Labour representatives on the Minimum Wages Board have proposed a minimum monthly wage of Tk 32,000 for workers in Bangladesh's export-oriented ready-made garment (RMG) industry.

The proposal was submitted at the board's second meeting on 9 November in Segunbagicha, Dhaka, amid ongoing worker protests demanding higher wages.

The workers' side proposed Tk 48,000 for Grade 1, Tk 43,000 for Grade 2, Tk 38,000 for Grade 3 and Tk 32,000 for Grade 4 workers. Newly recruited entry-level and apprentice workers would receive Tk 30,000 under the proposal.

Babul Akhter, a workers' representative on the board, said the proposed wages account for inflation, rising living costs, housing rent, healthcare, and children's education.

The current minimum monthly wage in the RMG sector is Tk 12,500, announced in 2023.

Meanwhile, garment owners' representatives have been given four working days to submit their proposed wage structure after requesting additional time due to ongoing unrest in industrial areas.

The six-member Minimum Wages Board was formed on 1 November to recommend a revised wage structure for the country's garment workers.

The National Board of Revenue (NBR) has proposed reducing the income tax rate for Bangladesh’s textile sector from 27.5% to 15%, aiming to ease financial pressure on domestic mills and enhance their competitiveness.

If approved, the reduced tax rate will remain effective until 30 June 2030, providing long-term support to the country’s textile industry.

The tax authority has prepared a draft statutory regulatory order (SRO) and sent it to Finance Minister Amir Khosru Mahmud Chowdhury for approval. A senior finance official said the SRO would be issued shortly after receiving approval.

In its proposal, sent to the finance minister on 5 November, the NBR recommended the reduced rate under Section 76(1) of the Income Tax Act, citing the need to protect exports and employment and ensure sustainable growth of the textile industry.

According to the NBR, the textile sector covers yarn production, yarn dyeing, finishing, coning, fabric dyeing, printing and other related activities.

The sector previously enjoyed a 15% income tax rate under an SRO introduced in 2015 for a 10-year period. However, after the order expired in 2025, the tax rate reverted to 27.5%.

In May this year, the Bangladesh Textile Mills Association (BTMA) proposed reducing the income tax rate to 10% until 2030.

The association argued that the export-oriented ready-made garment (RMG) sector continues to enjoy a 12% tax rate, creating a disparity between the two interconnected industries.

However, the NBR did not consider the proposal while preparing the current fiscal year's budget.

The latest tax reduction proposal comes amid mounting operational and financial challenges facing domestic textile mills.

In its submission, the NBR identified rising gas and electricity prices, energy shortages, high interest rates, reduced export incentives and competitive pressures following Bangladesh's graduation from the least developed country (LDC) category as major challenges for the sector.

It also highlighted competition from subsidized yarn and fabric imports from neighboring countries, which are placing local textile mills at a disadvantage.

The NBR noted that inadequate and irregular supplies of gas and electricity have forced most mills to operate at only 60-70% of their production capacity, squeezing working capital and pushing businesses towards financial losses.

The proposal also follows recent policy developments concerning yarn imports under bonded warehouse facilities.

The commerce ministry had made bank guarantees mandatory for imports of 10-30-count yarn, but later suspended the order following objections from RMG manufacturers.

The proposed tax reduction is expected to provide relief to domestic textile manufacturers, support industrial employment and help strengthen the competitiveness of Bangladesh's primary textile sector in the global market.

Two expos in November will bring together the factories, technology providers, engineers and buyers the industry’s next phase depends on. Their legacy will be measured in what those connections produce.

Between January and July 2026, the average import value per kilogram of Bangladeshi apparel entering the European Union fell by 8.47 per cent from a year earlier, while Vietnam’s rose by 11.76 per cent, according to Eurostat figures cited at a Dhaka press briefing in October. Product mix can exaggerate such gaps, but the direction is hard to ignore. It sharpens the question this November puts to the industry: how can Bangladesh’s factories create more value, and keep more of it?

November offers a chance to work on the answer. Days apart, Dhaka will host two gatherings that address different parts of the industry’s next phase. The TIE-ITET Textile Innovation Expo 2026 runs from 12 to 14 November at International Convention City Bashundhara. BATEXPO, which BGMEA is reviving for its silver jubilee edition after a gap since 2013, follows on 18 and 19 November at the Bangladesh-China Friendship Conference Center. Until recently, 24 November was also the date set for Bangladesh to leave the least developed country category. On 29 October, the UN General Assembly extended the preparatory period by three years, moving graduation to 24 November 2029.

The extension buys time. It does not change what factories can make or earn. Ready-made garment exports earned $38.70 billion in 2025-26, 1.64 per cent less than the year before. The industry’s difficulty is no longer whether buyers can find it, but whether it has the products, production systems and commercial terms that deliver better returns. No exhibition can supply those on its own. What November can do is bring more of that ecosystem together: factories, technology providers, engineers, researchers, buyers, financiers and policymakers, whose decisions together determine where value is created and who keeps it. That is why the order of the calendar matters: capability first, presentation second, judgement afterwards.

Where value is decided

The value a factory creates is settled long before a garment reaches the sewing line: in its fiber and fabric, in how efficiently it dyes and finishes, and in how quickly it can develop products buyers want. Textile Exchange estimates that polyester accounted for 59 per cent of global fiber production in 2025, against cotton’s 18 per cent, across all textile uses. For a cotton-centered manufacturing base, that is a reason to examine a wider range of materials. Energy supply complicates every move: a factory facing low gas pressure must ask whether an upgrade will run reliably, not only what it might save.

Much of the know-how already exists, scattered across individual plants. In a case study under the IFC-led Partnership for Cleaner Textile, Evince Textiles reported a 14 per cent cut in water consumption from countercurrent washing and from recovering cooling water from a sulfurizing machine, changes that relied mainly on piping and practice rather than new machinery. Results like these need to travel beyond the compound wall. One part of Bangladesh’s innovation gap is the shortage of connections between people with workable ideas and those who could use them.

An ecosystem, not an exhibition

The TIE-ITET Textile Innovation Expo 2026 is designed around that gap. Its four zones cover dyeing and printing, textile materials, garment automation, and green and sustainable technology, and organizers expect around 50 factories and 200 technology solution providers. In the Factory Innovation Pavilions, manufacturers will present improvements they have implemented themselves, not equipment they hope to sell, while an Open Innovation Area hosts researchers, universities and start-ups. The collaboration with ITET, the professional body of textile engineers, brings in the people who would have to run any new process. Technical seminars and a Textile Innovation Award across eight categories complete the program.

A production manager is likelier to be moved by a peer’s measured results than by a vendor’s brochure, especially when the baseline, investment and savings are disclosed. Whether the pavilions achieve that transfer is an objective, not yet a result, and should be judged afterwards.

Why both shows matter

BATEXPO supplies the other half of the loop. Its program includes a Global Apparel Summit, an AI and innovation hub and a sustainability and circularity exhibition, and BGMEA has said the Prime Minister will open it. The first event asks what is changing inside manufacturing; the second asks whether buyers will reward it. Capability that buyers cannot assess is harder to turn into new business, and a sourcing pitch with no capability behind it will not survive the first audit. The ecosystem works best when factory improvements reach buyers and buyer orders fund the next round of improvement.

