Textile Today - Articles

Coats Digital showcases smart factory solutions at SMARTEX 2026

deskreport@gmail.com (Desk Report) — Thu, 09 Jul 2026 16:35:00 +0600

Coats Digital showcased its latest digital manufacturing solutions at SMARTEX 2026 in Cairo, engaging with apparel manufacturers and industry leaders on how digital transformation is improving efficiency, traceability and competitiveness across the apparel industry.

During the exhibition, the company hosted a technical session titled "Smart Factory in Action: Boosting Efficiency with Real-Time Digital Tools," which focused on the role of digitalization and real-time technologies in enhancing factory performance and supply chain visibility.

The session generated discussions on the growing importance of traceability, with Coats Digital emphasizing that traceability should be viewed as a strategic business enabler rather than a compliance burden.

According to the company, improved traceability enhances transparency, strengthens customer confidence and supports stronger commercial performance.

Throughout the event, Coats Digital met with manufacturers and industry stakeholders to explore how digital technologies can help build smarter, more agile and competitive apparel operations.

Coats Digital reaffirmed its commitment to supporting fashion manufacturers on their digital transformation journey through innovative software and smart factory solutions.

KM International organizes Labour Law Amendment 2026 workshop for RMG suppliers

deskreport@gmail.com (Desk Report) — Thu, 09 Jul 2026 12:27:00 +0600

KM International GmbH, the Bangladesh Liaison Office of FLORETT TEXTIL GmbH & Co. KG, successfully organized its Supplier Development Program 2026 on the Bangladesh Labour Law (Amendment) 2026 at Hotel Highgarden, Uttara, Dhaka. The workshop brought together around 55 participants from 18 ready-made garment (RMG) factories.

Figure 1: The workshop brought together around 55 participants from 18 ready-made garment (RMG) factories.

The program was attended by Nicole Hartmann, CR Manager (Social Compliance), as Chief Guest, and Fabian, CR Manager (Environmental Affairs), as Special Guest, both from FLORETT TEXTIL GmbH & Co. KG.

The keynote address was delivered by Sultan Mahmud Sohal, Country Manager (Corporate Responsibility), KM International GmbH, who emphasized that effective implementation of the amended labor law is essential for responsible sourcing and sustainable supply chains.

Figure 2: Nicole Hartmann, CR Manager (Social Compliance), FLORETT TEXTIL GmbH & Co. KG.

Technical sessions were conducted by K. M. Saiful Islam, Assistant Attorney General of Bangladesh, and Badsha Mia, Associate Professor and Chairman, Department of Law, Noakhali Science and Technology University, covering key legal amendments, employer responsibilities, disciplinary procedures, dispute resolution, and compliance practices.

Mohammad Jahangir Hossain, Manager – Corporate Responsibility, ALDI CR Support Asia Limited, shared buyers’ expectations on labour compliance and human rights due diligence.

The program concluded with an interactive discussion and certificate ceremony, reaffirming FLORETT’s commitment to supplier development and responsible sourcing in Bangladesh’s garment industry.

Buying houses play vital role in Bangladesh's apparel exports and deserve greater recognition,” Mofazzal Hossain Pabel

St7ckyqex6pSmCs@gmail.com ( Sayed Abdullah) — Thu, 09 Jul 2026 11:31:00 +0600

Garment buying houses have become an integral part of Bangladesh's apparel export ecosystem by securing international business, building buyer relationships and creating opportunities for local manufacturers, said Bangladesh Garment Buying House Association (BGBA) ex-President and Chief Advisor Mohammad Mofazzal Hossain Pabel.

Speaking at the introductory meeting of BGBA's 66 Standing Committees for the 2026–2028 term, Pabel said the contribution of buying houses should be acknowledged alongside that of garment manufacturers, as both play distinct but complementary roles in sustaining the country's ready-made garment (RMG) industry.

Figure: BGBA ex-President and Chief Advisor Mohammad Mofazzal Hossain Pabel.

Buying houses connect Bangladesh to global buyers

Dongyi Sourcing Ltd (DSL) CEO & Managing Director, Pabel, said buying houses are responsible for creating business opportunities by identifying overseas buyers, maintaining long-term commercial relationships and bringing export orders to Bangladesh.

He noted that while factories transform orders into finished garments, buying houses perform the equally important task of connecting international brands with local manufacturers.

"If buying houses were not necessary, this association would never have been created. We bring international orders to Bangladesh, and those orders keep factories running," he said.

According to him, the strength of buying houses lies in international marketing, merchandising, sourcing and buyer relationship management—areas that require years of experience, market knowledge and strong global networks.

A complementary role, not a competing one

Pabel stressed that buying houses and manufacturers should be viewed as partners rather than competitors.

He acknowledged the critical contribution of garment factories to Bangladesh's economy and said the industry's success depends on close cooperation among all stakeholders. At the same time, he argued that the services provided by buying houses are often underestimated despite their significant contribution to export growth.

"Manufacturers are indispensable to Bangladesh's apparel industry, but buying houses also have a distinct responsibility. We specialise in marketing and business development, while factories specialise in production. Together, these strengths support the country's export industry," he said.

Mofazzal Hossain added that many buying houses spend years developing relationships with international brands and retailers before those efforts translate into production orders for local factories.

Specialized expertise creates export opportunities

Mofazzal Hossain Pabel said buying houses contribute much more than order placement. Their work includes understanding buyer requirements, negotiating commercial terms, coordinating product development and ensuring smooth communication between buyers and manufacturers throughout the production process.

"Everyone has different strengths. Our expertise is in selling, marketing and buying. We travel, meet buyers and build confidence in Bangladesh as a sourcing destination. That is how we contribute to keeping the industry's wheels moving," he said.

BGBA Chief Advisor noted that these commercial activities ultimately generate employment, support factory utilization and contribute to the country's export earnings.

Recognition should reflect contribution

Reflecting on BGBA's journey, Pabel said the association has worked consistently to establish buying houses as an important stakeholder within Bangladesh's apparel industry.

He recalled that when the previous BGBA board assumed office, the association had limited visibility in many policy discussions. Over the past two years, however, BGBA has expanded its engagement with government institutions and industry stakeholders while strengthening its own organizational capacity.

Pabel expressed hope that this progress would continue under the newly formed Standing Committees.

He said the association's long-term objective is to ensure that BGBA is represented whenever major policy decisions affecting the apparel export sector are discussed, including meetings involving the Ministry of Commerce, Bangladesh Bank, the National Board of Revenue and other government agencies.

"I will consider our efforts successful when BGBA is recognised as a key stakeholder and is invited to participate in national policy discussions concerning the apparel industry," he said.

Concluding his remarks, Pabel urged members of the newly formed Standing Committees to continue working together for the advancement of the association and the industry.

"We all want BGBA to be respected. That respect will come through our collective work and by demonstrating the value that buying houses bring to Bangladesh's apparel export sector," he said.

Eastern Refinery secures $1.004 billion IsDB financing for second unit

akhi.akhter@textiletoday.com.bd (Textile Today) — Thu, 09 Jul 2026 11:18:00 +0600

The Bangladesh government has approved a $1.004 billion financing package from the Islamic Development Bank (IsDB) to expand Eastern Refinery Limited (ERL). The project will increase the country's refining capacity, strengthen energy security, and reduce dependence on imported refined petroleum products.

Figure: Eastern Refinery secures $1.004 billion IsDB financing for second unit. Courtesy: Collected

The approval was granted on July 8, 2026, by the Standing Committee on Non-Concessional Loan (SCNCL), chaired by Amir Khosru Mahmud Chowdhury, Finance and Planning Adviser.

