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'SAMENA Daily' - News

Bangladesh gears up for Digital Product Passport era

For Bangladesh, the world’s second largest exporter of readymade garments (RMG), the EU’s Digital Product Passport (DPP) marks a turning point. By 2027, textiles and apparel entering the EU will need to carry a ‘basic’ DPP, with full rollout expected by 2030. This means price and speed alone will no longer be enough. Buyers will now look for clear proof of sustainability, traceability and compliance.

In 2024-25 (July–June), Bangladesh’s exports to the EU stood at US $ 19.712 billion, representing 50.10% of the country’s total exports to the world. With so much trade tied to Europe, the stakes could not be higher.

To hold onto this market, Bangladesh must cross a tough compliance bridge. Meeting the requirements of the DPP, mandated under the Ecodesign for Sustainable Products Regulation (ESPR), will call for new digital systems, closer engagement with suppliers and stronger data management. For small and medium-sized enterprises, the task will be especially demanding. However, done right, these changes can build stronger trust with buyers, open doors to new markets and ensure the industry’s long-term competitiveness.

The good news is that the process has already begun. Some forward-looking manufacturers are piloting traceability systems. Industry associations are building knowledge platforms. Buyers are also stepping up pressure for compliance. The message is clear: the sooner Bangladesh’s RMG sector prepares, the stronger its position will be in the new era of global trade.

In line with these efforts, Jamuna Group, one of Bangladesh’s leading RMG exporters with factories across Dhaka and Narayanganj, has begun preparing for the DPP requirements.

“We are monitoring EU regulations through BGMEA and buyer communications, mapping supply chain partners to identify traceability gaps, piloting digital traceability tools on production lines and training compliance and sustainability teams on lifecycle data management,” said Tanveer Uz Zaman, Deputy Manager, Jamuna Group. The Group operates six spinning units with a weaving

“We are monitoring EU regulations closely through BGMEA and buyer communications, mapping supply chain partners to identify traceability gaps, piloting digital traceability tools on selected production lines and training compliance and sustainability teams on lifecycle data management.” Tanveer Uz Zaman, Deputy Manager, Jamuna Group

Likewise, Mars-Tex, a Dhaka-based manufacturer, specialising in both knitted and woven products and having a strong presence in the EU market, is also actively preparing for the DPP requirements. “While the final details are still evolving, we understand it will require complete product lifecycle data from raw materials to disposal to be digitally accessible,” said Rezaul Karim Khan, CEO, Mars-Tex.

While the final details are still evolving, we understand it will require complete product lifecycle data from raw materials to disposal to be digitally accessible. Rezaul Karim Khan, CEO, Mars-Tex

The company has a monthly production capacity of 150,000 pieces and two associated woven factories producing 800,000 pieces per month.

Echoing this sentiment, Akib Rahman, Director, Hams Group—which produces nearly 6 million pieces monthly for clients such as H&M, M&S, Next, New Look and Kohl’s—said, “We have already started compiling and recording the information required under the DPP, including general production information, material origins, production processes and logistics and transportation details. At present, we are registered with several sustainability standards and initiatives such as BCI, OCS, GOTS, RCS, OEKO-TEX, ZDHC and SCAN.”

We have already started compiling and recording the information required under the DPP, including general production information, material origins, production processes and logistics and transportation details. At present, we are registered with several sustainability standards and initiatives such as BCI, OCS, GOTS, RCS, OEKO-TEX, ZDHC and SCAN. Akib Rahman, Director, Hams Group

He added, “We also use an ERP system to digitally record and manage data, while buyers’ compliance teams conduct traceability audits through on-site factory visits. These tools currently enable us to track materials and production effectively and we will gradually move towards full adoption of the DPP framework once its methods and technologies are finalised.”

Similarly, Sparrow Group, with an annual revenue of US $ 250 million is also aligning with the traceability requirements of DPP.

“We have made significant investments in RFID technology and are currently in the initial phases of implementation across our production lines, rolling it out line by line. RFID tags are embedded in various garment components, including inside collars, enabling us to track each piece seamlessly through the entire production process, from cutting, through sewing, to washing and finishing,” mentioned Shovon Islam, MD, Sparrow Group.

We have made significant investments in RFID technology and are currently in the initial phases of implementation across our production lines, rolling it out line by line. Shovon Islam, MD, Sparrow Group

Even the trade bodies are recognising the urgency of this transition.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has undertaken a pilot project to implement a blockchain-enabled DPP system in the country’s garment industry. In May, BGMEA, DigiProd Pass Ltd., and Digital Architect signed a Memorandum of Understanding (MoU) to launch the project.

Over the 24-month pilot phase, BGMEA will engage selected garment manufacturers to support data collection and integration of disparate data elements. DigiProd Pass Ltd., will lead the technical development and implementation of the platform, while Digital Architect will provide services such as product lifecycle assessment, data collection, system development, training and integration as a local technology partner. The project aims to assess the feasibility of designing, scaling and implementing a digital product passport to enhance traceability and accountability across Bangladesh’s garment value chain, while boosting the country’s competitiveness in the global market by offering buyers verified data on product lifecycle, environmental footprint and sustainability performance.

Previously, BGMEA and GarmentTechBD.org (Academy of Garments Technology Bangladesh) signed an MoU to implement the DPP initiative through the GarmentTech. express platform.

capacity of 2.5 million yards per month and 50 garmenting lines producing 40,000 pieces daily.



Source: https://bd.apparelresources.com/business-news/sustainability/bangladesh-gears-digital-product-passport-era/

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