BANGLADESH: H&M visit focuses on expansion and concerns
By Siddique Islam | 4 September 2012
The CEO of Sweden-based fashion giant H&M has reiterated that the retailer has a long-term commitment to sourcing garments from Bangladesh, during a visit that will also discuss the country's labour issues.
Karl-Johan Persson was speaking from the capital Dhaka, where he arrived on Monday (3 September) for a two-day visit.
"We're growing businesses in the country," said Persson, who is leading a five-member delegation on the trip. "It is a win-win situation for both the buyers and Bangladesh."
Shafiul Islam Mohiuddin, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), added that H&M plans to double its purchasing globally within the next five years, which will include Bangladesh.
He added: "H&M is not only the largest buyer for us; we are also one of the top sourcing destinations for H&M as well."
Topics on the agenda during the visit include labour standards and the country's poor infrastructure.
Bangladesh's prime minister has also urged Sweden-based fashion retailer H&M to buy more garments from the country, saying the garment sector is contributing to its "economic freedom."
"The poverty rate has been reduced to 10% in the last three years and per capita income has increased significantly due to expansion of the garment industry," Sheikh Hasina told the H&M delegation.
She added that the government has taken steps for protect workers' interests. "The minimum wage for garment workers has been raised by 87% and we are strictly monitoring it," she said, noting that the government is providing training to ready-made garment workers to improve their skills so that they can earn more.
H&M is among global clothing brands pressing the Bangladesh government to establish "a forum where buyers can raise concerns and discuss current topics", following waves of recent labour unrest.
The retailer is also extending its All for Children initiative to Bangladesh after agreeing to support projects organised by the United Nations Children's Fund (UNICEF) in the country.
Sectors: Apparel, Manufacturing, Retail, Social & environmental responsibility, Sourcing
Companies: H&M
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