The financing will enable the construction of ERL-2, which will increase Bangladesh's crude oil refining capacity from 1.5 million tons to 4.5 million tons annually. The government expects the project to improve domestic fuel availability, reduce foreign exchange spending on refined fuel imports, and enhance energy resilience for key industries, including textiles and apparel.

The revised project cost stands at Tk31,000.57 crore, with the government contributing Tk18,566.74 crore and Bangladesh Petroleum Corporation (BPC) investing Tk12,433.83 crore from its own resources. The project is scheduled for implementation between January 2025 and June 2030, while officials expect the IsDB financing agreement to be signed in mid-August 2026.

Once operational, ERL-2 will produce around 1.1 million tons of Euro-5 diesel, 600,000 tons of Euro-5 gasoline, 500,000 tons of jet fuel, 400,000 tons of furnace oil, 200,000 tons of lube base oil, and 60,000 tons of LPG annually. The project will also upgrade fuel produced by the existing refinery to Euro-5 standards.

Bangladesh currently imports about 80% of its refined petroleum products. By expanding domestic refining capacity, the project is expected to reduce import dependence, improve fuel availability, lower foreign exchange outflows, and reduce pressure on government fuel subsidies. A more reliable supply of petroleum products will also support power generation, industrial production, transportation, and export logistics, benefiting energy-intensive sectors such as the textile and apparel industry.

If completed on schedule in 2030, ERL-2 will become Bangladesh's largest refinery expansion project and a major milestone in enhancing the country's downstream petroleum infrastructure while reducing long-term dependence on imported refined fuel.

NCTO urges new US tariffs on Asian apparel linked to forced labor

alulk3Ar7x7Twul@gmail.com (International Desk) — Thu, 09 Jul 2026 08:32:00 +0600

The National Council of Textile Organizations (NCTO) has urged the US government to impose new Section 301 tariffs on apparel imports linked to forced labor, arguing that unfair trade practices are undermining domestic textile manufacturing.

Figure: NCTO urges new US tariffs on Asian apparel linked to forced labor

The National Council of Textile Organizations (NCTO), which represents the entire US textile value chain, has submitted its recommendations to the Office of the United States Trade Representative (USTR). The submission is part of the USTR's ongoing Section 301 investigation into forced labor-related trade practices.

NCTO said forced labor continues to distort global competition. It argued that unfair labor practices lower production costs for overseas manufacturers and put US textile producers at a disadvantage.

The organization urged the USTR to impose Section 301 tariffs on apparel and finished textile imports from China and Southeast Asian countries where forced labor is used in manufacturing.

NCTO also asked the USTR to keep duty-free access for qualifying textile and apparel products under the United States-Mexico-Canada Agreement (USMCA) and the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

Officials from NCTO said the right policy decisions could potentially double US textile manufacturing capacity. It also warned that ineffective measures could put domestic jobs at risk.

NCTO President and CEO Kim Glas is scheduled to testify at the USTR's Section 301 forced labor hearing on July 9.

Earlier, NCTO joined the American Apparel & Footwear Association (AAFA), the United States Fashion Industry Association (USFIA), and the US Industrial and Narrow Fabrics Institute (USIFI) to propose an alternative textile and apparel incentive program. According to the submission, the proposal could support the entire US textile supply chain, including US cotton, and create more than 56,000 jobs.

The recommendations reflect the US textile industry’s broader push for stricter enforcement against forced labor while strengthening regional supply chains across North America.

BWGED proposes Tk25,000 crore renewable energy fund to strengthen Bangladesh's energy security

deskreport@gmail.com (Desk Report) — Wed, 08 Jul 2026 22:27:00 +0600

The Bangladesh Working Group on Ecology and Development (BWGED) has proposed the creation of a Tk25,000 crore renewable energy financing facility and direct subsidies for rooftop and agricultural solar systems.

The proposal aims to accelerate the country's clean energy transition, reduce fossil fuel imports and enhance long-term energy security.

Figure: The proposal aims to accelerate the country's clean energy transition, reduce fossil fuel imports, and enhance long-term energy security. Courtesy: Collected

The recommendations were presented at a policy dialogue held at the Jatiya Sangsad Bhaban, attended by Information and Broadcasting Minister Zahir Uddin Swapon, members of parliament and energy sector stakeholders.

Speaking at the event, the minister said Bangladesh's energy security is closely linked to its economic sovereignty, stressing the need for stronger political commitment to accelerate the country's shift toward renewable energy.

"Energy security is not merely about ensuring electricity supply. It is about protecting Bangladesh's economic independence and development aspirations. We must move forward with strong political commitment and accelerate our transition toward clean, renewable energy," he said.

BWGED said Bangladesh's growing dependence on imported fossil fuels has increased exposure to global price volatility and geopolitical risks, making renewable energy both an economic and environmental priority.

Presenting the group's findings, Hasan Mehedi, Chief Executive of CLEAN and a BWGED representative, said every additional kilowatt of solar capacity installed in Bangladesh could reduce fuel oil imports by around Tk30,000 annually, generating cumulative savings of approximately Tk600,000 over a 20-year operating period.

Among its key proposals, BWGED recommended establishing a Tk25,000 crore renewable energy financing facility under Bangladesh Bank to provide low-interest loans through commercial banks, with interest rates capped at 5 percent.

The organization also called for a Tk25,000 per kilowatt direct subsidy for household and agricultural solar systems of up to 3kW, estimating that achieving Bangladesh's 10,000MW renewable energy target by 2030 would require around Tk21,750 crore annually, including approximately Tk6,750 crore in direct government support.

BWGED further proposed an additional 10 percent incentive for renewable energy projects led by women, Indigenous peoples and marginalized communities, alongside equal tax benefits for rooftop solar systems, solar irrigation, solar-powered water supply projects and other distributed renewable energy initiatives.

The organization also recommended utilizing 14,166 acres of unused land previously acquired for coal-fired power projects to develop around 6,000MW of solar and wind power without additional land acquisition.

Other recommendations included launching pilot Green District programs, introducing nationwide renewable energy skills training to create one million green jobs, and making battery energy storage systems mandatory for all newly approved utility-scale solar projects.

According to BWGED, Bangladesh currently has 1,679MW of installed renewable energy capacity, well below the government's target of 10,000MW by 2030.

The organization said achieving this goal will require greater participation from households, farmers, local governments and small businesses in addition to large-scale private investment.

BWGED said expanding renewable energy would help reduce dependence on imported fossil fuels, ease pressure on foreign exchange reserves, improve industrial competitiveness and strengthen the country's long-term energy security.

HSBC identifies reforms as the key driver ofic Bangladesh's econom rebound

kw5XLvDFyMBCqDD@gmail.com (BTT Desk) — Wed, 08 Jul 2026 21:35:00 +0600

HSBC expects Bangladesh’s economy to regain momentum in FY2026, forecasting 4.4% growth as structural reforms, easing global uncertainty and stronger private investment improve the country’s economic outlook.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury speaks at the “HSBC Economic Outlook 2026: The Bangladesh Perspective” event in Dhaka on July 7. Courtesy: HSBC

The outlook was shared during the "HSBC Economic Outlook 2026: The Bangladesh Perspective" event held in Dhaka on July 7. The discussion brought together senior government officials, economists, business leaders and industry stakeholders to examine Bangladesh's economic outlook amid a changing global landscape.

Presenting the keynote, Frederic Neumann, Chief Asia Economist and Co-Head of Global Investment Research (Asia) at HSBC, said Bangladesh has remained resilient despite continued global uncertainty. He projected the country's economy to grow by 4.4% in the coming fiscal year, supported by improving macroeconomic conditions, stronger private investment and recovering domestic consumption.

Neumann said lower global oil prices, easing uncertainty surrounding US tariff policies and continued global economic growth are expected to support Bangladesh's ready-made garment (RMG) exports during the second half of 2026.

