Since its inception 40 years ago, the RMG industry in Bangladesh has faced many regulatory hurdles. The sector now risks losing its position as the world’s second-largest apparel manufacturer to Vietnam. The RMG sector generates more than 84 per cent of Bangladesh’s export earnings. It also employs around 80 per cent of its female workforce. In the first five months of this calendar year Vietnam surpassed Bangladesh in ready-made garments exports. Data compiled from various sources reveals, Vietnam exported garments products worth $10.50 billion from January to May 2020, while Bangladesh exported garments worth $9.68 billion during the same time.

RMG is a flexible business in Bangladesh with unstable production. The sector lacks adequate level of trade union partnership which helps RMG factories entice foreign investors with cheap labor. Since a long time, Bangladesh scholars had been urging factory owners to change this strategy and invent a suitable way to attract more foreign investors to Bangladesh. However, since this did not happen, the Bangladesh's RMG sector has faced criticism from media channels across the globe.

Vietnam targets 7 per cent GDP growth

With an aim to supersede Bangladesh in the world RMG market, Vietnam has been pursuing different strategies since 2015. The country is diversifying its product line and looking for unique options beyond traditional themed products. Its officials aim to boost its economy by 7 percent this year, at a faster rate than even China. Reliable social and business networking aids Vietnam

According to the Asian Development Bank (ADB), If Vietnam succeeds in achieving a 7 per cent growth in this financial year, it will march ahead of China which expects a 6 per cent growth in its GDP. Besides finding a reliable business network between the Western and European belts, Vietnam also has maintained good relations with its neighbors which Bangladesh has not been able to achieve.

Vietnam’s production and service sector has been stabilized by regional investors from Japan, Singapore, South Korea and Taiwan. Its factories produce garments and auto parts as well as consumer electronics. Foreign-invested projects accounted for about $9.1 billion investments in the first half of 2019, an 8 percent increase from the same period in 2018. The country benefits from a modern and outstanding era of development of educational institutions due to massive capital injections and the right policies. Its port facilities are far ahead of Bangladesh.

Scores in technology usage

Besides, Vietnamese workforce is more skilled in information technology and other technologies. Its digital infrastructure is more stable and satisfactory. Recent e-commerce developments have also made Vietnam more successful in RMG business than Bangladesh. Its factories are built on a democratic process, and take very little time to supply products to Western and European markets, as well as regional destinations. Their shipments are also carried from time to time through both aviation and marine cargo.

International experts and theoretical structure

To recover lost position in the global RMG market, BGMEA needs to hire international academics as advocates and negotiators with international apparel buyers for sustainable business. These experts can help BGMEA analyze the situation through appropriate theoretical frameworks and provide advice on current and future trends in the business.

BGMEA must also initiate a theoretical structure like PESTLE, SWOT, VRIN through certified academics who can give better advice on the next steps to follow. It should create its own fashion houses and brands like Zara, H&M. A long term relationship with a big organization like Walmart, H&M, Zara can help BGMEA persuade them to build big factories in Bangladesh.

It should also encourage small scale production through a new marketing channel. It should also ensure good governance through an authentic monitoring system and increasing the wages of all its workers periodically.

Swedish retailer Hennes & Mauritz AB says it’s not working with any garment factories in the Xinjiang region of China.

Recently, the Trump administration banned imports from three companies in Xinjiang over Beijing’s alleged repression of Uighur Muslims. It also plans to add curbs on six more firms and target cotton from the area.

H&M has confirmed it currently isn’t sourcing any products from the region, and says it has taken measures to ensure suppliers in China aren’t employing Xinjiang workers through transfer programs, where forced labor is a risk

The Swedish company had previously bought cotton from farms in Xinjiang that were connected to a sustainability program called Better Cotton Initiative. But that program has now decided to suspend the licensing of cotton in the region

Additionally, H&M is reviewing its “indirect business relationship” with a unit belonging to textile manufacturer Huafu Fashion Co. However, H&M hasn’t conducted any business with the Chinese company’s operations in Xinjiang, Isaksson said.

Burberry Group Plc intends to sell a sterling sustainability bond, as the socially responsible debt market increasingly grows beyond utilities, banks and governments.

Burberry has highlighted a focus on corporate responsibility, including animal welfare and sustainable cotton farming, as it seeks to win over socially conscious consumers and investors. The planned bond sale also comes as the U.K. company starts to get over the worst effects of the coronavirus crisis, which caused sales to fall by almost half and prompted 500 job cuts worldwide.

The company has repaid a 300 million pounds ($388 million) banking facility, which it drew down at the height of the virus crisis, it said in a statement announcing its first-ever bond sale. The strength of its brand, a strong presence in China and “robust” liquidity also meant that Moody’s Investors Service Inc. gave the planned notes an investment-grade Baa2 rating.

The Garment Manufacturers Association in Cambodia (GMAC) and partners plan to soon launch the green-tech clean-energy Switch Garment project.

The project aims to increase competitiveness and employ sustainable energy practices to curb the industry’s environmental impact, GMAC general manager Ly Tek Heng told The Post on Tuesday.

Tek Heng, who heads the project, said GMAC will implement it in collaboration with the Seoul-headquartered treaty-based international organization Global Green Growth Institute (GGGI) and French NGO Geres-Cambodia.

He said the EU-funded SWITCH-Asia program has prepared a €2,995,748 budget for the project, which will run from 2020-2024.

In particular, the project aims to increase investment in sustainable energy practices, such as technological efficiency, transition to renewable energy and sound operational management in the Kingdom’s factories.

