Apparel Story

October-November 2015

Cover Story

A NEW BEGINNING

Spotlight

Remediation Financing Success Story

Safety and Sustainability Encapsulated in HABITUS

16

VICTORY DECEMBER DAY

Victory never comes without sacrifice. We earned our cherished victory by the supreme sacrifice of some valiant sons of this soil. So, on the auspicious occasion of December 16, we pay our tribute to those martyrs of 1971. We will materialize their dream by establishing a strong economy and developed Bangladesh – this is our vow.

Apparel St ry The

E DI T OR I A L The success of RMG industry has not come on a silver platter; we had to struggle for taking our garment sector to today’s height. In early 80s when our garment industry started flourishing and showing great promise of growth, the entrepreneurs who initiated RMG business in the country felt it necessary to create a common platform for garment manufacturers and exporters to work together and give the industry a strong footing and established the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in 1983. Since its inception the trade association has been working relentlessly to ensure a congenial business climate for sustainable growth of the apparel industry. BGMEA, run by a 35-member Board of Directors who are elected for a two-year term, has never been hesitant about taking any positive step for development of the sector which is moving forward despite a number of challenges ahead. This year the new Board of Directors elected for the term of 2015-2016 have taken the charge of BGMEA to protect and promote the interests of our apparel industry. The cover story sheds light on the new Board and their aims and actions to advance the sector.

There is no iota of doubt that the new BGMEA Management would leave no stone unturned for development of the RMG sector. But it is for sure challenges are there for them to achieve their goals, and The Trans-Pacific Partnership (TPP) agreement and completion of remediation in the RMG factories have emerged as serious challenges for our sector and future of the apparel industry will largely depend on how they are faced. We have included two informative articles on the issues so that our policymakers and entrepreneurs can decide what might be the possible steps to counter them.

Where Bangladesh apparel industry would be in next few years in terms of water management and sustainability can be anticipated from the interview of Bastiaan Mohrmann, Head for IFC’s Water Programs in South Asia. The Apparel Story includes another interview of Benoît-Pierre Laramée, High Commissioner of Canada which a major exporter of ‘Made in Bangladesh’ apparel, in which he shares his thoughts about our RMG industry. The compendium also accommodates other regular stories and article which we hope our readers will find worthwhile.

Editorial Board The Apparel Story

Disclaimer:

The Apparel Story is published for private circulation by Bangladesh Gament Manufacturers & Exporters Association (BGMEA). BGMEA assumes no responsibility for the correctness of items quoted in the magazine although every effort is made to give information from sources believed to be reliable.

Apparel St ry The

CONTENT

Editorial Board:

Faruque Hassan Mohammed Nasir Mahmud Hasan Khan (Babu) Miran Ali Syed Mohammed Tanvir Editorial Staff:

Nur Mohammad Amin Rasel (Content Planning) Omar Gias Nasim Uddin Magazine Team:

Mohammad Monower Hossain Nabila Jamal Rusha UF Nahid Sultana Md. Shahriar Rahman Tamanna Mahin Photographer:

Md. Obaidul Arif (Rana) Designer:

Sk. Yeahhia BGMEA Head Office:

BGMEA Complex, 23/1, Panthapath Link Road Karwan Bazar, Dhaka-1215 Tel: +88-02-55027910-21 Fax: +88-02-55027922-3 Email: info@bgmea.com Website: www.bgmea.com.bd bgmea.official bgmea bgmeainfo

03 05 07

Editorial Content Cover Story A New Beginning

15

Focus of the Month Trans-Pacific Partnership: Should Bangladesh Be Worried or Cautious?

18

Interview of the Month High Commissioner of Canada to Bangladesh

22

Spotlight Remediation Financing: A Requisite for Safe & Sustainable RMG Industry

26

Special Interview Bastiaan Mohrmann

30

Beautiful Bangladesh Feathered Splendor of Nature

32

Special Feature A Day to Be Cherished by BIFT Graduates

34

Trade Topic Strategy Required for Breaking Monopsony to Ensure Fair Price

36

Success Story Safety and Sustainability Encapsulated in Habitus

38

Behind the Brand Voyage of the Sailor

41

Column A Success Story of Tirupur Textile Cluster

44 49 55

News in Picture Bulletin Statistics

Oct-Nov 2015

THE APPAREL STORY 05

Cover Story

A NEW BEGINNING This handing over of charge took place in the 32nd Annual General Meeting at BGMEA where both the outgoing and incoming Office Bearers and Directors gathered in presence of BGMEA members. Some bid farewell from the Board while some embraced the place as their new second home.

By Nabila Jamal Rusha

"Change has a bad reputation in our society. But it isn't all bad, not by any means. In fact, change is necessary in life -- to keep us moving, to keep us growing and to keep us interested.

Imagine life without change. It would be static, boring and dull."

This is a quote by Dr. Dennis O'Grady, a Wall-street Management Consultant and a

Communication Coach. In this era of development, only change is constant and BGMEA, being the apex trade body of Bangladesh and the RMG sector, believes and acts on it. Hence on the eve of 22nd September 2015, the charge of BGMEA presided by Md. Atiqul Islam was handed over to the New Board to be presided by Md. Siddiqur Rahman.

July-August 2015 The Office Bearers of BGMEA for the term 2015-16.

THE APPAREL STORY 9

This handing over of charge took place in the 32nd Annual General Meeting at BGMEA where both the outgoing and incoming Office Bearers and Directors gathered in presence of BGMEA members. Some bid farewell from the Board while some embraced the place as their new second home. The constitution of the BGMEA Board for the term 2015-16 is as follows:

Office Bearers: 1.

2.

3.

4.

5.

6.

7.

8.

Md. Siddiqur Rahman, President Moinuddin Ahmed, First Vice President Faruque Hassan, Senior Vice President S.M. Mannan (Kochi), Vice President Mohammed Nasir, Vice President (Finance) Mahmud Hassan Khan (Babu), Vice President Ferdous Perves Bivon, Vice President Mohammed Ferdous, Vice President

Directors from Dhaka Region: 1. Md. Shahidul Haque Mukul 2. Inamul Haq Khan (Bablu) 3. Abdullah Hil Rakib 4. Md. Mahidul Islam Khan 5. Md. Kamal Uddin 6. M.A Rahim(Feroz) 7. Md. Ashikur Rahman (Tuhin) 8. Md. Monsurul Haque 9. Mizanur Rahman Chowdhury 10. Miran Ali 11. Md. Munir Hossain 12. Iqbal Hamid Quraishi (Adnan) 13. Md. Atiqul Karim Khan 14. Anwar Kamal Pasha 15. Md. Nasir Uddin 16. Md. Rezwan Selim 17. Syed Sadek Ahmed 18. Anowar Hossain (Manik) 19. Md. Sajjadur Rahman Mridha 20. Md. Mesbha Uddin Ali

Directors from Chittagong Region: 1.

2.

3.

4.

5.

6.

7.

A.M Mahbub Chow.

Salim Rahman Amzad Hossain Chowdhury Syed Mohammed Tanvir A.N.M Saifuddin Md. Shaif Ullah K. Mahabub Uddin (Jewel)

The board is not only the thing that changed this time, as that happens every two years. BGMEA consisted of two parties and after each term, one party would get elected to constitute the management of BGMEA. But this time the BGMEA management consists of people from both the parties and this has happened for the first time in BGMEA’s history.

Both the parties overcoming all their differences in their views, came together to orchestrate BGMEA as the best and biggest trade facilitator in the country, in order to take the apparel industry forward and make it more sustainable.

On 17 October the New Board of BGMEA arranged their maiden press conference.

In the conference the BGMEA President discussed various issues that the industry has been facing. Rise in the production cost in the apparel factories amid the hike in gas, electricity and transportation prices poses a big challenge for the garment sector. He mentioned that production cost at the RMG units has jumped by 10 percent in the last one year. He also said that the prices of Bangladeshi apparel items dropped by 2.45 percent in the US market during the January-July period and the Bangladeshi garment items lost value by 1.41 percent in the EU market during the January-June period according to the Office of Textiles and Apparel (OTEXA).

The appreciating value of Taka against foreign currencies along with depreciating values of competitors’ currencies isn’t also helping much.

“Moreover there is the issue of Accord and Alliance and their

remediation plans. The garment factories have to spend at least Tk 5 crore each to implement the action plans, especially for building new infrastructure and installing modern fire safety equipment” said Md. Siddiqur Rahman.

In this situation the New Board’s main agenda is to address the challenges by decreasing the production cost and increasing the competence and competitive edge of the apparel industry. So, the Board wishes for continuous support from the government in terms of addressing gas shortage for RMG industry, infrastructural improvements through deep sea ports and Dhaka-Chittagong 8-lane highways etc. The board expressed their gratitude to the government for the initiation of work in the construction of Garment Industrial Park and requested to set up more industrial zones both in Dhaka and Chittagong.

While requesting for support, BGMEA also promised to work in the development of sustainable RMG industry. They expressed their strong determination in ensuring workplace safety. In the press conference the BGMEA President sought the support of all stakeholders, both national and international, to take the RMG industry forward. He hoped that everyone would be beside them in good and bad so that overcoming all the challenges they could make the industry sustainable and achieve the vision of $50 billion in 2021 on the occasion of the 50th anniversary of Bangladesh.

The BGMEA President is seen addressing the media in the maiden press conference of the New Board. The new Office Bearers and Directors, and former Presidents of BGMEA were also present on the occasion.

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THE APPAREL STORY

Oct-Nov 2015

SHORT PROFILES OF THE NEW OFFICE BEARERS OF BGMEA

Md. Siddiqur Rahman President

Md. Siddiqur Rahman was born to a respected family in Borguna on 1st July 1955. His father Late Abdul Hamid Howlader was a revered personality among the people of Borguna. After completing his higher education Mr. Siddiqur Rahman engaged himself with business. He started his business journey with Sterling Garments Ltd. Gradually he expanded his business by establishing Sterling Apparels Ltd, Unicorn Sweaters Ltd, Sterling Denims Ltd, Sterling Creations Ltd, Sterling Laundry Ltd, Bando Design Ltd and Laila Styles Ltd under a business

Md. Moinuddin Ahmed (Mintu) First Vice President

Starting his journey as an entrepreneur 30 years back Md. Moinuddin Ahmed (Mintu) is now a prominent business personality in the RMG sector. He entered the apparel industry after completion of his

empire named ‘Sterling Group’ which has earned name and fame both at home and abroad. Since inception he has been leading the Group as its Chairman. The Group is enormously contributing to the economic growth of the country.

Mr. Siddiqur Rahman believes that the initiative of commerce and industry should not only be based on profit; rather he considers it as the best way for resolving unemployment problem.

He also believes that if private entrepreneurs do not come forward to expedite industrialization, the country would lag behind and the rate of unemployment people would increase.

From this realization Mr. Siddiqur Rahman has worked hard to expand the Sterling Group creating employment for thousands of people.

Not only that; he also got himself involved in the RMG sector as a front-line leader and has been playing a significant role in advancing the industry. When MFA-quota phased out many thought that it would hit the RMG sector hard. But Mr. Siddiqur Rahman along with his fellow entrepreneurs faced the challenge with strong determination. Therefore the RMG industry witnessed phenomenal growth after post MFA era.

Currently Mr. Siddiqur Rahman is

leading the RMG industry as the President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Before becoming the President, he served the BGMEA as the Vice President (Finance) and the Second Vice President for the terms of 2010-2011 and 2012-2013 respectively.

Alongside garment business Mr. Siddiqur Rahman is also involved in fishing, restaurant and stock exchange broker house businesses. Apart from a businessman, he is an active social worker.

Currently he is the Vice President of ‘SAAM’, an anti-drug association. He is the member of the leading social clubs like Dhaka Club Ltd, Uttara Club Ltd, Army Golf Club Ltd, All Community Club Ltd, Bangladesh Club Ltd, Dhaka Boat Club Ltd, Apparel Club Ltd and Banani Club Ltd. He is also member of Mohammedan Sporting Club Ltd and Sheikh Jamal Dhanmondi Club Ltd. Mr. Siddiqur Rahman has been contributing significantly to the education sector. He has extended his support and cooperation in many educational institutions in the form of contribution and scholarships. He is a Found Member of the Board of Trustees of BGMEA University of Fashion and Technology (BUFT).

M.Com. and gradually expanded his business by setting up M.N. Knitwears Ltd, M. M. Brothers Wears Ltd, M.N. Clothing Ltd, and Limex Washing Ltd that converged into M.N. Group. Currently, he is leading the Group as its Managing Director.

Apart from a successful entrepreneur, Mr. Moinuddin Ahmed is a business leader. He was elected Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for the term of 2001-2003. He was also elected First Vice President of the trade association for the term of 2005-2006. Currently he has been serving BGMEA as First Vice President and working to promote and protect the interests of the RMG industry at home and abroad.

Md. Moinuddin Ahmed is also associated with other trade organizations. He is Vice Chairperson of International Business Forum of Bangladesh (IBFB), a Member of

Bangladesh –Malaysia Chamber Of Commerce & Industry (BMCCI), and former Director of Chittagong Chamber Of Commerce & Industry (CCCI).