The government’s reform agenda echoed many of HSBC’s observations. Speaking during this interactive session, Amir Khosru Mahmud Chowdhury, Finance and Planning Minister, said restoring confidence while maintaining macroeconomic stability remains the government's top priority as it implements the national budget.

He said the government is working to strengthen institutions, reduce bureaucracy, and improve the overall business environment. Key priorities include removing regulatory barriers, expanding market access, encouraging private investment through economic zones, and accelerating export diversification.

HSBC's outlook offers cautious optimism for Bangladesh's textile and apparel sector, which accounts for the country's largest share of export earnings. Expectations of stronger global demand, easing energy prices and a more stable trade environment could help improve export orders in the second half of 2026.

While HSBC sees encouraging signs for Bangladesh’s export-led economy, sustained recovery will ultimately depend on the pace of reforms, improvements in productivity and the country’s ability to move into higher-value manufacturing.

bluesign Sustainability Forum highlights Bangladesh’s readiness for a sustainable post-LDC future

rahbar@textiletoday.com.bd (Rahbar Hossain) — Wed, 08 Jul 2026 15:49:00 +0600

The bluesign Sustainability Forum 2026 was held on 7 July 2026 at Le Méridien Dhaka, bringing together industry leaders, brands, manufacturers, development partners and sustainability experts to discuss the future of Bangladesh's textile and apparel industry and its transition towards sustainable growth.

Delivering the keynote address as the Chief Guest, Reto Renggli, Ambassador of Switzerland to Bangladesh, emphasized that sustainability is not only an environmental responsibility but also a strategic necessity for Bangladesh as it prepares for the post-LDC era.

Figure 1: Chief Guest, Reto Renggli, Ambassador of Switzerland to Bangladesh.

Drawing on Switzerland's development journey, he noted that the country possesses limited natural and mineral resources, yet has built its global competitiveness on knowledge, quality and trust. He encouraged Bangladesh to strengthen these same pillars to remain competitive in the global market.

The forum began with a welcome address by Mehedi Hasan Rubel, Country Relationship Manager of bluesign Bangladesh, who welcomed participants and highlighted the growing importance of collaborative sustainability initiatives across the textile value chain.

bluepass introduced as the next generation of sustainability verification

In her keynote presentation, Esther Paez, Head of Sustainability & IMPACT at bluesign, introduced bluepass, the organization's new sustainability verification system designed to enhance transparency and traceability throughout textile supply chains.

bluepass replaces the previous bluesign APPROVED and bluesign PRODUCT labels with a more transparent, digital verification platform.

Figure 2: Panel discussion on "Why is sustainability important to Bangladesh?" attended by several distinguished guests.

The bluepass system consists of three certification levels:

Consumer Product – Applied to finished consumer goods such as garments and footwear, indicating that at least 90% of the materials originate from responsibly manufactured sources.
Article – Used for textile materials and components such as fabrics, yarns, trims and zippers incorporated into finished products.
Chemical Product – Applied to dyes, auxiliaries and chemical formulations before they enter textile manufacturing processes.

Industry leaders emphasize collaboration for sustainability

The forum was attended by several distinguished guests, including Helal Hussain, Country Director of Swisscontact; Rezanur Sohel, Managing Director of eS Trims Ltd.; Abdur Rashid, Country Manager of SGS Bangladesh and President of the Swiss-Bangladesh Chamber of Commerce and Industry (SBCCI); Mahir Ahmed, Director of Apex Holdings Ltd.; and Minhazul Hoque, Director of BKMEA and Director of Fatullah Dyeing & Calendering Mills Ltd.

The speakers highlighted the growing role of the bluesign system in helping Bangladesh's textile industry improve environmental performance, responsible chemical management and global competitiveness.

Panel explores why sustainability matters for Bangladesh

A panel discussion titled "Why is sustainability important to Bangladesh?" was moderated by Marco Volpi, Head of CRM at bluesign.

The panel featured Aminul Islam, Country Manager of Transfar Chemical; Tauhidul Islam, Senior Program Manager at Swisscontact; Kazy Iqbal, Sustainability Manager at Lindex Bangladesh Liaison Office; and Fakir Rafsanuzzaman, Director of Fakir Apparel Ltd.

Aminul Islam said, “For sustainability, new chemistry is a must, and we should be ready to pay for that.”

Fakir Rafsanuzzaman said, “Our attention should be on transforming from cost-centric to value-centric. Mutual agreement and cooperation among brands, manufacturers and suppliers are required. The industry is willing to invest when it can see tangible benefits.”

Kazy Iqbal said, “If Bangladesh cannot successfully implement sustainability in the textile and apparel sector, then it will be difficult for others to do so. Cooperation among brands, manufacturers, suppliers and development partners is essential.”

Figure 3: All the distinguished guests with the Ambassador.

Tauhidul Islam said, “We are focusing on preparing SMEs so they can become part of the sustainability journey through systems such as bluesign.”

The program was hosted by Enamul Hafiz Latifee, Chief Research Officer of Textile Today, who served as the master of ceremonies.

She explained that bluepass enables users to verify how fabrics and chemical products are manufactured through a QR code attached to certified products. By simply scanning the code, users can access verified information demonstrating that products have been manufactured responsibly without compromising people or the environment.

Bangladesh targets $10bn leather exports with CETP upgrade and compliance reforms

deskreport@gmail.com (Desk Report) — Wed, 08 Jul 2026 13:34:00 +0600

On 7 July, Commerce Minister Khandakar Abdul Muqtadir announced a comprehensive reform initiative aimed at revitalizing Bangladesh's leather industry, strengthening environmental compliance, and transforming the sector into a $10 billion export industry.

He made the remarks while responding to a parliamentary notice raised by Jamaat-e-Islami MP Shahjahan Chowdhury, acknowledging the longstanding challenges the industry has faced since the relocation of tanneries from Hazaribagh to Savar.

Courtesy: Collected

Minister said towards the target, these initiatives would enable Bangladesh to regain full leather processing capacity, achieve international environmental compliance and eventually increase leather and leather products exports to more than $10 billion.

The wastewater treatment capacity of the Savar CETP will be upgraded to 25,000 cubic meters per day. The government also plans to establish a second CETP to ensure full environmental compliance at the industrial estate, he added.

The announcement came in response to concerns raised by lawmaker Shahjahan Chowdhury, who highlighted the declining performance of Bangladesh's leather and leather goods sector.

He noted that leather exports have fallen from $1.2 billion in 2018 to below $700 million in FY2024-25, largely due to compliance shortcomings and the unresolved CETP crisis.

According to the minister, environmental compliance remains the industry's biggest challenge following the relocation of tanneries from Hazaribagh to Savar.

the move was intended to reduce pollution; many factories were unable to maintain their previous production capacity after relocation.

He identified the limited capacity of the existing CETP, the absence of a chromium recovery system and the lack of individual Effluent Treatment Plants (ETPs) in many tanneries as major obstacles to achieving international compliance standards.

Although the Savar CETP was designed to treat 25,000 cubic meters of wastewater per day, it is currently processing between 14,000 and 17,000 cubic meters daily, the minister said.

He added that many tanneries have been unable to obtain certification from the Leather Working Group (LWG) because they fail to meet environmental and compliance requirements, particularly due to the absence of individual ETPs.

As a result, Bangladesh has lost access to major international buyers, affecting leather demand and raw hide prices.

To address these issues, the government plans to make individual ETPs mandatory for all tanneries above a specified production capacity while retaining the two CETPs as the primary wastewater treatment facilities. Technical assistance and, where necessary, financial support will be provided to help factories achieve compliance and secure LWG certification.

