnings. This thriving industry is being driven by dynamic leaders who are shaping its future. Among them is Engr. Tarun Kumar Mistry, a highly regarded B.Sc. Engineer in Textile Technology and the Director of Operations at Chaity Group, who has played an […]

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Engr. Tarun Kumar Mistry
Figure: Engr. Tarun Kumar Mistry, Director of Operations, Chaity Group

The Ready-Made Garment (RMG) sector stands as the largest contributor to Bangladesh’s export earnings. This thriving industry is being driven by dynamic leaders who are shaping its future. Among them is Engr. Tarun Kumar Mistry, a highly regarded B.Sc. Engineer in Textile Technology and the Director of Operations at Chaity Group, who has played an instrumental role in the continued success of the company.

Here is a glimpse into his professional journey.

Textile Focus: Could you please share your professional journey and experience in the textile sector?

Indeed, I’d be happy to share my professional journey and experience in the textile sector. I began my career after graduating from the University of Dhaka with a degree in Textile Technology in 2006. Overcoming significant financial hardships during my education taught me resilience and determination, which have been instrumental throughout my professional life.

My first role was with Mondol Group, one of Bangladesh’s leading export-oriented companies. I started as a Production Engineer, gaining hands-on experience in the production processes. Over time, I took on increasing responsibilities, leading departments such as Production planning, Quality Control, Fabric Development, Knitting, Dyeing, Marketing and Merchandising, Ready-Made Garments (RMG), and Operations.

One of the most notable projects I led was the transformation of Cotton Field (BD) Ltd. Initially, the factory operated in a rented building and faced challenges due to compliance constraints. We were compelled to relocate to a newly purchased 5-acre piece of land, which had only one building under construction and lacked a proper production layout.

Faced with financial constraints and structural challenges, I spearheaded a complete redesign of the factory layout, focusing on sustainability and LEED certification. This involved demolishing and reconstructing layouts, I oversaw the demolition of inefficient structures and planned new layouts that optimized production flow.

Implementing Sustainable Practices: We integrated green initiatives to create an environmentally friendly workplace, transforming the factory into a green oasis.

Managing Financial Constraints: We overcame financial hurdles by optimizing resources and prioritizing critical investments without compromising on quality or efficiency.

Under my leadership, Cotton Field (BD) Ltd. evolved from a struggling operation into one of Mondol Group’s flagship factories, employing over 3,000 workers. This transformation boosted productivity and improved employee morale by providing a refreshing and sustainable work environment.

Throughout my 17-year tenure at Mondol Group, I have consistently sought challenges and opportunities to innovate.

Chaity Group Meeting

I am passionate about:

Lean and Kaizen Management: Implementing continuous improvement methodologies to enhance efficiency.

People Management: Delegating effectively and fostering a collaborative team environment.

Learning and Development: I pursued additional qualifications, such as the Certified Supply Chain Manager (CSCM) from ISCEA, Ohio, USA, and conducted training programs for employees to share knowledge and best practices.

As of August 2024, I embraced a new challenge as the Director of Operations at Chaity Group. In this role, I am eager to leverage my extensive experience to drive success and innovation within the organization.

My journey in the textile sector has been one of growth, resilience, and a constant quest for excellence. Starting from humble beginnings, I’ve navigated numerous challenges, which have shaped me into a leader who is focused on operational success and empowering others to achieve their potential.

I’m excited about the future and the opportunity to contribute further to the textile industry through my professional endeavors and by mentoring mid-career professionals to become the next generation of legendary leaders.

Textile Focus: Knitwear is a self-sufficient sector in all respects; currently the sector is supplying 90% of the knit fabric requirements, How do you evaluate this?

Engr. Tarun Kumar Mistry: Bangladesh’s achievement in making the knitwear sector self-sufficient, supplying 90% of its knit fabric requirements, is a significant milestone with profound implications for the country’s economy and the global textile industry. Here’s how I evaluate this accomplishment:

1.  Strengthening the Economy

Boosting Export Earnings: The knitwear sector is one of the most significant contributors to Bangladesh’s export earnings. Self-sufficiency reduces dependency on imported raw materials, improving trade balances and increasing net export revenues.

Job Creation: The industry’s growth generates employment opportunities for millions, particularly empowering women and alleviating poverty.

Value Addition: Producing fabrics domestically adds more value within the country, enhancing GDP and fostering economic development.

