Industry News
Bangladesh Government Dissolves BGMEA Board
The interim government of Bangladesh recently dissolved the board of directors of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). This decision was made in response to ongoing internal disputes and allegations of corruption within the organization. The interim government has appointed Md Anwar Hossain, vice chairman of the Export Promotion Bureau (EPB), as the administrator and must hold a "free and fair election" within 120 days.
Local reports indicate that a government circular was issued on October 20. The circular outlines that Hossain will organize a “free and fair” election within 120 days, after which the newly-elected leadership will take over.
In August, S.M. Mannan (Kochi) stepped down as BGMEA president, citing the need for long-term medical treatment. His resignation occurred around the same time the Prime Minister left the country and a new interim government took office.
Khandoker Rafiqul Islam, who had previously served as senior vice president of the BGMEA, was unanimously elected as the new president. However, concerns were raised about the fairness of the election process.
The Dhaka Tribune reported that the restructured BGMEA board was unable to adequately address complaints from its general members, leading to further dissatisfaction.
BGMEA is one of the largest trade associations in the country representing the readymade garment industry, particularly the woven garments, knitwear, and sweater sub-sectors with equal importance.
Bangladesh's decision to remove the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) board and appoint an administrator could signal instability. Bangladesh’s ready-made garment (RMG) industry has started to suffer from political instability and worker unrest, which has affected the industry’s capacity to compete in important Western markets. As the unrest persists, competitors like China, Vietnam, India, and Cambodia are increasingly taking advantage of it.
Both decreased demand in the US market and persistent domestic issues, such as factory closures and production delays brought on by labor strife, are to blame for the drop in Bangladeshi clothing exports. The challenges faced by Bangladeshi exporters were highlighted by the 8.98 percent decline in total textile and apparel shipments to the USA over the same time period one year ago.
Key points about the board dissolution:• Government Intervention: The government appointed an administrator to oversee the affairs of the BGMEA until new elections could be held.• Allegations of Corruption: The dissolution followed allegations of financial irregularities and mismanagement within the BGMEA board.• Internal Disputes: The board had been plagued by internal conflicts and power struggles, hindering its ability to effectively represent the interests of the garment industry.• New Elections: The government has announced plans to hold new elections for the BGMEA board to ensure transparency and accountability.
The dissolution of the BGMEA board is a significant development for the garment industry in Bangladesh. It is hoped that the new elections will lead to a more representative and effective leadership for the organization.
After a difficult time, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) declared that the garment industry was now stable and urged the government to take action to maintain law and order in the industry to maintain its competitiveness and spur future expansion.
Bangladesh has around 3,500 garment factories, which is a key part of the country's economy:• Exports: Bangladesh's garment factories are responsible for around 85% of the country's $55 billion in annual exports. • Global sourcing: Bangladesh is a global hub for apparel sourcing. • Green factories: Bangladesh has the highest number of green garment factories in the world. • Compliance: The industry is known for its compliance and factory safety. • Readymade garments: Bangladesh is the second largest exporter of readymade garments in the world, after China. • Employment: The industry employs over 4 million workers. • Brands: Bangladesh's garment factories supply many of the world's top brands, including Levi's, Zara, and H&M.
In accordance with Section 18(2)(a) of the Trade Organisations Act, 2022, a support committee comprising members of the BGMEA had been established to assist the administrator of the trade body in carrying out his responsibilities.”
.jpeg)