What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
Hindu Voice Team: Bangladesh’s export-oriented garment industry, the lifeline of its economy, is facing one of the most challenging phases in recent years. According to data reported by Somoy News and confirmed by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), more than 258 ready-made garment (RMG) factories have shut down over the past year amid a combination of domestic and international pressures.
Economic Pressures and Global Market Shifts
Industry experts attribute the factory closures to multiple compounding factors, including a global slowdown in apparel demand, rising production costs, and unstable energy supplies that have disrupted regular factory operations.
The ongoing economic downturn in major export destinations — such as the United States and the European Union — has led to a sharp fall in orders, while global inflation and reduced consumer spending have further weakened Bangladesh’s export performance.
According to the latest figures, Bangladesh’s RMG exports — which account for over 84 percent of the country’s total export earnings — have declined by approximately 6 percent over the past two months. Industry insiders fear that, unless conditions improve, more factories may be forced to cease operations in the coming months.
Energy and Operational Challenges
One of the most critical issues facing factory owners is unreliable power supply and increasing energy tariffs. Many factories have reported intermittent electricity and gas shortages that disrupt production schedules, delay deliveries, and increase operational costs.
Additionally, the rising prices of raw materials, logistics, and worker wages have further squeezed profit margins — particularly for small and medium-sized exporters who rely on narrow margins to stay afloat.
Impact on Employment
The closures have also dealt a blow to Bangladesh’s labor force. Each factory employs, on average, between 1,000 to 3,000 workers, meaning that the recent wave of shutdowns could potentially affect over half a million garment workers.
Labor rights groups warn that thousands of dismissed workers are struggling to find alternative employment, while those still employed face uncertainty over delayed wages and reduced working hours.
Calls for Government Intervention
The BGMEA has urged the government to take immediate steps to stabilize the situation. In a statement, BGMEA leaders called for relief measures, including policy support on energy costs, export incentives, and easier access to low-interest loans.
They also emphasized the importance of diversifying export markets beyond Europe and North America to include emerging regions such as East Asia, Latin America, and the Middle East.
Outlook for the Industry
Economists caution that the current crisis could undermine Bangladesh’s long-standing position as the world’s second-largest garment exporter after China. If the decline continues, they warn, it could have serious consequences for the national economy, which relies heavily on the RMG sector for both employment and foreign exchange.
Despite the bleak outlook, industry leaders remain cautiously optimistic that with effective government policy, infrastructural improvements, and renewed buyer confidence, the sector can recover from its current slump.
