Study Reveals More Than 60% Skills Gap in BD’s RMG Sector

A major export fraud involving Loopdot Fashion Limited in Mymensingh, Bangladesh, has been exposed, with 225 consignments of garments falsely exported, totaling $6.8 million or 75 million taka. The fraud was revealed during the seizure of two consignments

Bangladesh's garment and textile industry, which heavily relies on European Union (EU) exports, faces potential challenges if the EU approves the Corporate Sustainability Due Diligence Directive (CSDDD).

Bangladesh has solidified its global leadership in environmentally-friendly apparel factories, as 204 factories in the country now hold LEED certification from the United States Green Building Council (USGBC). In December, "Integra Dresses Limited" in Gazipur achieved gold-level certification, bringing the total to 27 green building certifications in 2022, with 13 in the platinum category – the highest level.

Ring Shine Textiles, facing uncertainty over its ownership transfer to Wise Star Textile and five Singaporean entities, reported a record loss of Tk 1.25 billion in FY23. The cumulative losses over the past three fiscal years amount to Tk 2.91 billion.

Bangladesh's garment sector requires foreign direct investment (FDI), particularly for non-cotton and high-value-added products, according to the research director of the Centre for Policy Dialogue. The director highlighted the need for FDI to enhance the sustainability and competitiveness of the readymade garment (RMG) industry, emphasizing that Bangladesh excels in cotton clothing but lacks strength in non-cotton items.

Prices per unit for three garment items sourced from Bangladesh and purchased by buyers in the European Union (EU) and the US saw a year-on-year decline from July to September. According to data from Eurostat and OTEXA, EU buyers paid 7.37%, 11.60%, and 10.76% less for cotton T-shirts in July, August, and September, respectively.