The government also plans to identify financially non-viable tanneries and facilitate what the minister described as a "dignified exit" for businesses that can no longer operate sustainably.

Addressing concerns over the preservation of sacrificial animal hides during Eid-ul-Azha, the minister said the government has undertaken extensive awareness and training programs. Around Tk 176 million worth of salt was distributed through district administrations, while madrasa teachers and local officials received training on proper hide preservation techniques.

He said approximately 10.1 million animals were sacrificed during this year's Eid-ul-Azha, of which nearly 7 million hides were successfully preserved. Around 3 to 3.5 million hides have already reached tanneries in Savar for processing.

To prevent congestion at the Savar industrial estate, the government temporarily restricted the entry of hide-laden trucks into Dhaka for about a week after Eid, allowing preserved hides to arrive in phases for processing.

The minister added that instead of providing broad cash incentives, the government prioritized supplying essential preservation materials and targeted support, citing the weak financial condition of many non-compliant tanneries.

The approach was to stabilize the sector while promoting long-term environmental compliance and sustainability.

Transforming Bangladesh’s textile & apparel industry (Part 2)

Wed, 08 Jul 2026 12:16:00 +0600

From a BDT 20,000-crore investment fund and mandatory LEED certification to backward linkage protection and the abolition of the bonded warehouse system, the concluding article in a two-part series presents a comprehensive $11.5 billion infrastructure program and nine structural policy reforms targeting $100 billion in exports by 2040.

In the first article of this series, I diagnosed the six structural vulnerabilities threatening Bangladesh's textile and apparel sector. In this concluding article, I present both the infrastructure investment program and the nine structural policy reforms that together constitute a comprehensive national transformation architecture, targeting $100 billion in annual exports by 2040.

The starting point is raw material self-sufficiency. Bangladesh imports 60 to 70% of its yarn and 80 to 90% of its woven fabric, creating billions in annual cost leakage. I recommend establishing a National Textile Raw Material Development Authority to coordinate cotton cultivation, synthetic fiber production, and yarn manufacturing under a single institution, backed by a ten-year roadmap to achieve 80% yarn and 60% woven fabric self-sufficiency by 2035.

New integrated spinning mills producing both cotton and man-made fiber yarns should receive a 50% capital subsidy, import duties on textile machinery and technical chemicals should fall to zero, and Textile Industrial Parks in Sirajganj, Narsingdi, and Comilla should be fast-tracked. Principal companies and global suppliers should be permitted to establish bonded warehouses in port-adjacent locations stocking key inputs including dyestuffs, fibers, accessories, and spare parts.

On port reform, Chattogram's decline to 356th on the World Bank Container Port Performance Index demands urgent action. I recommend a five-year modernization program adding four new berths, deploying automated container handling, and accelerating the Matarbari deep-sea port.

A National Single Window system should target customs clearance under 12 hours, down from the current 72-plus. A One-Stop Service Centre for textile exporters should consolidate NBR, BGMEA, BKMEA, BTMA, BSTI, DoE, port authorities, EPZs, EZs, and all banking services. Inland Container Depots at Dhaka, Ishwardi, and Comilla should decongest Chattogram. Minor procedural violations should be decriminalized, and all regulations digitized online with a dedicated SME helpdesk.

Investment must be dramatically scaled. I propose a Textile and Apparel Investment Fund of BDT 20,000 crore at 4 to 6% interest for capacity expansion, automation, and backward linkage. A ten-year corporate tax holiday should cover man-made fiber, technical textiles, and high-value fashion. FDI approvals should be fast-tracked to 30 days. A Bangladesh Textile Special Economic Zone should attract top-tier foreign investors. Entrepreneurs must move beyond cut-make-trim into full-package and OEM capabilities, and major companies should list on the DSE for capital market access.

Phase	Timeline	Priority Actions	Lead Agency
Foundation	2026–2028	Port upgrade, power zones, green compliance, customs reform, establishing National Textile Raw Material Development Authority (NTRMDA)	PMO, NBR, BIDA, Ministry of Textiles and Jute, engaging thinktanks like Textile Innovation Exchange, Textile Innovation Hub, Policy Exchange, SANEM
Acceleration	2029–2032	Backward linkage scale-up, establish Bangladesh Textile Special Economic Zone (BT-SEZ), fast-track FTA negotiations, create National Garment Worker Upgrading Program (NGWUP), establish Bangladesh Textile Design & Innovation Centre (BDIC)	BIDA, BGMEA, Ministry of Commerce, engaging thinktanks like Textile Innovation Exchange, Textile Innovation Hub, Policy Exchange, SANEM
Value Leap	2033–2036	Technical textile growth, Original Design Manufacturing (ODM)/Own Brand Manufacturing (OBM) push, carbon neutrality, market diversification	EPB, BGMEA, BKMEA, BTMA, Ministry of Industries, engaging thinktanks like Textile Innovation Exchange, Textile Innovation Hub, Policy Exchange, SANEM
Leadership	2037–2040	Achieve $100B, surpass competitors in value-added, global green fashion hub	All stakeholders

Table 1: Implementation Roadmap — Four Phases to 2040

Platinum-rated as of May 2026, Bangladesh is the global leader in green garment manufacturing, an asset that must be expanded. I recommend a $500 million Green Textile Transition Fund, funded equally by government and multilateral donors, for solar installations, ETP upgrades, and energy-efficient machinery. LEED certification should be mandatory for new factories by 2028 and existing ones by 2032. Ten Central Effluent Treatment Plants should be built in major clusters under PPP, with mandatory connection for factories within five kilometers. A National Textile Carbon Registry should set reduction targets aligned to the Paris Agreement. A customs Green Lane should reward ZDHC, bluesign, or GOTS-certified factories.

On power, all major textile zones should be designated Priority Power Zones with 99.5% uptime. Dedicated 400 MW solar plants for Narsingdi, Gazipur, and Chattogram should be commissioned by 2028, with gas pipeline expansion to clusters currently paying LNG premiums, open-access grid connectivity, and 40% capital grants for solar installations.

On subsidies, cash incentives should shift from broad-based to performance-linked, tied to value addition, compliance, and worker welfare. An MSME Support Package should simplify credit access for factories below BDT 50 crore turnover. Accelerated 150% depreciation should apply to green machinery and digital systems. The Export Development Fund should be reformed at 2% interest with five-year tenor.

The total investment required is approximately $11.5 billion, funded through government allocation at 35%, private investment at 50%, and donor support at 15%, phased across four implementation stages from 2026 to 2040.

Table 2: Financing the Transformation — $11.5 billion Investment Summary

Initiative	Investment (US$)	Funding Source	Timeline
Port Modernization (Chattogram + Matarbari)	3.5 billion	Govt, ADB, World Bank	2026–2031
Industrial Power Grid & Solar	2.0 billion	Govt, IPPs, Private	2026–2030
Raw Material Self-Sufficiency (spinning)	4.0 billion	Private (subsidized)	2026–2035
Textile Industrial Parks (6 zones)	1.2 billion	PPP	2026–2032
Green Textile Transition Fund	500 million	Govt + IFC/ADB	2027–2035
National Skills Training Program	300 million	Govt + Industry levy	2027–2035
Textile Design & Innovation Centre	50 million	Govt + Donor	2027–2029
Total Estimated Investment	~$11.5 billion	Govt 35% + Pvt 50% + Donor 15%	2026–2040

Beyond infrastructure, nine structural policy reforms are essential to address the deep distortions in pricing, investment allocation, ownership accountability, and trade architecture that prevent Bangladesh from capturing the full value of its industrial output.

