Lessons from that Day / Rana Plaza @ 10 / PART II Interview

Spotlight: Rana Plaza @ 10

Moving On: Green Garments Are the Face of Bangladesh’s Apparel Industry Today

The times they are a changing and Bangladesh continues to adopt advanced apparel manufacturing technology. Undoubtedly, if this country wishes to remain competitive at this critical juncture of its journey, the apparel sector needs to take the lead in innovation, exhorts Abdullah Hil Rakib, Director of the Bangladesh Garment Manufacturers and Exporters Association.

Richa Bansal

25 April 2023

9 minutes

Long Story, Cut Short

It is not the Rana Plaza tragedy, but rather green garments that is the face of Bangladesh’s apparel industry now.
The main areas that the BGMEA is focusing on now to improve in the coming years are value addition, innovation, efficiency and of course accelerating the momentum of sustainability in Bangladesh’s apparel industry.
To future-proof itself, Bangladesh's RMG sector would take a slightly different path over the next decade.

Vision Bangladesh The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex trade body in Bangladesh representing its readymade garments industry, particularly the woven garments, knitwear and sweater sub-sectors, has realigned its vision with the UN Sustainable Development Goals, and even emerged with a new logo, coded as 'nine-dots'. Team Group

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the apex trade body in Bangladesh representing its readymade garments industry, particularly the woven garments, knitwear and sweater sub-sectors. Since inception, BGMEA has been dedicated to promoting and facilitating the apparel industry through policy advocacy with the government, services to members, ensuring workers’ rights and social compliance at factories.

BGMEA collaborates with local and international stakeholders, including brands and development partners to pave the way for development of Bangladesh's apparel industry. Currently, BGMEA has around 4,000 registered garment factories.

BGMEA is run by a 35-member elected Board of Directors. The Board of Directors is elected for a two-year term. The president is the highest executive authority of the association.

Abdullah Hil Rakib is also Managing Director, Team Group.

texfash.com: The BGMEA has had an enviable track record of emerging as a strong voice for the textiles industry in your country. And it indeed did manage to stave off a bigger crisis when COVID-19 first walloped us all. How strong and sustainable has the industry emerged since the Rana Plaza — the first major crisis when the world’s spotlight was on it, and then the pandemic?
Abdullah Hil Rakib: The difference in Bangladesh’s apparel industry before and after the Rana Plaza accident is like that between the night and day. One of the silver linings of that darkest tragedy is that it made a paradigm shift in workplace safety in Bangladesh’s apparel industry. After the tragic building collapse, the government, manufacturers, brands and labour originations joined hands to overhaul safety in the industry. Each and every export-oriented apparel factory was inspected by international and national experts. The factories underwent remediations as per the recommendations. A medium-size apparel factory on average invested $5 million to carry out the remediations, according to an estimate. It would not be an exaggeration to say that now the Bangladeshi apparel industry is the safest in the world.

The industry has also made steady strides in sustainability. There are at present 200 green garment factories that are LEED certified by the United States Green Building Council (USGBC). Moreover, there are 500 more factories already registered with the USGBC and awaiting LEED certifications. So, it is not the Rana Plaza tragedy, but rather green garments that is the face of Bangladesh’s apparel industry now.

While the work done by the apparel industry in Bangladesh over the last 10 years is commendable, on the ground the trade unions are demanding an increase in the minimum wage from BDT8,000 (US$75) to BDT23,000 (US$215) for garment workers. This would indicate that things have not improved so much for workers. What is the BGMEA's stand on the subject?
Abdullah Hil Rakib: The minimum wage of an entry-level garment worker (a worker without having any experience and training) in Bangladesh is BDT 8,000. But the take-home salary of the entry-level workers is about BDT 11,000. However, the wage of a skilled apparel worker is about BDT 14,000, and the take-home salary of skilled workers is up to BDT 20,000. It should be mentioned here that garment workers are also provided with 5% mandatory yearly increments by factories. So, in Bangladesh, the current salaries of garment workers are better than the workers of the many other sectors of the country.