Elsewhere, that link is built into the trade-fair calendar. In Frankfurt, Techtextil and Texprocess run side by side, joining textile materials with processing and clothing technologies. Dhaka’s two events are separate, but falling within days of each other, they let the same executives carry one conversation into the next.

Traceability shows why the two must connect. Digital product passports feature both in the Expo’s technical seminars and in BATEXPO’s Impact Zone. A traceability promise starts as a message to buyers and ends as a data requirement on the factory floor: what a factory can substantiate, how records pass through its supply chain, and what systems and staff it needs.

The wider gain would be to make useful knowledge less dependent on a factory’s size or connections. Smaller manufacturers could compare practical improvements with peers before committing capital, while engineers could test suppliers’ claims against conditions in their own plants. Researchers and training institutions could take specific production problems back into their work, helping align research and skills development with what factories need.

Together, the shows could also improve the basis for investment. Buyers could explain the specifications and likely order volumes behind their interest in new products; factories could identify the machinery, skills and finance needed to supply them. Lenders would then have clearer projects to assess, and technology providers a better view of demand. Even firms that do not exhibit could benefit if organisers publish usable case studies and arrange follow-up visits. None of this guarantees higher prices or new orders. The industry gains when more firms can use credible evidence to make better decisions and avoid repeating costly mistakes.

The fair objections

Three objections deserve a hearing. The first is that Bangladesh’s advantage has always been scale and cost, and that chasing value risks abandoning what works. Scale still matters, and nobody serious proposes giving it up. But efficiency protects margins even on basic products, and a wider product mix reduces exposure to the next squeeze.

The second is that exhibitions are marketing theatre. Many are. That is why both shows should be judged by what happens after the halls close, and why they should publish follow-up evidence of trials, adoption and orders.

The third is that factories cannot afford to innovate on current margins and energy supply. Upfront cost, credit, downtime and training can block even proven technology, and demonstration alone does not remove those barriers. Exhibitors should disclose total implementation costs and payback assumptions, and lenders, buyers and policymakers belong in the same conversation. That is what an ecosystem means.

The additional preparation time should not postpone this test. The useful questions for next November are specific. How many solutions shown at ICCB are running in other factories? Which technology discussions led to installations, and what did they save? Are factories winning repeat orders for new products? Has the unit value of Bangladeshi apparel in Europe begun to recover?

Part of that answer will be published by a statistics office in Luxembourg; the rest will show up in factory accounts and order books, not on a stage in Dhaka. The progress that matters cannot be inaugurated. It has to be manufactured.

Palli Karma-Sahayak Foundation (PKSF) has disbursed Tk2,500 crore to support around 50,000 cottage and micro entrepreneurs. Women account for 87% of the beneficiaries.

The loans were distributed through 101 partner organizations under the Special Fund for Creating Entrepreneurs in the Cottage and Micro Sectors (SOPAN) program. Bangladesh Bank is providing a Tk5,000 crore incentive package for the program, according to a PKSF press release issued on 8 November.

The program covers all 64 districts and supports four sectors: technology-driven agriculture and agro-processing, manufacturing, services, and value chain financing. It aims to create new entrepreneurs and help existing microenterprises expand their businesses. It also supports production, processing, and marketing activities.

PKSF received its first Tk1,250 crore tranche from Bangladesh Bank on 7 September. So far, the foundation has received Tk3,750 crore in three tranches. It expects to receive the remaining amount by December 2026.

The full Tk5,000 crore fund is expected to reach entrepreneurs by January 2027.

The program aims to provide more financial support to women and young entrepreneurs. It also aims to strengthen rural businesses and create jobs in rural and marginalised communities.

When Bangladesh’s textile and apparel industry began its journey several decades ago, the gap in productivity and efficiency was much wider, while profit margins were relatively comfortable. At that stage, factories could still grow without giving enough attention to continuous innovation.

Today, the situation is very different. Margins are tighter, energy costs are increasing, competition is stronger and buyers are becoming more demanding. If we genuinely want to sustain this industry and remain competitive, there is no alternative to innovation.

One of the problems is that we often make innovation sound much more difficult than it really is. We tend to confuse innovation with invention. Invention may require extensive research, technical knowledge, funding, time and patience. Innovation, however, can begin with a much simpler mindset: identifying a problem and finding a better way to solve it.

Innovation does not always have to mean a breakthrough technology or a completely new product. A small process modification, better utility management, improved operating practice, smarter use of data or stronger coordination between departments can all be forms of innovation.

These changes may appear small individually, but when they are practiced consistently across an organization, their combined impact can be significant.

We can see this clearly in utilities, dyeing and production management. At Masco Group, for example, we have analysed our utility requirements and improvement opportunities up to 2030. Our total daytime electricity demand is around 13 MW. Through process innovation and certain modifications alone, we have identified the potential to save around 900 kW of power.

This is only one example. Similar opportunities exist across many factories in Bangladesh. The challenge is to identify them systematically and then work on them with discipline.

There is also considerable room to improve productivity in dyeing and other manufacturing operations. The first step is to establish the right benchmark, identify where the gap is and then focus on those areas one by one.

An innovation may already exist in another factory, but that does not reduce its value. If a solution is new to my organization and it helps us improve efficiency, reduce waste, save resources or increase productivity, then it creates value for us.

This is why knowledge sharing is so important.

One factory may improve five areas, another may improve ten, while another may identify fifteen opportunities. If every company keeps its learning within its own boundary, the industry as a whole will move slowly. But if we can create a culture where practical ideas, experiences and successful solutions are shared, the entire sector can learn and progress much faster.

This is particularly important today because Bangladesh can no longer compete only on cost. We have to compete on productivity, quality, resource efficiency, sustainability, technology, speed and value addition.

Innovation is also equally important for individual professionals.

In the private sector, routine work is expected. What makes a professional more valuable is the ability to contribute beyond routine responsibility. A person becomes important when he or she can think strategically, identify problems, anticipate future challenges and create improvements.

For textile engineers in particular, innovation can become one of the strongest tools for professional growth. It helps engineers become more useful to their organizations, strengthens their problem-solving capability and prepares them for greater responsibility.

This is also where the upcoming TIE–ITET Textile Innovation Expo 2026 can play an important role.

The Expo, to be held from 12 to 14 November 2026 at ICCB Hall 8 in Dhaka, is being developed around a clear message: “Not just cheap products, showcasing innovation practices in textile & apparel industry.”

For many years, Bangladesh has been widely recognized as a competitive manufacturing destination. But our next journey has to be about showing the world that we are not only capable of producing at competitive cost, we are also capable of improving processes, developing solutions, applying technology and creating innovation across textile and apparel manufacturing.

The purpose of the Expo is therefore not simply to display machinery, products or technologies. We want to showcase the innovation already taking place inside our factories and across the industry.

Many factories are doing excellent work, but those achievements often remain within the factory itself. One factory may have developed a better dyeing process, another may have reduced energy consumption, another may have improved production monitoring, while another may have found a more efficient way to manage

For spinning mills, fiber traceability is moving beyond a buyer compliance exercise. It is becoming a business strategy. Brands need stronger evidence behind sustainability claims, while regulations are pushing supply chains toward structured product information. This places spinning mills between raw fiber suppliers and garment manufacturers.