Mr. Moinuddin is an active social worker and involved with different organizations. He is a Life Member of Chittagong Leukemia Assistance and Support Services (CLASS), Roghi Kallyan Shammity, Chittagong Medical College Hospital, and Director of Maa Moni Hospital, Chittagong.

He is Executive Committee Member of Alhaj Yeakub Ali Kindergarten Girls’ School, High School and College, and Eidgah Govt.

Primary School, Rampur, Chittagong.

Md. Moinuddin Ahmed Mintu is also a Member of Bhatiary Golf & Country Club, Chittagong Seniors Club, Chittagong Boat Club, and Life Member of Chittagong Press Club. He is a former Vice Chairman of Chittagong Club Ltd.

Oct-Nov 2015

THE APPAREL STORY 9

SHORT PROFILES OF THE NEW OFFICE BEARERS OF BGMEA

Faruque Hassan

Senior Vice President

Faruque Hassan, Managing Director of Giant Group, started his career after completing his Masters of Commerce (M. Com) from the Department of Management, University of Dhaka.

Prior to that Mr. Hassan completed his Secondary School Certificate (SSC) and Higher Secondary Certificate (HSC) from country’s two leading educational institutions Residential Model School, Dhaka and Dhaka College.

He has been working hard with dignity and perseverance to contribute in the development of Textile and Readymade Garments sector and Bangladesh at large in many capacities.

Mr. Hassan served Bangladesh Garment Manufacturers and Exporters Association (BGMEA) as elected Director for two consecutive tenures 2001 – 2002 and 2003 – 2004, and served as elected Vice President

S.M. Mannan (Kochi) Vice President

10 THE APPAREL STORY

Oct-Nov 2015

for consecutive terms from 2009-2010 and 2011-2012. Mr. Hassan has also served as the Senior Vice President of Dutch Bangla Chamber of Commerce (DBCCI) and Vice President of France-Bangladesh Chamber of Commerce & Industry (CCIFB).

Mr. Hassan is associated with many other national and multinational trade bodies. He is a Member of Bangladesh German Chamber of Commerce & Industry (BGCCI), Bangladesh Textiles Mills Association (BTMA), Swiss-Bangla Chamber of Commerce and Industry (SBCCI), Dhaka Chamber of Commerce and Industry (DCCI), Metropolitan Chamber of Commerce and Industry (MCCI) and Gazipur Chamber of Commerce & Industry (GCCI).

He is a Life Member of Dhaka Club Ltd, Gulshan Club Ltd and also a Permanent Member of Kurmitola Golf Club (KGC) and All Community Club Ltd (ACCL). He is also a Member of Gulshan Society and Gulshan Joggers Society.

He is a Founder Member of Board of Trustees of Bangladesh University of Fashion and Technology (BUFT) and also a Director in the Board of Centre of Excellence for Bangladesh Apparel Industry (CEBAI).

He is very active in sports. He played First Division Cricket for Lalmatia Sporting Club and First Division Hockey for Mohammadan Sporting Club Ltd. Mr. Hassan is an Executive Committee Member of Mohammadan Sporting Club Ltd. Mr. Hassan is actively associated with

numerous social activities as part of CSR. He is a Member of Shafiuddin Ahmed Foundation and Manobik Shahajjo Songsta (MSS).

Mr. Hassan is also actively involved in the agro sector of Bangladesh. He is the Director of Giant Agro Processing Limited -- an agro based company involved in the production, processing, preservation, storage and marketing of seeds.

He is the Co-Chair of the Steering Committee of PaCT (Partnership for Cleaner Production) project jointly implemented by International Finance Corporation (IFC), BGMEA, Solidaridad and funded by Embassy of Kingdom of Netherlands along with some global buyers like H&M, C&A, Inditex etc. Mr. Hassan has also been closely collaborating with ZDHC (Zero Discharge of Hazardous Chemical), an initiative of brands to eliminating all the hazardous chemicals from the textile and apparel supply chain. He is also closely involved with the Detox program of LIDL and Water saving Technology green project.

As a Senior Vice-President of BGMEA he is the Coordinator of the initiative named “TREES” (Toward Resource Efficiency and Environmental Sustainability) of BGMEA. Mr. Hassan is also in close collaboration with IIP (Institute of Industrial Productivity) and playing a catalytic role to share and promote best practice in the area of energy efficiency and waste water treatment with India as part of the South-south Cooperation.

Mr. S.M. Mannan (Kochi) is a well-known personality in the RMG sector both as a dynamic entrepreneur and a business leader.

After completing his higher education, he started his career as a RMG entrepreneur with a venture named Seha Design (BD) Ltd. and he leads the company as its Managing Director.

His desire to do more for the betterment of the RMG industry in Bangladesh has led Mr. S.M. Mannan to get deeply involved in the sector as a business leader. He served Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for three consecutive terms as its Vice

President (Finance) and Second Vice for the terms of 2011-12 and 2013-14. Currently he is the Vice President of BGMEA. He represented the RMG sector at different forums at home and abroad where he spoke for the industry. He is still making sincere efforts to promote and uphold the interests of Bangladesh’s apparel sector.

Mr. S.M. Mannan (Kochi) is also deeply involved in social welfare activities and a patron of education.

He has a significant contribution to the inception of BGMEA University of Fashion and Technology (BUFT). He is the Vice Chairman (Admin) of the Board of Trustees, BUFT.

SHORT PROFILES OF THE NEW OFFICE BEARERS OF BGMEA

Mohammed Nasir

Vice President (Finance) Brought up in a respected family with a business background Mr. Mohammed Nasir from his early life developed an intense desire to pursue his career in business. After his graduation from the University of Chittagong he started looking after his family business. Later he entered the garment industry as an entrepreneur in 1993. Now he is the Managing Director of Evergreen Sweaters Ltd. Mohammed Nasir is known not only

Mahmud Hasan Khan (Babu) Vice President

Mr. Mahmud Hasan Khan (Babu) is a leading business personality in Bangladesh who entered business to pursue his dream of creating more employment and expediting the wheel of economy for poverty eradication and social development. Hence after completion of his B.S.S. and M.S.S from the University of Dhaka, he started his own business on small scale in 1990 to realize his dream with

as a dynamic entrepreneur but also as a business leader. From his student life he was a good organizer and associated with different social organizations that contributed to development of his leadership qualities. Side by side his business Mr. Nasir became deeply involved in the RMG sector as a business leader.

Currently he has been serving the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) as the Vice President (Finance) for the term of 2015-2016. Before becoming the Vice President (Finance), he served the trade association as the Director twice for the term of 2009-2010 & 2013-2014. He was also the Chairman of the Standing Committee on Earn, Learn and Skills Training; the Standing Committee on International Finance and World Bank Matching Grant; & the Standing Committee on Trade Fair. During his tenure in the office of BGMEA he has worked hard to promote and protect the interests of RMG industry of Bangladesh and had significant contribution to the development of the sector.

Mr. Nasir is also associated with other

trade bodies. He is the Member of Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI), and Shippers Council of Bangladesh (SCB).

Mohammed Nasir is involved in different social activities. He is the former Secretary General of Chattagram Forum, Uttara, Dhaka, and Patiya Samity Dhaka; and also the former Joint Secretary of Chittagong Samity-Dhaka. He is a Member of Uttara Club Ltd., Permanent Member of Army Golf Club, All Community Club Ltd. and Bangladesh Club Ltd. Mr. Nasir is the Member of Board of Trustees of BGMEA University of Fashion & Technology (BUFT). He is appointed by the government as a Board Member of Chittagong Wasa.

a tiny printing & packaging Industry.

After years of hard work Mr. Mahmud Hasan built a business empire named Rising Group which has more than a dozen units, including Spinning, Composite textile, Jute Mills & of course apparel industry namely Rising Fashions Ltd., Rising Apparels Ltd., Arunima Apparels Ltd., Sabarang Fashions Ltd., Rising Spinning Mills Ltd., Rising Knit Textiles Ltd., Active Composite Mills Ltd., Rising Industries Ltd., Rising Fashion Accessories Ltd., Popular Packages & Accessories Ltd., Mahmuda Attires Ltd., Rising Sourcing Service, and Aninda Printers Ltd. and Golden Jute Industries Ltd, Pride Jute Mills Ltd. He is Managing Director of the Rising Group which has created job opportunities for more than 7,000 people and contributes to the national economy with annual turnover of around US$120 million from exports.

Mr. Mahmud Hasan is also well known as a business leader who for the last 18 years has been involved with different activities and initiatives of Bangladesh Garment

Manufacturers and Exporters Association (BGMEA). He was elected Director of the trade association for several terms. He was also elected Vice President (Finance) of BGMEA for the term of 2008-2009. Currently he has been serving BGMEA as Vice President and working for the development of the RMG sector.

Mr. Mahmud Hasan Khan is involved in different social organizations. He is a Member of Kurmitola Golf Club, Uttara Club Limited, and Mohammedan Sporting Club Limited.

He is also Vice Chairman of the financial institution ‘Meridian Finance & Investment Limited’.

Oct-Nov 2015

THE APPAREL STORY 11

SHORT PROFILES OF THE NEW OFFICE BEARERS OF BGMEA

Ferdous Perves Bivon Vice President

Mr. Ferdous Perves Bivon is a leading business personality in the ready-made garment sector of Bangladesh. After graduation in 1987 from the University of Dhaka he started his career with apparel business and gradually carved out a niche in the RMG industry. His merit, prudent leadership and hard work has led to the creation of Creative Group, one of the leading business organizations in Bangladesh. The

Mohammed Ferdous

Vice President

Mohammed Ferdous, Managing Director of Farmin Group, started his career after completing his Bachelor Degree from Chittagong Government Commerce College in 1975.

After completion of the degree he engaged himself with business. He started his career indenting import business in traditional business center in Khatungonj, Chittagong. Despite having many impediments as well as

12 THE APPAREL STORY

Oct-Nov 2015

Group is comprised of Creative Woolwear Ltd, Creative Tex Ltd, Export Connection Ltd, Bando Fashions Ltd, Shirin Apparels Ltd, Creative Shirts House Ltd, and Dynamic Fashions Ltd. He has been leading the Creative Group as its Managing Director.

His deep involvement in the apparel industry has motivated and encouraged Mr. Bivon to proactively play a role in promoting and advancing the sector. Hence he became involved with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and shortly proved his mettle as a business leader.

He was elected Director of BGMEA for several terms. He was also elected Vice President of the trade association for the term of 2007-2008. Currently Mr. Ferdous Perves Bivon is serving BGMEA as the Vice President (for the term of 2015-2016) and working to promote and protect the interests of RMG industry of Bangladesh.

Mr. Bivon is also associated with other trade bodies. He is a Member of Bangladesh Garments Accessories & Packaging Manufacturers & Exporters

Association (BGAPMEA); Bangladesh German Chamber of Commerce & Industry (BGCCI); Bangladesh-Thai Chamber of Commerce & Industry (BTCCI); and Dutch-Bangla Chamber of Commerce & Industry (DBCCI).

Mr. Ferdous Perves Bivon is involved in different social activities. He is a Member of Mohammedan Sporting Club Ltd. He is also a Member of Dhaka Club, Banani Club, Dhanmondi Club, All Community Club, Bangladesh Club, Dhaka Boat Club, Chittagong Boat Club, Gazipur Club and Apparel Club.

problems in his business, Mr. Ferdous overcome those with courage and by applying his merit and perseverance.

He established a business hub namely Farmin Group of Industries and since the inception he has been carrying out his responsibilities as its Managing Director.

Under the dynamic leadership of Mr. Ferdous, this group has been contributing significantly to expand RMG sector to a great extent.

Alongside trade, commerce and industry, Mr. Ferdous is also actively serving in Bangladesh Garment Manufacturers and Exporters Association (BGMEA). He served BGMEA from 2006-2008 as its Director. He also served the organization as a Co-chairman of its UD Committee for four years.

Currently he is a Vice President of BGMEA. Mr. Ferdous is also a social worker. He has extended his support and cooperation in many educational institutions in the form of contribution and scholarship and he has helped to establish many socio-cultural organizations so far. He

is the President of Ashekania Awlia High School, Sadullah Khan Jam e Mosque and Taher Nahar Trust. He is also a Member of Chittagong Club Limited, Chattagram Ma O Shishu Hospital, Rifles Club, Lions Club of Chittagong and Chittagong Chamber of Commerce and Industries.

A man of versatile qualities Mr. Ferdous does not think only for his own business organizations. He always thinks about the prospects and problems of the overall business and industry of the country. He has been honored by many socio-cultural organizations for his outstanding contributions to the growth of national economy.

32nd Annual General Meeting of BGMEA The outgoing President Md. Atiqul Islam is seen handing over the Road Map for achieving the US$ 50 billion of RMG export to the incoming President Md. Siddiqur Rahman.

The 32nd Annual General Meeting (AGM) of BGMEA took place on 22nd September 2015 at 03:00 pm in the Noorul Quader Auditorium of BGMEA Complex, Dhaka.

