Global apparel company Komar has been recognized as a ZDHC Roadmap to Zero Program Brands to Zero "Champion" in the 2026 Brands to Zero assessment cycle, based on its 2025 performance data.

The achievement marks a significant milestone for the company, which attained ZDHC Signatory Brand status in January 2026 and participated in the Brands to Zero assessment for the first time.

A global leader in the design, sourcing, manufacturing, and distribution of high-quality sleepwear, layering, and intimates, Komar is committed to building a more ethical and sustainable business model—where creating high-quality apparel enhances people’s quality of life.

Komar's sustainability journey under the ZDHC framework began in 2024 when the company joined the program as a Friend Brand. Since then, it has worked to integrate ZDHC requirements across its operations and supply chain, focusing on strengthening chemical management practices, increasing supplier engagement, improving transparency, and promoting responsible manufacturing.

The Brands to Zero program evaluate how effectively brands implement the ZDHC Roadmap to Zero across their operations and supply chains. Achieving Champion status in its inaugural assessment reflects Komar's progress in advancing sustainable chemical management and environmental stewardship throughout its value chain.

According to the company, the recognition highlights the efforts of its sustainability, sourcing, and operational teams, along with supplier partners who have collaborated to implement responsible chemical management practices.

Komar noted that the achievement goes beyond recognition, emphasizing the positive impact of safer chemistry, improved environmental performance, reduced operational risks, and stronger industry collaboration.

The company described sustainable chemical management as a critical component in building a more responsible apparel and textile sector.

Komar's Chief Sustainability Officer (CSO) credited the accomplishment to the company's sustainability team, including Vasuki De Silva, Pillar Lead for Chemicals and Wastewater; Tharushi N., Chemical Sustainability Executive; Celeste Chan, East Asia Regional Sustainability Lead; and Helal Uddin, Bangladesh Sustainability Officer.

The company also congratulated other brands that achieved Champion recognition in the assessment cycle, highlighting the importance of collaboration in driving sustainability across the industry.

Notably, with the help of its supplier partners and the ZDHC Foundation, Komar reaffirmed its commitment to continuous improvement as it advances broader sustainability and climate goals.

Brazil's cotton market remained under pressure in early June as weak liquidity, pricing disagreements, and cautious buying behavior slowed trading activity across the country's cotton supply chain.

According to the Center for Advanced Studies on Applied Economics (CEPEA) of the University of São Paulo, buyers and sellers struggled to agree on both prices and fiber quality specifications. The gap between expectations limited new transactions and reduced market liquidity.

The development is important for global textile manufacturers because Brazil has become one of the world's leading cotton exporters and a key sourcing destination for spinning mills in Asia, including Bangladesh, China, Vietnam, and Pakistan.

Market participants reported that lower international cotton prices further discouraged fresh business. Despite weaker trading activity, crop conditions remain favorable. According to Brazil's National Supply Company (Conab), cotton fields continue to show good development, indicating the possibility of a stable supply in the coming months.

The CEPEA/ESALQ cotton index, based on payment within eight days, fell 0.92% between June 1 and June 8 to BRL 4.1988 per pound. The benchmark was down 1.88% for the month through June 8.

Brazilian cotton prices remained approximately 10.1% above export parity levels, making negotiations more challenging for domestic buyers.

However, export competitiveness received support from currency movements. A weaker Brazilian real and a stronger US dollar increased export parity values. CEPEA calculations showed export parity Free Alongside Ship (FAS) prices rose 2.7% during the first week of June to BRL 3.8764 per pound at the Port of Santos and BRL 3.8869 per pound at the Port of Paranaguá.

Meanwhile, the international market also softened. The Cotlook A Index, a key global benchmark for cotton prices, declined 0.63% to $0.8615 per pound during the same period.

Why it matters for the textile industry

The slowdown in Brazilian cotton trading reflects broader uncertainty in the global fiber market. While adequate crop conditions suggest no immediate supply concerns, weaker demand and declining international prices indicate that spinning mills remain cautious about future consumption trends.

For textile manufacturers, particularly in major cotton-importing countries, the current market environment may present opportunities for strategic procurement if global cotton prices continue to decline. However, currency volatility and export demand could still influence pricing dynamics during the second half of 2026.

The global circular denim initiative, Denim Deal, has launched the Denim Deal Innovation Hub to help scale next-generation circular denim technologies across the industry.

The new platform will connect technology innovators with brands, mills, recyclers, and supply chain partners. Its goal is to move promising solutions beyond pilot projects and into commercial production. The initiative supports Denim Deal's target of producing 1 billion pairs of jeans containing at least 20% post-consumer recycled cotton by 2030.

The first group of innovators reflects growing industry focus on sustainable coloration and chemical processing. These include Colorized, which offers yarn coloration technology that can reduce water use and eliminate wastewater discharge. Infinity Blue is developing systems to recover synthetic indigo pigment from denim waste for reuse. Sudoc is advancing low-impact finishing solutions that enable faster shading at lower temperatures without potassium permanganate. Meanwhile, Thirty2 is developing bio-based alternatives to conventional fossil-based indigo.