The fiber market is growing, but proof is lagging

Textile Exchange's Materials Market Report 2026 estimates that global fiber production reached 139 million tons in 2025, up from 132 million tons in 2024. Polyester remained dominant at 82.5 million tons, or 59% of total production. Recycled polyester reached 9.7 million tons, but 97% came from plastic bottles. Textile-to-textile recycled fibers accounted for only 0.76% of global fiber production. Cotton production reached 25.7 million tons; 9.4 million tons, or 37% of virgin cotton, came through certified programs.

These figures highlight the challenge. Brands want more recycled and preferred materials, but suppliers must prove fiber origin, composition, and movement. Mills that provide reliable batch-level evidence can differentiate their yarn, support higher-value orders, and reduce repeated buyer verification.

Digital records need physical evidence

A digital traceability system links each fiber or yarn batch with its supplier, origin, certification, lot number, blend ratio, input weight, production stage, and output volume. Integrating these records with enterprise resource planning (ERP) systems can reduce manual paperwork and make information available to downstream manufacturers.

Platforms such as TextileGenesis use digital tokens to track material transactions across supply chains. Digital records can also be supported by physical verification technologies, including DNA markers, fluorescent tracers and isotope analysis. These methods can help test whether selected fibers match declared claims. Digital records show what was documented; physical tests provide an additional check on the material itself.

The European Commission identifies textiles as a priority product group under the Ecodesign for Sustainable Products Regulation (ESPR). Its indicative timeline targets adoption of the textile-specific delegated act in Q4 2027. Depending on the final rules, Digital Product Passports (DPPs) may include fiber composition, origin, product identification and relevant supply-chain operators. Detailed data requirements are not yet finalized.

A separate development also matters. The EU Forced Labour Regulation will apply from 14 December 2027, prohibiting products made with forced labor from entering or leaving the EU market. It does not create a general audit or reporting obligation, but companies may need supply-chain information during investigations. Traceability can therefore support product transparency and risk management.

Bangladesh has started preparing

Bangladesh held 21.57% of the EU apparel market in 2025, exporting €19.41 billion worth of garments. Its RMG exports reached $38.70 billion in FY2025–26, according to Export Promotion Bureau data.

Local readiness work has begun. A BRAC University and Mapped in Bangladesh pilot with Urmi Group and Epyllion Group found that product identification and factory records were relatively strong, but origin-level material traceability and batch-level tracking remained weak. Separately, BGMEA and AWARE launched a DPP-readiness initiative in 2026 to help factories build verifiable, producer-owned production records.

Spinning mills should map fiber suppliers, standardize batch identification, digitize material transactions, and connect ERP data with interoperable platforms. They can begin with recycled and certified yarns, where proof of origin and content has clear commercial value.

Investment in software, training, data governance, and verification will be necessary. Yet the cost of fragmented information may rise as buyer requirements tighten. The future advantage will not come only from producing yarn at a competitive cost. It will increasingly belong to mills that can prove what their yarn contains, where its fibers came from, and how that evidence travels through the supply chain.

The global denim industry is facing growing pressure to reduce its use of potassium permanganate (PP), a chemical widely used to create faded and vintage effects in denim garments. In response, CHT Group is providing technical support to the PP-free Denim Mission, an industry initiative developed by Ruess Group to accelerate the adoption of scalable alternatives to conventional PP-based finishing processes.

The mission aims to promote production methods that can deliver consistent denim fading effects without relying on potassium permanganate. With CHT Group's technical expertise, the initiative seeks to support the industry's transition towards safer chemical management and commercially viable finishing technologies.

The scale of the challenge is significant. An industry report estimates that nearly 2,000 tons of potassium permanganate are used in denim finishing each year globally. Separately, CHT estimates that global production consumes around 250,000 liters of permanganate solution daily.

PP use raises concerns over worker exposure, chemical handling, and wastewater management. Its inclusion in the Zero Discharge of Hazardous Chemicals (ZDHC) Chemical Watchlist in 2026 is also increasing industry attention on alternatives.

Several technologies are being explored, including enzyme-based bleaching, laser and ozone finishing. However, replacing PP requires more than introducing another chemical. Alternative processes must deliver consistent fading effects, maintain garment quality, and remain commercially viable at industrial scale.

A separate denim finishing study by Environmental Impact Measuring (EIM) and BCome demonstrated the potential of alternative technologies. Compared with conventional stone washing and PP spraying, Jeanologia's ATMOS technology reduced water consumption by 96.3%, energy use by 20.8%, chemical impact by 77%, and process-related emissions by 38.2% in the assessed factory process.

For Bangladesh, a major global denim manufacturing base, this transition presents an opportunity to improve chemical management, worker safety, and resource efficiency. However, investment costs, production compatibility, and access to alternative technologies will influence adoption across local denim laundries and factories.

Uzbekistan is advancing a $400 million cotton-textile cluster in Bukhara. As part of a broader industrial investment plan that combines textile manufacturing with renewable energy development.

Chinese investors are developing the cluster in Romitan district. Another textile complex under the Kurt Baver brand is planned in Bukhara city, with an annual production capacity of 62,000 tons.

The two textile developments are expected to increase the share of higher-value-added products to 65% and generate an additional $100 million in export revenue.

Energy investment is another major part of the regional development plan. Bukhara has attracted around $2 billion in renewable energy investment in recent years. The region has commissioned 1,000 MW of wind power and 750 MW of solar power, alongside 63 MW of energy storage capacity.

Further projects are expected to expand generation capacity. ACWA Power is developing a 300 MW wind power plant in Gijduvan district. Toyota Corporation and China’s Sinoma are also constructing wind power facilities with a combined capacity of 1,000 MW in Jondor and Peshku districts.

The region is also planning a $165 million waste-to-energy project with Chinese partners. The project will generate electricity from municipal waste in Kagan district.

The combined investment strategy highlights the growing link between textile industrialization and energy infrastructure. Reliable renewable power could support industrial expansion while helping manufacturers respond to rising demand for cleaner production and lower-carbon supply chains.

For the textile sector, the key measure will be how effectively these investments translate into higher-value production, export earnings, and more reliable energy access.

US cotton export sales strengthened during the week ended October 29, driven by robust demand from Vietnam, Pakistan and Turkiye.

Net sales of Upland cotton for the 2026-27 marketing year increased 28% to 277,500 running bales (RB), up from 216,500 RB in the previous week and 53% above the previous four-week average.

Vietnam emerged as the largest buyer, purchasing 200,500 RB, followed by Pakistan with 30,700 RB and Turkiye with 18,300 RB. Peru and India also recorded notable purchases. Vietnam's buying surged significantly from 35,000 RB in the previous week, while China did not feature among the major buyers.

Despite stronger sales, Upland cotton export shipments fell 14% to a marketing-year low of 137,800 RB, down from 160,800 RB a week earlier and 16% below the previous four-week average. Vietnam remained the leading shipment destination with 43,500 RB, followed by Mexico, Pakistan, Bangladesh and India.

Meanwhile, demand for US Pima cotton rebounded sharply. Net sales rose to 6,400 RB from just 100 RB in the previous week, with India leading purchases at 2,500 RB, followed by Bangladesh with 2,300 RB. Peru, Japan and Indonesia also contributed to the increase.

Pima cotton export shipments more than doubled to 7,100 RB from 3,300 RB in the previous week. Bangladesh was the largest destination, receiving 2,200 RB, ahead of India, Vietnam, China and Thailand.