Brother at Your Side has unveiled its latest direct to garment (DTG) printer known as Brother GTXpro. The GTXpro is an operator friendly high-end direct-to-garment printer, accompanied with leading technology from Brother. Incorporating automatic cleaning processes which significantly increases productivity, the new printer is also environmentally friendly.

The GTXpro is currently available at the company’s their certified dealers. Brother experienced success after launching the mass production machine GTXpro Bulk a few months ago.

The new printer uses newly developed white print head technology with inside ink circulation, which results in us of less white ink for cleaning. The new design of the white print head features more nozzles compared to previous models. This addition results in a 10 per cent faster printing with special “fast mode” print settings. The printer has incorporated optimised maintenance process. Automatic cleaning processes significantly increases productivity.

The printer is also environmentally friendly with OekoTex Passport and GOTS 5.0 certified Innobella Textile Inks. It is operator friendly and comes with additional Print Height Sensor. The new sensor technology detects if the platen is too low in order to reduce ink mist and ensures high print quality.

The printer allows easy printing on a wide variety of textiles such as trousers, shoes, and caps. With compact industrial design and size suitable for all kind of production environment, the printer allows printing on various materials, from cotton to silk or polyester - all featuring the same ink.

The Rebate of State and Central Taxes and Levies (RoSCTL) scheme will enhance competitiveness of apparel exporters and boost outbound shipments, says A Sakthivel Chairman, AEPC. The scheme is the backbone of policy support for the industry and will restore industry competitiveness and positive sentiments for achieving higher export targets.

The scheme will help the sector, which has been hit hard by the lockdowns, global depression in demand, increasing defaults due to bankruptcies and huge increase in logistics and transactional costs, regain its position in the global markets.

Although the year so far has seen double digit declines in exports during April (-91.04 per cent), May (-66.19 per cent), June (-34.84 per cent) and July (-22.09 per cent), this scheme will be an important milestone in changing the export trends, Sakthivel said.

Innatex, the international trade fair for sustainable textiles, witnessed 20 per cent less brand participation compared to the previous editions. Organized by Muevo, the show was held from September 5 to 7, 2020 in the Rhein Main Wallau Exhibition Center in Hofheim am Taunus, Germany. It was attended by brands such s Wunenwerk, Vaude and Genesis who were able to acquire new clients at the fair.

Recycling and up-cycling were the most important trends at Innatex. The fair showcased backpacks made of PET bottles by Gotbag, swimwear made of plastic waste by Boochen and clothes in bohemian style by Souldaze

One of the prominent exhibitors at the fair included Dutch label Blueloop Originals which focuses on the recycling of denim. With a consistent recycling concept and its own development of the material Denimcel, the label aims to make the recycling of jeans as common as that of glass.

Tiffany has filed a suit in the Delaware Court of Chancery to compel LVMH to abide by its contractual obligation and complete the planned $16.2 billion acquisition of the American jeweler. Tiffany noted the deal has taken longer than initially expected and concerns have been growing in some quarters that LVMH was slow walking the process of obtaining regulatory approval. According to the brand, COVID-19 pandemic has not prevented other dealmakers from making antitrust filings and that, of the 10 biggest transactions announced since the beginning of the fourth quarter, this is the only deal that hasn’t been formally filed for antitrust approval in the European Union.

The Tiffany deal, secured before the world was upended by COVID-19, was seen as giving LVMH a tighter grip on the lucrative high-end jewelry segment. Combining the financial firepower of the world’s largest luxury group with the iconic American house — known globally for its robin’s egg-colored packaging and classic engagement ring settings — was seen as creating a more robust competitor to the leading jewelry label Cartier, which belongs to Compagnie Financière Richemont.

GII Apparel Group anticipates its revenues to decline between 28 per cent and 33 per cent during the second half of the year, compared with the same period in 2019. The manufacturer and retailer, parent to brands like DKNY and Donna Karan , reported a 54 per cent loss to $297 million in first quarter. The group’s revenues from its Wilsons Leather and G H Bass businesses declined to $19.7 million for the quarter, compared with $53.6 million during the same period a year earlier.

The company — which also includes Vilebrequin, Eliza J, Jessica Howard, Andrew Marc and Marc New York in the greater portfolio, in addition to fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Levi’s and Dockers brands — lost nearly $15 million as a result, compared with profits of more than $11 million a year ago. That’s on top of more than $39 million in losses from the quarter before that.

The losses included about $25.6 million in lease termination fees, severance costs, store liquidation expenses and legal fees, among other things, as a result of the 110 Wilsons Leather and 89 G.H. Bass store closures, which commenced during the quarter.

To help cut costs, the company refinanced its balance sheet, extended the maturity of its revolving credit facility and term debt to 2025 and reduced SG&A expenses by approximately 40 percent in the most recent quarter, or $16 million. The 20 percent staff reduction will also lead to roughly $22 million in annual savings.

G-III ended the quarter with nearly $253 million in cash and equivalents and about $409 million in long-term debt.

Fashion resale platform Vestiaire Collective is spearheading a new ‘Sustainable September’ campaign in Hong Kong, which encourages consumers to opt for second-hand clothes only this month. Similar to Oxfam’s #SecondhandSeptember, which the charity reignited this year to influence more considered apparel purchases, Vestiaire’s campaign has teamed up with environmental charity EcoDrive to slow the cycle of fast fashion.

With pre-loved items from influential figures in Hong Kong to be resold on Vestiaire’s online platform, a portion of the proceeds will be funneled through to EcoDrive. All board members of EcoDrive, along with various other sustainable fashion advocates in the country, have agreed to donate pre-loved fashion items for resale, as to broaden the offering on Vestiaire’s platform.