Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu highlighted both the pressing challenges and promising opportunities facing Bangladesh’s readymade garment sector, urging strategic reforms to bolster competitiveness and long-term growth.

Speaking recently on the state of the industry, Babu identified the increasing use of the Free of Cost (FOC) model — where buyers supply fabric at no charge — as a stabilising force in the apparel sector.

He explained that this model minimises financial risk for manufacturers and reduces the likelihood of order cancellations.

However, he called for greater scrutiny of the balance between FOC and traditional business orders to maintain sectoral integrity.

Despite a reduction in the number of operational factories, export volumes have continued to rise. Yet, Bangladesh’s global market share in apparel exports has remained stagnant due to overall market expansion.

Babu emphasised the need for Bangladesh to claim a larger share of the growing global pie.

‘Our market share is significantly lower than that of competitors like China,’ he said. ‘Expanding this share is a critical objective.’

One of the key priorities outlined by the BGMEA president is boosting value addition in exports.

Trade uncertainty has also emerged as a major concern, particularly around the threat of new tariffs.

A proposed 35 per cent tariff in the US market has created anxiety among exporters, who are unwilling to negotiate terms with buyers until government policy is clarified.

‘Some buyers have floated the idea that exporters should absorb any imposed tariffs, but these assumptions are premature,’ Babu noted.

Babu urged the government to ensure stable imports of Liquefied Natural Gas (LNG) and expedite the implementation of Floating Regasification and Storage Units (FRSUs).

‘Ensuring uninterrupted energy supply is essential if we are to maintain export momentum,’ he stressed.