The latest figures indicate continued momentum in US cotton sales, supported by strong demand from major Asian markets. However, the decline in Upland shipments highlights ongoing challenges in export execution despite improving buying interest.

Three-year Dutch-Bangladeshi partnership will connect regenerative cotton farming, garment waste recovery and fibre-to-fibre recycling, with a target to demonstrate two complete recycling cycles by 2029

A new Dutch-Bangladeshi initiative is seeking to change how Bangladesh produces, recovers and reuses cotton by connecting regenerative agriculture with garment waste recycling and traceable textile manufacturing.

The Cotton Loop Bangladesh Impact Cluster, formally launched in Dhaka on 4 November 2026, will test whether cotton can move through successive production and recycling cycles while retaining commercial value. The three-year project brings together textile producers, international brands, recycling specialists, technology providers and researchers to develop a model that could eventually be adopted across Bangladesh's textile and apparel industry.

Led by Raddis Cotton, the consortium includes Dutch partners Zeeman, Company Fits, Avans University of Applied Sciences and Common Era, alongside Bangladesh-based Reverse Resources. Advance Consulting and Clean & Unique are supporting the initiative as subcontractors. In addition, this project was funded by RVO.

The project comes as Bangladesh faces growing pressure to reduce its dependence on imported cotton, recover more value from textile waste and prepare for increasingly demanding sustainability and traceability requirements in international markets.

Turning a costly waste stream into an industrial resource

Speaking at the launch, Janna van der Linden, Deputy Head of Mission at the Embassy of the Kingdom of the Netherlands, highlighted the contradiction between Bangladesh's large garment manufacturing capacity and its heavy reliance on imported virgin cotton.

Van der Linden also pointed to changing European market requirements. Emerging regulations covering sustainability, circularity and product traceability will place greater responsibility on brands and manufacturers to demonstrate the origin, composition and environmental performance of textile products.

She described Cotton Loop as an opportunity to test commercially workable solutions rather than simply promote sustainability commitments.

Regenerative cotton farming enters the equation

One distinguishing feature of Cotton Loop is its attempt to connect cotton cultivation directly with industrial recycling.

Through demonstration farms established under the Raddis Cotton model, the project will introduce regenerative agricultural practices focusing on soil health, organic inputs and biodiversity management.

The first year will involve 500 farmers cultivating cotton across 500 acres. Over the project period, the initiative aims to reach 2,000 farmers and approximately 3,000 acres.

Aneel Kumar Ambavaram of Raddis Cotton presented the agricultural approach, explaining how locally grown cotton could eventually be combined with recovered textile fibres to support new yarn and garment production.

The proposed model will test whether regenerative cotton can provide the fresh fibre needed to maintain quality when recycled cotton is processed repeatedly.

Why waste segregation matters

Rizvan Hasan, Country Head of Reverse Resources Bangladesh, drew attention to one of the industry's least visible but most important links: waste handlers.

In his presentation, Seeing the unseen: the waste handlers who decide whether circularity works, Hasan argued that recycling efficiency depends heavily on what happens before cotton waste reaches a recycling facility.

Cutting waste is frequently mixed across colours, compositions and qualities, making it difficult for recyclers to produce consistent yarn.

According to figures presented by Hasan, manually sorted mixed waste can contain approximately 5% contamination, compared with just 0.03% when waste is segregated directly at cutting tables.

He proposed a straightforward factory-level approach: separate waste by fibre composition, label bags accurately, and record their quantities and origins digitally.

Reverse Resources will initially work with four suppliers from Zeeman's network: Fame Apparels, Surma Garments, United Costumes and West Knitwear.

The factories have already undergone preliminary waste-flow mapping. Under the pilot, their principal responsibilities will be to keep cotton cuttings separate and register waste quantities fortnightly.

Reverse Resources will also develop traceability systems to follow recovered material from cutting floors to recycling facilities.

A multibillion-dollar opportunity with practical barriers

Hasan cited research undertaken with BGMEA, brands and the European Union that previously identified a potential $5 billion opportunity in Bangladesh's textile waste economy. He said subsequent estimates suggest the opportunity could reach $8 billion.

However, the value remains a potential market opportunity, not revenue already being realised.

Better data, source segregation and organised waste handling could help bridge that gap while allowing more recovered fibre to remain within the domestic manufacturing supply chain.

Testing cotton through two recycling cycles

The project will investigate the technical and commercial feasibility of recycling the same cotton through two complete cycles. Initially, regenerative cotton and post-industrial cutting waste will be converted into yarn and garments. In the second cycle, used garments will be recovered and mechanically recycled again, with additional cotton blended where necessary.

It will also explore Dutch recycling technologies suitable for Bangladesh and prepare business models and practical guidelines for wider adoption.

Avans University of Applied Sciences will contribute to knowledge transfer and the development of a scaling blueprint, including collaboration between Dutch and Bangladeshi students and informal waste-sector participants.

Recyclers face growing pressure

During a panel discussion on fibre recovery, Mustafain Munir, Executive Director, CYCLO Recycled Fibers highlighted the difficulties manufacturers face in maintaining high recycled content.

He explained that Cyclo's yarns typically contain around 60–70% recycled material, but gas shortages, increased energy costs and lower textile production have disrupted the availability of suitable waste.

At the same time, uncertainty surrounding the origin and chemical composition of recovered textiles creates additional challenges.

Mustafain Munir said the source of approximately 70% of waste received through conventional channels remains unknown, unlike material documented through the Reverse Resources network.

Bangladesh has built a strong position in the global apparel sourcing landscape through manufacturing scale, cost competitiveness, workforce experience and a deep supplier ecosystem. But as global sourcing priorities evolve, the country’s future competitiveness will depend increasingly on speed, flexibility, product development, innovation, sustainability and the ability to create more value within the supply chain.

Shafiur Rahman, Country Manager of G-Star RAW and Steering Board Member of Textile Innovation Exchange (TIE), in an interview with Textile Today, discusses Bangladesh’s current sourcing strengths, the changing expectations of global brands, the qualities that distinguish strategic suppliers, and the capabilities the country must build to win more higher-value business. He also shares his expectations from the TIE–ITET Textile Innovation Expo 2026 and BATEXPO, and explains what must change for Bangladesh to be recognized as an innovation and product development destination.

Textile Today: From a global brand perspective, what are Bangladesh’s strongest sourcing advantages today, and where is the country falling behind competitors?

Shafiur Rahman: Bangladesh has established itself as one of the world’s most important apparel sourcing destinations, particularly in denim and other major product categories. Our strongest advantages are the scale of our manufacturing capabilities, the depth of our supplier base, competitive cost structures, and the experience of our workforce. Over the years, Bangladesh has developed a strong ecosystem of factories, textile mills, washing facilities and supporting industries that enables us to deliver products at scale. The country has also made significant progress in sustainability, particularly in green manufacturing and responsible production.

This is an important competitive advantage as global brands increasingly focus on environmental and social responsibility. However, our competitiveness cannot depend on cost and capacity alone. We are still behind some competing countries in areas such as speed to market, flexibility, product development, automation and the availability of certain specialized materials and technologies. The next stage of Bangladesh’s development must focus on wastage reduction, improving productivity, shortening lead times, strengthening innovation capabilities and creating greater value within the supply chain.