2.  Enhancing Competitive Advantage

Reduced Lead Times: Local sourcing of fabrics accelerates the production process, enabling quicker turnaround times and responsiveness to global market demands.

Cost Efficiency: Eliminating the need to import fabrics reduces costs associated with tariffs, shipping, and currency exchange fluctuations, making Bangladesh’s knitwear more price-competitive.

Quality Control: Domestic production allows for better oversight of quality standards, ensuring that products meet international requirements.

3.  Supply Chain Resilience

Mitigating Global Risks: By being self-sufficient, the industry is less vulnerable to international supply chain disruptions, such as those caused by geopolitical tensions or global pandemics.

Sustainable Practices: Local control over production processes offers opportunities to implement environmentally friendly practices and sustainability initiatives.

4.  Encouraging Innovation and Skill Development

Technological Advancement: The sector’s growth incentivizes investment in advanced machinery and technology, fostering innovation.

Skill Enhancement: A thriving industry encourages the development of a skilled workforce, providing training and educational opportunities that uplift the community.

Challenges and Considerations

While the self-sufficiency of the knitwear sector brings numerous benefits, it’s essential to be mindful of potential challenges:

Sustainability Concerns: The environmental impact of large-scale textile production must be managed through sustainable practices, waste reduction, and responsible resource management.

Global Competition: Other emerging economies are also advancing in textile production. Continuous improvement and innovation are necessary to maintain a competitive edge.

Market Diversification: Relying heavily on a single sector or limited markets can be risky. Diversifying products and exploring new markets can mitigate this risk.

Infrastructure Development: Ongoing investment in infrastructure, such as energy supply and transportation networks, is crucial to support the industry’s growth.

Compliance and Ethical Standards: Adhering to international labor laws and ethical standards is imperative to maintain relationships with global buyers and protect the industry’s reputation.

Conclusion:

Overall, the self-sufficiency of the knitwear sector is a significant asset for Bangladesh. It boosts the economy and enhances the country’s reputation as a reliable and competitive source of high-quality knitwear products. By proactively addressing challenges and investing strategically, Bangladesh can continue strengthening its position in the global textile industry.

Textile Focus: What are the Challenges you are facing in the Knitwear Production?

Engr. Tarun Kumar Mistry: As someone deeply involved in the knitwear industry, I’ve encountered several challenges that require constant attention and innovative solutions. Here are some of the key challenges I face:

1.  Fluctuating Raw Material Prices

The prices of raw materials like cotton and synthetic fibers are highly volatile due to global market fluctuations, weather conditions affecting crop yields, and geopolitical tensions. This volatility affects production costs and makes maintaining stable pricing for clients challenging.

2.  Maintaining Quality Standards

Ensuring consistent quality across large-scale production is a significant challenge. Variations in yarn quality, dyeing inconsistencies, and machinery calibration can lead to defects. Meeting international quality standards requires rigorous quality control processes and continual technological investment.

3.  Skilled Labor Shortage

While the knitwear sector employs a large workforce, there’s a shortage of skilled technicians and machine operators proficient in modern knitting technologies. Training and retaining qualified workers is an ongoing challenge, especially with the rapid advancements in machinery.

4.  Technological Advancements

Keeping up with the latest knitting machinery and software demands substantial capital investment. Integrating automation and digital technologies is essential for efficiency but can be challenging due to costs and the need for specialized knowledge.

5.  Compliance and Sustainability Requirements

International buyers increasingly demand compliance with strict labor laws, environmental regulations, and sustainability standards. Adhering to certifications like LEED, OEKO-TEX, and others requires significant resources and organizational changes to processes and culture.

6.  Supply Chain Disruptions

Global events such as pandemics, political unrest, or natural disasters can disrupt the supply chain. Delays in receiving raw materials or exporting finished goods affect production schedules and client relationships.

7.  Energy Costs and Power Reliability

High energy costs and inconsistent power supply are substantial obstacles. Investing in alternative energy sources or backup systems like generators increases operational costs but is often necessary to maintain uninterrupted production.

8.  Customization and Short Lead Times

The rise of fast fashion has increased demand for customized products with shorter lead times. Adjusting production processes to accommodate smaller, varied orders without sacrificing efficiency is challenging.

9.  Environmental Concerns

Managing environmental impacts such as wastewater treatment, chemical use, and carbon emissions is critical. Implementing eco-friendly practices requires investment in new technologies and processes and ongoing monitoring and compliance efforts.