The significance of the AGM was that in the very event the charge of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was handed over to a new Board.

Well before the start of the AGM, the auditorium became crammed full with BGMEA Members. The meeting was chaired by the then President Md. Atiqul Islam. After recitation of a verse of the Holy Quran, Mr. Atiqul Islam announced the names of the deceased BGMEA Members and their relatives who passed away after the 31st AGM. Then all the Members present prayed for the departed souls.

Mr. Islam in his speech congratulated the new Board and wished them all the best for their future endeavors.

He also reminisced about their tenure where they had to face the hardest challenges like Rana Plaza accident, GSP withdrawal, political unrest etc. But he reminded everyone how they also got out of these difficult days and turned around with positive growth of apparel export in both the years. He also talked about some astounding successes through programs like Dhaka Apparel Summit and Bangladesh Apparel & Safety Expo, which were one of a kind in the whole sector.

Through both these programs, BGMEA in association with some professors of the RMIT University drafted a Road Map of achieving the vision of $50 billion by the 50th Anniversary of Bangladesh. The road map contains strategies and policies discussed by experts as panelists in both the summits.

Md. Atiqul Islam presented the first copy of the book to the new President Md. Siddiqur Rahman and assured him that the new board will have their full support and this road map can act as a guide to take the industry forward.

After the speech, the agendas of the meeting were read for approval from the Members. The minutes of the 31st AGM were approved by the members along with other agendas like consideration and adoption of audit reports, approval to BGMEA budget etc.

Finally the Chairman of the Election Board and also the former president of Bangladesh Textile Mills Association (BTMA) Jahangir Alamin announced the names of the newly elected Office Bearers and Directors of BGMEA. The outgoing President then presented flower bouquets to the newly elected Office Bearers and Directors and handed over the charge to the new President and Office Bearers.

The new President Md. Siddiqur Rahman in his remarks pledged to work for the industry for its sustainable development hand in hand with all the stakeholders of the apparel sector. Finally thanking all the Members and BGMEA Secretariat, he concluded the AGM.

Oct-Nov 2015

BGMEA Members present in the 32nd AGM is seen praying for the deceased BGMEA Members and their relatives who passed away after the 31st AGM.

THE APPAREL STORY 13

Focus of the Month

Sources: Bloomberg, Reuters, MarketWatch, Globe and Mail, Financial Review.

Trans-Pacific Partnership:

SHOULD BANGLADESH BE WORRIED OR CAUTIOUS?

By Nasim Uddin After years of negotiation the much-discussed Trans-Pacific Partnership (TPP) has finally been concluded by 12 Pacific Rim countries to create the world's largest free trade area. The deal could reshape trade trends in the region and may affect other countries, including Bangladesh. The pact could potentially affect the RMG sector of Bangladesh although it is still not clear what impact might be since many of the details of the agreement has yet to come out.

TPP was originally envisaged by Brunei, Chile, New Zealand and Singapore. Later in 2008 the US expressed its interest in the trade deal giving it a

Oct-Nov 2015

THE APPAREL STORY 15

Zahid Hussain

Lead Economist, World Bank “Removal of tariffs increases trade among the countries under trade deal as they resource from each other. Here lies the risk for Bangladesh, because Vietnam, which is a member of the trade pact, is already competing with Bangladesh for exports of different products, including RMG and footwear, to large markets like the US and Canada.”

800 million The 12 TPP countries have a collective population of about 800 million - almost double that of the European Union's single market.

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new turn. Since then, the TPP has expanded to 12 members, including Australia, Canada, Japan, Malaysia, Mexico, Peru, the US and Vietnam.

The agreement still needs to be passed by the governments of the 12 nations.

One of the important features of the TPP is that it would eliminate certain tariffs between the members, opening opportunities mostly for the developing countries, particularly Vietnam which is a major competitor in the international ready-made garment market.

The Peterson Institute for International Economics thinks that Vietnam’s economy would be the single largest beneficiary of the trade deal as it would help the country to gain greater access to large consumer markets. The Washington-based think tank estimates that exports from Vietnam’s garment and footwear industry could jump 46% to $165 billion by 2025 as tariffs gradually fall to zero.

The top export destinations of Vietnam is the US which is also the largest market for Bangladeshi apparel. Vietnam’s apparel exports to

the US in 2014 was US$ 9.19 billion while Bangladesh’s exports of garment was US$ 4.71billion in the same year.

Analysts say that if the flexible rule of origin on sourcing, as favored by Vietnam, is adopted under TPP, it could increase its share of the existing and new markets, especially the US and Japan. Reduced import duties in other member countries – Canada, Australia, Mexico, and Chile -- would also benefit the country’s apparel manufacturers.

Zahid Hussain, Lead Economist at the World Bank's Dhaka office, sees TPP as a short-and long-term risk for Bangladesh. He said that any regional trade agreement has two effects – trade creation and trade diversion.

“Removal of tariffs increases trade among the countries under trade deal as they resource from each other. Here lies the risk for Bangladesh, because Vietnam, which is a member of the trade pact, is already competing with Bangladesh for exports of different products, including RMG and footwear, to large markets like the US and Canada.”

Mr. Hussain thinks that while Bangladesh has been able to retain its edge in the world apparel market despite higher tariffs, but TPP, if fully implemented, would trigger some trade diversion from Bangladesh to Vietnam.

But how much Vietnam's apparel industry would benefit from the trade deal will largely depend on the “Rules of Origin (ROO)” requirements. Zahid Hussain said that tariff benefits have some countervailing effects. The trade deal might have forward Yarn Rules, he said adding that these rules would require that everything from yarn to the final garment itself come from member countries in order to qualify for the elimination of tariffs, a stipulation favored by US yarn and textile producers.

It would be difficult for Vietnamese manufacturers to comply with such a rule since Vietnam imports most yarn and fabrics from China and other countries that are not part of the pact.

“Tariff advantage is so huge that Vietnam may counter this,” Zahid Hussain thinks. He also says that Vietnam may draw foreign investment from other countries like China in yarn and fabric production sectors due to

would be watchful so that any misuse of the trade privileges do not happen.

Mr. Sadek Ahmed thinks that Bangladesh should pay close attention to the final outcome of the trade deal and take effective measures to counter any adverse effect on the economy.

Mr. Zahid Hussain suggested that Bangladesh has to be smarter in its economic diplomacy to deal with any possible adverse effects on the economy. “We need to take steps to get GSP facilities back. It would at least minimize the non-garment diversion risk.” “Besides, we have to make the procedure of doing business easy and reduce the cost of doing business. Still we are doing business following old Company Acts that, for example, require a company to serve AGM notice via post office though we are now living in digital age.”

“We have to bring institutional and regulatory reforms to make the procedure of doing business easy and reduce the cost of doing business,” he said, adding that the country should also need to meet infrastructural deficit. Moreover, Bangladesh needs to create a business-friendly environment, Mr. Zahid opines.

Syed Sadek Ahmed Director, BGMEA

The TTP may be a blessing in disguise for Bangladesh.

Apart from textile and garment, other high-value products like electronic and computers, vehicles, parts etc in Vietnam would also enjoy preferential tariff rates under TPP. These industries are expected to get a boost due to the trade benefits.

Many workers currently employed in the textile and garment industry might want to switch to these industries for higher pay.

Then Vietnam would move from garment to high-value industries, which might create opportunities for Bangladesh garment industry.

40%

The 12-nation would-be bloc is already responsible for 40% of world trade

possible gains from the TPP. Syed Sadek Ahmed, a Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), also considers TPP a challenge for Bangladesh since the trade deal would get Bangladesh’s major competitors like Vietnam duty-free access to large consumers markets.

However, he thinks that the TTP may be a blessing in disguise for Bangladesh. He said that TPP in the long run may bring some trade benefits for Bangladesh. “Apart from textile and garment, other high-value products like electronic and computers, vehicles, parts etc in Vietnam would also enjoy preferential tariff rates under TPP. These industries are expected to get a boost due to the trade benefits. Many workers currently employed in the textile and garment industry might want to switch to these industries for higher pay. Then Vietnam would move from garment to high-value industries, which might create opportunities for Bangladesh garment industry.”

He expects that the TPP members

The agreement could create a new single market like that in Europe TPP would eliminate certain tariffs between the members, having huge impacts on the world economy

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THE APPAREL STORY 17

Interview of the Month

Tête-à-tête with Benoît-Pierre Laramée High Commissioner of Canada to Bangladesh His Excellency Benoît-Pierre Laramée is deeply engaged in the development of Bangladesh RMG industry. The Apparel Story talks with the highest representative of Canada in the country about different aspects of ‘Made in Bangladesh’.

AS: Bangladesh’s apparel exports to Canada have been on the rise in the last five years and in 2013-14 garment exports to Canada from Bangladesh reached $1 billion.

What is your expectation from Bangladesh apparel industry in the coming years?

H.E: The growth in apparel exports to Canada has been built on a few key factors. The provision of preferential tariffs through Canada’s Least-Developed Country Tariff to Bangladeshi exports has provided and continues to provide an important advantage to Bangladesh’s garment sector. And the growth in the capacity of Bangladesh’s garment industry means that buyers are now able to reliably source quality products in significant volume from Bangladesh.

These factors have not fundamentally changed, and so the conditions for continued growth of exports to Canada remain present.

But the X factor, the one that in my view could have a significant impact on exports, is the question of socially responsible production. After the Rana Plaza collapse, Canadian consumers made it very clear to Canadian retailers that they wanted to know that their clothes were produced in a socially responsible way. This includes ensuring that factories are safe to work in, that worker’s rights are respected, and that environmental impacts are mitigated. For Canadian retailers, social responsibility is no longer just a good thing to do, it is a necessary business decision, and one that applies throughout the supply chain, all the way back to Bangladesh.

Canadian companies have backed theirs words up with action. The Canadian companies most directly affected by the Rana Plaza collapse made significant contributions to the Rana Plaza compensation fund.

Moreover, many Canadian companies have invested, in particular through the efforts of the Alliance and the Accord, to support reform efforts in Bangladesh. Two years after Rana Plaza, we can tell a story of progress, but we are not yet at point where we can say that all the necessary reforms have been implemented. If progress stalls, or if there was another tragedy, there is a possibility that Canadian buyers could decide that the reputational

risks of operating in Bangladesh are simply not worth it. I want to see Bangladesh’s garment industry continue to thrive, and exports to Canada to continue to grow. That is why it is so important that the reform efforts continue. Ultimately, these reforms are adding value to the sector.

AS: Canada provides duty free access to Bangladesh.

However, Bangladesh is trying to make transition from a low to middle income country. This will be important as Bangladesh will not get duty free access once it reaches middle income country status.

What would you suggest for Bangladesh RMG industry to hold its competitive edge?

I have many pieces of clothes that were made in Bangladesh. As a new arrival to Bangladesh, two things stand out for me.

First, until I began looking at my labels, I had not realized just how much of my clothing was made in Bangladesh.

H.E: I am glad you asked about this, this is such an important issue for the future. Once Bangladesh becomes a middle income country, it will probably no longer receive the same preferential tariffs as today. The critical issues are to increase the competitiveness of the sector, and to move up the value chain. I see two broad ways in which these objectives can be achieved. The first step in increasing competitiveness is to build a globally positive image of the sector. To achieve this, the reform process must be sustained.

Bangladesh is not alone in these efforts.

Development partners including Canada are providing significant financial support to help accelerate the reform process.

Through the ILO, Canada is helping to increase the capacity of Government of Bangladesh building safety and labour inspectors. Through the Alliance and the Accord, international

buyers have also made significant investments to supports Bangladesh’s reform efforts. The Tripartite National Action Plan, the Sustainability Compact, the Alliance and the Accord are fundamentally all initiatives seeking to ensure the implementation of the reforms necessary for the garment industry to thrive. They are also recognition of a common responsibility.

From production to sale, the garment industry is globally integrated. The global integration of supply chains has brought great value to consumers in my country, and employment and economic opportunity to workers in Bangladesh. Alongside that comes a shared responsibility to ensure social responsibility along the length of the supply chain. It was in recognition of this that the G7 leaders, including the Canadian Prime Minister, at the recent G7 summit in Germany, articulated that the G7 countries have an important role to play in promoting labour rights, decent working conditions and environmental protection in global supply chains. But there is a limit to what can be done by development partners and international buyers.

Ultimately it will be up to the Government of Bangladesh and the industry to ensure the strong inspection and labour rights regimes necessary to keep risks low. This will also build the foundations for a sector that remains globally competitive.

The second broad way to increase competitiveness is to increase productivity. Compared to some of its competitors, Bangladesh’s labour productivity in the garment sector is low. High labour productivity increases competitiveness. Rising wages are inevitable as Bangladesh continues to grow and develop while ensuring inclusive development. So an important challenge for factory owners will be to see what kinds of investments are necessary to increase productivity.

Skills development is another area where Canada is supporting Bangladesh.