Textile Today: When brands select suppliers today, how has the importance of price changed relative to quality, speed, flexibility, sustainability, innovation and product development?

Shafiur Rahman: Price remains an important factor in sourcing decisions, but it is no longer the only determining factor. The global apparel industry has become increasingly complex, and brands need suppliers who can support their business objectives beyond simply delivering a competitive FOB price. Quality and consistency remain fundamental. Speed and flexibility have become increasingly important as brands respond to changing consumer preferences, shorter product cycles and greater uncertainty in global markets. Sustainability is also a key consideration, alongside transparency, compliance and responsible manufacturing. At the same time, innovation and product development capabilities are becoming important differentiators. From a brand perspective, the real question is not simply who can manufacture a product at the lowest cost, but who can deliver the right product, at the right quality, within the required timeframe, while supporting the brand’s long-term objectives. Ultimately, the most competitive sourcing partners are those who can deliver the best overall value rather than simply the lowest price.

Textile Today: What separates a factory that simply executes orders from one that a brand considers a long-term strategic partner?

Shafiur Rahman: A factory that executes orders focuses primarily on meeting the specifications, quantities and delivery dates provided by the buyer. A strategic partner, however, understands the brand’s business, its consumers and its long-term direction. The difference begins with ownership and accountability. Strategic partners do not wait for problems to arise; they anticipate challenges, propose solutions and take responsibility for delivering results.

They also contribute to product development, material selection, cost engineering, quality improvement and process innovation. They are willing to invest in technology, people and capabilities that create mutual benefits over time. Equally important is transparency. A strong partnership requires open communication, trust and a willingness to work together through both opportunities and challenges. For a brand, a strategic partner is not simply a supplier that produces garments. It is a business partner that helps create better products, improve efficiency, reduce risk and strengthen the brand’s competitiveness in the marketplace.

Textile Today: What capabilities must Bangladesh strengthen to win more higher-value products and participate more actively in product development?

Shafiur Rahman: Bangladesh needs to move beyond its traditional strength in large-scale manufacturing and invest more significantly in the capabilities that create higher product value. First, we need to strengthen our product development ecosystem. This includes advanced design capabilities, technical expertise, fabric innovation, garment engineering, pattern development and the ability to translate consumer trends into commercially successful products. Second, we need greater investment in research and development, advanced machinery, automation and digital technologies.

These capabilities can improve productivity while enabling manufacturers to produce more sophisticated and technically demanding garments. Third, closer collaboration between brands, manufacturers, textile mills, universities and research institutions is essential. Product development should become a collaborative process rather than a function that takes place entirely outside Bangladesh. We also need to develop a stronger talent pool in areas such as design, material science, digital product development and technical merchandising.

The objective should be to move from being a country that manufactures products designed elsewhere to one that actively contributes to the creation, development and commercialization of those products.

Textile Today: TIE-ITET Textile Innovation Expo and BATEXPO will give international brands an opportunity to see Bangladesh’s manufacturing, innovation and technology capabilities. What would you personally want global buyers to discover at these two events that could change their perception of Bangladesh?

Shafiur Rahman: I would like international buyers to discover that Bangladesh has evolved significantly beyond its traditional image as a large-scale manufacturing destination. Our industry has developed impressive capabilities in manufacturing, sustainability, technical expertise and operational excellence. I would particularly like buyers to see the progress being made in product innovation, advanced manufacturing technologies, material development and sustainable production. These events provide an opportunity for manufacturers to demonstrate not only what they can produce today, but also what they are capable of developing for the future.

I would also encourage buyers to engage directly with manufacturers, explore new materials and technologies, and discuss opportunities for collaborative product development. For me, the greatest value of TIE-ITET Textile Innovation Expo and BATEXPO would be if buyers leave with a stronger understanding of Bangladesh’s capabilities and a willingness to involve local manufacturers earlier in their product development and sourcing processes.

The events should help create a shift in perception—from viewing Bangladesh primarily as a production destination to recognizing it as a potential partner in innovation, development and long-term value creation.

Textile Today: What would need to change for global brands to view Bangladesh not only as a manufacturing destination, but also as a product development and innovation destination?

Shafiur Rahman: The transformation requires a collective effort from manufacturers, brands, policymakers, educational institutions and industry associations. Manufacturers need to invest more in product development teams, research and development, technology and specialized talent. They must also become more proactive in presenting new ideas, materials and solutions to their customers. Brands, on the other hand, need to involve Bangladeshi suppliers earlier in the product development process and create opportunities for joint innovation.

 If manufacturers are involved only after the product has been fully developed, their contribution will naturally remain focused on execution. We also need stronger collaboration between industry and academia to develop the skills and technologies required for the next generation of apparel products. At the industry level, greater investment in innovation infrastructure, advanced testing facilities, digital technologies and specialized material development would help accelerate this transition.

Most importantly, we need to build a culture where innovation is considered a core business capability rather than an additional activity. Bangladesh has already demonstrated that it can compete globally in manufacturing. The next challenge is to demonstrate that we can also contribute to the ideas, technologies and products that will shape the future of the global apparel industry.

I believe Bangladesh has the talent, industrial foundation and entrepreneurial spirit to make this transition. With the right investments and stronger collaboration between brands and manufacturers, the country can become a much more influential partner in the global apparel value chain.

One in every three pairs of denim trousers worn in the EU is made in Bangladesh. The line has been repeated so often that it risks losing its meaning. The latest Eurostat figures deserve a slower reading.

Between January and August, Bangladesh shipped €869.13 million of denim to the bloc, a 29.40 percent share, and stayed first, about €344 million ahead of Pakistan. Shipments still fell 5.85 percent, slightly faster than the market's 4.40 percent decline, and the share slipped from 29.85 percent. August offered relief, with a 12.71 percent rise year on year. Rivals fared worse: Turkey lost 21.08 percent, Morocco 14.48, Pakistan 7.88. Yet Egypt grew 31.46 percent and Vietnam 45.38, both from small bases.

So, the rank is safe for now, but the cushion is not guaranteed. One good month does not make a trend, and a leader that shrinks a little in a shrinking market should not mistake its position for a plan.

What turns a position into a plan? A small clue came from Envoy Textiles' mill in Bhaluka on 17 October, when the sustainability teams of American Eagle Outfitters and Li & Fung, led by Michelle Tarry, spent the day there. Discussions covered the mill's hydropower project, stenter heat recovery and biogas plant, along with decarbonization, water stewardship, traceability and sustainable materials. No order was announced, and none should be assumed. That is what makes the visit worth noting. A brand and its sourcing partner sent sustainability specialists, not buyers, to a denim mill. Price gets a mill onto the shortlist. Evidence of what went into every meter of fabric keeps it there.

Bangladeshi industry voices point the same way. Former BGMEA director Mohiuddin Rubel credits the country's denim lead to long-built capability: "Bangladesh has a strong supply chain base that has developed over many years." He sees the next step as a move from volume to value, with early preparation for EU trade rules, GSP requirements and the European Green Deal. He also notes that Bangladesh grows no cotton, so fabric upgrading is where the opportunity lies.

That last point sharpens the picture. In a country without cotton fields, a mill's real raw materials are its energy and water. Heat recovered at the stenter and a biogas plant are not side projects; they sit close to the cost lines that decide competitiveness. Brands that discuss decarbonization with a mill are, in effect, examining its future costs.