The initiative highlights that circularity in denim will depend on more than fiber recycling. Technologies for dye recovery, bio-based colorants, cleaner finishing processes, and supply chain transparency are becoming increasingly important for building circular denim value chains.

The Innovation Hub builds on Denim Deal's recent expansion efforts, including the India Denim Deal Hub developed with the Global Alliance for Textile Sustainability Council and Enviu Textiles. As brands strengthen their circularity commitments, such collaborative platforms are expected to play a key role in scaling sustainable denim production worldwide.

The Society of Dyers and Colourists (SDC), the UK-based educational charity and global professional body for color professionals, has elected Liz Straughan as its president for 2026-27 following its recent annual general meeting in Bradford, United Kingdom. The society also appointed three new trustees.

Liz Straughan, Managing Director of STP Ltd, succeeds Stuart Wilkinson, who completed his term as president after a year focused on promoting the society’s historical resources and encouraging younger generations to pursue careers in the textile industry.

Straughan brings decades of experience spanning textile dyeing, finishing, machinery sales and textile chemicals. She began her involvement with the SDC early in her career at Loughborough Dyeworks, representing the Midlands Region on the SDC Council.

Her career later expanded into international textile machinery sales across Africa, Central and Southeast Asia, and the Middle East. She subsequently co-founded a UK-based dyestuff and chemical trading company with her late husband Richard Straughan, a former SDC president who served from 2013 to 2015.

Currently serving as chair of the SDC Enterprises Group Ltd Board, Straughan has also held positions as trustee and trustee-director of SDC Enterprises. She was awarded Fellow of the Society of Dyers and Colourists and Chartered Colourist status in 2009 and received the society’s Silver Medal in 2016.

Wilkinson, now retired, has been a member of the SDC for 36 years. During his long association with the organization, he received the Bronze Medal in 2003 for his contributions to the Huddersfield Region and the Silver Medal in 2009 for his dedicated service to the Colour Index and the North of England Region.

Commenting on the leadership transition, SDC Chief Executive Graham Clayton said Straughan’s extensive international industry experience and long-standing commitment to the society would support its future ambitions.

A high-level German delegation visited DBL Group's textile manufacturing facilities in Kashimpur on June 10 to gain first-hand insight into Bangladesh's integrated textile and apparel production ecosystem and its growing sustainability efforts.

The delegation included Frank Hartmann, Director General for Asia and the Pacific at Germany's Federal Foreign Office, and Steffen Koch, Head of the South Asia Division. During the visit, DBL Group demonstrated the complete apparel manufacturing process, beginning with spinning cotton into yarn, then dyeing and finishing fabric, and finally producing garments.

The visit came as Germany seeks to deepen economic engagement with Bangladesh and better understand the country's industrial capabilities. Germany remains one of Bangladesh's key export destinations, particularly for ready-made garments. During discussions in Dhaka, German officials emphasized the importance of continued economic cooperation and sustainable industrial development.

DBL Group, one of Bangladesh's leading vertically integrated textile and apparel manufacturers, used the visit to highlight the industry's transformation toward responsible production. The company employs more than 51,000 people and has invested significantly in sustainable manufacturing practices across its operations.

German officials were introduced to DBL's environmental and social sustainability initiatives, including its 5 Pillar Sustainability Strategy, which focuses on responsible business practices, resource efficiency, employee well-being, community engagement, and environmental stewardship. The delegation also learned about the company's Female Supervisor Program, designed to increase women's participation in leadership positions within factory operations.

The visit offered a closer look at how Bangladesh's textile and apparel sector is moving beyond basic manufacturing by integrating sustainability, workforce development, and value-added production.

As Bangladesh prepares for its post-LDC transition, visits by senior policymakers and trade partners continue to highlight the strategic importance of the country's textile and apparel sector, which remains the backbone of export earnings and industrial employment.

Bangladesh expects more foreign investment, stronger energy security, and deeper integration into global supply chains through its new trade agreement with the United States.

Speaking in Parliament on June 17, Dr Khalilur Rahman, Foreign Minister, said the Agreement on Reciprocal Trade (ART) gives duty-free access to the US market for ready-made garments made with American cotton.

He said the agreement will help attract foreign investment, strengthen energy security, and improve Bangladesh’s position in global supply chains.

Responding to a question from MP AKM Fazlul Haque Milon, the minister said the government is working to attract international investors through trade agreements, business engagement programs, and investment promotion activities.

Bangladesh signed the ART agreement with the United States on February 9, 2026. Industry experts say the agreement may increase Bangladesh’s imports of US products such as cotton, energy products, wheat, soybeans, and aircraft.

For the textile and apparel industry, the agreement could increase the use of American cotton in Bangladesh’s garment sector. It may also strengthen trade relations between Bangladesh and the United States.