However, we want to pay more to our workers. But the manufacturers are not the price givers, they are the price takers. If the buyers (the price givers) pay us fair prices, we would be able to offer our workers better wages. The fact is that the production cost of apparel manufacturing has gone up manifold over the years, whereas the price of apparel has not been increased, but rather decreased in these past years. Indeed, there are buyers who are more ethical than others and pay fairer prices, but the overall scenario is very bleak. According to a survey conducted in 2015 by Mark Anner, Associate Professor of Pen State University and Jennifer Blair, Associate Professor of University of Colorado, US, the prices of men and boys cotton trousers produced by Bangladeshi RMG factories declined by 40.89% in the US market in the last 14 years. According to a recent survey carried out by the Business School of the Aberdeen University, UK in 2023, fashion brands paid Bangladeshi factories less than the actual cost during COVID-19.

Nonetheless, many garment factories in Bangladesh are happy to provide their workers with facilities which are far more than the minimum stipulated by the labour laws. Like in my Team Group, we provide to all our workers free transport, medical service and free medicine, essential commodities at subsidised prices from fair price shops, nutritious food to pregnant workers, etc. But small- and medium-size factories could only do more for their workers if they got ethical and fair price from the buyers.

Richa Bansal

RICHA BANSAL has more than 30 years of media industry experience, of which the last 20 years have been with leading fashion magazines in both B2B and B2C domains. Her areas of interest are traditional textiles and fabrics, retail operations, case studies, branding stories, and interview-driven features.

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Bangladesh's RMG sector is starting a new chapter. The safety overhaul that the industry has undertaken after Rana Plaza is an important part of that journey. This country is at present one of the safest garment manufacturing hubs in the world. When buyers now purchase from Bangladesh, the "Made in Bangladesh" stamp provides certain reassurances regarding safety and sustainability. This is a genuine added value.

A New Chapter Bangladesh's RMG sector is starting a new chapter. The safety overhaul that the industry has undertaken after Rana Plaza is an important part of that journey. This country is at present one of the safest garment manufacturing hubs in the world. When buyers now purchase from Bangladesh, the "Made in Bangladesh" stamp provides certain reassurances regarding safety and sustainability. This is a genuine added value. Team Group

Different reports that have been published in the last few days w.r.t to Rana Plaza 10 indicate that though much work has indeed been done, a lot more still has to change on the ground. Do you agree? What does the BGMEA want to do over the next few years to improve things? Which are some of the weak areas that the BGMEA is focused on now?
Abdullah Hil Rakib: Hong Kong-based supply chain compliance solutions provider, QIMA says Bangladesh ranked second for ethical manufacturing in 2020. The report says: Bangladesh stood out among major manufacturing countries in South Asia. Taiwan came in first followed by Vietnam in the third position and then by Thailand, Pakistan, Turkey, China, India, and Brazil. China stood seventh on the list behind Turkey and Pakistan. QIMA conducts these assessments based on health and safety, hygiene, waste management, child labour, working hours, benefits and labour practices.

The growth of green garments in Bangladesh is a testament to our commitment to transform Bangladeshi apparel industry safer and sustainable. But of course, we are not complacent since the pursuit of excellence is a continuous process. The main areas that the BGMEA is focusing on now to improve in the coming years are value addition, innovation, efficiency and of course accelerating the momentum of sustainability in Bangladesh’s apparel industry.

Cutting back to the DAY when the Rana Plaza disaster happened. Where were you when it happened? Do you remember? What was your first reaction? What kind of impact did it leave on you? Does the incident still rankle you?
Abdullah Hil Rakib: The Rana Plaza tragedy shattered me. Every life lost in a tragedy is invaluable. It was in the early days of (me) starting my manufacturing business. So, the lessons I learnt is that nothing is more important than ensuring safety and well-being of our workers. This has been reflected in the construction and continuity of each apparel factory of the Team Group. I have tried to maintain the highest standards and state-of-the-art technologies in the building, electrical, fire and environmental safety of every garment factory of the Group.