The opening for the denim segment is wider than the headline share suggests. Turkey's EU shipments fell by about €117 million in these eight months, and Morocco, Tunisia, Cambodia and Pakistan all slipped as well, which leaves volume in play. In August, Bangladesh supplied roughly 35 percent of the EU's import increase. Mills that pair that demand with higher-value fabrics, fresh finishes and verifiable environmental data are best placed to keep winning it. Price alone will not hold the position.

The practical message for mills and denim makers is simple. Treat August as a window, not a result. Move the product mix towards value, and put energy, water and traceability figures in front of brands, as the Bhaluka discussions did.

Rank is what Eurostat measures. Renewal is decided in rooms like the one at Bhaluka. Denim Today will watch whether the recovery holds in the months ahead.

The European Union (EU) has made product identifiers mandatory for goods sold through online distance sales and declared for customs from November 1, 2026. The new requirement covers all 27 EU member states and aims to improve product traceability, strengthen customs enforcement, and detect unsafe or non-compliant imports.

Under the new rules, customs declarations must include three product identifiers: a merchant product identifier (M-PID), a non-standardized manufacturer product identifier (NS-PID), and a standardized manufacturer product identifier (S-PID).

The European Commission introduced the requirements to help customs authorities identify specific products more accurately and improve controls on goods entering the EU through e-commerce channels.

The M-PID identifies a product's listing on a specific website, marketplace, or online platform. It is assigned by the seller or platform and helps customs trace the exact product offer.

The NS-PID connects a product to its manufacturer and model through references such as style, model, or part numbers. The S-PID provides an internationally recognized product reference, usually through a barcode such as an EAN or UPC.

These identifiers will allow customs authorities to track the same product across different online platforms, even when it is sold by different merchants. If a product is found to be unsafe or non-compliant, authorities can extend their controls to other products presenting similar risks.

The requirement follows EU-wide customs control actions that identified numerous low-value goods purchased online from outside the bloc that failed to meet EU product safety and compliance requirements.

The Commission said these identifiers generally already exist in product listings, invoices and packaging. Therefore, businesses are not expected to create entirely new product data. Online platforms and manufacturers will pass the information through the supply chain, while customs declarants, including Import One-Stop Shop (IOSS) holders and customs representatives, will submit it.

Businesses could voluntarily provide the identifiers from July 1, 2026, before the requirement became mandatory and enforceable on November 1. More comprehensive product data requirements are scheduled for July 2028, following the deployment of the EU Customs Data Hub for e-commerce.

Cascale has reported a 22% reduction in emissions over four years among factories that maintained engagement with its Higg Facility Environmental Module (FEM). The industry alliance announced the findings on November 5, alongside the launch of the 2026 update of Higg FEM.

The updated assessment aims to strengthen environmental performance measurement and support manufacturers in tracking improvements. It introduces a standalone environmental baseline assessment, stronger water-data checks, and integrated guidance for manufacturers.

The standalone baseline assessment is a key change in the updated framework. It provides a starting point for facilities to assess their environmental performance before tracking progress over time.

Cascale has also strengthened its water-data checks to improve the quality and reliability of reported information. Better data can help manufacturers identify environmental gaps and make more informed decisions about resource management.

The updated module also includes integrated guidance to help manufacturers understand the assessment requirements and improve their environmental performance.

The reported 22% emissions reduction highlights the importance of continued factory participation in environmental assessment programs. It also indicates that regular engagement and performance tracking can support measurable progress in reducing industrial emissions.

For the textile and apparel industry, the update puts greater emphasis on data quality, environmental baselines and continuous improvement at the factory level.

Bangladesh’s apparel industry has built its global position on competitive manufacturing and strong sourcing capabilities. However, changing buyer preferences, increasing production costs and growing demand for diversified products are creating new challenges.

The industry must now strengthen its backward linkage, expand into man-made fibers and value-added products, and build closer relationships with international buyers.

In an exclusive interview with Textile Today, Md. Abdul Hamid, President of the Bangladesh Garment Buying House Association (BGBA) and Managing Director of KFS Fashion, discusses the changing dynamics of global sourcing, Bangladesh’s dependence on imported fabrics, the importance of innovation-focused exhibitions and the need to balance workers’ welfare with industrial competitiveness.

Textile Today: How do you see the changing demands of international buyers, and how should Bangladesh’s textile and apparel industry respond?

Md. Abdul Hamid: We have to work according to buyers’ demands, and factories produce based on those requirements. The important question is what buyers are looking for now.

We have traditionally been working mainly with cotton-based products, while buyers are increasingly moving towards man-made fibers and diversified materials. We have not developed sufficient capabilities in these areas. Therefore, we must adapt to market demand. Our garment factories are already there, but our textile mills also need to think beyond cotton and explore diversified products and man-made fibers.

Buyers’ requirements are changing, and we must prepare ourselves accordingly. Otherwise, it will become difficult to remain competitive in the global market.

Textile Today: How is Bangladesh’s dependence on imported fabrics and materials affecting the industry?

Md. Abdul Hamid: As buying houses, we depend significantly on China and India for sourcing. We work with a wide variety of fabrics and diversified materials, but many of these have to be imported because they are not available locally. As a result, a considerable amount of money goes outside the country. This is a serious concern for our industry.

On the other hand, we have not yet developed the necessary infrastructure to produce many of these materials domestically. I think the time has come to seriously consider this issue and develop the required facilities.

Factories are also beginning to realize that they must move towards diversified production. We cannot sustain the industry by depending only on traditional products.

Textile Today: Why do you believe product diversification and value addition are so important for Bangladesh’s apparel industry?

Md. Abdul Hamid: We are still concentrating heavily on basic products such as T-shirts, polo shirts and nightwear. The woven sector is somewhat different, but much of its production also depends on imported fabrics.

In basic garments, we are competing within a very limited price range. For example, we are talking about making charges of 4-5 dollars. How much benefit can we really achieve by remaining within this range?

If we move towards diversified and value-added products, there is an opportunity to achieve much higher marking charges. In some cases, the value could be double or even three times higher, depending on the product. This is something we must think about seriously, especially when discussions about wage increases are taking place. If wages and other costs continue to rise, how will factories sustain themselves at the same prices?

We need to work on innovation. That is the main point. If we want this industry to survive and grow, we must move towards diversified production.

Textile Today: How important are exhibitions such as TIE–ITET Textile Innovation Expo 2026 in attracting international buyers and promoting Bangladesh’s capabilities?

Md. Abdul Hamid: We can organize gatherings among ourselves and discuss innovation, sustainability and traceability. But the most important thing is attracting buyers.

I have mentioned at other exhibitions that whenever we organize such events, we should prepare short audiovisual documentaries showing what is happening in Bangladesh. We can share these with our international buyers and tell them, "Look at what we are doing in Bangladesh. Come and see it for yourselves."

In the 1990s and early 2000s, international buyers used to visit Bangladesh and participate in these exhibitions. We need to think again about how to bring them back.

The TIE–ITET Textile Innovation Expo, taking place from 12 to 14 November 2026, is a very good initiative. It will send a positive message to our buyers. As buying houses, we will also try to encourage them to visit Bangladesh and see these exhibitions.