10.  Global Competition

Competing with other countries offering lower production costs means continually improving efficiency, innovating product offerings, and providing superior service to retain and attract clients.

11.  Financial Constraints

Accessing financing for capital expenditures like machinery upgrades or facility expansions can be difficult. Interest rates, credit availability, and economic conditions influence our ability to invest in growth.

12.  Infrastructure Limitations

In some areas, inadequate transportation infrastructure leads to delays and increased logistics costs. This affects the timely delivery of raw materials and shipment of finished products.

13.  Adapting to Technological Disruption

The industry is experiencing rapid technological changes, such as 3D knitting and automated design systems. Adapting to these technologies requires investment and a shift in traditional manufacturing mindsets.

14.  Regulatory Changes

Changes in trade policies, tariffs, and international agreements can affect export markets and cost structures. Staying abreast of these changes and adapting accordingly is essential but challenging.

15.  Cultural and Language Barriers

Working with international clients involves navigating cultural differences and language barriers. Misunderstandings can lead to errors in production specifications or contractual agreements.

Conclusion

The knitwear production industry is dynamic and filled with challenges, but it’s also ripe with opportunities for those willing to adapt and innovate. By addressing these challenges head-on with strategic planning, investment in people and technology, and a commitment to sustainability, I aim to overcome obstacles and contribute positively to the industry’s growth. The journey isn’t easy, but my experiences have taught me that resilience, continuous learning, and a proactive mindset are crucial to navigating the complexities of knitwear production. I’m dedicated to transforming these challenges into stepping stones toward tremendous success and making a meaningful impact in the textile sector.

Textile Focus: Most textile students focus on merchandise, Could you plz share us the career opportunities in the Knitwear Sector?

“The future belongs to those who believe in the beauty of their dreams.” — Eleanor Roosevelt

Introduction

Engr. Tarun Kumar Mistry: As a textile student, I noticed a common trend: most of my peers gravitated toward merchandising. It seemed like the default path, the well-trodden road everyone assumed led to success. However, the textile industry, especially the knitwear sector, has a vast ocean of opportunities to explore. Let me share with you the myriad career paths in the knitwear sector that go beyond merchandising, both challenging and rewarding.

Textile Focus: Why Look Beyond Merchandising?

Engr. Tarun Kumar Mistry: Merchandising is essential to the textile industry, but focusing solely on it can limit your potential. The knitwear sector offers diverse roles that allow you to innovate, lead, and make a significant impact.

Exploring Career Opportunities in the Knitwear Sector

The knitwear industry is rich with diverse career opportunities that go beyond the commonly known roles. If you’re considering a career in this sector, here are some paths you might explore:

1. Product Development and Design:

Becoming a product developer or designer could be an exciting option if you have a flair for creativity and an eye for fashion. In this role, you blend artistic talent with technical knowledge to create new knitwear products. You’ll design knit patterns and garments, select suitable yarns and materials, and collaborate with fashion designers and trend analysts to stay ahead of market trends. Imagine crafting a sustainable knitwear line that becomes a fashion sensation and promotes eco-friendly practices.

2.  Technical Knitting Specialist

For technically inclined people, the role of a technical knitting specialist might be appealing. This position focuses on the machinery and processes involved in knitwear production. You’ll be operating and maintaining knitting machines, troubleshooting technical issues, and implementing new technologies to improve efficiency. With

mechanical aptitude, attention to detail, and strong problem-solving abilities, you’ll ensure that the production process runs smoothly and efficiently.

3. Quality Control and Assurance

Ensuring that knitwear products meet high-quality standards before they reach consumers is crucial. In a quality control and assurance role, you’ll inspect products for defects, implement quality control procedures, and work closely with production teams to enhance quality. A keen eye for detail, knowledge of quality standards, and analytical skills are essential. For instance, by catching minor defects early, you can save the company from potential setbacks and maintain its reputation for excellence.

4. Production Management

If leadership and organization are your strengths, a role in production management might suit you. You’ll oversee the entire production process, ensuring efficiency and timely delivery of products. This involves planning and scheduling production, managing teams and resources, and coordinating with other departments. Your ability to lead, communicate effectively, and understand production processes will keep operations running smoothly.

5. Sustainability and Compliance Officer

With the increasing global emphasis on environmental responsibility, the role of a sustainability and compliance officer is more important than ever. You’ll focus on implementing eco-friendly processes, ensuring compliance with environmental and ethical regulations, and educating teams about sustainability practices. A passion for the environment, knowledge of relevant rules, and the ability to influence and inform others are vital. Leading green initiatives, you help reduce waste and promote ethical practices within the company.