Table 3: The Nine Structural Reforms — Summary

#	Reform	Core Problem	Key Recommendation
1	Backward Linkage	70% yarn imported; Indian subsidies undercut local spinners	CVD on subsidized imports; Brand Nomination Localization; Yarn Price Reference Board
2	Fair Price Monitoring	Brands extract prices below production cost	Establish statutory Bangladesh Garment Price Monitoring & Negotiation Board (BGPMNB); Minimum Viable Price matrix; Brand Compliance Registry
3	Ownership Reform	Owners default, transfer capital abroad, abandon factories	Insolvency Act (Insolvency and Bankruptcy Code-IBC model); Recovery Trust; Textile Credit Bureau
4	Minimum Cost Price	Factories quote below cost, subsidize with bank loans	Newly formed Bangladesh Textile Price Reference Authority (BTPRA) sets floor prices; 15% penalty surcharge; bank L/C compliance gate
5	Investment Monitoring	Overcapacity in knitting; shortages in weaving & MMF	Establish Bangladesh Textile Investment Approval Committee (BTIAC) and mandate the approval from them; live Capacity Registry; fast-track for deficit segments
6	Recycling Hub	$7B+ global market; Bangladesh has zero presence	500-acre Circular Textile Park; zero-duty feedstock; 20% cash incentive for 15 years
7	True Cost Index	Brands extract value from unpriced public resources	National True Cost Study; annual index; Environmental Levy on water/carbon/effluent
8	Non-Wovens & Jute	$50B non-woven market; jute undervalued as commodity	BDT 500 Crore R&D fund; Jute Innovation Centre; 25% cash incentive on jute fashion
9	Import Duty Reform	Bonded system breeds corruption, delays, SME exclusion	5% flat duty + automatic Export Duty Rebate within 21 days (Vietnam model)

The first is backward linkage protection. With 70% of yarn imported from India, where government subsidies through RoDTEP and ATUFS effectively discount exports by 8 to 12%, I recommend a WTO-compliant Countervailing Duty, a Brand Nomination Localization Policy requiring local sourcing when domestic prices are within 8% of imports, a Yarn Price Reference Board publishing weekly benchmarks, and a 50% tax exemption for new spinning mills at 80% capacity utilization.

The second is fair price monitoring. International brands extract prices below production cost through destructive factory-to-factory price wars. I recommend a statutory Bangladesh Garment Price Monitoring and Negotiation Board publishing quarterly Minimum Viable Price matrices by product category. No manufacturer should accept orders below MVP. Framework Pricing Agreements with the top 50 global brands should set minimum floors indexed to CPI and wage growth.

The third is ownership reform. Factory owners who default on loans, transfer capital abroad, and abandon operations must face consequences. I recommend a Textile Industry Insolvency and Ownership Reform Act modelled on India's IBC 2016, transferring management control to professional operators within 180 days, backed by a Textile Sector Credit Bureau and criminal prosecution for asset-stripping under the Money Laundering Prevention Act.

The fourth is minimum cost pricing through a Bangladesh Textile Price Reference Authority publishing monthly floor prices for yarn, fabric, and garments, with a 15% penalty surcharge on sub-floor transactions and a bank L/C compliance gate preventing export documentation at below-MVP prices.

The fifth is pre-investment monitoring through a mandatory Bangladesh Textile Investment Approval Committee screening all textile investments above BDT 5 crore for demand justification, with a live Capacity Registry and fast-track approvals for deficit segments including woven fabric, man-made fiber, and technical textiles.

The sixth is a national recycling hub. The global textile recycling market exceeds $7 billion, yet Bangladesh has zero presence. I recommend a 500-acre Bangladesh Circular Textile Park in Narayanganj or Narsingdi with zero-duty feedstock import and a 20% cash incentive on recycled textile exports for 15 years, following the Panipat and Kahramanmaras models.

The seventh is a True Cost Index. Bangladesh's cost advantage is partly subsidized by unpriced public resources: groundwater depletion causing measurable land subsidence, river pollution costing over BDT 10,000 crore annually, and taxpayer-funded energy subsidies transferred to global brands. A National True Cost Study should underpin price negotiations, with an Environmental Levy on groundwater extraction and effluent failures funding green transition.

The eighth concerns non-wovens and jute. The $50 billion global non-woven market and Bangladesh's 1.5 million tons of premium jute represent untapped frontiers. I recommend a BDT 500 crore Non-Woven R&D fund with a 15-year tax holiday, and a Jute Innovation Centre developing fine-count spinning and jute-cotton blends approaching premium linen at 30 to 40% lower cost, with a 25% export cash incentive.

The ninth is import duty reform. The bonded warehouse system breeds corruption and delays. I recommend replacing it with a Universal 5% Flat Rate Import Duty plus an automatic Export Duty Rebate credited digitally within 21 days, following Vietnam's model.

I also recommend binding commitments, that is, 50% reduction in wastewater discharge by 2030; 40% carbon intensity reduction by 2035; ZDHC compliance for all large factories by 2030; a Living Wage Index reviewed annually; universal health coverage for registered workers; and zero fatal workplace accidents through mandatory structural certifications.

This program demands political courage and continuous commitment. It will face resistance from brands profiting from price suppression, importers benefiting from the bonded system's opacity, and defaulting owners who have treated factories as personal ATMs.

But the convergence of China's retreat, global demand for ethical sourcing, and Bangladesh's unmatched green manufacturing credentials creates a time-limited window. Without both the infrastructure investment and these structural reforms, no amount of spending alone will lift Bangladesh's textile sector out of the low-value trap it has occupied for too long.

Vietnam’s textile strategy highlights Bangladesh’s competitiveness challenge

mLf8dlgekVmE4p8@gmail.com ( Textile Today Analysis) — Wed, 08 Jul 2026 09:57:00 +0600

Key insights:

Vietnam's textile and apparel exports reached $22.2 billion (+1.7%) in H1 2026, driven by 5.6–10.6% growth in fibers, fabrics, and nonwovens.
China's global apparel market share fell from 26.33% to 23.56% (2022–2025).
Vietnam's exports to the EU rose 8.8%, highlighting the advantage of stronger trade access and value-added production.
Bangladesh's RMG exports to the EU could decline by more than 43% after LDC graduation without a new preferential trade agreement, according to RAPID.

Vietnam's textile and apparel industry is redefining its growth strategy as global sourcing patterns continue to evolve. While demand for finished garments remains soft, the country is strengthening its position through higher-value textile production, stronger domestic supply chains, and digital transformation. At the same time, Bangladesh is struggling to capture apparel orders shifting away from China, highlighting a growing competitiveness challenge.

Vietnam's textile and apparel exports reached $22.2 billion in the first half of 2026, up 1.7% year on year, according to the Vietnam Textile and Apparel Association (VITAS). The growth was driven by strong performance in upstream textile products, with exports of fibers, fabrics, accessories, and nonwoven materials increasing between 5.6% and 10.6%.

In contrast, garment exports declined 0.4%, reflecting weak consumer demand in major export markets.

The United States remained Vietnam's largest export destination, with shipments worth $6.81 billion, up 1.3%, accounting for about 45% of total exports during the first five months of 2026. The European Union was the strongest-performing market, posting 8.8% growth to $1.94 billion, while exports to Japan and South Korea declined 6.2% and 8.9%, respectively.

Despite the softer garment market, Vietnam maintained a trade surplus of nearly $10 billion during the first half of the year.

According to VITAS, the industry's future growth will depend on productivity, higher-value products, stronger domestic raw material production, diversified export markets, and faster digital and green transformation rather than simply increasing production volume. To support this shift, the association has established four specialized committees focusing on sustainable development, supply chains, technology and digital transformation, and fashion development.

Vietnam's strategic transformation comes as Bangladesh faces increasing pressure to maintain its position in the global apparel market.

According to the Research and Policy Integration for Development (RAPID) study, Vietnam has successfully capitalized on China’s declining apparel market share by positioning itself as a more sophisticated, nimble manufacturing hub.