The minister said diversification remains a major focus of Bangladesh’s foreign policy. The country is strengthening economic ties with key partners, including the US, EU, UK, Japan, South Korea, China, Canada, Australia, and countries in the Middle East. Bangladesh is also expanding cooperation with emerging markets in ASEAN, Africa, Central Asia, and Latin America.

Khalilur Rahman said global trade shifts, energy concerns, technology competition, climate challenges, and geopolitical tensions are changing international relations. He said Bangladesh is following a flexible policy that protects national interests and supports economic growth.

At the same time, Bangladesh is exploring new export destinations and new labor markets.

For the textile sector, the ART agreement could create new opportunities for sourcing, investment, and export growth. Industry stakeholders will closely watch how the duty-free access for garments made with American cotton affects Bangladesh’s competitiveness in the US market.

As Bangladesh prepares to implement the budget for the 2026–27 fiscal year, expectations are running high across its most vital economic sector - the textile and apparel industry. Against the backdrop of global economic uncertainty, rising operational costs, and intensifying competition, industry leaders are looking toward fiscal policy not merely as a financial instrument but as a catalyst for growth, resilience, and transformation.

As Bangladesh prepares to implement the budget for the 2026–27 fiscal year, expectations are running high across its most vital economic sector - the textile and apparel industry. Against the backdrop of global economic uncertainty, rising operational costs, and intensifying competition, industry leaders are looking toward fiscal policy not merely as a financial instrument but as a catalyst for growth, resilience, and transformation.

In the latest episode of Textile Today Newsroom Explainer, Enamul Hafiz Latifee, Chief Research Officer of Textile Today Innovation Hub, sat down with the leading textile and apparel sector entrepreneur Quamar Alam, Director, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) & Managing Director, Florence Group, to discuss what the 2026-2027 budget means for Bangladesh's textile and apparel sector.

The conversation opened with a crucial question: Can the government balance its revenue ambitions with the need to support the country's export-driven industries?

With discussions suggesting a significantly larger national budget and an increased National Board of Revenue (NBR) target, Latifee pointed out that higher tax collection goals often translate into additional pressure on the private sector.

Quamar Alam acknowledged the importance of taxation in sustaining government functions and national development. Tax, he noted, is a vital tool through which governments finance public services and infrastructure. However, he emphasized that exporters in Bangladesh already contribute through various channels, including source tax, VAT, and import-related taxes. The bigger concern, according to Quamar Alam, is timing.

Global manufacturers are currently navigating extraordinary challenges. Geopolitical conflicts, including tensions in the Middle East and the prolonged Russia-Ukraine war, have disrupted supply chains and driven up energy costs. Commodity demand has weakened worldwide, resulting in slower export growth for Bangladesh.

"Manufacturers are under immense pressure," Alam explained, arguing that maintaining taxes at a reasonable level could provide much-needed relief to exporters trying to remain competitive. The discussion then shifted to a broader economic picture.

Although Bangladesh aims for GDP growth of around 6.5 percent, inflation remains stubbornly high. Rising fuel prices, energy costs, and global supply disruptions continue to push production expenses upward.

These inflationary pressures inevitably raise expectations for higher wages. Yet Quamar Alam questioned whether manufacturers currently possess the financial capacity to absorb another significant increase in labor costs. He pointed out that the industry has already undergone substantial wage adjustments in recent years, alongside annual increments. For businesses operating on thin margins, continuously escalating costs threaten long-term sustainability.

For Bangladesh to maintain economic momentum, Quamar Alam argued, private sector investment must remain strong. This requires one essential ingredient: accessible financing.

He expressed concerns that extensive government borrowing from banks could crowd out private sector credit. Banks naturally prefer secure government lending opportunities, potentially limiting capital availability for businesses seeking working capital or expansion financing. "If investment slows, GDP growth slows. If GDP growth slows, exports cannot thrive," he observed.

Another major theme of the discussion was the industry's transition from cotton-based manufacturing toward man-made fiber (MMF) production. Globally, man-made fibers account for approximately 78 percent of garment production, and demand continues to rise. Bangladesh's heavy reliance on cotton-based products raises concerns about future competitiveness. However, Latifee highlighted a critical challenge- transitioning to MMF production requires massive investments.

While establishing a medium-sized garment factory may require around BDT 100 crore, setting up man-made fiber production facilities could demand investments exceeding BDT 1,000 crore. Such a transformation is beyond the reach of many domestic investors without external support. Quamar Alam agreed that government intervention would be essential.

He proposed several measures, including investment incentives, one-stop service facilities for investors, improved conditions for foreign direct investment (FDI), and dedicated government-supported funding mechanisms. Drawing comparisons with other countries, he argued that strategic sectors rarely achieve significant growth without active government participation.

Energy availability also emerged as a major obstacle.

