Photo: BGMEA

DHAKA, May 18, 2026 (BSS) - Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Department of Inspection for Factories and Establishments (DIFE) today held a strategic dialogue aimed at addressing challenges related to factory license renewals and improving compliance procedures in the country's ready-made garment (RMG) sector.

The meeting took place at DIFE headquarters in the city and was attended by BGMEA Senior Vice President Inamul Haque Khan and DIFE Inspector General (Additional Secretary) Md. Farhad Siddique, along with senior officials from both sides.

During the discussions, BGMEA leaders highlighted the operational difficulties faced by Small and Medium Enterprises (SMEs), particularly in meeting stringent compliance requirements under the National Action Plan (NAP) framework. 

They noted that out of around 1,500 factories under NAP monitoring supervised by DIFE, only about 300 are currently operational in Dhaka and Chattogram, reflecting ongoing structural and compliance challenges in the sector.

BGMEA Vice President Mohammad Rafiq Chowdhury stressed that many SMEs operate in rented or aging industrial facilities, making full and immediate implementation of Corrective Action Plan (CAP) requirements difficult.

He called for the introduction of conditional license renewals for factories that had previously complied with renewal requirements and are actively implementing remediation measures.

A key issue discussed was the recent amendment to the Labour Act extending factory license validity from one year to five years. 

BGMEA representatives said the reform has yet to be fully operational at the field level.

In response, Md. Farhad Siddique assured that implementation of the five-year validity period is underway and will be fully enforced once procedural guidelines and fee structures are finalized. 

He also indicated that DIFE would adopt a supportive approach toward renewing licenses of factories that had already received approvals in the previous cycle.

BGMEA leaders further emphasized the need for pragmatic compliance solutions aligned with international frameworks such as the RSC, NIRAPON, and NAP to ensure the sector's sustainability.

They warned that delays in license renewals could result in factory closures, job losses, and adverse impacts on export earnings.

The BGMEA also outlined plans to relocate SME factories to dedicated compliance-based industrial zones as part of its long-term restructuring strategy.

DIFE, meanwhile, reaffirmed the government's commitment to reopening closed factories where feasible and supporting operational units to remain functional. 

The Inspector General added that labour inspectors would adopt a more guideline-based and coordinated approach to ensure both safety compliance and a business-friendly industrial environment.