Country	2022	2025
China	26.33%	23.56%
Bangladesh	11.67%	Nearly unchanged
Vietnam	8.57%	~9.0%
Cambodia	3.34%	4.26%

Source: Research and Policy Integration for Development (RAPID)

According to RAPID, Bangladesh benefited significantly from China's declining dominance between 2015 and 2022. However, the trend has shifted over the past four years. As China continued to lose global market share between 2022 and 2025, Cambodia and Vietnam captured a larger share of the shifting apparel orders, while Bangladesh's market share remained almost flat.

The study identifies several factors behind Bangladesh's slower progress, including policy uncertainty, a challenging investment climate, limited production of man-made fiber apparel, and stronger foreign investment flowing into competing countries such as Vietnam and Cambodia. Industry leaders have also pointed to rising energy costs, high borrowing rates, and production disruptions as additional pressures on competitiveness.

Trade policy is becoming another important differentiator.

Vietnam continues to benefit from preferential trade agreements that support export growth, particularly in the European Union. Bangladesh, however, faces growing uncertainty as it prepares to graduate from the least developed country (LDC) category.

RAPID estimates that Bangladesh's exports to the European Union could decline by more than 36%, while readymade garment exports could fall by more than 43% if the country exports under the EU's Most Favoured Nation (MFN) tariff regime without securing a new preferential trade arrangement. With the EU accounting for around half of Bangladesh's exports, maintaining competitive market access has become increasingly important.

The comparison between Vietnam and Bangladesh reflects a broader shift in global apparel sourcing. Global brands are placing greater emphasis on supply chain resilience, domestic textile capabilities, sustainability, digital traceability, and value-added production alongside cost competitiveness.

Vietnam has already begun aligning its textile industry with these changing requirements. For Bangladesh, sustaining long-term export growth will require stronger domestic textile manufacturing, greater investment in man-made fibers, accelerated digital transformation, improved business conditions, and enhanced trade competitiveness.

Sheltech expands textile investments as Envoy Textiles plans capacity growth

deskreport@gmail.com (Desk Report) — Tue, 07 Jul 2026 21:22:00 +0600

Sheltech Group is strengthening its presence in Bangladesh’s textile sector through new investments in yarn production and sustainability initiatives, aiming to enhance export competitiveness and support long-term industry growth.

As part of the expansion, Envoy Textiles Ltd plans to invest Tk 179 crore to increase its blended yarn spinning capacity by 25 tons per day. The project is expected to be completed by February 2027, according to Tanvir Ahmed, Managing Director of Sheltech Group.

He said the capacity expansion will help meet growing demand for value-added yarn products in both domestic and international markets. Sheltech owners and associated entities are among the major shareholders of Envoy Textiles, making the investment a key part of the group’s broader textile growth strategy.

In addition to capacity expansion, Sheltech plans to generate 10 MW of solar power across its operations to reduce carbon emissions and improve energy sustainability, reflecting the industry’s increasing focus on greener manufacturing.

Established in 1988, Sheltech Group employs around 16,000 people and has an annual turnover of nearly Tk 6,700 crore. The group expects its turnover to rise significantly by 2030, supported by textile expansion, export growth and other business diversification initiatives.

Notably, the investment in blended yarn production and renewable energy could strengthen Bangladesh’s position in higher-value textile manufacturing as global buyers increasingly prioritize sustainability and supply chain resilience.

Matarbari project to strengthen Bangladesh energy security and trade connectivity

deskreport@gmail.com (Desk Report) — Tue, 07 Jul 2026 15:29:00 +0600

Moheshkhali-Matarbari Integrated Infrastructure Development Initiative is strengthening the country's energy security and trade connectivity.

Tanaka Akihiko, President, Japan International Cooperation Agency (JICA) said that after concluding a five-day visit to Bangladesh. He reaffirmed Japan's long-term commitment to Bangladesh's development.

Figure: Moheshkhali-Matarbari Integrated Infrastructure Development Initiative is strengthening the country's energy security and trade connectivity.

Japan President also said the integrated infrastructure project, which includes a power plant and deep seaport, will play a key role in advancing Bangladesh's economic growth while supporting Japan's "Updated Free and Open Indo-Pacific" vision.

During the visit, Tanaka talked with Prime Minister Tarique Rahman, where both sides reaffirmed the strong bilateral relationship and discussed ongoing and future development cooperation between Bangladesh and Japan.

The discussions focused on several major Japanese-supported infrastructure projects, including the Dhaka Metro Rail, the expansion of Hazrat Shahjalal International Airport, the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative and the Bangladesh Special Economic Zone.

Both sides also highlighted the significance of the 50 billion Japanese yen emergency support package under the POWERR Asia initiative to strengthen regional energy security.

As part of his itinerary, Tanaka visited the under-construction third terminal of Hazrat Shahjalal International Airport, financed through JICA's concessional loan program.

He said the new terminal is expected to significantly enhance Bangladesh's international connectivity by improving passenger services and supporting trade, tourism and investment.

Tanaka also attended the 10th memorial ceremony for the seven Japanese nationals killed in the Holey Artisan Bakery attack in Dhaka in July 2016. The ceremony honored the victims while reaffirming the shared values of peace, resilience and friendship between Bangladesh and Japan.

During his visit, the JICA president met several members of the Bangladesh government, including Foreign Affairs Adviser Khalilur Rahman, State Minister for Foreign Affairs Shama Obaed Islam, Local Government, Rural Development and Cooperatives Minister Mirza Fakhrul Islam Alamgir, Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood, and Roads, Transport and Bridges Minister Shaikh Rabiul Alam.

In Cox's Bazar, Tanaka visited Rohingya refugee camps and observed JICA-supported humanitarian and livelihood programs. He also inspected the fish landing center being constructed with JICA grant assistance to improve post-harvest handling and quality management, as well as fisheries livelihood enhancement projects along the Bay of Bengal coast.

The delegation further visited a JICA-supported solid waste management project and reviewed the implementation of Japanese J-Drum waste management technology by Dhaka North City Corporation, highlighting the agency's broad support for Bangladesh's infrastructure, environmental and humanitarian development.

ShinWon expands AI and blockchain to achieve 100% raw material traceability

alulk3Ar7x7Twul@gmail.com (International Desk) — Tue, 07 Jul 2026 13:00:00 +0600

South Korean apparel manufacturer ShinWon Corporation is strengthening its digital supply chain by integrating artificial intelligence and blockchain technology to achieve 100% raw material traceability. The move reflects growing demand from global brands and new sustainability regulations, particularly in the European Union.

The company has adopted the blockchain-based Retraced platform to improve transparency across its supply chain. The system tracks raw material data from sourcing through production while using AI-powered analytics to verify transaction records and identify errors or inconsistencies automatically.

ShinWon said the digital platform creates an auditable and secure record of supply chain information. The company expects the system to improve data quality, strengthen decision-making, and support compliance with emerging regulations such as the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and Digital Product Passports (DPPs).

Suppliers must now submit sourcing plans through an AI-driven module before production begins. This enables ShinWon to identify where materials originate, where fabrics are processed, and where potential supply chain risks may exist before manufacturing starts.

Beyond regulatory compliance, ShinWon said greater supply chain visibility will strengthen collaboration with suppliers. The company evaluates supplier performance based on factors including cost competitiveness, raw material sourcing, production speed, and overall operational performance.

The initiative reflects a broader industry shift as apparel manufacturers invest in digital traceability systems to meet stricter sustainability requirements from global brands and regulators.