According to Quamar Alam, obtaining gas connections for industrial projects can take years in Bangladesh, severely undermining investor confidence. Efficient infrastructure and administrative reforms, he suggested, are prerequisites for industrial transformation. The conversation also touched upon Bangladesh's growing leadership in sustainable manufacturing.

The country is home to some of the world's highest-rated green garment factories, positioning itself as a global leader in environmentally responsible apparel production.

Yet Latifee, raised concerns about reports suggesting possible increases in taxes on green technologies and machinery. Such measures, if implemented, could discourage future sustainability investments.

Quamar Alam argued that green transformation delivers long-term benefits despite higher upfront costs. Reduced energy consumption, water savings, and operational efficiencies generate value over time. Rather than creating additional barriers, he implied that policymakers should encourage these investments.

Beyond infrastructure and fiscal incentives, innovation emerged as another critical area requiring attention.

Latifee emphasized that countries competing successfully in global textile markets actively support research and development through grants and innovation funding. Bangladesh, however, often relies primarily on traditional financing mechanisms.

Quamar Alam acknowledged that although textile-related education programs have expanded significantly, the country still lacks visible breakthroughs in textile innovation.

Reflecting on a visit to the Netherlands, he described witnessing university researchers developing advanced fabrics with innovative functionalities, recycling technologies, and entirely new material applications. Such examples illustrate the importance of stronger collaboration between academia, industry, and government to foster a culture of research-driven growth.

The discussion further explored the need for improved international branding and market development initiatives.

Bangladesh's garment sector directly employs millions of workers while supporting an extensive ecosystem of textile mills, accessories manufacturers, transport providers, logistics operators, and port services.

Given the sector's strategic importance, both speakers stressed the value of coordinated branding efforts involving government agencies and industry stakeholders. International roadshows, trade promotion initiatives, and dedicated representation in overseas markets could strengthen Bangladesh's position as a preferred sourcing destination.

As the conversation drew to a close, Latifee asked Quamar Alam about his expectations from the country's new leadership and the budget.

Alam's response focused on two priorities. First, he called for making financing more accessible for entrepreneurs and manufacturers. Adequate capital availability, he argued, remains fundamental to sustaining investment and expansion.

Second, he emphasized the urgent need to reduce bureaucratic obstacles and improve the ease of doing business. Simplifying procedures, minimizing unnecessary delays, and eliminating administrative harassment would significantly improve Bangladesh's investment climate.

Despite the numerous challenges facing the industry, Alam expressed optimism about the resilience of Bangladeshi entrepreneurs.

From the COVID-19 pandemic to global conflicts and economic downturns, the country's business community has repeatedly demonstrated its ability to adapt and survive.

With supportive fiscal policies, improved access to finance, and a stronger commitment to innovation and competitiveness, Bangladesh's textile and apparel industry may once again find the momentum needed to drive the nation's economic growth.

As policymakers finalize the budget for the 2026–27 fiscal year, the message from industry leaders is clear: strategic support today could determine whether Bangladesh merely withstands future challenges or emerges stronger from them.

Textile Today Newsroom Episode Conceptualization: Enamul Hafiz Latifee, CRO, TTIH

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has emphasized the need for the swift and effective implementation of the National Single Window (NSW) project to make Bangladesh's import and export processes faster, more transparent and paperless. 

The call came during a meeting of the Project Implementation Committee held at the National Board of Revenue (NBR) headquarters in Agargaon, Dhaka, on June 16. The meeting reviewed the progress of the NSW project and discussed various implementation-related issues. 

The National Single Window project, being implemented under the NBR, aims to streamline trade procedures by integrating multiple regulatory agencies into a single digital platform, reducing paperwork and improving efficiency in cross-border trade. 

Representing BGMEA at the meeting, Director Kazi Mizanur Rahman stressed the importance of accelerating the project's implementation for the benefit of Bangladesh's export-oriented ready-made garment (RMG) sector.  

He urged authorities to ensure that the system remains user-friendly, transparent and time-efficient for businesses. 

During the discussion, Kazi Mizanur Rahman presented several recommendations to enhance the effectiveness of the platform.  

These included:  

• Full integration between ASYCUDA and the National Single Window system. 

• Faster online issuance of CLPIA and other licenses and certificates. 

• Establishment of a fixed timeline for issuing re-export certificates. 

• The introduction of training programs and helpdesk services for business users.  

He also emphasized the importance of regularly incorporating feedback from the private sector, ensuring system stability and strengthening data security measures to support smooth and reliable operations. 

Also, BGMEA is fully prepared to cooperate with the NBR in implementing the initiative, which is expected to contribute significantly to trade facilitation and ease of doing business in Bangladesh 

Meanwhile, Kazi Mizanur Rahman urged authorities to give due consideration to business realities and user requirements at every stage of the project's implementation to ensure its success and maximize benefits for exporters and importers alike. 

Vietnam's textile and apparel industry is preparing for a crucial trade policy deadline that could influence sourcing decisions across global fashion supply chains.