With a grant of over 15 million dollars to the World Bank, Canada is supporting skills training for 10,000 low and semi-skilled workers. In the garment sector, this include training in using industrial sewing machines, dress making, pattern making, marker making and cutting, and also training in mid-level supervision tasks such as quality control.

Skills training can also help

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THE APPAREL STORY 19

Bangladesh move up the value chain and increase the share of its production allocated to higher value production. As the skills of workers increase, it will be increasingly possible to produce high value products at scale.

AS: We have heard you saying quite a few times that 80% of your wardrobe is Made in Bangladesh. Please share your personal views on clothes made in Bangladesh.

H.E: I am not sure that I have said 80%, but certainly I have many pieces of clothes that were made in Bangladesh. As a new arrival to Bangladesh, two things stand out for me. First, until I began looking at my labels, I had not realized just how much of my clothing was made in Bangladesh. Second, I have been impressed by the quality of some of those products. In some places there is a perception that Bangladesh only produces low quality garments, but if that was once true it is clearly not true anymore. Many high quality and technically complex garments are now made here.

AS: What is your perception about the brand “Made in Bangladesh” and who or what do you associate with it?

H.E: For me personally, I associate Made in Bangladesh with the millions of people, especially women, who have an opportunity for employment in this sector. I associate Made in Bangladesh with the remarkable economic transformation and social development that is ongoing in this country. But I think that for most Canadians, when they think of Made in Bangladesh they may still think first of poor and dangerous working conditions. It may be a very long time before this changes. The challenge though is to change the meaning of this association. The fire at the Triangle Shirtwaist Factory fire, in New York in 1911, was, like Rana Plaza, a terrible tragedy. People have not forgotten this tragedy. But today, when people think of the Triangle Shirtwaist Factory, they don’t just associate it with tragedy, they associate it with the moment that everything changed for the better. I think that is the ongoing challenge for Bangladesh’s garment sector. To ensure that Rana Plaza

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Oct-Nov 2015

does not just mean tragedy, but also permanent change. The way forward on this is clear, progress needs to continue on the Tripartite National Action plan and the Sustainability Compact. The industry cannot go back to operating the way it did before, it is a matter of survival in a competitive global market.

AS: How much exposure does his brand “Made in Bangladesh” have in your country?

H.E: Not as much exposure and understanding as it deserves.

Certainly I think more could be done in this area. One area in which Bangladesh has been quite successful has been in telling the story of its success in achieving some of the millennium development goals. We are not yet at the point where we can say that the reform goals in the garment sector have been achieved. But I am hopeful that we can get there soon, and then I hope that Bangladesh will again have an important good news story that they can tell the world, a story

I think one needs to look beyond just this brand.

There are garment factories in Bangladesh that are absolutely world class: in price, in quality, in safety, in green technology. that could be useful for other countries. When the time comes to tell that story, Canada will be proud to of its contribution to this success story. But the full implementation of the action plan and the Compact has to come first.

AS: Would you suggest this brand to others and why?

H.E: I think one needs to look beyond just this brand. There are garment factories in Bangladesh that are absolutely world class: in price, in quality, in safety, in green technology.

I would 100% recommend the products of those factories to others. But there are other factories that still have important problems, including factories that are still in need of structural remediation. This is a

challenge for the top factories. Made in Bangladesh will be judged by the whole sector, not just by the top factories. It is in the interest of the top factories to ensure that all factories meet the basic standards.

AS: What is your suggestion to make this brand bigger and more successful worldwide in the near future?

H.E: The success of the Made in Bangladesh brand is tied to the image that global consumers have of Bangladesh’s garment industry.

Consumers will not forget the Rana Plaza and Tazreen tragedies. What is important is to tell the story of the reform process. That way the tragedies that have occurred will be associated with transformation. But we are not there yet. Significant progress has been made in some areas, including in particular on building safety. But in some other areas much work remains to be done.

I am thinking in particular of worker’s rights. As a recent human rights watch report made clear, some workers have been subjected to horrendous abuse and the legal remedies remain insufficient. But I am hopeful that we will reach that point soon. I have personally met many factory owners and government officials who are committed to this. I think it would be extremely interesting to explore how the Accord and the Alliance can help in telling this story to consumers in Canada and elsewhere. The Accord and the Alliance are unprecedented initiatives.

Nowhere else have international buyers, who compete with each other, invested so significantly in a reform process. I understand that the reform process has not always been easy. But it is essential to recognize that these initiatives provide a tremendous opportunity for Bangladesh. And not just for the reform process, but also to tell the story of the improvements in the sector. The initiatives represent companies with sophisticated and experienced marketing operations.

My suggestion would be for the garment sector and the Government of Bangladesh to deepen the partnership with the Alliance and the Accord. First, to use their expertise and investment to accelerate the reform process. And second, to partner with them to tell the story of this reform process to consumers in Canada and elsewhere.

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THE APPAREL STORY 21

Spotlight

Remediation Financing

By Nasim Uddin

Industry insiders said that the CAP may differ from factory to factory but it is for sure that this remediation and CAP is a completely new thing for the factories and requires a huge amount of money.

22 THE APPAREL STORY

The ready-made garment industry of Bangladesh has witnessed a remarkable change in terms of workplace safety in the last two and half years. Brands and retailers who compete in the corporate world every day are working hand in hand for the cause of safe and decent working conditions in Bangladesh’s garment industry, setting an unique example of multi-stakeholders collaboration in the business world.

The paradigm shift would build an internationally recognized safe and sustainable RMG industry in Bangladesh, reshaping future of the sector, provided that all remediation plans recommended by the three safety platforms – Accord, Alliance and NAP – are carried out properly.

But availability of sufficient low-cost finance for remediation has posed a serious challenge to implementation of all corrective action plans in RMG sector.

The safety reform in the RMG sector is being carried out in two phases – inspection and remediation. Bangladesh has made visible progress in the first phase. Two international safety platforms – the Bangladesh Accord on Building and Fire Safety, and the Alliance for Bangladesh Worker Safety – have

Oct-Nov 2015

A requisite for safe & sustainable RMG industry completed inspection of all the factories which were included in their programs, while the National Action Plan (NAP), a joint-initiative of the Bangladesh Government and ILO, has also accomplished the first phase.

As the initial inspection is over and findings from the factories are available, it is now time to implement Corrective Action Plan (CAP) recommended by the safety platforms where necessary in the factories.

Industry insiders said that the CAP may differ from factory to factory but it is for sure that this remediation and CAP is a completely new thing for the factories and requires a huge amount of money.

It is estimated that on an average $500,000 would be needed for safety improvements per factory. But in case of detailed engineering assessment (DAE) and retrofitting the cost is much higher. It would be very difficult for the factories, especially small and medium-size enterprises (SMEs), to bear such huge cost.

They would require soft loans to carry out necessary repairs. But access to financing is traditionally both cumbersome and expensive in Bangladesh as most loans are difficult to secure and offered at high interest rates. Besides, these loans requires

Initial inspection of factories are completed

Remediation in the factories has started

On an average US$500,000 would be required for remediation per factory

%

Lending rate from local banks is high

As of now only around US$70 million affordable loans from foreign sources are available

Procedure of taking soft loans from the foreign funds is lengthy and time-consuming

short-term repayment. So it is not feasible to take such a huge loan at around 15% interest rate.

There are many small and medium factories, especially those inspected under NAP, and they do not have the capacity to make fresh investments of millions of dollar. The industry insiders say that production cost has significantly increased following the wage hike and other utility costs while the products' prices are gradually declining. Hence many factories find it difficult to make fresh investments in safety repairs. Manufacturers have to carry out remediation but at the same time they also need money which is not easily available.

Srinivas B. Reddy, Country Director of ILO, Bangladesh, said: “Carrying out these inspections is a significant milestone yet it is only the beginning.

Our full attention must now turn to remediation. ILO will help build the capacity of the Bangladesh authorities to put in place an effective system for all remediation and regulatory oversight once the support of partners ends.”

“It is recognised that the cost of remediation is a major barrier to smaller factories. For this reason ILO together with the International Finance Corporation has launched a study to assess the barriers to financing, available sources as well as identify possible options for RMG factories to gain access to funding. It is expected that the results of this study will be available early next year,” he added.

The ILO Country Director said that a number of remediation financing initiatives which have already been launched by various development

partners should also be made available to factories under the national initiative.

Accord and Alliance has had an agreement with the International Finance Corporation (IFC) to help suppliers finance factory repairs.

Through the resulting credit facility, the IFC will provide USD $10 million each to five Bangladeshi banks—USD $50 million total—for affordable loans to factory owners making necessary safety repairs. This credit facility, known as the Bangladesh RMG SEF Safety Remediation Financing Program, will offer affordable interest rates and allow loans to be paid back over a period of three to five years, easing financial burden for factory owners.

Mesbah Rabin, Managing Director of the Alliance for Bangladesh Worker Safety (Alliance), said: “There are three proposals for affordable finance for remediation. Brands would bring their own finance for their strategic suppliers. For example, VF has provided affordable loan of $1.2 million to their three supplies though banks. Secondly, there is an agreement with USAID to provide $18 million bank loans to ready-made garment factories that supply brands which are signatories of the Alliance.

And there is an IFC fund of $50 for factory remediation.”

Besides, the United States Agency for International Development (USAID) would provide $18 million low-cost loans for garment factories under the Alliance to improve their structural, electrical and fire safety infrastructure.

Mesbah Rabin said that the presently available fund may not meet the

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THE APPAREL STORY 23

demand for low-cost fund. “If there is more demand, increasing funds may be considered,” he added.

However, the procedure of taking soft loans from these funds is very lengthy and time-consuming that is making the remediation progress slow. “From our previous experience we have seen that it generally takes around eight to nine months to release loans after a client applies for the loan,” said Mesbah Rabin.

Syed Sadek Ahmed, a Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), thinks that remediation should be completed in the factories as soon as possible.

“Buyers are not willing to place their orders in the factories that are yet to complete the recommended remediation. Losing orders for delay in remediation progress decreases business turnover which ultimately makes it difficult for the factory to bear mounting business costs like payment of workers and employees, let alone making investment in remediation,” he said.

Sadek Ahmed said that the procedure of taking soft loans from the presently available special funds for factory remediation is very lengthy and time consuming. “When a small

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Oct-Nov 2015

or medium size factory will get the fund through a time-consuming procedure and carry out safety repairs, it would be already very late.

Then the factory already burdened with due salary payment and other costs might not be able to come back to business again,” he said.

Mr. Ahmed recommended that the factories should approach to scheduled banks for soft loans. He called upon all the scheduled banks to provide low-cost loans to the factories who are their clients for remediation. “On an average 40-45% of the earnings of our banks come from the garment sector. Closer of garment factories due to its inability to carry out safety reforms means our banks will also lose business from the sector,” he said.

He thinks both banks and garment sector will be mutually benefitted if remediation is completed in the factories.

Industry insiders say remediation must be completed to make the RMG industry safe and sustainable. They believe when the remediation in all the factories are completed, then ‘Made in Bangladesh’ will be the most preferred brand to buyers around the globe.

the procedure of taking soft loans from these funds is very lengthy and time-consuming that is making the remediation progress slow. “From our previous experience we have seen that it generally takes around eight to nine months to release loans after a client applies for the loan,” said Mesbah Rabin.

Special Interview

‘BGMEA is really conscious about the importance of having a sustainable industry’ Bastiaan Mohrmann is the Chair of the Steering Committee of Bangladesh Partnership for Cleaner Textile (PaCT) and Co-Head of the 2030 Water Resources Group (2030 WRG) for Asia and the Middle East. He has been deeply involved in ensuring environmental sustainability in the Bangladesh garment and textile industry for several years. The Apparel Story talks to him about different aspects of PaCT and 2030 WRG.

The PaCT is a cluster of partners where the BGMEA is an extremely important team member with IFC and Solidaridad. We have also got brands and partners. It’s a team effort aimed at transforming the sector. PaCT has so far taken a number of initiatives such as Cleaner Production Program, Textile Technology Business Center (TTBC), cluster approach, etc. All these programs are raising awareness in getting tools, resources and knowledge for decision making and, implementation of the decisions.

Bangladesh’s Garment Industry has been working in the area of environment and sustainability for quite a few years. How do you assess the current position of the country’s garment industry?

Bastiaan: If we look at sustainability – there are two types: social and environmental. In the environmental section, since we have been active here, there have been some noteworthy changes in the last 3-4 years. There is rapid adoption of good practices. It’s heartening to note that nowadays, most of the leaders of the industry are very advanced in adopting best practices.

However, the waterways of Dhaka are still being polluted, which means we haven’t turned the tide as yet.

So, there is ought to be an effort to understand – why the rest of the sector is reluctant to come on board.

Naturally, a huge job remains to be done.

Bangladesh Water PaCT has been working for environmental sustainability. How will you evaluate the contribution of PaCT to the industry?

PaCT, I will say, has been kicking the ball significantly forward. The PaCT is a cluster of partners where the BGMEA is an extremely important team member with IFC and Solidaridad. We have also got brands and partners. It’s a team effort aimed at transforming the sector. PaCT has so far taken a number of initiatives such as Cleaner Production Program, Textile Technology Business Center (TTBC), cluster approach, etc. All these programs are raising awareness in getting tools, resources and knowledge for decision making and, implementation of the decisions.

