Fashion
BGMEA urges Bangladesh govt to reconsider recent policy decisions
The association urged the interim government to reconsider the policy decisions.
The Bangladesh Labour (Amendment) Ordinance 2025, the rise in Chattogram Port tariffs and the timeline for graduation from the LDC status together pose serious challenges for the balance, investment and competitiveness of the RMG industry, according to trade body BGMEA.
The association urged the interim government to reconsider the policy decisions and ensure a business-friendly environment.
After extensive discussions at the Tripartite Consultation Council (TCC) and its working committee, a balanced proposal was arrived at regarding trade union formation, allowing a union to be formed in factories employing 50 to 500 workers with the consent of at least 50 workers. However, the advisory council later changed the provision without consultation, setting the range at 20-300 workers.
“If a union can be formed with just 20 workers, outsiders may also become involved, leading to internal conflict, instability and disruption in production,” BGMEA president Mahmud Hasan Khan was quoted as saying by domestic media outlets.
He said India requires the consent of at least 10 per cent of workers or a minimum of 100 workers to form a union, while Pakistan requires 20 per cent. Compared to these standards, Bangladesh’s proposed framework will be the weakest and most unstable in South Asia, he lamented.
The TCC had earlier decided that a company could choose either the Future Fund or Progoti scheme for pension. But under the new proposal, workers can participate in both schemes simultaneously, forcing employers to maintain two separate financial mechanisms.
This will create administrative complications, increase expenses and lead to disorder in fund management, he alleged.
The inclusion of ‘officers and employees’ in the definition of ‘worker’ as another major risk, he pointed out, blurring the line between management and workers and creating confusion in responsibility and decision-making, he said.
While rivals have already adopted investment-friendly reforms in technology, infrastructure and labour laws, such irrational laws implemented in Bangladesh will lead to a decline in foreign investment, a fall in exports and a rise in instability across industries, he cautioned.
Though the Ministry of Shipping claims port tariffs have not been raised in 40 years, as Chattogram Port collects its fees in US dollars, entrepreneurs are already paying 308 per cent more in local currency due to depreciation of taka, he said.
He urged the government to ensure a business-friendly environment, resolve the gas crisis, simplify customs and National Board of Revenue processes, improve infrastructure and logistics, and make low-cost financing available.
Fibre2Fashion News Desk (DS)
Fashion
UK’s clothing imports fall 3% in Q1, sharply lower than Q4 2025
During the first quarter of ****, the UK’s imports of textile fabrics eased down *.** to £*,*** million (~$*,*** million), against £*,*** million in January-March **** but slightly higher from £*,*** million in the fourth quarter of ****. Its imports of fibre were noted at £** million (~$***.** million) steady as £** million in Q*, **** but slightly lower than £** million in Q*, ****.
During the third month of this year, the country’s clothing imports declined *.** per cent to £*.*** billion (~$*.*** billion), compared with £*.*** billion in March ****. But the inbound shipment was slightly higher month on month compared with £*.*** billion in February ****.
Fashion
Inflation cuts deep into consumer spending in Bangladesh: DCCI index
Higher rents, utility bills and fuel prices are eating away at already thin profit margins, it found.
High inflation is cutting deep into Bangladesh consumer spending, with weak demand turning one of the biggest concerns for businesses, DCCI said.
Higher rents, utility bills and fuel prices are eating away at already thin profit margins.
DCCI’s economic position index revealed that consumers have sharply reduced spending as the cost of living continues to rise.
SMEs are feeling the pressure the most.
The chamber’s economic position index (EPI) revealed that consumers have sharply reduced spending as the cost of living continues to rise, putting pressure on retailers, transport operators and other service providers.
Small and medium enterprises (SMEs) are feeling the pressure the most as they struggle to manage higher operating costs without losing customers.
Businesses also cited difficulties in obtaining bank loans, while delays in licensing and other regulatory procedures are adding to costs.
The DCCI report identified a shortage of skilled workers, particularly in technical and customer service roles, as another challenge for the sector.
The country’s inflation rose to 9.04 per cent in April from 8.71 per cent in March, according to official statistics.
Fibre2Fashion News Desk (DS)
Fashion
EU green mandates and the Vietnam T&A industry
With sustainability benchmarks rising, companies are rethinking how they produce and deliver, pivoting toward greener, more circular models that reduce waste, emissions, and resource use.
The stakes are high. In 2025, Vietnam’s exports to the EU reportedly reached $56.2 billion, up 10.1 per cent year on year, underscoring how pivotal Europe is for the country’s manufacturing base.
Vietnam’s textile and footwear exporters are accelerating sustainability efforts as stricter EU regulations reshape market access requirements.
Rising compliance pressure from measures such as CBAM and ESPR is pushing manufacturers toward circular production, cleaner technologies and greater supply-chain transparency, though limited green finance remains a major challenge for smaller firms.
The EU market, nevertheless, comes with its own challenges as access to this market increasingly depends on meeting strict environmental and product-design requirements.
The EU is rolling out an ambitious sustainability agenda, including the Carbon Border Adjustment Mechanism (CBAM) and the Ecodesign for Sustainable Products Regulation (ESPR). Together, these measures are changing what global suppliers must document, design, and decarbonise.
ESPR shifts expectations toward durability, repairability, and recyclability, while pushing manufacturers to reduce products’ overall environmental footprint. Supply chains are also expected to become more transparent through Digital Product Passports, and practices such as destroying unsold goods being phased out gradually.
For Vietnam’s exporters, compliance is becoming a baseline requirement to keep EU orders and remain competitive.
Recognising this, both the Government and industry players are stepping up. Vietnam’s long-term development strategy for textiles and footwear, which stretches to 2030 with a vision toward 2035, places sustainability at its core. The plan charts a path toward efficient, environmentally responsible growth anchored in a circular economy, where materials are reused, waste is minimised, and production cycles are closed rather than linear.
Crucially, it also provides a legal backbone to help businesses align with global sustainability trends.
On the ground, change is already underway. Textile and apparel manufacturers are investing in renewable energy, upgrading machinery, and fine-tuning production processes to cut emissions and resource use. These shifts are not just about compliance; they are about future-proofing operations in a market where green credentials increasingly determine who wins contracts.
However, the transition has not been entirely seamless. A key barrier seems to be access to green finance, especially for small and medium-sized enterprises. Large firms can more readily fund clean technologies and certification, while smaller suppliers often struggle to fund the shift, risking exclusion from high-value export markets if they cannot keep pace.
There is also a growing recognition that policy support needs to go further. As Vietnam leans into a circular economy, industry voices are calling for a more cohesive and comprehensive framework, one that not only sets clear standards for circular products but also actively incentivises recycling, cleaner production, and sustainable innovation.
Without this, progress risks being uneven, with smaller firms left behind.
Momentum is, nevertheless, building as manufacturers and policymakers push for better-aligned standards and support mechanisms. The goal is to narrow the gap between sustainability ambition and day-to-day implementation across the sector.
The aim is clear: create an ecosystem where businesses of all sizes can invest in circular solutions, strengthen their export capabilities, and meet the EU’s exacting standards head-on.
Fibre2Fashion News Desk (DR)
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