The focus is on July 24, when the temporary 10% emergency surcharge imposed by the United States under Section 122 of the Trade Act is scheduled to expire. Industry stakeholders are closely watching whether a proposed Section 301 tariff framework will replace the temporary measure.

A year of rapid policy changes

Vietnam's apparel exporters have experienced significant trade policy uncertainty over the past year.

Following a US Supreme Court ruling in February 2026 that struck down certain reciprocal tariffs, Vietnamese exporters initially gained relief from higher trade penalties. However, the US administration subsequently introduced a temporary 10% emergency surcharge under Section 122 while exploring longer-term alternatives.

The temporary measure is scheduled to end on July 24. Industry attention is now focused on a proposed Section 301 framework that could impose additional duties linked to supply chain compliance and labor related concerns.

Vietnam remains competitive despite tariff pressure

Although additional tariffs could increase sourcing costs, analysts note that Vietnam is unlikely to lose its competitive position overnight.

A key factor is that other major apparel exporting countries, including Bangladesh, Cambodia, and Indonesia, may also face similar trade measures. This means Vietnam would not be uniquely disadvantaged in the global sourcing market.

At the same time, potential tariff levels remain significantly below the higher duties that many brands feared during earlier phases of trade policy discussions.

As a result, most global buyers are expected to maintain sourcing relationships with Vietnam while continuing to diversify production bases.

US cotton creates strategic leverage

One of Vietnam's strongest advantages in trade discussions is its close relationship with the US cotton sector.

Vietnam is one of the largest buyers of American cotton, accounting for a substantial share of US cotton exports. This trade relationship has become increasingly important as policymakers evaluate future textile trade frameworks.

Industry observers believe manufacturers with established access to US-sourced cotton could benefit if future preferential mechanisms or quota systems are introduced.

Large vertically integrated companies that already use American cotton and maintain strong traceability systems may be better positioned to adapt to evolving trade requirements.

Compliance becomes a competitive advantage

The most significant shift may not be tariffs themselves but the growing importance of supply chain transparency.

Factories that can demonstrate full visibility from fiber to finished garment are likely to secure stronger partnerships with international buyers.

This trend is accelerating the transformation of Vietnam's textile industry from a low-cost manufacturing hub into a higher-value, compliance-driven sourcing destination.

Industry outlook

The period after July 24 will likely mark another important phase in global apparel sourcing.

While tariff uncertainty remains, Vietnam's strengths in manufacturing capability, integrated supply chains, skilled workforce, and strong cotton trade links continue to support its position in the global market.

According to industry analysts, manufacturers that invest in traceability, sustainability, and strategic raw material partnerships will be best positioned to navigate the evolving trade environment and capture future sourcing opportunities.

Key insights:

• The U.S. wants a real domestic law passed, not just a written promise.
• Total U.S. tariffs could jump to 29%, hurting price competitiveness.
• S. investigators are double-checking where the fabric raw materials actually come from.
• Proving clean supply chains is now just as vital as having low prices.
• Bangladesh has only a few weeks to submit its defense before the July hearings.

A proposed 10% additional tariff linked to forced labor compliance concerns has placed Bangladesh under increasing pressure to strengthen its import control framework and supply chain transparency.

The issue stems from a Section 301 investigation launched by the United States Trade Representative (USTR). The investigation focuses on whether trading partners are effectively preventing imports made with forced labor from entering their supply chains.

For Bangladesh, the stakes are exceptionally high.

The country exports more than $8 billion worth of apparel annually to the United States. The ready-made garment sector employs more than four million workers and remains the backbone of Bangladesh's export economy.

The reason is both positive and concerning.

Bangladesh benefits from the Agreement on Reciprocal Trade signed with the United States in February 2026. The agreement demonstrates a formal commitment to strengthening labor and trade compliance standards.

However, US authorities want legally enforceable domestic measures that specifically prohibit the import of goods produced through forced labor. This distinction has become the central issue in the ongoing dispute.

The Xinjiang cotton factor

A major concern for US regulators is the global cotton supply chain. The investigation references China's Xinjiang region, which remains under intense scrutiny under the Uyghur Forced Labor Prevention Act. According to US findings, most Chinese cotton production originates from Xinjiang.

While Bangladesh's textile mills consistently state that they source cotton primarily from countries such as Brazil and India, US investigators are increasingly focused on indirect sourcing routes.

Their concern is that raw materials may pass through multiple countries before reaching manufacturing facilities, making origin verification more difficult.

This reflects a broader shift in global trade enforcement.

Bangladeshi apparel products already face a reciprocal tariff framework under the bilateral trade arrangement signed earlier this year. If the additional penalty is imposed, cumulative tariffs could rise to approximately 29%. Such a rate would create significant cost pressure for US buyers. Higher tariffs could reduce Bangladesh's cost advantage and encourage buyers to diversify orders across multiple sourcing markets.

Industry observers warn that even a modest shift in purchasing decisions could affect export growth, investment plans, and employment generation.

