RMG Exports to EU Drop by 2.47%

Bangladesh's ready-made garment (RMG) exports to the European Union (EU) recorded a 2.47% year-on-year decline in the first nine months of 2024, fetching €13.43 billion compared to €13.77 billion during the same period last year, according to Eurostat. This dip aligns with the EU's overall apparel import decline of 2.48% to €62.86 billion, driven by the global economic slowdown.

Amid a severe liquidity crunch, Beximco Group has halted operations at Shinepukur Ceramics, marking its 24th closed venture. Since August 2024, the conglomerate has been unable to open letters of credit (LCs) for raw material imports, leading to the shutdown of 23 ready-made garment and textile factories at its Gazipur industrial park.

Square Textiles posted a profit after tax of Tk 37.44 crore in the July–September quarter of the 2024-25 financial year, reflecting a 5% year-on-year increase. This rise is attributed to increased yarn production at its new factory in Habiganj and ongoing Balancing, Modernization, Rehabilitation, and Expansion (BMRE) efforts at its Gazipur facility.

Despite political turmoil, economic uncertainties, and worker unrest, listed textile companies demonstrated resilience, with several reporting notable revenue growth for the July-September quarter of FY 2024-25. Envoy Textiles Limited posted a 134% net profit increase, reaching Tk25.33 crore from Tk10.83 crore a year earlier, driven by strong orders and operational efficiency.

Bangladesh's leather footwear exports reached $228.47 million during the July-October 2024 period, marking a five-year high and a 9% increase from $182.11 million in the same period of 2023, according to the Export Promotion Bureau. This growth is attributed to competitive labor costs and orders shifting from China due to its rising production costs.

A recent study has revealed that around 60% of workers in Bangladesh's textile and ready-made garment (RMG) industry could lose their jobs by 2041 due to automation, with up to 0.5 million jobs at risk at the operator level. Positions such as floor supervisors, pattern makers, quality control, and production planning roles, along with high-skilled jobs like fashion designers and production controllers, may also disappear.