Textile Focus presents Industry Opinion Powered by Eurofins Episode-29 was on the topic- “Challenges and Opportunities for the Industry” Team Textile Focus received feedback from the industry experts
Md. M Mohiuddin Chowdhury, Director & CEO of Clifton Group, I believe there is a positive trend, as foreign buyers are increasing their order volumes, and we are receiving orders accordingly. However, we are still not operating at full efficiency. While we need almost 100% business, we are currently achieving around 80%. Nevertheless, we have the capacity to operate at full capacity every season. Gradually, Bangladesh’s capabilities and production capacity are increasing, which is undoubtedly a positive sign. Due to the trade war between China and the United States, I believe our business will grow further. This will allow us to cover costs and sustain our business operations.
Khandaker Belayet Hossain, Executive Director of Asian Group
Although the garment industry started its journey in Chattogram in the 1980s, it has not progressed as much as expected. In fact, many factories that were once in Chattogram no longer exist. Previously, there were more than 700 factories, but now only about 200+ are engaged in exports. Among them, the number of SME factories is quite high, while the number of large industries is very low. Those working in committees supporting small and medium industries in Chattogram are making efforts to help. If the businesses that have struggled or failed receive support based on their experience and the gaps in their operations are addressed, it is possible for Chattogram to regain its former status. Ultimately, I believe Chattogram’s contribution to the national income through remittances will increase further.
Md. Abul Kalam Azad, Director of Operations of Armada Spinning Mills Ltd.
In countries like India, Pakistan, and China, they can buy cotton today, produce yarn tomorrow, and sell it the day after. On the other hand, in Bangladesh, it takes 2-3 months for imported cotton to arrive, and during that time, the market conditions change, leading to less-than-expected results. Additionally, holding costs are increasing because raw material costs make up about 65%-70% of spinning costs, requiring significant funding. We have been advocating for bonded warehouses so that foreign merchandisers can store cotton in Bangladesh rather than keeping it in their warehouses abroad or afloat at sea, which incurs high costs. International merchants have been requesting this facility for the past 14-15 years, but it has not yet been granted. If this is implemented, spinning costs in Bangladesh could be reduced by about 7%-8%, which would be a significant benefit for the industry.
Rehnuma Chowdhury, Managing Director of Fifth Alliance Global Trading Ltd.
Although profit margins have decreased significantly, exports have increased. We are optimistic that the new U.S. government has created opportunities for us, and exports to the U.S. are rising, which is a positive sign, especially for 2025. We observed that after the interim government came to power, Bangladesh went through a period of instability for 3-4 months. During this time, our buyers were not very supportive, as many orders were delayed due to worker unrest and administrative gaps. Law enforcement personnel were also absent. Because of these issues, delays in order delivery damaged our face value with buyers. However, after the U.S. government was formed and the situation in Bangladesh stabilized, we noticed that orders started returning. Now, we need to focus on moving beyond basic products and shifting towards mid-level or high-end fashion.