A compliance challenge rather than a labor challenge

In recent years, Bangladesh has made substantial progress in workplace safety, factory inspections, and labor rights reforms.

Instead, the debate centers on supply chain governance and import compliance.

The United States is increasingly demanding traceability from raw material to finished product. This reflects a wider global trend where governments are linking market access to environmental, social, and human rights standards.

The coming weeks will be critical

Bangladesh has until June 22 to request participation in USTR hearings. Formal submissions are due by July 6, with public hearings scheduled for July 7.

Trade analysts believe the most effective long-term solution would be the introduction of a dedicated law prohibiting imports linked to forced labor.

The outcome of this dispute may therefore extend far beyond tariffs. More importantly, it would help position Bangladesh as a trusted sourcing destination in an era where transparency and traceability are becoming central pillars of global trade.

Bangladesh has earned international recognition for improving labor rights through recent legal reforms. The changes have made it easier for workers to form unions and expanded legal protections for employees in key sectors, including readymade garments.

The reforms come as global brands pay closer attention to labor standards across supply chains. Strong worker protections are increasingly important for maintaining buyer confidence and securing long-term business.

According to IndustriALL Global Union, the progress reflects years of advocacy by labor organizations in Bangladesh and abroad. The group said the reforms have helped improve the country's position in global labor rights assessments.

For Bangladesh's garment industry, this development is strategically important for its position as a responsible sourcing destination.

However, trade unions say the real challenge lies in implementation. Reports of weak labor inspections, delays in union registration, and barriers to worker organization continue to raise concerns.

Industry experts believe labor reforms must be supported by effective enforcement to deliver meaningful results. Strong implementation can help improve working conditions, reduce workplace disputes, and build trust among international buyers.

Bangladesh has already made significant progress in factory safety over the past decade. The latest labor reforms build on that momentum and signal a commitment to continuous improvement.

Leading apparel manufacturer Ha-Meem Group has launched a new accessories manufacturing facility in Narsingdi as part of its strategy to reduce lead times in garment production and strengthen local backward linkage industries.

The production activities of the new factory, named Ha-Meem Ching Thai Pocketing and Accessories, were formally inaugurated on 15 June at Ghorashal in Narsingdi by A.K. Azad, Managing Director, Ha-Meem Group. Representatives from several international apparel brands and buyers attended the inauguration ceremony.

Company officials said the new venture is expected to generate employment for approximately 15,000 people.

Speaking at the event, A.K. Azad said that long lead times remain one of the biggest challenges for Bangladesh's garment industry. While fabrics are mostly available locally, many accessories still have to be imported from China, which often delays production and shipment of garments.

To address this challenge, Ha-Meem Group has established the factory in partnership with Chinese company Ching Thai, utilizing advanced Chinese technology and modern machinery to manufacture a wide range of garment accessories locally.

"The accessories produced here will not only meet the requirements of Ha-Meem Group's factories but will also be exported to international markets," Azad said. "This will help reduce lead times, lower import dependency, save foreign currency and generate export earnings."

Notably, Ha-Meem Group aims to build a fully integrated textile and apparel supply chain, from raw material production to finished garments, provided that uninterrupted power supply and necessary infrastructure support are ensured.

Azad also highlighted the group's efforts in reviving closed industrial units, noting that previously shuttered facilities such as Nishat Jute Mill in Tongi and Muslin Cotton Mills in Kaliganj have resumed production under Ha-Meem Group's management.

Representatives of global buyers welcomed the initiative. Javier Santoja Olmedo, Country Manager of Spain-based fashion retailer Inditex in Bangladesh, said the project would benefit all stakeholders in the apparel value chain.

"Local production and supply of quality accessories will help address one of the key weaknesses of Bangladesh's garment industry—lead time," he said. "This will increase buyers' confidence in placing export orders and support further growth of Bangladesh's apparel exports."

Other buyer representatives also encouraged the expansion of similar backward linkage investments across the sector.

According to company sources, the factory has been established on part of a 52-acre site in Ghorashal, Palash upazila, where the privately owned Fawzia Jute Mill previously operated.

The mill had remained closed for many years due to financial losses before being acquired by Ha-Meem Group in 2014.

Following the acquisition, Ha-Meem Group cleared all outstanding dues and salaries owed to former workers. The new accessories factory has initially been developed on six acres of land, with Chinese partner Ching Thai holding a 25 percent stake in the venture.

The facility is expected to produce between 600,000 and 700,000 yards of fabric and accessories per month during the initial phase. Production capacity is projected to increase to 2 million yards per month once the factory reaches full-scale operations.

Initial investment in the project stands at approximately Tk 100 crore, with plans to gradually expand production to include all categories of garment accessories.

Local residents and former workers expressed optimism that the project would create new economic opportunities and contribute to the development of the surrounding area.