Very broadly, how have things changed in the last 10 years? How much do you think this has been industry-driven?
Abdullah Hil Rakib: I have already mentioned the changes in response to the earlier questions. The apparel industry in Bangladesh started in an unplanned way in the late 1970s or the early 1980s. But in the last decade, significant changes have been made, turning the industry into a planned one and that’s mainly driven by the apparel entrepreneurs of the country with the support of our government, as well as brands and retailers. So, the changes have been very much industry-driven.

Bangladesh's RMG sector is starting a new chapter. The safety overhaul that the industry has undertaken after Rana Plaza is an important part of that journey. Bangladesh is at present one of the safest garment manufacturing hubs in the world. When buyers now purchase from Bangladesh, the "Made in Bangladesh" stamp provides certain reassurances regarding safety and sustainability. This is a genuine added value.

Abdullah Hil Rakib

Director

Bangladesh Garment Manufacturers and Exporters Association

How prepared is the textile-apparel-fashion industry in your country for the rapid technological advancements that could mean more and more mechanisation of labour. What has been the focus in terms of skilling and up-skilling? How are you preparing for a "just transition" in the days to come?
Abdullah Hil Rakib: Times are changing and Bangladesh continues to adopt advanced apparel manufacturing technology. Undoubtedly, if Bangladesh wishes to remain competitive at this critical juncture of its journey, the apparel sector needs to take the lead in innovation. Apparel factories of our country are embracing innovation in all areas—ranging from purchasing raw materials to CAD (computer-aided design) tools that expedite the whole product design and development process, maximising fabric utilisation, reducing standard minutes in garment manufacturing, and reducing laundry costs and the possibility of rejected substandard products.

Bangladesh's RMG sector is starting a new chapter. The safety overhaul that the industry has undertaken after Rana Plaza is an important part of that journey. Bangladesh is at present one of the safest garment manufacturing hubs in the world. When buyers now purchase from Bangladesh, the "Made in Bangladesh" stamp provides certain reassurances regarding safety and sustainability. This is a genuine added value. So, it is time for the Bangladeshi RMG industry to reap the benefits of this value addition riding on innovation.

To future-proof itself, Bangladesh's RMG sector would take a slightly different path over the next decade. This path could potentially lead to continued job creation, but the majority of these jobs will be in higher value-added areas integrating innovation. This will not only lead to more jobs than the four million jobs the industry already provides, but will also lead to better jobs.

How has the economic and political upheaval in the US and Europe – your key export regions — impacted business? Which new geographies are you shifting focus to?
Abdullah Hil Rakib: Like the economic and political upheaval in the US and Europe destabilised economic activities across the world, our apparel industry is no exception. However, Bangladesh’s apparel exports to non-traditional markets (outside of Europe and the US) has also increased significantly in recent years. For example, between July and March of the current financial year, exporters shipped $5.26 billion worth of goods to Asian countries—an increase of 16% from $4.54 billion recorded in the previous year. The shipment growth in the Asian market doubled the overall 8% expansion seen in national exports in 2022–23, data from the Export Promotion Bureau (EPB) showed. Of the destinations, exports grew fast in South Korea, India, Malaysia and Japan in terms of value and percentage.

As an eco-conscious industry, the Bangladesh textile industry is increasingly focusing on shifting from a linear system to a circular system. Manufacturers, buyers, and recyclers are making concerted efforts to collect and reuse textile waste in Bangladesh.