PaCT is getting a lot attention from factories, which means it’s achieving the objectives.

The PaCT program will expire in December 2016. Will we see an extension?

I certainly hope so! We already had a brainstorming meeting with key partners, including BGMEA, brands and others, in understanding what the key features of PaCT-2 could be.

There is broad agreement on the usefulness of PaCT-2. It will be a different program from two angles.

PaCT-1 is an open platform. But essentially, in terms of partnership, it was ‘one size fits all’. So a partner

was engaged in all the mechanisms of PaCT. But I think that PaCT-2 might have a different configuration. BGMEA will step up its role in the overall drive and coordination as a core actor, with close support from IFC. Donors like the Netherlands Embassy and others will contribute.

There should be greater flexibility to structure partnerships around certain topics; may-be it is how to bring cleaner production to smaller factories or tier-2 factories which do not have sophisticated management system as the leaders in the sector’. This is one area that really needs to be tackled. Another area might be the question of finance. The third issue might be on heightened brand collaboration.

Then one partner might not be associated with all parts of the program. Clearly, there is a need and urgency for PaCT-2.

The PaCT-2 will reach the year 2021 when the industry touches the milestone of $50 billion in RMG exports. We might have reached 30 percent or so of clean textile sector transformation at the end of PaCT-1 and after PaCT-2 we may reach another 30 percent of that goal. By 2021 when Bangladesh celebrates her 50th anniversary, the vast majority of the industry should have adopted the culture of cleaner production.

Pease tell us about the plans of IFC as regards to 2030 Water Resource Group.

While PaCT-2 is focusing on the sector, going deep in the industry and operating at the firm level, including technologies, finance, management systems, procuring practices of brands, mainstreaming sustainability in the operations, the 2030 Water Resource Group (2030 WRG) is operating at the macro and medium-level.

2030 WRG is not limited to the textile industry only, rather it is improving water resource management across the nation. It is a multi-stakeholder partnership where the industry is collaborating with the public sector, the government and the civil society.

In consultation with key stakeholders we have tentatively identified three focus areas: 1) restoration of the Greater Dhaka Watershed; 2) agri-water efficiency (particularly in North West region);

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THE APPAREL STORY 27

and 3) water governance and policies. The first work-stream offers considerable opportunities to collaborate closely with PaCT-1 and PaCT-2, with BGMEA as a vital partner and stakeholder.

Green factories are coming to Bangladesh and already 18 factories have been LEED certified by the US Green Building Council (USGBC) while 67 have been enlisted in the USGBC. How do you see this development?

This is indeed a positive development. But I am concerned that sometimes it only delivers a partial answer, giving the false impression of a complete solution.

For example, when a green factory is certified, no evaluation of effluent treatment is included.

There is considerable focus on water and energy efficiency, which is of course excellent. But it does not indicate how efficiently the effluent plant is being operated.

Operating ETP is a real challenge for a lot of entrepreneurs because it is costly and complicated. So while it is good to have a green building or factory, we must not forget that this does not cover all the environmental aspects.

28 THE APPAREL STORY

Oct-Nov 2015

How do you see the role BGMEA has been playing in the area of environmental sustainability?

I have noticed that the BGMEA is constantly growing and evolving in its role. For the last 4-5 years it has been associated with a marked transformation of the industry.

Today, BGMEA is really conscious about the importance of having a sustainable industry. However, there are still rooms for it to expand.

Since BGMEA has a cordial relationship with BKMEA and other associations, it can utilize its leverage for overall sector transformation.

However, there are smaller factories which don’t have sophisticated engineers and other resources, and there is no pressure point for them to improve.

There are a lot of supply chains outside the arena we are discussing; the question is who will tackle them and the staggering pollution they are creating? These factories are still extracting a lot of groundwater; then there are factories who are not producing for either buying agents or the established brands.

All these aspects need to be addressed!

BGMEA should think how it can

expand its role as the premier industry association and find partners inside and outside to tackle the more difficult actors of the industry.

Bangladesh formulated rules and regulations regarding environment. Do you think they need any amendment? How strong are our environment laws?

The environment laws are not a major constraint for effecting sector transformation.

But important factors are the method of their implementation plus the capacity of the Department of Environment.

There is often an imbalance between resources of the industry and polluters on one hand, and the public sector and enforcing agencies on the other.

Leaders of the industry, including BGMEA, should be concerned about improving that balance to create a level playing field for the whole sector.

Transparency and public disclosure, as practiced in current day China with support from civil society initiatives like IPE, should be explored and promoted to strengthen compliance with environmental laws.

I think the optimum approach should be to have an industry lead partnering with the government.

Beautiful Bangladesh

FEATHERED SPLENDOR OF NATURE! Photo & Caption: Jalal Ahmed

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Oct-Nov 2015

Bangladesh is a beautiful country, a land of colors. And the festive colors become more vibrant with the added kaleidoscope of more than 650 species of feathered splendor of nature, the birds. Almost half of them are migratory who come to our land with the advent of winter from the cooler northern hemisphere. A few are summer migrants. Geographically Bangladesh is between two distinct regions which help in having a rich variety in species. The South Asian region including Afghanistan has 1300+species. Of them, a small landmass like Bangladesh boasts of such number of species. Birding or bird watching is a part of nature watch, a good hobby and passion, indeed. Watching a new species of bird in your surrounding is always exiting with right gears. Anyone can be engaged in bird watching, bird photography or nature conservation.

Jalal Ahmed is a civil servant working with the Finance Division, Bangladesh Government, as an Additional Secretary. From his busy schedule he makes time to see the wonderful natural beauty of this country. He is passionate with nature photography, particularly those with birds, the feathered splendor of the country.

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THE APPAREL STORY 31

Special Feature

A day to be cherished by BIFT graduates

By Omar Gias

A convocation or graduation ceremony is the culmination of students’ achievements in a university or an academic institution. It’s an occasion to celebrate all they achieved.

This occasion came for the students of BGMEA Institute of Fashion and Technology (BIFT) on 13 October 2015 as the second graduation ceremony of BGMEA University of Fashion and Technology (BUFT) was held at the International Convention Center, Bashundhara, Dhaka on the day. Though BIFT itself was graduated to a university in 2012 after starting its academic activities in 1999, the university arranged the second graduation ceremony to confer degrees to its students who completed their gradations under the institute from 2004 to 2012. A total of 962 students of three departments -Knitwear Manufacturing & Technology, Fashion Design & Technology, and Apparel Manufacturing & Technology – received their degrees on the occasion. Moreover, a total of 30 students were awarded gold medals

Though BIFT itself was graduated to a university in 2012 after starting its academic activities in 1999, the university arranged the second graduation ceremony to confer degrees to its students who completed their gradations under the institute from 2004 to 2012.

for their outstanding results.

Education Minister Nurul Islam Nahid, MP, graced the graduation ceremony as Chief Guest while Vice Chancellor of National University Prof. Dr. Harun-or-Rashid, BGMEA President Md. Siddiqur Rahman, former BGMEA Presidents Shafiul Islam (Mohiuddin) and Md. Atiqul Islam, and BGMEA Senior Vice President Faruque Hassan were present as Special Guests.

Major(Retd.)

Abdul Mannan, Chairman of Sunman Group and one of the pioneers of Bangladesh RMG, addressed the program as the graduation ceremony speaker.

Muzaffar U. Siddique, Founder Chairman of Board of Trustees, BUFT, chaired the ceremony while Abdus Salam Murshedy, Member of Board of Trustees, BUFT, was the convener of the program.

Muzaffar U. Siddique in his welcome speech said that the Board of Trustees of the university is determined to provide quality education to the students. He informed the gathering that the permanent campus of BUFT is being established at Dhaur, Uttara on a vast land of serene and green environment and with all state-of-the-art amenities. “The academic activities of BUFT will begin at the permanent campus within 2016,� he added.

Education Minister Nurul Islam Nahid in his remarks congratulated the graduates. He said that BUFT has been playing a pivotal role in the readymade garment industry of Bangladesh by teaching and training students emphasizing the fashion industry in a broader spectrum. He hoped that the BIFT graduates will contribute their knowledge to the development of the RMG industry and the country.

Graduation Ceremony Speaker Major(Retd.) Abdul Mannan in his speech said that the RMG industry which started its journey in the late 70s on a small scale has made Bangladesh the second largest RMG exporter in the world. The industry now offers brightest careers for students in Bangladesh. He urged the students to use their creativity and knowledge to take the industry to the next height.

BGMEA President Md. Siddiqur Rahman in his speech reminded the students that the graduation ceremony does not mean the end of their study, rather it opens the door

for their further research. He hoped that the BUFT students will play a vital role in achieving the US$ 50 billion of RMG export target set by BGMEA to be achieved in 2021 when Bangladesh will celebrate her golden jubilee of independence.

Former President of BGMEA and also the Convener of the graduation ceremony Abdus Salam Murshedy in his remarks said that though the initial aim of the university was creating competent human resource for the RMG industry, BUFT now offers graduation not only in garment and textile related subjects but also the university has proven its excellence in producing brilliant graduates of English, Economics, Pharmacy, Computer Science, Information & Tele-communication, Business Administration etc. By thanking all he concluded the formal session of the graduation ceremony.

However, literally the session of the students started after the formal program. The students were seen clicking their cameras and smart phones with their friends and classmates to catch one of the memorable moments of their life.

Most of them took selfies with beaming faces and wide smiles. They all enjoyed gala dinner that was followed by a musical performance of the band Warfaze.

It was a very special day for all the BUFT graduates, their parents and family members. It is surely a day they will remember and cherish for the rest of their life.

The students were seen clicking their cameras and smart phones with their friends and classmates to catch one of the memorable moments of their life.

Most of them took selfies with beaming faces and wide smiles.

They all enjoyed gala dinner that was followed by a musical performance of the band Warfaze.

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Trade Topic

‘Strategy required for breaking monopsony to ensure fair price’ AS: China is now more interested in manufacturing products that require greater skills, better technology and more investment in advanced equipment. How much opportunities do you think China’s shift from garment to higher-value industries would create for Bangladesh?

How can Bangladesh take the opportunities?

Mark: China has a tremendous share in global apparel market, which is around 36 percent. So potential is there for Bangladesh. You will see that as part of price convergence demands of buyers are getting more and more intense. You have to look at the entire dynamic of the market. You have to focus a lot on the production in factories, and what infrastructure and ports do you have. We have learnt that most products are shipped to Singapore where we really have the deep sea port. The steps I think should be taken now is improving infrastructure and getting deep seaport ready if you really want to capture the market share from China as much as possible. Along with everything else efficiency elements at factories have to be improved.

AS: Do you think monopsony is the main reason behind the decline in apparel prices?

How do manufacturers can deal with this problem?

Mark Anner

Associate Professor Penn State University

“What our research suggests is that there is another part of solution to dealing with price problem. I think those institutions that I mentioned – organizations of brands -- can deal with the problem with requirements on their members to pay fair prices to suppliers so that they can pay their workers decent wages and ensure safe conditions.”

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Jenifer: I think it’s really tough because it’s a global problem. Ideally you want an agreement among garment manufacturers in a number of different countries or in those countries which are relatively smaller positions – may be Bangladesh, Cambodia and Vietnam. And you want the manufacturers of these countries come together and somehow agree on in a certain way negotiating with brands. In the US there is pretty strong anti-competition laws that don’t allow producers unnecessarily fix prices of products. I think there will be room for manufacturers in multiple countries to have some kinds of agreement about the way they are going to negotiate with the brands. However, at the country level it is always a risk because if prices go up in a country buyers shift to another country. But Bangladesh is well posed to try this kind of strategy because it is a big manufacturer and has a textile base which makes it an attractive place to source for buyers. Today among the countries in the world it would be hard for relatively small suppliers not to necessarily try this at global level. But Bangladesh exports to the US and EU while it is diversifying to other markets. It is an important player with large

Mark Anner, Associate Professor of Penn State University, and Jennifer Bair, Associate Professor of the University of Colorado, USA, have done extensive research on the price and development of global apparel industry. These two Senior Professors recently visited Bangladesh. The Apparel Story interviewed the Professors where they talked global apparel dynamics, including monopsony power as the major setback for apparel makers and how to deal with this setback. capacity in the world apparel market. So Bangladesh is relatively in a good position to try to create some kinds of crafted actions around this problem.

AS: As you mentioned earlier that the US has strong anti-competition laws that don’t allow manufacturers unnecessarily fix prices. Do you think the US and other developed country should take initiatives so that prices do not go down beyond the level that may hurt suppliers?

Jenifer: Well, I don’t see any prospect for the US government setting such sort of thing for import prices.

Rather there is more potential for trying to create consumers activism on this issue to put pressure on the brands.

AS: Do you think the Western customers are aware enough that their an extra dollar for price will change the whole scenario in supply chain?