Among others attending the inauguration were Mohammad Ali, Chief Assistant Engineer of Narsingdi Palli Bidyut Samity; Muhammad Amin, Chief Executive Officer of Ha-Meem Textile Zone; AKM Mahfuzul Haque, Head of Accessories Division of Ha-Meem Group; and Nitish Chandra Sikdar, General Manager of the group.

Major textile and apparel trade bodies welcomed the proposed FY2026-27 national budget, saying it includes several positive measures to support investment, exports, business facilitation, tax reforms, and renewable energy adoption.

BGMEA welcomes reforms

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) welcomed the proposed budget and described it as broadly business-friendly and reform-oriented. The association appreciated the government's focus on policy stability, tax system digitalization, business startup simplification, renewable energy incentives, modernization of the bond and VAT systems, and support measures for SMEs and women entrepreneurs. BGMEA said these initiatives provide a positive signal for industry and investment during a challenging global business environment.

However, BGMEA urged the government to further support the garment sector by reducing the export source tax to 0.65% for five years, waiving the 10% tax on cash incentives, removing the 1% double source tax on subcontracting, simplifying VAT exemptions for SMEs, protecting existing corporate tax rates for apparel and green factories, and withdrawing additional duties on PSF, PVC resin, and PET resin.

BKMEA welcomes key industry measures

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) expressed overall satisfaction with the proposed budget. BKMEA President Mohammad Hatem said the government's initiatives on tax reforms and expanded duty benefits for solar power systems addressed two of the industry's long-standing demands. He added that duty-free imports of raw materials for eligible exporters and easier sourcing from bonded suppliers would help improve export performance and industrial growth.

At the same time, BKMEA emphasized the need for a clear and effective mechanism for the adjustment, carry-forward, and refund of Advance Income Tax (AIT). The association also requested a review of the proposed 5% duty on polyester staple fiber imports, expanding domestic gas exploration, maintaining long-term policy predictability, and reducing high lending rates that continue to discourage investment and business expansion.

BTMA appreciates support for the textile sector

The Bangladesh Textile Mills Association (BTMA) welcomed the budget's emphasis on investment, production, employment generation, export competitiveness, and ease of doing business. The association appreciated the reduction in tax rates on recycled materials, duty exemptions on solar power equipment, provisions for free trade zone development, and the continuation of duty benefits for ETP-related chemical imports.

However, BTMA warned that removing the 30% value-addition requirement for raw material imports could weaken domestic industry competitiveness. The association also called for a 15% corporate tax rate, stable tax policies, stronger support for local manufacturers, and urgent action to address energy shortages, high financing costs, and growing global competition.

DCCI welcomes a business-friendly budget, but raises concerns over borrowing

The Dhaka Chamber of Commerce and Industry (DCCI) described the proposed national budget for FY2026-27 as business and investment-friendly. DCCI President Taskeen Ahmed praised the reduction of withholding tax on industrial raw materials to 4 percent, calling it a positive step for industrial growth.

However, DCCI expressed concern over high government borrowing from the banking sector. The chamber said the budget's success will depend on revenue collection and effective implementation of reforms. It also urged the government to raise the tax-free income threshold to Tk 500,000, citing continued inflation.

FBCCI backs pragmatic budget and stresses effective implementation

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) welcomed the proposed budget for FY2026-27, describing it as pragmatic and implementable. The apex trade body said the budget appropriately prioritizes economic stability, investment, employment generation, and production growth.

However, FBCCI identified revenue mobilization and efficient budget execution as the country's two most critical challenges. The organization also advised the government to exercise caution in domestic borrowing to avoid crowding out credit available to the private sector.

BIDA highlights investment reforms and institutional coordination

Following the budget announcement, the Bangladesh Investment Development Authority (BIDA) emphasized the importance of institutional coordination and trade modernization. Ashik Chowdhury, Executive Chairman, BIDA, said the government has adopted a 180-day action plan aimed at increasing both domestic and foreign investment. The investment promotion agency underscored the need to integrate investment-related institutions to simplify business operations and improve investor services. BIDA also stressed that structural reforms are essential to strengthen trade competitiveness and attract greater investment inflows.

However, the authority noted that the success of these initiatives will depend largely on effective implementation and strong coordination among government agencies.

The proposed FY2026-27 budget introduces several meaningful reforms for Bangladesh's textile and apparel sector, particularly in taxation, renewable energy, trade facilitation, and export competitiveness. While industry leaders have welcomed these measures, concerns over energy security, financing costs, and policy gaps remain. The budget creates a stronger foundation for investment and growth; the ultimate impact will depend on effective implementation and the industry's ability to navigate inflationary pressures, financing constraints, and growing global competition.

Bangladesh's Executive Committee of the National Economic Council (ECNEC) has approved the long-awaited Chinese Economic and Industrial Zone (CEIZ) project in Anwara, Chattogram, with a total investment of Tk 4,189 crore.

The approval marks a significant step forward to strong economic cooperation between Bangladesh and China.