6. Research and Development (R&D)

If innovation excites you, a career in research and development might be the perfect fit. You’ll work on creating new materials, techniques, and technologies in knitwear. This could involve experimenting with new fibers, developing advanced knitting technologies, and collaborating with academic institutions. Scientific and technical knowledge, creativity, and analytical thinking are crucial. For example, developing a new moisture-wicking fabric could revolutionize athletic wear and set new industry standards.

6. Supply Chain and Logistics Management

Managing the flow of goods from raw materials to finished products is essential in the knitwear industry. In supply chain and logistics management, you’ll coordinate with suppliers and distributors, optimize logistics and inventory management, and ensure timely delivery of products. Strategic planning, problem-solving skills, and knowledge of logistics software are essential to excel in this role.

6. Marketing and Brand Management

Marketing and brand management offer exciting opportunities for those with a creative and strategic mindset. You’ll promote knitwear products and build the brand’s identity. This includes developing marketing strategies, engaging with customers through various channels, and analyzing market trends to stay competitive. Strong communication skills, creativity, and an understanding of consumer behavior are essential.

. Entrepreneurship

If you’re ambitious and willing to take risks, starting your knitwear line or business could be fulfilling. As an entrepreneur, you’ll identify market gaps, develop business plans, and manage all aspects of the business. This role requires passion, resilience, business acumen, and a willingness to embrace challenges. Your innovative ideas could lead to the next big brand in knitwear.

Conclusion

The knitwear sector is more than just an industry; it’s a canvas for innovation, creativity, and impact. Don’t limit yourself to the paths most traveled. Explore the vast opportunities that await you in knitwear. Remember, your career is your journey. Make it one that excites and fulfills you. Your potential is limitless. The knitwear sector has opportunities for those willing to step outside their comfort zone. Embrace the challenges, seize the opportunities, and you might find a career that’s not only successful but also profoundly satisfying.

“The only way to do great work is to love what you do.” — Steve Jobs

Leap and weave your own success story in the knitwear industry!

Textile Focus: As an industry, expert, how will you contribute more to the Textile Sector?

“The best way to predict the future is to create it.” — Peter Drucker.

Engr. Tarun Kumar Mistry: Rising from humble beginnings to the CEO position in the textile industry has been a journey filled with challenges and lessons. This path has ignited a deep commitment to give back to the sector that has shaped my life. My experiences have fueled a passion for innovation, sustainability, and empowerment, and I am determined to impact several vital areas significantly.

1. Mentoring the Next Generation

I have observed a noticeable gap between academic learning and the practical requirements of the industry. Many young professionals lack the guidance needed to navigate their careers effectively. Remembering my struggles, I understand the profound impact a mentor can have. To bridge this gap, I plan to conduct workshops and seminars connecting theoretical knowledge with real-world applications. Additionally, offering one-on-one mentoring will help aspiring professionals unlock their potential and confidently grow.

2. Promoting Sustainable Practices

The textile industry often faces scrutiny over its environmental footprint and the excessive consumption of resources like water and energy. At Cotton Field (BD) Ltd., we transformed barren land into a LEED-certified green factory, setting new standards for sustainability. By integrating eco- friendly processes and energy-efficient machinery, we demonstrated that environmental responsibility and industrial growth can go hand in hand. I am committed to educating industry peers and employees about sustainable practices to foster a culture of environmental stewardship.

3. Driving Technological Innovation

Keeping pace with rapid technological advancements can be daunting, and there is sometimes hesitancy in adopting modern methods. However, embracing innovation is not just a choice; it’s a necessity for growth. I plan to invest in research and development to create innovative materials and techniques. By adopting automation and digital tools, we can enhance efficiency and set new benchmarks in productivity. When a colleague once asked, “Is adopting new technology worth the risk?” I responded, “Embracing innovation is essential for our progress.”

4. Enhancing Global Competitiveness

The industry faces intense global competition and an over-reliance on traditional markets. To stand out internationally, focusing on producing superior quality products is vital. Exploring new markets and expanding our international footprint will diversify our reach and reduce dependency on a limited customer base. My mantra is simple: innovate to compete, lead, and succeed.

5. Strengthening Industry Collaboration

Fragmented efforts and limited sharing of best practices hinder the industry’s collective growth. We can foster collaboration and knowledge exchange by organizing industry forums and encouraging partnerships. Joint ventures can help tackle common challenges more effectively. As Helen Keller wisely said, “Alone we can do so little; together we can do so much.”

