Industry News

ILO Suggests Reforms to Strengthen Bangladesh's RMG Sector and Improve Worker Relations
Oct 07, 2024

The International Labor Organization (ILO) has proposed five key reforms to address labor unrest in Bangladesh's readymade garment (RMG) sector, focusing on wage policy improvements, labor law amendments, enhanced industrial relations, and better worker safety standards. It emphasized the need for constructive dialogue among factory owners, workers, and the government to resolve grievances.

RMG Exports are Rising in Tamil Nadu, Revenue Set to Grow 10%
Oct 07, 2024

CRISIL Ratings predicts that the revenue of readymade garment (RMG) exporters in Tamil Nadu, India, will increase by 8-10% to $5.11 billion (₹43,000 crore) in the current fiscal year, driven by healthy order inflows and rising demand. This growth is higher than the national level, where a 3-5% increase is expected. The state's larger export share of 65-70%, compared to the national average of 20-25%, supports this stronger performance.

Vietnam's Textile Sector Faces EU Growth Potential with Focus on Sustainability and Compliance
Oct 04, 2024

Vietnam's potential to expand its textile exports to the EU has been valued at €4.5 billion in 2023. While the EU-Vietnam Free Trade Agreement (EVFTA) reduces import taxes, Vietnamese companies must meet strict EU sustainability regulations. European buyers are prioritizing transparency, carbon reduction, and labor conditions. To stay competitive, Vietnam must shift from fast growth to sustainable practices, invest in clean energy, improve domestic supply chains, and adapt to the EU’s evolving textile strategy.

Major Fashion Brands Reportedly Reducing their Orders in Bangladesh
Sep 30, 2024

The ongoing situation in Bangladesh has exposed vulnerabilities in the supply chain, particularly around fair wages and working conditions. The Business & Human Rights Resource Centre and Sourcing Journal conducted surveys with international apparel brands to gauge their responses to the crisis. Despite public commitments from many brands to support ethical sourcing and maintain their supply chains, concerns have arisen. For example, while Uniqlo committed to maintaining order levels, a supplier revealed that some brands are planning to reduce sourcing by 30%, which could negatively impact workers and suppliers. In response, Decathlon and Fast Retailing (Uniqlo's parent company) clarified that they have no plans to reduce or cancel orders from Bangladeshi suppliers, reaffirming their support during the unrest.

Delhi Government to Increases Minimum Wage with Little Effect on Garment Workers
Sep 30, 2024

The Delhi Government has announced an increase in minimum wages for workers, effective October 1st. Chief Minister Atishi stated that Delhi now has the highest minimum wage in India. Major apparel manufacturers in areas like Gandhi Nagar and Tank Road, employing over 500,000 workers, primarily work on piece rates, which remain unaffected by the minimum wage increase. Factory owners believe market forces will dictate any adjustments in piece rates, mitigating the impact of the new wages.