The Global Sourcing Expo is taking place from the 15th to the 17th, followed by BATEXPO on the 18th and 19th. As these events continue and the message reaches buyers, they will be encouraged to visit Bangladesh. In this context, we must ensure stability in the country, specifically, a stable political environment to facilitate their visits.

Textile Today: With rising living costs and ongoing discussions about wages, how can the industry balance workers’ welfare with business sustainability?

Md. Abdul Hamid: We must consider the interests of everyone involved, including manufacturers, buying houses, other stakeholders and, most importantly, workers. The prices of almost everything has increased. Workers are also facing serious difficulties in managing their daily expenses. When fuel and gas prices increase, the prices of essential commodities naturally rise as well. We have to recognize that workers cannot manage their living expenses easily with their present income.

At the same time, factories are facing increasing production costs. We need to find a balance so that factories can survive, buying houses and other stakeholders can continue their businesses, and workers' interests are protected.

We also need to communicate this situation to international buyers. Costs are increasing globally, and buyers should understand that product prices also need to increase to some extent.

I believe workers and factory owners must work together to find a reasonable solution. Our objective should be to ensure that factories remain sustainable while workers receive wages that allow them to meet their living expenses.

Textile Today: What is your overall message for the future of Bangladesh’s textile and apparel industry?

Md. Abdul Hamid: The most important thing is that we must change according to the demands of the market. We cannot continue depending only on basic garments and cotton-based products. We need to diversify our products, develop the necessary textile infrastructure and move towards innovation and value-added manufacturing.

At the same time, we must attract international buyers, show them our capabilities and create an environment where they feel confident about doing business in Bangladesh.

We also have to maintain a balance between production costs, workers' welfare and the sustainability of factories and other stakeholders. If we can work together on these issues, I believe we can make the industry more sustainable and competitive.

Bangladesh’s knitwear industry has opportunities to expand exports, diversify products, and strengthen its global position. However, energy shortages, raw material costs, and long lead times continue to challenge manufacturers. Renewable energy, competitive local sourcing, and workforce development will be critical to future growth.

Textile Today recently spoke with Ishfaq Ahsan, Managing Director of Ahsan Composite Ltd. and Director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). A dynamic, second-generation entrepreneur, Ishfaq Ahsan has been instrumental in modernizing Ahsan Group’s textile and garment operations. With a strong background in business administration and strategic management, he has focused on driving sustainable manufacturing, expanding high-value organic product lines, and integrating renewable energy solutions across factory operations. As a BKMEA Director, he actively advocates for policy support, energy resilience, competitive raw material sourcing, and middle-management capacity building to enhance the overall competitiveness of Bangladesh's RMG sector.

In this exclusive interview, he discussed his company’s growth, export opportunities, energy challenges, and raw material sourcing. He also shared insights on renewable energy investment, resource efficiency, and the vital role of workforce training in strengthening Bangladesh’s apparel industry.

Textile Today: Could you share Ahsan Composite’s journey, product development, and export markets?

Ishfaq Ahsan: Ahsan Group was established by my father. We entered the garment industry in 1986 with woven products and started knitwear operations in 1995 in Narayanganj. We later established Ahsan Composite at our Gazipur facility, increasing daily production capacity from 8 tons to 40 tons.

We started with basic T-shirts and gradually diversified through research and development. Today, we produce single jersey, pique, polo shirts, and sweatshirts in different fabric compositions, including 80/20 and 65/35 blends.

We have obtained the certifications required by buyers, including Global Organic Textile Standard (GOTS) and Global Recycled Standard (GRS). We were among the early factories in Bangladesh to develop organic products and buyer relationships around 2012.

We have built a strong European market through long-standing buyer relationships. Around 99% of our business is now focused on Europe. We work with different buyers and have diversified our products over the years. Currently, we are focusing on promotional items, particularly basic T-shirts, polo shirts, and sweatshirts.

Textile Today: What is the current order situation, and what opportunities do you see for Bangladesh’s knitwear industry?

Ishfaq Ahsan: We expected a reasonable flow of orders during the transition from summer to winter. Some long-standing buyers provided annual projections in March and April, with shipment plans extending to December. This indicated opportunities for orders to return to Bangladesh.

The country has the capacity to handle these orders, but energy shortages are creating difficulties. We are purchasing liquefied petroleum gas (LPG) at an additional cost to maintain production and meet buyer commitments. However, many factories lack the financial capacity, infrastructure, or space to install LPG systems.

I consider this a temporary problem. The government, BKMEA, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are working together to address it. A timely solution would help manufacturers fulfill orders and increase exports.

Textile Today: How can renewable energy help address energy challenges, and what support is needed to encourage investment?

Ishfaq Ahsan: Around five years ago, we installed approximately 700 kW of solar power capacity across the rooftops of our factory buildings. I believe solar and other renewable energy sources are among the best solutions for the industry’s future energy needs.

Energy storage technologies are also emerging, allowing renewable electricity to be stored for later use. However, investment remains a major challenge. At current double-digit interest rates, many companies cannot justify the investment.

Although duties on relevant equipment have been removed, affordable financing is still needed. The government, Bangladesh Bank and industry associations should jointly develop financing schemes that enable factories to adopt renewable energy technologies.

Textile Today: What steps has Ahsan Composite taken to improve energy efficiency and reuse water?

Ishfaq Ahsan: We use exhaust heat from our generators to produce steam through a waste-heat recovery boiler. When gas pressure in the supply line is insufficient, this recovered heat helps meet part of our steam requirements.

We have also invested in a biological effluent treatment plant (ETP) to treat wastewater for reuse. Treated water is used for toilet flushing, road cleaning, and vehicle washing.

These initiatives require investment, but factories must adopt practical and innovative solutions to use resources more efficiently and prepare for future challenges.

Textile Today: What challenges do manufacturers face in raw material sourcing, and how can local spinning mills improve competitiveness and lead times?

Ishfaq Ahsan: Buyers can now compare raw material prices across countries and negotiate with manufacturers based on prices obtained directly from spinners and suppliers. This puts pressure on our pricing.

Restrictions on duty-free raw material imports also create challenges. A significant share of our raw materials consists of yarn or fabric. If manufacturers cannot import these materials competitively, they risk losing their price advantage.

We need solutions that support local textile mills without undermining garment manufacturers. Through industry associations, particularly BKMEA, we have proposed incentives and financing facilities for spinning mills so they can supply yarn at competitive prices.

If local mills can match or beat imported yarn prices, manufacturers will have stronger reasons to source locally. This would benefit both sectors and reduce lead times.

Importing yarn from India, China, or Turkey can take around 60 days by sea. Buyers increasingly demand shorter lead times, making these delays a disadvantage. If competitive local sourcing is available, we could potentially complete a T-shirt export within around 45 days, compared with approximately 90 days when imported raw materials are involved.

The government should therefore support both spinning mills and garment manufacturers through appropriate incentives and financing. This would strengthen local sourcing, reduce costs and lead times, and help increase exports.

Textile Today: What will determine the future of Bangladesh’s apparel industry, and how important are workforce development and management training?

Ishfaq Ahsan: The industry's future depends on efficiency and innovation. We must train employees at every level, from top management to production teams, and adopt new technologies to improve productivity.

Textile Today has taken a good initiative by providing innovative training for middle-level managers, and BKMEA is working with Textile Today on this initiative. Middle-level managers play an important role in factory operations. Developing their skills will help factories improve efficiency and implement new ideas more effectively.

