This historic agreement will transform imported fiber data from 4,000 factories in Bangladesh into portable and verifiable evidence through blockchain technology, ensuring mandatory digital product passports for European brands from 2027, a press release said.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Netherlands-based supply chain traceability platform ‘AWARE™’ signed a Memorandum of Understanding (MoU) in Dhaka today (Sunday). The main objective of this collaboration is to create blockchain-based transparency and Digital Product Passport (DPP) capabilities in Bangladesh’s RMG industry.
BGMEA Vice President Vidya Amrit Khan and AWARE Founder and Managing Director Fico van der Veen signed the agreement on behalf of their respective organizations. BGMEA Director Shah Raeed Chowdhury was present at the event.
BGMEA represents around 4,000 registered garment factories in Bangladesh, whose products reach different parts of the world, including Europe and North America. The law on digital product passports is going to be implemented in the European Union from 2027. In this context, today’s MoU will not only legally enable the Bangladeshi garment sector, but also establish it as a reliable and risk-free sourcing partner for European brands.
The challenge of cross-border traceability
More than 85 percent of Bangladesh’s export earnings come from the ready-made garment sector, whose main market is the European Union. From 2027, every garment entering Europe will have to have a verified digital product passport. This will be a secure record with a QR code, which will contain information on the source of the product’s raw materials, production process and environmental impact.
The main challenge for Bangladesh is that the garment industry here is largely dependent on imported fibers and yarns. These raw materials from China, India or other countries cross multiple borders before reaching Bangladesh. Under the new EU rules, brands will have to provide verified proof of the source of these raw materials. Without cross-border traceability, this proof is almost impossible to provide.
This is where Aware’s tokenization technology comes into play. When raw materials are produced, Aware creates a blockchain-based ‘data token’ for each batch. This token crosses the border into Bangladesh along with the physical shipment. When a factory receives these raw materials, it associates their production data with that token, creating an unbroken chain of custody.
This will solve a complex compliance risk for European brands sourcing from Bangladesh. Instead of relying on outdated audit reports or certification schemes, brands will now receive a complete and independently verifiable data package against each order. It ensures the source of the material, records every step of the production process and calculates the environmental impact based on real data.
AWARE Founder and Managing Director, Feko van der Veen, said,
“I built AWARE™ based on over 30 years of experience living and working with Asian textile supply chains and global brands. Everyone works for brands, but we work for producers. We help Asian producers maintain their export-worthiness. In a world where unsubstantiated claims have now become legal liabilities, this is not just an added advantage; it is the reality of the market today.”
Benefits of the partnership
The collaboration will enable BGMEA member factories to instantly record, verify and share their production data. This will automatically create an EU-compliant ‘Digital Product Passport’ for each product.
A key aspect of the agreement is ‘Data Sovereignty’. The factories will have sole ownership of all the data generated by them. They will control who can see this data.
Speaking at the MoU signing ceremony, BGMEA Vice President Vidya Amrit Khan said,
“BGMEA has always worked to protect the interests of Bangladeshi garment manufacturers and ensure their access to the global market. This partnership with Aware is a direct reflection of that goal. The EU Digital Product Passport is coming into effect soon and our members need to be prepared for it. We believe that Aware’s technology will help our factories not only comply with the law, but also lead the global market.”
Competitive advantage over risk
The risk of non-compliance with this rule for European brands is high. Marketing products without a Digital Product Passport poses legal complications and potential business losses. As a result of this initiative, Bangladesh will emerge as a strong partner not only in supplying garments but also in providing verified information.
Mueed Hasan, Country Manager, Aware, Bangladesh, said:
“This EU rule is not a threat for Bangladesh, but an opportunity. The factories that are ready first will get more orders. We are working to ensure that readiness.”
This pilot project will start soon in some selected spinning and garment factories