6. Fostering Ethical Practices

Concerns over worker rights, safety, and the pressures of meeting stringent international standards are prevalent. Promoting fair labor practices and ensuring compliance with global standards are ethical obligations and pathways to enhanced productivity and morale. Implementing employee welfare programs demonstrates a commitment to our workforce. By prioritizing worker safety and satisfaction, we comply with regulations and create a more dedicated and efficient team.

7. Supporting Education and Community Development

Many talented individuals lack access to quality education, and rural areas often face infrastructural deficits. Having faced educational hardships, I am passionate about making education accessible to all. Providing scholarships and grants to students pursuing textile education can open doors for the next generation of innovators. Investing in infrastructure and educational facilities in underdeveloped areas will uplift communities and nurture future talent.

8. Encouraging Diversity and Inclusion

Limited opportunities for women and minorities, along with cultural biases, hinder diversity within the industry. We can build a more dynamic and innovative workforce by ensuring equal opportunities for all candidates through inclusive hiring practices. Promoting the importance of diversity within the industry is essential. When someone asked me, “Do you think diversity makes a difference?” I affirmed, “Diversity isn’t just fair; it’s a strength that drives innovation and growth.”

9. Sharing Knowledge through “The CEO Leap”

Professionals often lack accessible resources and guidance on career advancement. Overcoming self-doubt and fear of failure can be significant hurdles. To address this, I am writing a book named “The CEO Leap,” a blueprint for aspiring leaders to achieve executive excellence. Hosting workshops and seminars will delve deeper into the book’s concepts, helping others learn to lead, inspire, and transform.

Engr. Tarun Kumar Mistry

B. Sc Engineer in Textile Technology

Director of Operation, Chaity Group

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Swift action is required to protect the industry https://textilefocus.com/swift-action-is-required-to-protect-the-industry/ Thu, 12 Sep 2024 04:24:15 +0000 https://textilefocus.com/?p=43108 Author: Maheer Mannan, DMD of Shangu Tex Limited The Ashulia industrial zone near Dhaka, one of Bangladesh’s largest garment manufacturing hubs, is currently facing unrest due to protests that have led to temporary factory closures. Although framed as worker-led demonstrations for wage increases, there are strong indications that the unrest is politically motivated. Reports suggest […]

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Author: Maheer Mannan, DMD of Shangu Tex Limited

The Ashulia industrial zone near Dhaka, one of Bangladesh’s largest garment manufacturing hubs, is currently facing unrest due to protests that have led to temporary factory closures. Although framed as worker-led demonstrations for wage increases, there are strong indications that the unrest is politically motivated. Reports suggest that groups aligned with the recently ousted Awami League are instigating the protests, using worker dissatisfaction to fuel disruption and instability in the wake of the power shift in Bangladesh.

Garments Floor

Unreasonable Demands and Factory Closures-

At the heart of the protests are demands for wage hikes and benefits, which industry leaders argue are both illogical and unsustainable. While wages have recently been raised, and working conditions have significantly improved, the alleged workers are now pushing for additional benefits like increased attendance and holiday bonuses—demands that many see as economically unrealistic given the global pressures on the industry.

As tensions escalated, many factories invoked Section 13(1) of the Bangladesh Labour Act, enforcing a “No Work, No Pay” policy to manage the situation. This has resulted in temporary shutdowns, which risk damaging the country’s reputation as a reliable supplier in the global apparel market.

Competitors Eyeing the Opportunity-

Amid this instability, neighboring countries such as India, Vietnam, and Cambodia are positioning themselves to take advantage of Bangladesh’s disruptions. As key players in the global apparel market, they stand ready to capture any potential shifts in international orders, making the unrest a pressing issue for Bangladesh’s economic future.

Urgent Need for Dialogue-

Constructive discussions are essential to resolving the unrest and maintaining Bangladesh’s competitive edge in the global market. While workers’ concerns must be addressed, these demands need to be weighed against the economic sustainability of the sector, especially given the recent wage increases and improved conditions. The focus should remain on balancing worker needs with industry viability and addressing the political motives behind the protests to prevent further instability.

In conclusion, the unrest in Ashulia threatens not only the garment sector but the entire economy. Swift action is required to protect the industry from both internal disruption and external competition, ensuring Bangladesh remains a key player in the global market.

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