Going circular As an eco-conscious industry, the Bangladesh textile industry is increasingly focusing on shifting from a linear system to a circular system. Manufacturers, buyers, and recyclers are making concerted efforts to collect and reuse textile waste in Bangladesh. Team Group

Europe is clamping down on fast fashion. Everyone wants fast fashion consumption to be brought down drastically. This is definitely going to affect exports of developing countries. How is Bangladeshi industry preparing itself for that eventuality?
Abdullah Hil Rakib: We have one Mother Earth. So, we have to conduct responsible business to avoid our own extinction. Therefore, BGMEA has realigned its vision with the UN Sustainable Development Goals, and even emerged with a new logo, which is coded as 'nine-dots'.

The first dot means: people come first. Our motto is to forever work for the well-being of the people of Bangladesh and humankind at large, inside and outside the industry. Here, the underlying principle is to improve conditions for the country's approximately four million garment workers, contribute to the national economy, and improve the lives of the common people.
The second dot represents inclusivity, which is already one of the hallmarks of the Bangladeshi RMG industry. Being the country's largest formal sector employer, with around 60% of our employees being women, we want to listen and be approachable. We are open to involving people from across the socio-economic spectrum, without any form of discrimination.
The third dot is about transparency. Now, Bangladesh is a front-runner in transparency regarding factory safety and value-chain responsibility. Accountability and access to information are central to building a trustworthy, flexible and resilient organisation.
The fourth dot is about infrastructure. In the last decade, we have made tremendous progress in making our factories safe, environment-friendly, and employee-friendly. As a result, workplace mishaps have become a thing of the past in the RMG sector. But we cannot let our guard down. This underlying theme of the logo will continue to inspire us to build safe, sustainable, and green factories having modern safety and security apparatus.
The fifth dot signifies innovation—to encourage us to innovate which is key to our survival. The 4th Industrial Revolution has accelerated the process of automation and virtual prototyping. To keep up with the global trend, significant investment in skill development and R&D is already taking place in factories. While individual factories are working on their own to innovate and design high-end products for exports, BGMEA has set up a 'Centre for Innovation, Efficiency and OSH' which will cater to the industry's quest for innovation and perfection.
The sixth dot is about circularity, which is very important for the conservation of our natural ecosystem. As an eco-conscious industry, we are increasingly focusing on shifting from a linear system to a circular system. Manufacturers, buyers, and recyclers are making concerted efforts to collect and reuse textile waste in Bangladesh.
The seventh dot is about strengthening our global network. It will motivate us to strive to be ahead in the world through innovation, pivots, and flexible adaptations.
The eighth dot of BGMEA's new logo focuses on Branding Bangladesh. It aims to convey what BGMEA represents, the vital role it plays in representing Bangladesh in the global market, and branding Bangladesh to the world.
Finally, the ninth dot represents environmental sustainability. This symbolises the respect BGMEA has for nature and its dedication to preserving the ecosystem.

These nine dots on the logo are the matrix of BGMEA's scope of work and influence. We have placed the dots in columns to depict our journey from micro to macro, effort to effect, and local to global.

So, when we look at the nine dots in rows, the first three dots highlight 'reach,' the second three highlight 'transformation,' and the third three highlight 'sustainability.' These nine dots signify BGMEA's new commitment and the new start of the journey of Bangladesh’s apparel industry, the journey that put the people and planet at its foremost priority.

Bangladesh is to graduate from the UN's Least Developed Countries (LDC) list in 2026. A lot of benefits are likely to go when that happens. How is Bangladesh's apparel industry gearing up for that shift?
Abdullah Hil Rakib: Bangladesh will no longer be eligible for EU's GSP if the country is promoted to middle-income status in 2026, but it will be able to continue to enjoy duty-free access in the region if it achieves GSP+. In this regard, it is worth noting that our Commerce Minister, Tipu Munshi, recently urged the EU to grant Bangladesh a 12-year transition period instead of the usual three years. I am hopeful that the Bangladesh Mission in Brussels will convey our concerns to the EU in order to ensure a smooth transition for Bangladesh and allow it to benefit from the trade preference.