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International buyers urge improvements in labor relations

BTJ Desk Report
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International buyers urge improvements in labor relations

Global apparel buyers at the Bangladesh Denim Expo praised Bangladesh’s competitive strengths in low-cost, high-capacity production but urged improvements in law and order and labor relations to fully capitalize on these advantages. Labor unrest in industrial zones remains a challenge, as some factories have had to suspend operations due to worker demands for unpaid wages, pay raises, and allowances. Ziaur Rahman, H&M’s regional manager, emphasized the need for settling labor issues through dialogue and recommended investments in mid-level management and technology to advance Bangladesh’s garment sector.

Despite challenges, buyers see Bangladesh as a vital source for apparel due to its scale and affordability, noting that very few countries can match its capacity. However, they warned that prolonged unrest could erode buyer confidence, making it difficult to regain lost orders.

The denim industry’s potential remains strong; Bangladesh’s denim exports to the EU grew by 5.3% in early 2024, even as competitors like Turkey faced declines. The textile sector has received significant investment, especially in primary textiles, supporting a production capacity of 55 million yards of denim monthly. Showkat Aziz Russel from the Bangladesh Textile Mills Association highlighted that consistent gas supply could further boost prospects.

In the US market, Bangladesh’s denim exports declined slightly by 4.3% in early 2024, though overall interest from international buyers at the expo was strong, signaling potential for growth if stability improves.

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