Mark: Why don’t you think it would wise to expect individual consumer acting individually to address the problem? Some organizations brands have created in response to consumers’ pressure. Those institutions were created because consumers want to see their products are being made under decent conditions. Those institutions under the brands which are part of them are essentially telling consumers that products are being made decently.

The ratio of pricing, however, has been ignored in terms of how those organizations have addressed the issue. What our research suggests is that there is another part of solution to dealing with price problem. I think those institutions that I mentioned – organizations of brands -can deal with the problem with requirements on their members to pay fair prices to suppliers so that they can pay their workers decent wages and ensure safe conditions.

AS: What do you think are the strengths of Bangladesh garment industry?

Jenifer: For a long time Bangladesh has huge advantages – it is a country with a large workforce. The RMG industry is the leading sector in the country, which is attracting young people. Bangladesh has been able to be very competitive in terms of prices in the global market that is I think is increasingly not sufficient for Bangladesh to be competitive. The industry increasingly realized that can’t be basis for sustainable competitiveness. So the question is what else to offer to sustain competitiveness. One of things Bangladesh can offer is its textile basis that is growing here. The textile sector makes it possible for Bangladeshi garment manufacturers to get their fabrics here which will reduce both cost and lead time.

Jennifer Bair

Associate Professor, University of Colorado

“I think there will be room for manufacturers in multiple countries to have some kinds of agreement about the way they are going to negotiate with the brands. However, at the country level it is always a risk because if prices go up in a country buyers shift to another country. But Bangladesh is well posed to try this kind of strategy because it is a big manufacturer and has a textile base which makes it an attractive place to source for buyers.”

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Success Story

Safety and Sustainability Encapsulated in HABITUS

By Omar Gias Dozens of rabbits will be noticed roaming around the rich greenery of grass and trees in front of the giant building. A garden pond has beautifully juxtaposed with the building. Fishes swimming in the upper water of the pond dive deep as the afternoon sunlight reflecting on a name ‘Habitus’, engraved on the front-side building wall, sharply comes into their eyes. Any visitor during their maiden visit to Habitus at their first sight may think the place a luxury hotel or resort. But it’s a readymade garment unit situated at Rajendrapur on the outskirts of Dhaka, the capital of Bangladesh.

The Managing Director of Habitus, Shahadat Hossain, told the Apparel Story that he planned to promote Bangladesh through establishing a world-class garment factory. Habitus is the incarnation of that plan. The operation of Habitus was started in 2013. However, Mr. Shahadat built two more factories namely K.A. Design and Fortis Garments before the establishment of Habitus. Both the factories have been attracting sizeable orders from buyers every month. But after the Rana Plaza incident he thought of building the state-of-the-art factory to show the commitment of Bangladeshi garment entrepreneurs to safety and sustainability.

The design of the factory was done jointly by a Bangladeshi and a German architect.

The factory is designed in a way that maximum sunlight can be used to light up its floors. The wind is managed in a way that the floors remain cooled without any ceiling fan. Rainwater is harvested and used in the washrooms and garden to reduce dependency on groundwater. These are a few examples of eco-friendly practices being exercised in Habitus.

Habitus works for the world famous brands such as Next, Tesco, M&S, Aldi, Fila, Intersport, Peak Performance, Pelle Pettersson etc. The products of Habitus are sportswear, jacket, rain coat, sweat shirts and polo shirts -- mostly fancy and a bit

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Shahadat Hossain

Managing Director, Habitus

complicated apparel items. During his initial career as the Country Head and later its Asian Head of a foreign brand Mr. Shahadat understood that there was a huge market for Bangladesh to export functional and fancy apparel items instead of shipping only basic items. However, starting his own business, leaving the corporate career, was not that easy at the initial stage. He brought six technicians from Turkey at the inception of business.

But now all the employees of his factories are Bangladeshis who were groomed and trained up. He also offers a number of facilities to keep his trained employees and skilled workers happy; and as a result, the workers’ migration rate in Habitus is

almost zero. The workers of Habitus enjoy dormitory facility and the rent of the dormitory is too paid by their management. Habitus has a very functional ‘day care’ for the workers’ children where mothers are allowed to visit their babies three times in a day – during lunch and two more breaks.

However, Mr. Shahadat is doing all these not only to stop the migration, rather he believes that the workers, officials and management of Habitus are the members of a same family. “If

anyone in Habitus suffers from illness, all the members of this family contribute to his/her treatment. This is a practice we boast of,” he said. “We regularly arrange football matches in which workers and management, including me, participate; and where the winners are awarded with attractive prizes.

We also nurture the cultural talents of our workers by regularly organizing music and dance competitions for them,” he added.

Because of these extraordinary

practices, the Danish Broadcasting Channel recently aired a documentary on this ‘Fair Trade’ approved factory and its Managing Director Shahadat Hossain.

Mr. Shahadat counts his commitment to buyers as the key to his successes. He is open to any new entrepreneur to share his experience.

He thinks that if all work together, the apparel industry of Bangladesh will reach an elevated position in near future.

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Behind the Brand

VOYAGE OF THE

By Omar Gias

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Oct-Nov 2015

From the popularity of Sailor, a local brand of Epyllion, it is really hard to believe that this brand started its journey not too far ago on 3rd April this year. However, the management of the renowned RMG conglomerate of Bangladesh took comparatively a long time, almost four years, in planning and staffing the Sailor before its launch. They recruited a bunch of professional designers, brand managers and motivated employees. As a result, no sooner had it come into being and showed its offers, it conquered the hearts of fashion conscious people of Bangladesh.

Good reputation of Epyllion as a leader in export-oriented garment business has been instrumental in

creating brand image of Sailor and achieving people’s confidence in the brand. In fact, the experience of Epyllion in working with world famous global retailers like M&S, Next, C&A etc and observing their good retail management is the advantage or strength for the Sailor, thinks Mr. Arshad Ali Chowdhury, the Chief Financial Officer (CFO) of Epyllion Group who has been involved with Sailor from the day one.

However, Epyllion has totally segregated the operations of Sailor from their export business.

The factory of Sailor has been set up at Moakhali, Dhaka. Apart from manufacturing garments, Sailor has collaborations with some renowned leather and footwear producers and it

also imports some fashion accessories to provide a complete fashion solution to a family at their stores. So far Sailor has opened four outlets -- one at Uttara, two others at Police Plaza, Gulshan and the state-of-the-art one at Jamuna Future Park, Bashundhara, Dhaka. Three more stores of Sailor at Chittagong, Khulna and Sylhet will be opened very soon. About the price of Sailor products Mr. Arshad Ali Chowdhury said: “Sailor believes in real value for products. Customers coming in our stores feel that the price quoted is really worthy for a particular product and that’s why Sailor became so popular within a short span of time”.

The Managing Director of Epyllion Group Reaz Uddin Al-Mamoon and Director Junaid Abu Salay Musa, who are established RMG entrepreneurs, constantly guide the Sailor from the front with their experience and proven expertise in garment business which is also the key to the success of the brand”, he added.

The growth of middle class in the country, increase of people’s purchasing capability and their fashion consciousness have created a field in Bangladesh fertile for fashion outlets’ business. Experts think that in Bangladesh, the second largest RMG exporter of the world, now the more entrepreneurs related with export business will invest their time and money in growing local brand the more it will grow in a disciplined way. Moreover, there are potential markets for our local brands in the subcontinent and emerging South Asian countries like Singapore, Indonesia etc. Sailor also has future plans to enter these markets and to do brisk business. However, before transcending the border Sailor wants to hook the flukes of its anchor deep into the soil of Bangladesh.

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8

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July-August 2015

Column

Zero Liquid Discharge: A Success Story of Tirupur Textile Cluster

By Asif Ashraf

The BGMEA delegation visiting Central Effluent Treatment Plant (CETP) in Arulpuram.

The RMG and textile sector is not only the biggest export earner and employer of Bangladesh but also the leader in many advance initiatives in the country. In its journey of about 35 years RMG sector has emerged as one of the bona fide destination for apparel sourcing in the world. In recent years Bangladesh RMG industry has proactively taken the issue of environmental sustainability as one of the core areas to address.

The sector always welcomed new initiatives conducive to its ultimate goal of being a sustainable industry.

Regional cooperation in the area of technology transfer has always created positive impacts due to the similarity of socio-economic and cultural context. In the area of waste water treatment Tirupur Textile cluster has shown some landmark success in the South Asian region. To share the advancements of the two neighboring countries the Institute of Industrial Productivity (IIP) India has

organized an exposure visit and study tour.

A five-member BGMEA delegation led by Faruque Hassan visited India from 13-18 September.

The delegation includes Managing Director of Urmi Group Asif Ashraf, Managing Director of PN Composite Tapan Kumar Saha, Director of DBL Group Anwarul Azim, and Senior Deputy Secretary of BGMEA Md. Monower Hossain.

Tirupur is known as the knit capital of India. With a broad range of factories this knit cluster is capable of exporting all types of knit fabrics and garments. Employing around 600,000 people Tirupur exported around USD 3.29 billion in 2014-15 FY. Tirupur is a dry region with no perennial rivers; the agro-based economy is mainly dependent on rainwater. To ensure sustainable business and decrease pollution load in the environment Tirupur Textile cluster started their journey towards Zero Liquid Discharge (ZLD) back in 2005. It was a huge challenge that time for the textile belt to implement ZLD, but due to strong policy and financial support from the central and state government of India they succeed in implementing ZLD in their industry. It is a unique success story in the South-Asian region.

Bangladesh on the other hand is a water-rich region with lots of monsoon rains and rivers. The country has around 1700 wet processing units in the textile sector that consume around 1500 billion liters of groundwater annually.

Moreover, this consumed water is discharged in the surface water body resulting in severe pollution in the adjacent rivers and depletion of

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The CETP with 5.5 MLD capacities caters to the effluent management demand of 22 textile units in that area. During the visit the delegation learned about the ZLD-CETP and its technicality along with life of membranes and resins in reverse osmosis and resin filters processes. The role of renewable energy in supporting ZLD systems were also explored and discussed with TWIC.

groundwater aquifers. BGMEA along with its development and business partners are trying proactively to improve the situation.

The BGMEA delegation reached Chennai on 13 September and participated in a session with the Tamilnadu Water Investment Company (TWIC) in Chennai, India.

The delegation was briefed about ZLD process and different aspects which include policy mandate with respect to ZLD in India, technical and financial viability of ZLD, barriers and challenges in implementation, advantages of ZLD and etc. The session was conducted by Sajid Hussain who is the Chief Operating Officer, TWIC. He explained that water scarcity, water economics and regulatory guidance lead to the innovation of ZLD process. He also revealed that adopting zero waste discharge makes ZLD process more viable. After the session, the delegation paid a courtesy visit to Harmander Singh, Principal Secretary to the Ministry of Handlooms, Handicrafts, Textiles, and Khadi Department, at Chennai Secretariat.

Mr. Singh appreciated the initiative of collaborative learning and sharing of relevant knowledge with neighboring countries in South Asia.

The interactions mainly focused on the development of textile industry in both India and Bangladesh.

After the session in TWIC, the delegation flew to Coimbatore district to see the ZLD plants in the Tirupur cluster. The delegation visited two of the ZLD Plants to observe the technical demonstration of ZLD. The delegation also visited Chinnakkarai CETP which has a capacity of

Process flow diagram of a typical ZLD plant

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processing 8 MLD and caters to the load of 29 neighboring textile units.

The delegation visited another CETP which was located in Arulpuram. The CETP with 5.5 MLD capacities caters to the effluent management demand of 22 textile units in that area. During the visit the delegation learned about the ZLD-CETP and its technicality along with life of membranes and resins in reverse osmosis and resin filters processes. The role of renewable energy in supporting ZLD systems were also explored and discussed with TWIC.

The major processes involved are:

1. Collection and homogenization: Effluent collection from different sources and homogenization in single tank.

2. Biological oxidation: After the ph correction (neutralization) the effluent is fed to biological oxidation tank where the BOD, biological oxygen demand and COD chemical oxygen demand are corrected. An online meter helps in close monitoring of the parameters.

3. Clarifier: The biological oxidation is followed by clarification. The effluent is fed to the clarifier tank and remained undisturbed for a cycle time of 24 hours. In this duration, the suspended solids in the effluent start settling down due to density difference and clarified water with lesser TSS is obtained.

4. Quartz filtration: From the clarifier the effluent solution is charged into the quartz filters, resin filters for ultra filtration. The softener output acts as feed to the RO system.

5. Reverse Osmosis: The softened effluent is fed to the Reverse osmosis modules to get permeate and concentrate. The RO permeate is stored in recovered water tanks and concentrate is fed to the evaporation section for further treatment and recovery.

6. Mechanical Vapor Reactor: In the Mechanical vapor reactor the filtration is achieved by indirect thermal heat transfer between heating media and the treated effluent inside the reactor. The steam is circulated in the outer jacket of reactor as a heat source.

The condensate collected is the output of the system. The

BGMEA delegation holding meeting with the President of Tirupur Exporters Association (TEA).

concentrate of evaporator is further crystallized and salt is recovered after the centrifuge governed separation of Glauber salt. The residual effluent is sent to the solar evaporation panels.

