Bangladesh’s garment industry is suffering, as almost 20 percent of foreign orders have been canceled in the past six months. The main cause of the slump is worker unrest, especially in Ashulia, where most garment factories are located.
Trade bodies such as BGMEA (Bangladesh Garment Manufacturers and Exporters Association) and BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) have also cautioned that if the situation does not change, some 100 factories might shut down in the next 6 months. This means many foreign buyers who avoided factories with labor issues are now making it challenging for businesses to run smoothly.
The garment industry is crucial for Bangladesh, representing more than 80 percent of the nation’s export earnings. “If this unrest continues, it might have serious implications for the national economy. Experts are calling on both the government and industry leaders to step in and address workers’ concerns to help restore buyer confidence. The next few months that will determine whether the industry will stand still or not. Hopefully the right action will be taken to get the sector back on track.
Source: Business Inspection BD