Lenzing highlights sustainability benefits of TENCEL™ Lyocell and Modal fibers

deskreport@gmail.com (Desk Report) — Tue, 07 Jul 2026 11:23:00 +0600

Lenzing, a global leader in regenerated cellulosic fibers, has highlighted the environmental and performance advantages of its TENCEL™ Lyocell and TENCEL™ Modal fibers, positioning them as lower-environmental-impact alternatives for the global textile and apparel industry.

Manufactured from wood sourced from responsibly managed forests, the regenerated cellulosic fibers are produced with 50 percent lower carbon emissions and water consumption than conventional lyocell and modal fibers, according to the company.

Courtesy: Collected

TENCEL™ Lyocell fibers are known for their softness, smooth texture and high strength among cellulosic fibers.

The fibers offer effective moisture management, providing a natural dry feel while adding a subtle sheen to fabrics. Lenzing said the fibers are produced using an innovative closed-loop process that recovers 99.8 percent of the solvent, resulting in close to zero waste.

TENCEL™ Modal fibers are designed to maintain fabric softness even after repeated washing while providing effective moisture control for enhanced wearer comfort. The company said the fibers are manufactured using a resource-efficient modified viscose process with high chemical recovery rates.

Both TENCEL™ Lyocell and Modal fibers are produced from renewable wood-based raw materials sourced from forests certified or controlled under FSC® or PEFC standards, in line with the company's Wood and Pulp Policy.

Lenzing said the fibers are certified with the EU Ecolabel for meeting high environmental standards throughout their life cycle and are also certified to OEKO TEX® STANDARD 100 Class I, confirming they have been tested for harmful substances.

The production of TENCEL™ fibers also complies with internationally recognized standards, including ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management and ISO 45001:2018 for occupational health and safety.

In addition, the Lenzing Group has consistently received the Dark Green Shirt rating from the environmental organization Canopy, recognizing the company's responsible sourcing of wood and pulp and its efforts to protect ancient and endangered forests.

The company said the combination of sustainable raw materials, resource-efficient production technologies and internationally recognized certifications supports growing demand for environmentally responsible fibers across the global textile value chain.

Global upcycled fashion market is projected to grow about $19.47 billion by 2030

d9AJUkQMupNdbSK@gmail.com ( Shafiun Nahar Elma) — Tue, 07 Jul 2026 10:27:00 +0600

Key insights:

The global upcycled fashion market is projected to grow from about $10 billion in 2026 to $19.47 billion by 2034.
Apparel dominates the market with a 69.35% share, while accessories are the fastest-growing segment.
Women account for 44.19% of market revenue, while the men's segment is expected to grow at a 10.01% CAGR.
Europe leads with 36% of global market share, while Asia Pacific is the fastest-growing regional market.
Verified sustainability information, not sustainability claims alone, is expected to drive growth in a market approaching $19.47 billion by 2034.

For years, fashion brands believed sustainability itself would persuade consumers to buy greener products. New research suggests the opposite. Consumers appreciate environmental responsibility, but they rarely purchase an upcycled garment simply because it is sustainable. Instead, they buy when brands combine trust, familiarity, and distinctive design. This shift is redefining how the next generation of circular fashion will compete.

Figure: The global upcycled fashion market is projected to grow about $19.47 billion by 2030

The timing is important. Upcycled fashion is moving from a niche sustainability initiative to a fast-growing commercial market. According to Fortune Business Insights, the global upcycled fashion market is valued between $9.78 billion and $10.19 billion in 2026 and is projected to reach $19.47 billion by 2034, growing at about 9% annually. The wider circular fashion market is expected to expand even faster, reaching $42.8 billion by 2034, according to Intel Market Research. The

Growth is creating new business opportunities

Apparel accounts for 69.35% of the upcycled fashion market, according to Fortune Business Insights. Familiar products such as shirts, denim, and jackets naturally fit into existing wardrobes, making them easier for consumers to accept. Accessories, however, are expected to record the fastest growth. They require less material, simplify production, and allow brands to experiment with circular design before expanding into larger apparel collections.

Consumer demand is also evolving. Women currently generate 44.19% of market revenue, while the men's segment is projected to grow at a 10.01% CAGR as interest rises in premium, functional, and sustainable clothing. Offline retail continues to dominate because shoppers prefer to experience products before buying. At the same time, online platforms are becoming powerful channels for telling the sustainability story behind each product.

Regionally, Europe leads with around 36% of global sales, driven by ambitious circular economy policies. North America remains a mature market valued at $3.37 billion in 2026, while Asia Pacific is expanding the fastest because of growing consumer spending, stronger retail infrastructure, and abundant textile waste available for reuse.

Manufacturers continue to struggle with inconsistent supplies of quality textile waste, higher sourcing costs, and labor-intensive sorting and reconstruction. Scaling up production will require better collection systems, improved material traceability, and stronger partnerships across the supply chain.

Consumers buy confidence, not sustainability

Research from North Carolina State University's Wilson College of Textiles found that consumers recognized both conventional and highly creative upcycled garments as environmentally friendly. However, this perception alone did not significantly increase purchase intention.

Instead, consumers looked for evidence. Information about recycled content, traceability, carbon footprint, and the product's previous life reduced uncertainty and increased confidence. The research also revealed two clear buying behaviors. Some consumers prefer familiar designs that fit easily into everyday wardrobes. Others seek bold, reconstructed pieces that express individuality. Simply making products more unconventional does not necessarily increase demand.

The findings highlight a broader shift in sustainable fashion. Environmental claims are becoming easier to make, but harder for consumers to trust. As a result, verified information is emerging as a stronger competitive advantage than sustainability messaging alone.

The next competitive advantage for brands

This insight arrives as the fashion industry prepares for stricter transparency requirements, including Digital Product Passports and the EU Ecodesign framework. The same product information needed for regulatory compliance may also become a powerful marketing tool.

QR codes, standardized sustainability labels, and verified traceability can help consumers understand where materials originated, how products were manufactured, and what environmental value they deliver.

Leading brands including Patagonia, Eileen Fisher, MUD Jeans, RE/DONE, and Marine Serre have already demonstrated that creative reuse becomes more valuable when supported by credible product storytelling. They are not simply selling recycled products. They are selling authenticity, craftsmanship, and measurable environmental value.

For Bangladesh, the implications extend beyond compliance. The country generates large volumes of pre-consumer textile waste that has traditionally been sold as low-value scrap. Growing global demand for upcycled fashion presents an opportunity to convert this waste into premium export products with higher margins.

The next phase of upcycled fashion will not be won by the brands with the strongest sustainability claims. It will belong to those that can prove them.

Read More about Global upcycled fashion:

https://textiletoday.com.bd/upcycled-fashion-market-sees-strong-moves-from-leading-brands-and-innovative-entrants

https://textiletoday.com.bd/upcycled-denim-answers-to-fast-fashion

EU textile ecodesign debate raises concerns over bias toward synthetic fibers

alulk3Ar7x7Twul@gmail.com (International Desk) — Tue, 07 Jul 2026 10:23:00 +0600

A fresh debate is emerging over the future of the European Union's textile sustainability rules. Industry groups representing renewable and natural fiber value chains have warned that the EU's upcoming ecodesign framework could unintentionally favor synthetic fibers unless sustainability criteria are broadened.

Figure:EU textile ecodesign debate raises concerns over bias toward synthetic fibers.Courtesy: Collected

The concern comes as the European Commission prepares delegated acts under the Ecodesign for Sustainable Products Regulation (ESPR). These rules will define future sustainability requirements for textile products sold in the EU.

The Make the Label Count coalition has written to European Commission Environment Commissioner Jessika Roswall and Director General for Environment Eric Mamer. The coalition supports a call from 15 Members of the European Parliament to ensure sustainably sourced renewable materials are fully included in the European Commission's Joint Research Centre preparatory study.