We found these two CETPs very planned and functional. On the other hand in Bangladesh context we are already doing most of the steps they are doing. We just need to add the reverse osmosis and salt recovery steps to go for ZLD. The day after CETP visit the delegation visited the Tirupur Exporters Association (TEA) at Tirupur and met TEA President Dr. A Sakthivel. The idea of meeting TEA was to understand the development process of the cluster as one of the major export hubs for textile industry and to discuss various factors which have led to commencement of first of its kind ZLD facility for textile sector in the world. The President of TEA appreciated the initiative of knowledge transfer to neighboring countries and stressed that the need of such a system for the industry is inevitable considering the global situation. Mr. Faruque Hassan congratulated TEA for successfully implanting ZLD in Tirupur. After that, the delegation visited a modern readymade garment processing unit namely M/s Maharaja Palanisamy Garments in the Netaji Apparel Park, Tirupur. The delegation looked at the resource efficiency part along with the manpower resource management practices in the unit.

The success of ZLD in India is not solely an industry success, rather it was highly fueled by conducive policy of the Indian Government and heavy subsidy from the Central and State government of India. In Tirupur textile cluster case the cost of the CETPs has

been subsidized as much as 70%-75% of which 53% came as special grant.

India sets a very rare example that environmental sustainability is a shared responsibility rather than just Industry. It is expected that Bangladesh RMG industry will also be able to implement the ZLD system in near future with policy, finance and technical support from the Government of Bangladesh and the major development partners.

Faruque Hassan said: “BGMEA is trying to comprehensively look into all the gaps we had. We are trying to achieve our aspired goal of USD 50 billion of RMG exports in 2021 sustainably and become a leader in green industrialization.” “We need to collaboratively work with the government and partners; the sector has to be owned by all the stakeholders concerned,” he added.

Nowadays environmental sustainability is an integrated part of global business landscape and is a key strategic area nationally and internationally. Bangladesh is at its take-off phase of industrialization and one of the lowest carbon emitters of the world, but at the same time is the most vulnerable country to climate change. Standing on this paradoxical juncture we are trying to become more and more sustainable considering the global environmental situation.

Recently the Prime Minister of Bangladesh Sheikh Hasina won the ‘Champions of the Earth Award’ for her proven leadership in addressing the impacts of climate change. We believe we will definitely be able to make Bangladesh RMG industry a model of green industry in the world.

In Tirupur textile cluster case the cost of the CETPs has been subsidized as much as 70%-75% of which 53% came as special grant. India sets a very rare example that environmental sustainability is a shared responsibility rather than just Industry. It is expected that Bangladesh RMG industry will also be able to implement the ZLD system in near future with policy, finance and technical support from the Government of Bangladesh and the major development partners.

Asif Ashraf is the Managing Director of Urmi Group.

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News in Picture

Ambassador of the Netherlands to Bangladesh H.E. Leoni Margaretha Cuelenaere paid a courtesy call on the newly elected President of BGMEA Md. Siddiqur Rahman at the latter’s office on 11 October. BGMEA Senior Vice President Faruque Hassan, Vice President (Finance) Mohammed Nasir, Directors Miran Ali and A.N.M Saifuddin were also present on the occasion.

Foreign Trade Association (FTA) has released a publication that highlights the extraordinary social and economic development experienced by Bangladesh in recent years. BGMEA President Md. Siddiqur Rahman, Senior Vice President Faruque Hassan, FTA Director General Christian Ewert and FTA Bangladesh Representative Daniel Seidl released the report.

An high-level delegation of ILO, including Karon Monaghan, Member of CEACR; Siska Dubbert, Legal Officer, ILS Dept, NORMES; Coen Kompier, Specialist on ILS, NORMES; Al-Wreidat Amin, Specialist on OSH-LABADMIN; visited BGMEA. BGMEA President Md. Siddiqur Rahman briefed the delegation about the present market situation of Bangladesh RMG. Senior Vice President of BGMEA Faruque Hassan, Vice President Mahmud Hasan Khan (Babu), Directors Md. Rezwan Selim and ANM Saifuddin were also present at the meeting.

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BGMEA President Md. Siddiqur Rahman along with Vice President (Finance) Mohammed Nasir paid a courtesy call on Saima Wazed Hossain, Chairperson of National Advisory Committee on Autism and NDDs, on 15 October. During their meeting they discussed how to include people with autism in the mainstream economic activities.

A seminar on ‘Export Potential of Silk of Bangladesh’ was held at FBCCI auditorium.

FBCCI President Abdul Matlub Ahmad and BGMEA President Md. Siddiqur Rahman attended the seminar as the Chief Guest and the Special Guest respectively. FBCCI First Vice President Md. Shafiul Islam (Mohiuddin) chaired the program where Country Representative of FNF Dr. Najmul Hossain presented the keynote speech. The seminar was jointly organized by FBCCI and the Friedrich Naumann Stiftungfür die Freiheit (FNF), Germany.

A delegation of the Confederation of Indian Industry (CII) led by S. Kathiresh visited BGMEA leaders. BGMEA President Md. Siddiqur Rahman welcomed the CII delegation while Vice President (Finance) Mohammed Nasir, Vice President Mahmud Hasan Khan (Babu) and Directors Md. Shahidul Haque Mukul, Inamul Haq Khan (Bablu), Md. Ashikur Rahman (Tuhin), and Mizanur Rahman Chowdhury and BGMEA Member Masud Kader Mona were present.

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BGMEA leaders had a meeting with Her Excellency US Ambassador to Bangladesh Marcia Stephens Bloom Bernicat at her residence. They discussed different RMG related issues, including Bangladesh’s export potentials in the US, with the US Ambassador. BGMEA President Md. Siddiqur Rahman, First Vice President Moinuddin Ahmed, Vice President (Finance) Mohammed Nasir, Vice Presidents Mahmud Hasan Khan (Babu) and Ferdous Perves Bivon were present at the meeting.

Country Director of ILO, Bangladesh Srinivas B Reddy paid a courtesy call on the newly elected President of BGMEA Md. Siddiqur Rahman.

BGMEA Vice President (Finance) Mohammed Nasir, Vice President Mahmud Hasan Khan (Babu), former President of BGMEA Shafiul Islam, BGMEA Directors Miran Ali, Anwar Kamal Pasha, Md. Nasir Uddin, Md. Rezwan Selim, A.N.M. Saifuddin, ILO’s Program Manager for Improving Working Conditions in RMG sector Tuomo Poutiainen and ILO’s Program Officer Khadija Khondker were present on the occasion.

A training in "Environmental Awareness and Compliance" was held at BGMEA Apparel Club, which was jointly organized by BGMEA and AQM Bangladesh. A total of 25 trainees from different BGMEA member factories, buying houses and CSOs took part in the session. Senior Vice President of BGMEA Faruque Hassan handed over certificates among the participants at the end of the training.

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Ambassador of Denmark to Bangladesh H.E. Ms. Hanne Fugl Eskjer paid a courtesy call on the newly elected President of BGMEA Md. Siddiqur Rahman at the latter’s office. BGMEA Senior Vice President Faruque Hassan, Vice President (Finance) Mohammed Nasir, Vice President Mahmud Hasan Khan (Babu), Deputy Head of the Embassy Jakob Haugaard, Growth Counselor Jens Rise Rasmussen, and Commercial Counselor Soren Robenhagen were also present at the meeting.

A team of Bangladeshi mountaineers is receiving National Flag from Dhaka University Professor Emeritus Anisuzzaman and BGMEA Senior Vice President Faruque Hassan prior to their expedition to conquer Mount Ama Dablam and Mount Kyajo Ri of the Himalayas. BGMEA sponsored and supported the expedition to the Himalayas.

EngenderHealth Bangladesh (EHB) and Business for Social Responsibility (BSR) signed a Memorandum of Understanding (MoU) at BGMEA office to enhance family planning and reproductive health information and services for women working in the RMG sector. Vice President (Finance) of BGMEA Mohammed Nasir was present as Chief Guest at the MoU signing ceremony.

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Bulletin

Govt to bring up trade benefits at Ticfa meeting in Washington

ILO to train 0.8m garment workers on safety by 2017

The International Labour Organization (ILO) will train up a total of 0.8 million garment workers on occupational safety and health (OSH) in the next two years.

The UN agency in May teamed up with Bangladesh Employers Federation (BEF) to enhance OSH knowledge among workers under its 'Improving Working Conditions in the RMG sector' project.

"The joint collaboration has already created a team of 114 master OSH trainers who will pass the OSH knowledge on to 8000 mid level and line supervisors by March 2016," Secretary General of BEF Farooq Ahmed said. The second-phase of the training is going on, while the mid-level trained people will provide training to a total of 0.8 million workers in the garment factories in Dhaka, he said.

He added the programme would later be expanded to the factories in Chittagong.

By doing so, the trainers will help create a culture of workplace safety and implement practical measures to reduce the risk of accidents. Master trainers have been selected by the BEF, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). They include own staff as well as officers from private sector companies in the RMG sector.

The initiative is also backed by the International Training Centre (ITC) of the ILO, which has helped build capacity of master trainers to deliver the courses, which use the ITC-ILO Essentials of Occupational Safety and Health (EOSH) package.

The government will highlight progress in workplace safety in an effort to regain trade benefits, at the second Ticfa meeting to be held in Washington.

“A delegation from Bangladesh is expected to leave for Washington to attend the Ticfa meeting on November 30,” said Hedayetullah Al Mamoon, Senior Secretary to the Commerce Ministry.

Bangladesh pays 15.62 percent duties on apparel exports to the US, as it does not allow a duty-free benefit to Bangladesh, which will also be part of the agenda.

Among its competitors, Bangladesh is one of the top duty payers to the US. Bangladesh had demanded the duty benefit at the first Ticfa meeting last year as well.

In fiscal 2013-14, Bangladesh's exported goods of $5.59 billion to the US and imported products of $801.1 million, up from $5.41 billion and $537.80 million respectively in the previous year, according to the commerce ministry.

German Minister Inaugurates Mini Fire Brigade in Gazipur

Dr. Gerd Müller, Federal Minister for Economic Cooperation and Development of Germany, and Tofail Ahmed, Commerce Minister of Bangladesh, visited the factories of DBL Group at Kashimpur, Gazipur on October 7 to inaugurate a mini fire brigade, which will fight any fire incident in the factories located in the area.

The Mini Fire Brigade is a joint initiative of DBL Group, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Global Initiative on Disaster Risk Management (GIDRM) and Bangladesh Fire Service and Civil Defense.

Minister of the Liberation War Affairs, Govt. of Bangladesh, AKM Mozammel Huq, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development, Germany, Hans-Joachim Fuchtel, BGMEA Senior Vice President Faruque Hassan, DBL Group Chairman Abdul Wahed, Managing Director M.A. Jabbar, and Vice Chairman M.A. Rahim were also present at the inaugural ceremony.

The mini fire brigade will be staffed 24 hours a day with a target to respond, within the first critical 10-15 minutes, to both industrial fire and building collapses.

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China plans huge investment in BD's 2 industrial parks: Envoy

Bangladesh is set to get around US$ 4.5 billion Chinese investment in two designated special economic zones in Chittagong and Dhaka, with its focus on Bangladesh's needs and the global market.

"Firstly, we need to meet the needs of Bangladesh and secondly the need of the global market," Chinese Ambassador in Dhaka Ma Mingqiang told the media in an interview.

Basically, the Chinese envoy said, they are working on two industrial parks-one in south Chittagong on 774 acres of land and another in south Dhaka that will attract US$ 2-2.5 billion Chinese investment.

The second one will be in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) with less than 500 acres of land which will create 200,000-250,000 new jobs in Bangladesh, said the diplomat.

The Executive Committee of the National Economic Council (ECNEC) has already approved the proposed Economic and Industrial zone exclusively for Chinese investors in Chittagong.

Ambassador Ma, however, thinks only two industrial parks may not be enough as Bangladesh needs many more many parks to make the best use of advantage. "All the Chinese investors are very interested to get place inside the special economic zone. They're competing with each other."

Not only readymade garment, Bangladesh can also export fresh fruits like mangoes, seafood, huge marine and agro products, he said adding that China is a huge market and Bangladesh can explore it eyeing newer areas.

On granting more duty-free access for Bangladeshi products to the Chinese market, the envoy said China is looking into it but it is not an easy task as China needs to look at other countries as well to do that.

"China is working on it. We want to see more Bangladeshi products in China. It'll also benefit our people and give them an option to buy quality products with affordable price," said the Chinese diplomat.

Women workforce growing fast World Bank President Jim Yong Kim has hailed Bangladesh's efforts to integrate more women in the workforce and singled it out as an example to emphasize the need for investing more in women to spur growth.

“Countries such as Bangladesh are encouraging female participation in the workforce. If they [Bangladesh] stay on track, their female workforce will grow from 34 to 82 percent over the next decade, adding 1.8 percentage points to their GDP,” he said at the World Bank Group/IMF Annual Meetings at Lima, Peru.