I believe workforce development, better management practices, and innovation will determine the future of Bangladesh’s garment industry. The benefits of these initiatives will become more evident over time, supporting the industry's long-term growth.

For years, Europe has been one of Bangladesh’s most dependable growth engines. But the European market that helped build Bangladesh’s apparel export success is changing rapidly and the warning signs are already visible in the numbers.

In the first half of 2026, Bangladesh’s apparel exports to the European Union fell 16.43% year-on-year to €8.64 billion, according to Eurostat data. Export volume declined 8.22%, while average export prices fell 8.94%. The EU itself was a weaker market: total apparel imports from global suppliers fell 9.7% to €41.1 billion. But Bangladesh’s decline was considerably sharper than the market contraction. That makes the current European slowdown more than a cyclical demand problem.

It raises a bigger question: Is Bangladesh losing competitiveness in its most important export market just as Europe redefines what “competitive” means?

The answer will depend on whether Bangladesh treats Europe’s new regulatory environment simply as another compliance burden or as a catalyst for a different manufacturing model.

From volume to value

Europe’s buyers are under pressure. Bangladesh is under greater pressure. European apparel demand has weakened, prices have softened and competition among sourcing countries has intensified.

Yet the most revealing comparison from H1 2026 is not Bangladesh’s 16.43% decline alone. It is what happened to competitors.

Vietnam’s apparel exports to the EU increased 0.36% in value even though its shipment volume fell 11.52%. Its average export price, meanwhile, increased 13.43%. Bangladesh, by contrast, experienced declines in both volume and average price. That contrast points towards the central challenge facing Bangladesh.

The next phase of competition may not be about who can ship the largest quantity at the lowest price. It may increasingly be about who can deliver higher value, better products, greater flexibility, stronger traceability and lower supply-chain risk.

Bangladesh remains deeply competitive in large-scale basic apparel manufacturing. But Europe is increasingly demanding a broader product and capability mix: man-made fiber products, sportswear, technical and functional garments, outerwear, smaller and faster orders, better traceability and stronger sustainability credentials. The strategic question is therefore no longer simply: How much can Bangladesh export to Europe?

It is: How much more value can Bangladesh capture from every kilogram, every factory and every buyer relationship?

The digital product passport is moving closer

Europe is building a data-driven textile market. One of the most important developments for Bangladesh’s exporters is not a tariff change or a new buyer policy. It is the transformation of the product itself into a data-rich product.

The European Commission has identified textiles and apparel as a priority product group under the Ecodesign for Sustainable Products Regulation. The current indicative timeline points to adoption of the textile-specific delegated act in Q4 2027, after which additional technical and implementation measures will follow.

In July 2026, the European Commission also launched the Digital Product Passport Registry and testing environment, a significant step towards making the system operational.

For Bangladesh, the implication is substantial. A future European buyer will increasingly need reliable information about what a product contains, where materials came from, how it was produced and what happens to it during and after its useful life.

That means factory competitiveness will increasingly depend on something Bangladesh has traditionally treated as a support function rather than a core manufacturing capability, i.e., data.

Factories will need systems capable of collecting, verifying, storing and sharing product and production information across the supply chain. The DPP should therefore not be viewed merely as another compliance document. It could become a test of whether Bangladesh’s factories are digitally mature enough for the next generation of European sourcing.

2029: The preference clock is still ticking

Bangladesh is scheduled to graduate from the UN’s Least Developed Country category in 2026. Under the EU’s renewed Generalized Scheme of Preferences, Bangladesh and other graduating LDCs will continue benefiting from Everything But Arms preferences for three additional years, at least until the end of 2029. Bangladesh will also have the opportunity to apply for GSP+. That extension provides breathing space.

But it should not create complacency. The EU remains Bangladesh’s most important export market, with textile and apparel products accounting for around 90% of EU imports from Bangladesh in 2025. The EU is Bangladesh’s largest export destination and trading partner.

The strategic value of the 2027–2029 period, therefore, is not simply that Bangladesh has more time to preserve duty advantages. It is that Bangladesh has time to prepare for a market in which productivity, product value, sustainability, traceability and speed must increasingly compensate for the eventual reduction in preferential advantage.

GSP+ and a possible future trade arrangement with the EU may remain important policy objectives. But market access alone will not guarantee market share.

Europe wants the textile loop closed

Europe’s textile policy is also moving beyond factory-level environmental compliance and towards the entire lifecycle of clothing.

The revised EU Waste Framework Directive introduces mandatory Extended Producer Responsibility schemes for textiles and footwear across member states. Producer contributions will be linked to sustainability characteristics such as durability and recyclability, creating an incentive for more circular product design. Member states are also required to strengthen systems for collection, sorting, reuse and recycling.

For Bangladesh, that creates both a challenge and an opportunity. The country has enormous production-scale experience and generates substantial quantities of pre-consumer textile waste. If investment in sorting, fiber recovery, mechanical and chemical recycling and recycled-material production can be scaled, waste could become an industrial input rather than simply an environmental liability.

That could open a new competitive space i.e., recycled yarn, recycled fabrics, circular products and traceable recycled-content garments.

From compliance to competitive advantage

Europe’s regulatory shift ultimately leads to one fundamental question: What kind of factory will remain competitive in the European market five years from now?

It will not necessarily be the factory with the cheapest labor cost. It will be the factory that can combine cost, speed, quality, data, sustainability and innovation. That means process innovation, i.e., reducing waste, improving line efficiency and shortening lead times.

It means product innovation, i.e., moving beyond basic cotton garments into MMF, sportswear, outerwear, technical and functional products.

It means technology, i.e., automation, digital production monitoring, computer vision, predictive maintenance and better planning systems.

It means people, i.e., workers and managers who can operate increasingly digital and sophisticated production systems.

And it means energy. As Bangladesh’s factories face growing pressure from energy costs and supply reliability, energy efficiency is becoming part of the competitiveness equation rather than simply an environmental objective.

The same principle applies to sustainability. A factory should not invest in renewable energy, water efficiency, waste reduction or chemical management merely because a buyer has requested it.

The big shift

Europe is not simply becoming a more regulated apparel market. It is becoming a market where information, sustainability, circularity and manufacturing capability are increasingly connected to commercial competitiveness.

Bangladesh’s H1 2026 export performance shows why this matters now. The EU market contracted but Bangladesh fell considerably faster than the market. At the same time, Vietnam demonstrated that lower volumes do not necessarily mean lower export value when suppliers can move towards higher prices and higher-value business.

That should be the wake-up call. The European regulatory agenda may create additional costs in the short term. Digital systems require investment. Traceability requires infrastructure. Circularity requires technology. Cleaner production requires capital. Higher-value products require new skills.

But these are not only compliance costs. They are also the building blocks of the next competitive model. The factories that survive Europe’s new textile reality will not be those that merely comply with its rules. They will be those that use the rules to become more productive, more transparent, more innovative and more valuable to buyers.

For Bangladesh, the countdown to 2029 is therefore not simply a countdown to the end of preferential access. It is a countdown to becoming a different kind of supplier. From volume to value, from compliance to capability and from low cost to intelligent competitiveness. That is the real European challenge and potentially Bangladesh’s next competitive advantage.