FACE2FACE with Mr. Faruque Hassan

Mr. Faruque Hassan is Managing Director of Giant Group and Senior Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He has been working hard with dignity and perseverance to contribute in development of Textile and RMG sector. He served BGMEA as elected Director and Vice President. Now he is Senior Vice President since 2015. Mr. Hassan is a member of Dutch Bangla Chamber of Commerce (DBCCI) and has served as the Senior Vice President. He is also a member of France-Bangladesh Chamber of Commerce & Industry (CCIFB) and has served as the Vice President of the chamber.

He is associated with many other national and multinational trade bodies like Bangladesh German Chamber of Commerce & Industry (BGCCI), Bangladesh Textiles Mills Association (BTMA), Dhaka Chamber of Commerce & Industry, Dhaka Club Ltd, Gulshan Club Ltd, Gulshan Society, Gulshan Joggers Society, Kurmitola Golf Club and All Community Club Ltd.
He is a Founder Member of Board of Trustees of Bangladesh University of Fashion and Technology (BUFT) and also a Vice President in the Board of Centre of Excellence for Bangladesh Apparel Industry (CEBAI)
Mr. Hassan believes Bangladesh will not achieve its targeted growth by the cost of environment. He aspires to make Bangladesh RMG industry a role model of green industrialization in the world.

Q. Mr. Faruque Hassan, how do you see your market segment growing in the next 5-10 years both locally and internationally?
 Bangladesh is the second largest readymade garment exporting country in the world with 6.4% share in the global apparel market. Started its journey with exports worth only 12 thousand US dollars, now the apparel sector is now 28-billion-dollar industry and makes up 82% of the total exports of Bangladesh. The garment industry of Bangladesh has maintained phenomenal growth over the last few decades. Over the last 10 years, the CAGR of our apparel exports is more than 13% though the export earnings from the sector haveslowed down a bit and it was 0.20% in the just-concluded fiscal year (July 2016 to June 2017). However, this slow down was for the time being because in the months of July and August 2017 our export again witnessed 17.08% and 11.69% growth respectively. We hope that all initiatives and efforts taken to transform the industry in terms of safety, compliance, green industrialization, product diversification, value addition, technological up-gradation, modernization of the industry will help our garment industry to grow in the years to come and we hope for the best. The export earnings from the sector can be doubled in the next five years.

Q. From where do you source your raw material?
 The knitwear sector is self-sufficient as the local sources are meeting up to the demand of knitted yarn and fabrics for export oriented RMG industry and we source cotton from USA, India and CIS countries. However, the woven textile industry meets 40% of the only the demand in export-oriented RMG industry. The rest 60% of the demand are met by exporting woven fabrics from China, India, Taiwan, Korea, Pakistan and Turkey.
R. Please give us an overview of the different types of accessories required for garments are manufactured in Bangladesh.
Bangladesh has strong backward linkage industries which meet the demand of garment accessories. The country is self-sufficient in trims and accessories required for our ready-made garment industry. Products include labels, zippers, tags, tapes, thread, ribbon, buttons, rivets, laces, hooks, transfer film, paper, and ink.

Q. As a Senior Vice President of BGMEA, can you give us a brief about the role of BGMEA in uplifting of Bangladesh textile companies and your role in particular in the association?
 The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was established with an aim to ensure a congenial business climate for sustainable growth of the apparel industry in Bangladesh. It is one of the largest trade associations in the country representing the readymade garment industry, particularly the woven garments, knitwear and sweater sub-sectors.

BGMEA works firstly to protect and promote the interests of the industry; thus ensuring a sustained growth in the foreign exchange earnings of the country.Secondly, BGMEA is committed to ensure all legitimate rights and privileges of the garment workers. The association also strives toward the betterment of the society and environment.

Q. Bangladesh textile industry recorded a growth in its textile exports. How Bangladesh textile industry is flourishing in comparison to China and other countries?
Bangladesh is the second largest exporter of RMG products after China which occupies 36% of global clothing exports while our share is 6.4% only. China has never been a competitor of Bangladesh in the global apparel market. China’s gradual reduction of bulk apparel production due to labor shortages and higher wages can be an advantage for our apparel industry. Vietnam, India, Turkey are our competitors in the apparel market. However, given the competitive advantages like availability of workforce, 35 years of experience, duty-free access to EU market, we expect that our apparel industry’s future is bright.

Q. What is the size of top garment manufacturing units in Bangladesh and what is the ration of export and domestic market?
The factories registered with BGMEA do not cater to the local need; rather we export 100% of our produced goods. There is no definition of top garment factories in terms of their size.

Q. How Bangladesh textile industry has major source of employment and how you create employment opportunities in your country?
The apparel industry is the major industrial employment sector which has directly created employment for around 4 million people. Of them 70% are women. Besides, the industry indirectly supports livelihood of around 40 million people of the country.

Q. Which are your main export destination and how Bangladesh textile favorable to the European market?
The European Union and North America are our major export destinations. The EU provides Bangladesh duty-free access as an LDC country under its Everything but Arms (EBA) initiative. The EU accounts for 63% of our total apparel exports. The USA and Germany are the two single largest export destinations of Bangladeshi apparel. The USA accounts for 18.49% of our total apparel exports while Germany accounts for 18.24%.

Published on 19-09-2017

DISCLAIMER:All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of The Textile Association (India).