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City Bank gets $10m from IFC to develop RMG sector

The City Bank is going to receive $10 million term loan from the International Finance Corporation (IFC), a wing of the World Bank for the five years for financing readymade garment companies of the country.

The amount will be used to develop readymade garments (RMG) sector of Bangladesh by providing RMG companies with loans for resolving structural, electrical and fire safety issues. City Bank signed an agreement with International Finance Corporation (IFC) to this effect.

Sohail RK Hussain, Managing Director and CEO of City Bank and Inessa Tolokonnikova, Manager, the Financial Institution Group, South Asia on behalf of IFC signed the agreement recently at City Bank’s head office at Gulshan in Dhaka.

According to Bangladesh Labour Force Survey 2010, labour force participation for women is 36 percent, compared to 82.5 percent for men.

Still, the rate is higher than the South Asian average of 35 percent.

Bangladesh is ahead of India, where women account for 27 percent of the total labour force, and Pakistan, whose female labour participation rate is 25 percent. Nepal has the highest female labour participation rate of 80 percent, according to the World Bank.

This growing women empowerment is also evident in the fact that Bangladesh has the third highest number of female lawmakers among the SAARC countries.

Bangladesh's high female labour force participation is fuelled by employment in rural agricultural areas and certain specific sectors such as garment industries.

Increasing female labour force participation will certainly help the country break the decade-long 6 percent growth barrier, as higher female labour force participation can boost growth by mitigating the impact of a shrinking workforce, according to the US-based global lender.

If the female labour participation rate rises by 2.5 million a year, the participation rate will equal the current rate of male participation in Bangladesh in a decade.

This will add 1.8 percentage points to potential GDP growth each year, taking it to 7.5 percent -- the minimum threshold needed to be in a comfortable middle income zone by 2021, the WB said.

USAID mobilizes financing for RMG safety in BD

The United States Agency for International Development (USAID) signed two new credit guarantee facilities that will make up to $22 million available to finance factory upgrades and safety improvements in Bangladesh's ready-made garment industry.

This landmark partnership between USAID, Prime Bank Limited, and United Commercial Bank (UCB) will make affordable, long-term credit more available to small- and medium-sized suppliers in Bangladesh to make critical safety upgrades and structural improvements to better protect their workers and meet international standards, said a press release issued by US Embassy in Dhaka.

The first agreement will guarantee up to $18 million in bank loans to ready-made garment factories that supply brands which are members of the Alliance for Bangladesh Worker Safety (the Alliance).

This guarantee partnership with Prime Bank and UCB was also made possible through a financial commitment by the Alliance of one million five-hundred thousand dollars ($1.5 million) to support the guarantee.

The second agreement will guarantee up to $4 million in bank loans to target financing opportunities to factories that are part of the Bangladesh Accord for Fire and Building Safety (the Accord) and the Government of Bangladesh's Tripartite Action Plan that is supported by the International Labor Organization.

Under the new agreements, qualifying ready-made garment suppliers, will have the opportunity to access long-term Taka and US Dollar-denominated loans.

FTA between Bangladesh and Sri Lanka soon: Commerce Minister

All the preparations to ink the FTA with Sri Lanka have already been done, despite still having some difficulties over export-import duties on goods in bilateral trade between Bangladesh and Sri Lanka.

Bangladesh is going to sign Free Trade Agreement (FTA) with Sri Lanka soon to further enhance the existing trade and commerce ties between the two South Asian countries.

Commerce Minister Tofail Ahmed, MP, came up with the announcement after a meeting with the newly appointed

Sri Lankan Ambassador to Bangladesh Yasoja Gunasekera held at his secretariat office in the capital.

“As the bilateral trade and commerce between Bangladesh and Sri Lanka is yet to reach up to the mark, a FTA will be signed shortly to boost the trade between the two countries,” said Tofail Ahmed.

Bangladesh has proposed to reduce export tax to 5% from existing 13.5% to enhance bilateral trade and we are going through broad discussion to remove the barriers of trade and commerce, said the minister.

While talking to the reporters, the Lankan Ambassador Yasoja Gunasekera said, “We can work together significantly to increase trade, investment and tourism connectivity between Sri Lanka and Bangladesh.”

The envoy stated that friendly relationship between the two countries would help strengthening and enhancing connectivity between the two countries in future.

In the last financial year-2014-15, Bangladesh earned US$26.8m from Sri Lanka, while it imported products worth $66.65m. The trade deficit between two countries is $39.84.

Q1 export earnings from China plunge on Yuan devaluation

Export earnings from China suffered a drastic fall of 21.96 per cent in the first quarter of the current fiscal year after years of impressive growth due to devaluation of the Yuan.

According to the Export Promotion Bureau data released on 6 October 2015, Bangladesh’s export earnings dropped to $155.85 million in the July-September period of the FY 2015-2016 from that of $199.71 million in the same period of the last fiscal year.

Experts and exporters said that the negative export growth to the market, which is considered one of the fast-growing markets for Bangladesh, was a reflection of fall in demand for imported products in the country due to the recent economic slowdown and devaluation of its currency Yuan.

They said that imports in China became costlier due to the Yuan devaluation, forcing Chinese importers to cancel export orders from Bangladesh. Export earnings from major products including apparel items, jute and jute goods, and leather and leather products also decreased significantly in the months compared with that of the same period of FY15, the data showed.

According to the data, earnings from export of readymade garment items fell to $58 million in July-September this fiscal year from $74 million in the same period of the last fiscal year. Bangladesh’s export to China has been increasing impressively over the last few years. Export earnings from China were $157.89 million in the first quarter of the FY14. In July-September of FY13, Bangladesh exported products worth $107 million in China.

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Exports to US increase by 16pc in Q1

The country’s export earnings from the US market rebounded strongly in the first quarter of current fiscal year growing by 15.75 per cent compared with that in the same period of last fiscal year.

The earnings from India also witnessed a growth of 11.42 per cent year-on-year in Q1 because of huge rise in exports of jute and jute products despite disappointing figure of garment exports to the country.

According to the EPB data, Bangladesh’s export earnings from the US market rose to $1,554.76 million in July-September of the current fiscal year 2015-2016 from that of $1,343.13 million in the same period of the last FY15.

In the Q1 of FY15, earnings from the US market posted a negative growth of 8.42 per cent year-on-year as the earnings in July-September of FY14 were $1,466.64 million.

The country’s exports in the US market rose in Q1 due mainly to increase in shipment of main export item, readymade garments.

Garment exporters said the rise in US buyers’ confidence in Bangladesh garment sector because of progress in factory remediation work, the steadiness of value of the taka against the US dollar, relaxation of US visa processing and value addition by the Bangladesh garment makers helped increase in shipment of RMG products.

In July-September of this year, apparel items export earnings from US market rose to $1,436.22 million, which was $1,250.22 million in the same months of last year.

BGMEA revives plan for workers’ biometric database

Bangladesh Garment Manufacturers and Exporters Association has revived its initiative to prepare a biometric database of garment workers.

The BGMEA had taken the initiative of preparing a biometric database of workers and signed memoranda of understanding with two IT farms.

As per the new agreement the work of biometric database would start from mid-February targeting the completion of biometric capture of workers in 2,000 factories by June next year.

The bio-metric database is important to ensure identification of a worker including family details, record about the worker’s service details including factory and employer and dates of his or her joining or leaving the job and the reasons.

One of the BGMEA leaders said that as per the rules under labour act RMG exporters will have to pay 0.3 per cent against total export to the workers welfare fund, established by the government. To utilize the fund for the RMG workers the exact number and identification of workers is mandatory.

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Most RMG factories found safe in government inspection

The inspection of the government found that most of the garment factories in Bangladesh are safe to operate.

The inspection, conducted on structural, fire and electrical set-ups, was supported by the ILO and the governments of Canada, the Netherlands and the UK. A number of 1,475 factories were brought under the inspection - which were not suppliers to the Western retailers who have launched two separate groups Accord and Alliance to inspect their own supplier factories.

During the inspection which ended on 31st October, the government team assessed 1,475 factories. Of them, 34.8% received green mark (fully safe), 47.3% yellow mark (safe to some extent), 15.4% amber (having safety concerns and need DEA) and 0.4% red-amber (risky), 1.2% red (under assessment of review panel, and three already closed) and 1% black.

The number of factories with safety concerns is 214 or 15.8% of the factories assessed, said Syed Ahmed, inspector general of the Department of Inspection of Factories and Establishments (DIFE).

“The factories can be made safe undertaking remediation works. Then detailed engineering assessment will be done to make a final safety status of the factories that if they are safe or not,” he said.

Syed Ahmed said the DIFE has asked the owners to submit corrective action plans by three months as “the action plans will be sent to the government’s task force for vetting before approval and implementation.”

Srinivas Reddy, ILO country director, termed the completion of inspection as a “significant milestone.”

“Carrying out these inspections is a significant milestone yet it is only the beginning. Our full attention must now turn to remediation. ILO will help build the capacity of the Bangladesh authorities to put in place an effective system for all remediation and regulatory oversight once the support of partners ends.”

Saudi Arabia to increase RMG import from Bangladesh

Saudi Arabia has agreed to import more readymade garments (RMG), medicine and some other quality products from Bangladesh to meet its increasing domestic needs, a Bangladeshi news agency has reported.

Saudi Finance Minister Dr. Ibrahim bin Abdulaziz Al Assaf conveyed the decision to his Bangladeshi counterpart AMA Muhith at a meeting in Riyadh, according to a press release from the Bangladeshi Embassy in the Saudi capital.

During the meeting, the two ministers agreed to explore investment and trade opportunities through sharing experiences, funding and arranging training.

It was also discussed in the meeting that a Bangladeshi commercial bank could open a branch in Saudi Arabia, which would help promote business transactions between the two countries.

Apprising the recent initiatives and measures for social and economic development in Bangladesh, Muhith sought more funding support from the Saudi government in various projects including a project for building a fertilizer factory. He also urged his Saudi counterpart to recruit quality manpower from Bangladesh.

Exports to Chile jump in first quarter

Bangladesh exports to Latin American nation Chile rose by over 41% to earn $11.4m in the July-September period.

Bangladeshi products are enjoying duty and quota-free access to the Chilean market since January this year as a step towards boosting trade ties between the two nations.

According to the Export Promotion Bureau data, Bangladesh fetched $11.4m from the market in the first three months of the quarter, increasing by 41.38% from $8.06m in the same period last year.

The apparel export to Chile during the quarter nearly $10m, constituted more than 87% of total volume.

The sector’s growth to the market was 36.05% as the RMG earned $7.30m in Q1 of last fiscal year.

In the last fiscal year, Bangladesh’s total export volume to Chile was around $37m with a 3.62% increase from the previous year.

Bangladesh exports to Chile include pharmaceuticals, woven and knitwear products, jute yarn, footwear, caps, cotton bags, engineering products and parts, plastics, ceramics products, clocks and watches.

From Chile, Bangladesh imports copper, fruits, fish products, paper and pulp, chemicals and wine.

3rd Bangladesh Denim Expo ends with high hopes

The third edition of Bangladesh Denim Expo concluded on Nov 13 with the high hopes of creating Bangladesh as a one-stop sourcing platform of entire denim value chain for global buyers.

Honorable Adviser to the Prime Minister for Power, Energy and Mineral Resources Dr. Towfiq-e-Elahi Chowdhury was present in the closing ceremony of the two-day expo as Guest of Honor while British High Commissioner to Bangladesh H.E. Robert Gibson, Danish Ambassador to Bangladesh H.E. Hanne Fugl Eskjaer, Ambassador of the Russian Federation H.E. Alexander A. Nikolaev, Ambassador of Brazil to Bangladesh H.E. Wanja Campose da Nobrega, Ambassador of Turkey to Bangladesh Devrim Öztürk, Senior Vice President of BGMEA Faruque Hassan and Immediate Past President of BGMEA Md. Atiqul Islam were present as Special Guests on the occasion.

Founder and CEO of Bangladesh Denim Expo Mostafiz Uddin presided over the program.

A total of 39 companies participated in the expo; among them, beside Bangladesh, 10 were international companies from China, India, Pakistan, USA, Turkey, South Korea, Japan, Thailand, Singapore and Germany.

The theme of the show was ‘Sustainable Denim’. A group of international experts addressed all aspects of sustainability, ecology and consciousness in four seminars and one panel discussions during the expo.

The subjects of the seminars were “Branding through Green Denim (Environmental Sustainability)”, "Safe and Responsible Supply Chain”, "Innovating Sustainable Denim for New Generation Market", and “Sustainable Wet Processing”. The panel discussions was held on “Building leaders for sustained growth".

BGMEA, BUFT, CBI, C&A, H&M, GIZ, IFC, BENETTON, WRAP were the seminar partners.

Senior Vice President of BGMEA Faruque Hassan moderated the seminar ‘Innovating Sustainable Denim for New Generation Market’ which was held on the 2nd day of the Expo.

According to the organizers, the expo was a great success. A significant number of denim buyers from across the world visited the expo.

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THE APPAREL STORY 53

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THE APPAREL STORY 55

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