The approval was granted at an ECNEC meeting held at the Secretariat on Tuesday and chaired by Prime Minister Tarique Rahman, just ahead of his upcoming visit to China.

According to the Bangladesh Economic Zones Authority (BEZA), the Chinese Economic and Industrial Zone is being developed on nearly 800 acres of land in Anwara under a government-to-government (G2G) cooperation framework between Bangladesh and China.

Under the project, the Chinese government will provide Tk 2,467 crore in loan financing. The economic zone is being viewed as one of the government's strategic initiatives aimed at accelerating industrialization, attracting foreign direct investment (FDI), and generating large-scale employment opportunities.

Government officials expect the project to create around 100,000 direct and indirect jobs while attracting approximately $500 million in foreign investment. Chinese investors are anticipated to establish industries in sectors including textiles, pharmaceuticals, light engineering and other manufacturing activities.

The project's location is considered strategically important due to its proximity to the Karnaphuli Tunnel, Chattogram Port and Shah Amanat International Airport. Authorities believe the zone could emerge as a major hub for Chinese investment in Bangladesh in the coming years.

The initiative dates back to 2014, when China's Ministry of Commerce and BEZA signed a memorandum of understanding (MoU) to establish the industrial zone. Although land acquisition for the project was completed in 2016, implementation remained stalled for several years due to various procedural and operational challenges.

Initially, China Harbour Engineering Company (CHEC) was considered as the project's developer. However, progress remained limited as the parties were unable to finalize contractual arrangements.

In 2022, China Road and Bridge Corporation (CRBC) was nominated by the Chinese government as the new developer. BEZA officials said preparations for signing the final development agreement with CRBC are now in the final stages.

The project includes the construction of a range of supporting infrastructure facilities, including a 1,235-metre jetty link road and a 330-metre bridge, a 1,181-metre four-lane road, a central effluent treatment plant (CETP) with a capacity of 25 million liters, a multipurpose jetty capable of handling vessels of up to 20,000 deadweight tons, gas supply infrastructure, electrical substations and transmission lines, water reservoirs, and nearly 12 kilometers of boundary walls.

BEZA has confirmed that land acquisition for the project has been fully completed. Construction of the core infrastructure is expected to begin once the developer agreement is formally signed.

BEZA Executive Chairman Ashik Chowdhury recently said discussions with the Chinese side have made significant progress and that both governments are treating the project as a top priority.

The approval of the CEIZ project is expected to strengthen Bangladesh's industrial base, enhance export competitiveness and deepen economic ties with China, one of the country's largest development and investment partners.

China's retail sales declined in May for the first time in more than three years, underscoring persistent weakness in domestic consumption despite strong export growth and ongoing government efforts to support economic recovery.

Data released by the National Bureau of Statistics (NBS) on Tuesday (16 June) showed retail sales fell 0.6 percent year on year in May, marking the first contraction since December 2022.

The decline was significantly worse than economists' expectations of a 0.2 percent increase and followed April's subdued performance.

The latest figures highlight the challenges facing policymakers as they seek to revive household spending, which has remained weak since the Covid-19 pandemic despite a broader recovery in other parts of the economy.

China has set a growth target of 4.5 to 5.0 percent for 2026. However, rising energy costs, uncertainty stemming from the Middle East crisis and continued weakness in the property market have complicated the economic outlook.

NBS spokesperson Fu Linghui said the economy continues to face a "complex and volatile international environment," while domestic factors, including high temperatures and heavy rainfall, disrupted market supply and demand during the month.

The decline in retail sales was largely driven by weaker purchases of big-ticket consumer goods. Sales of automobiles, home appliances and furniture all recorded significant declines. According to the China Passenger Car Association, auto sales dropped 22.3 percent year on year in May.

China's property sector, which has long been a key driver of economic growth and household wealth, also remained under pressure. Official data showed new home prices fell in 67 of the country's 70 major cities last month, indicating that the housing market downturn has yet to stabilize.

Industrial production provided a modest bright spot, rising 4.5 percent year on year in May compared with 4.1 percent growth in April, which had been the slowest pace in nearly three years.

However, fixed-asset investment fell 4.1 percent during the January-May period from a year earlier, widening significantly from the 1.6 percent decline recorded during the first four months of the year.

Economists believe the weak retail sales figures could increase pressure on Beijing to introduce additional measures to support consumer spending. Zhiwei Zhang of Pinpoint Asset Management said further policy fine-tuning is likely after the release of second-quarter GDP data in July.

Meanwhile, exports continued to provide a major source of support for the economy. China's overseas shipments surged 19.4 percent year on year in May, exceeding market expectations and reflecting strong demand for products related to artificial intelligence and automobiles.

While robust exports are helping offset weak domestic demand in the short term, analysts cautioned that sustained export growth could heighten trade tensions with major trading partners, particularly the United States.

The contrasting trends of weakening consumer spending and strong export performance highlight the uneven nature of China's economic recovery as policymakers seek to balance growth, consumption and external trade challenges.