Bangladesh’s ready-made garment (RMG) industry has incurred an estimated production loss of around $400 million due to recent labour unrest in Savar, Ashulia, and Gazipur during September and October.
In addition, several work orders have been shifted to rival countries amid concerns over law and order, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Khandoker Rafiqul Islam on Saturday.
Speaking at a press conference at the BGMEA complex, Khandoker Rafiqul Islam stated, “We have fallen behind to some extent. In August, US apparel imports increased by 1.5 per cent, but imports from Bangladesh declined by 3.8 per cent.”
“Meanwhile, our competing nations saw significant growth, with imports from China rising by 3.6 per cent, Vietnam by 5.2 per cent, India by 7.6 per cent, and Cambodia by 7.7 per cent,” he added.
Total apparel imports in Europe rose by 3.3 per cent from January to July. During the same period, Bangladesh’s exports grew by only 2.8 per cent, while India’s increased by 5.18 per cent, Cambodia’s by 18.35 per cent, and Vietnam’s by 12.61 per cent.
These figures indicate that Bangladesh is significantly lagging behind its competitors in export growth, while other countries are gaining a stronger foothold in global markets, said Khandoker Rafiqul Islam.
However, according to Bangladesh Bank’s Balance of Payments (BoP) data, RMG exports increased by 5 per cent to $6.50 billion during July and August of the current FY25, compared to the same period in FY24.
Meanwhile, BGMEA President Khandoker Rafiqul Islam noted that despite recent challenges, the garment industry has successfully regained stability. “The concerted efforts of the government, factory owners, workers, the Bangladesh Army, and law enforcement agencies helped the BGMEA board address the difficult situation effectively,” he said.
The BGMEA president also pointed out that Bangladesh’s garment sector is gradually regaining the trust of international buyers, a crucial step in restoring the industry’s momentum.
“To safeguard factories, a joint task force led by the army was formed, which has been conducting regular patrols in garment-dense areas. Additionally, the BGMEA, with military assistance, implemented community policing to ensure security and prevent further disruptions,” he added.
The BGMEA leaders also mentioned the uncertainty surrounding the payment of August salaries in some garment factories. To resolve this, the BGMEA approached the government’s finance adviser and held meetings with the governor of Bangladesh Bank. As a result, Bangladesh Bank directed commercial banks to facilitate the payment of August salaries following the BGMEA's request.
In response to a journalist’s question about current risks facing factories, Khandoker Rafiqul Islam acknowledged that many factories remain at risk, though he could not specify the exact number.
“Thirty-nine factories in Ashulia, which were affected by the labour unrest, have been unable to pay September salaries. The BGMEA has approached the Ministry of Finance, requesting interest-free loans on favourable terms to ensure timely wage payments for these factories,” he said.
Additionally, around four million workers in the garment sector have been included in the government's Trading Corporation of Bangladesh (TCB) fair price scheme, which aims to provide essential commodities at affordable rates.
Asif Mahmud Sajeeb Bhuiyan, adviser to the Interim Government of the Ministry of Labour and Employment, inaugurated the TCB product sale programme for garment workers on 16 October 2024.
The press conference also revealed that in response to the BGMEA's request, the requirement for Fire Resistance Rating for steel structures in garment factories has been relaxed.