According to the coalition, the current assessment places significant emphasis on recyclability and selected life cycle indicators.

The coalition warned that relying on narrow sustainability metrics could unintentionally create a competitive advantage for synthetic fibers, even though many renewable fibers contribute to climate and circular economy goals through different environmental benefits.

Industry representatives are urging policymakers to adopt a more balanced methodology that evaluates all fiber types using a wider set of sustainability indicators.

The discussion comes at an important time for global textile and apparel manufacturers. The EU's ESPR is expected to become one of the world's most influential sustainability regulations. Its requirements will affect product design, material selection, durability, circularity, and environmental performance for companies supplying the European market.

For textile exporting countries such as Bangladesh, the outcome could shape future sourcing decisions by international brands. Manufacturers may need to adjust material strategies, product development, and traceability systems to comply with evolving EU sustainability requirements.

PURBANI Group adds another LEED-certified factory with Karim Textiles Gold recognition

hMivap0EUlNlvJA@gmail.com (BTT Desk) — Mon, 06 Jul 2026 22:40:00 +0600

Karim Textiles Limited, a 100% export-oriented garment manufacturing unit of PURBANI Group, has achieved the prestigious LEED Gold Certification, marking another milestone in the group's sustainability journey.

Figure: Karim Textiles secures LEED Gold certification for green manufacturing

The company said the certification reflects its continued focus on manufacturing excellence while strengthening environmentally responsible operations. Since its establishment, Karim Textiles has invested in sustainable manufacturing practices, resource efficiency, and internationally recognized environmental standards.

The achievement follows the recent LEED Platinum Certification earned by Purbani Fashion Limited, another business unit of PURBANI Group. With the latest recognition, the group continues to expand its portfolio of green manufacturing facilities.

According to PURBANI Group, the certifications demonstrate its long-term commitment to responsible growth, environmental stewardship, and sustainable industrial development. The company said its investments in green manufacturing support improved resource efficiency while meeting the growing sustainability expectations of global apparel buyers.

The group added that these achievements reinforce its strategy to align manufacturing operations with globally recognized environmental standards and strengthen its position as a responsible apparel manufacturer serving international markets.

Trinasolar and SWY sign 200MW MoU to distribute Vertex N G3 and Vertex S+ G3 modules

deskreport@gmail.com (Desk Report) — Mon, 06 Jul 2026 16:33:00 +0600

Trinasolar, a global leader in smart PV and energy storage solutions, has signed a 200MW Memorandum of Understanding (MoU) with Shwe Wah Yaung Agriculture Production Company Limited (SWY) to support the distribution of Vertex N G3 and Vertex S+ G3 modules in Myanmar over three years.

SWY is one of Myanmar’s largest rice producers and is also active in Myanmar’s solar market as a wholesale distributor of complete solar systems, including PV modules.

The MoU was signed at the Myanmar-China Investment and Trade Networking Summit in Shanghai on 18 June 2026, where companies from both markets gathered to explore cooperation in trade, investment and industrial development.

The agreement focuses on residential, commercial and industrial (C&I) applications in Myanmar, where customers need solar modules that can support higher output across different system sizes and site conditions.

N G3 is designed for high-power C&I and utility-scale projects, with power output of up to 760W and efficiency of up to 24.5%. Vertex S+ G3 brings Trinasolar’s n-type i-TOPCon Ultra technology into a compact, durable dual-glass format for residential and commercial rooftops, supporting higher output where roof space is limited.

The agreement adds to recent Asia-Pacific (APAC) partner commitments to Trinasolar’s Vertex G3 module portfolio. These include a 1GW MoU with Solar Juice in Australia for Vertex S+ G3 modules and a 600MW MoU with Ecohope Solar for the distribution of Vertex N G3 and Vertex S+ G3 modules across Southeast Asia, the Middle East and Africa. Together, these agreements point to growing partner confidence in Trinasolar’s latest modules.

“Demand for solar solutions in Myanmar is growing across residential, commercial and industrial applications,” said Lu Maw Myint Maung, Managing Director, SWY. “As a local enterprise with experience in solar system distribution, SWY sees strong value in working with Trinasolar to bring high-efficiency Vertex G3 modules to customers seeking reliable and scalable solar technology.”

“The SWY MoU adds to a broader pattern of partner confidence in Trinasolar’s Vertex N G3 and Vertex S+ G3 modules across APAC,” said Dave Wang, Subregion Head (Thailand, Cambodia, Laos and Myanmar), Trinasolar. “By working with partners that understand local market needs, Trinasolar can better support the adoption of its latest-generation module technology across different application segments.”

A Penteadora starts up ANDRITZ textile recycling and needlepunch nonwoven lines in Portugal

deskreport@gmail.com (Desk Report) — Mon, 06 Jul 2026 13:33:00 +0600

A Penteadora SA has successfully started up a complete mechanical textile recycling line and a needlepunch nonwoven line supplied by ANDRITZ at its production site in Unhais da Serra, Portugal.

This investment enables A Penteadora to expand its industrial capabilities and develop a new generation of solutions based on pre- and post-consumer recycled textiles. The input materials originate from its own production waste and other textile waste streams. Both lines are fully operational, and the first products are expected to reach the market in July. The installation includes advanced picker technology that is one of its kind on the Iberian Peninsula. It enables the removal of hard elements such as buttons and zippers, bringing added value in terms of material quality and process efficiency.

Figure 1: A Penteadora’s production site in Unhais da Serra, Portugal. Courtesy: Collected

Miguel Fernandes, Administrator of A Penteadora said, “With the new ANDRITZ recycling and nonwoven technologies, we can transform textile waste into high-value materials for industrial applications. This investment strengthens our commitment to sustainability and circularity while creating new opportunities for innovative nonwoven products and more efficient use of resources.”

The mechanical textile recycling line comprises cutting, blending, fiber opening, and carding. It is designed to process complex materials, including wool/synthetic blends and technical fibers.

The needlepunch nonwoven line enables the production of high-performance materials for applications such as thermal insulation, acoustic barriers, and protective solutions.

As a vertically integrated company within the Paulo de Oliveira Group – a leading European player in the wool industry – A Penteadora SA transforms fiber into fabric and specializes in worsted and woolen textiles for fashion, uniforms, and technical applications. The company is certified according to ISO 9001 and GRS, and its products comply with OEKO-TEX® standards.

Figure 2: ANDRITZ textile recycling line. Courtesy: Collected

International technology group ANDRITZ provides advanced plants, equipment, services, and digital solutions for a wide range of industries, including pulp and paper, metals, hydropower, environmental, and others. Founded in 1852 and headquartered in Austria, the publicly listed group employs about 30,000 people at 280 locations in over 80 countries.

As a global leader in technology and innovation, ANDRITZ is committed to fostering progress that benefits customers, partners, employees, society, and the environment. The company’s growth is driven by sustainable solutions enabling the green transition, advanced digitalization for highest industrial performance, and comprehensive services that maximize the value of customers’ plants over their entire life cycle. ANDRITZ. FOR GROWTH THAT MATTERS.

ANDRITZ Pulp & Paper provides sustainable technology, automation, and service solutions for the production of all types of pulp, paper, board, and tissue. The technologies and services focus on increased production efficiency, lower overall operating costs as well as innovative decarbonization strategies and autonomous plant operation.

Figure 3: ANDRITZ needlepunch nonwoven line. Courtesy: Collected

The product portfolio also includes boilers for power generation, various nonwoven technologies, and panelboard (MDF) production systems. With waste-to-value recycling, shredding and energy solutions, waste and by-product streams from production are converted into valuable secondary raw materials as well as into sustainable resources for energy generation. State-of-the-art IIoT technologies as part of Metris digitalization solutions complete the comprehensive product offering.