The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and AWARE™, a Netherlands-based supply chain traceability platform, have signed a Memorandum of Understanding (MoU) to introduce blockchain-based transparency and Digital Product Passport (DPP) capabilities across Bangladesh’s readymade garment (RMG) industry.
The agreement was signed in Dhaka by Vidiya Amrit Khan and Feico van der Veen in the presence of Shah Rayeed Chowdhury.
Representing nearly 4,000 garment factories, BGMEA oversees an industry that is the backbone of Bangladesh’s export economy and the world’s second-largest apparel exporter. With the European Union set to enforce mandatory Digital Product Passport regulations from 2027, the partnership aims to position Bangladesh as a compliant, transparent, and trusted sourcing destination for global brands.
Addressing the Cross-Border Traceability Challenge
Bangladesh’s RMG industry contributes more than 85 percent of the country’s export earnings, with the European Union remaining its largest market. Under the EU’s upcoming DPP regulation, every textile and garment product entering Europe must carry a verified, tamper-proof digital record detailing the product’s material origins, production journey, and environmental footprint.
A key challenge for Bangladesh lies in the industry’s heavy dependence on imported fibers and yarns sourced from countries such as China and India before being transformed into finished garments locally. Without a verified system tracking those materials across borders, brands face significant compliance risks under the new EU framework.
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AWARE™ seeks to solve this issue through blockchain-anchored tokenization technology. When fibers or yarns are produced at origin, the platform creates a digital Data Token containing verified information about the material’s source, composition, and sustainability credentials. The token travels alongside the physical shipment across borders, enabling Bangladeshi manufacturers to continue adding production data at every stage of the supply chain.
The result is an uninterrupted chain of verified information from fiber origin to finished garment, allowing brands to receive independently verifiable proof of material origins, production processes, and environmental impact with every order.
Speaking about the collaboration, Feico van der Veen said:
“Bangladesh makes the clothes the world wears. The factories here are extraordinary — the scale, the skill, the speed. But the materials come from everywhere. That is the reality of global garment manufacturing, and it is exactly why traceability has been so hard. AWARE™ solves it by making data travel with the material. With this collaboration, BGMEA shows the leadership that will define which producers thrive in the new regulatory reality.”
What the Partnership Will Deliver
Under the MoU, BGMEA will actively promote the adoption of AWARE™ technology among member factories through seminars, newsletters, workshops, roadshows, and official communication channels.
AWARE™ will provide preferential pricing for BGMEA members along with onboarding support, training, and technical assistance tailored to Bangladesh’s garment sector.
The initiative is designed to support the entire textile and apparel supply chain — from fiber producers and spinners to garment manufacturers. Through blockchain-enabled data tokenization, each stage of production can securely record and verify operational data in real time.
The system automatically generates fully EU-compliant Digital Product Passports for every product, including QR-code-enabled records containing verified proof of origin, materials used, and environmental footprint accessible to brands and consumers worldwide.
The agreement also emphasizes data ownership and sovereignty. All data generated by member factories will remain fully owned and controlled by those factories, even if they later choose to leave the platform.
Vidiya Amrit Khan said, “BGMEA has always stood for protecting the interests of Bangladesh’s garment manufacturers and ensuring their access to global markets. This partnership with AWARE™ is a direct expression of that mission. The EU Digital Product Passport is coming, and our members must be ready. We believe AWARE™’s technology gives Bangladesh’s factories the tools to not just comply, but to lead.”
From Compliance Obligation to Competitive Advantage
The collaboration is expected to help European brands mitigate compliance and reputational risks linked to the EU’s Ecodesign for Sustainable Products Regulation (ESPR), under which garments without valid Digital Product Passports may face restricted market access.
By enabling verified, traceable, and auditable production data, the BGMEA–AWARE™ initiative aims to transform Bangladesh from a potential compliance concern into a preferred sourcing hub for transparent and sustainable apparel manufacturing.
For factories, the benefits extend beyond regulatory compliance. Manufacturers using the AWARE™ platform can position themselves as lower-risk and higher-value sourcing partners while gaining downstream visibility into which brands and products utilize their materials and production.
According to Muyeed Hasan, “I see every day what these factories are capable of. The EU regulation is not a threat to Bangladesh; it is an opportunity. The factories that are ready will win the orders. BGMEA and AWARE™ are here to make sure they are ready.”
Pilot projects involving selected spinners and garment manufacturers are expected to begin immediately, creating the first cross-border, fiber-to-garment Digital Product Passport supply chains connecting Bangladesh with European brands.
