Bangladesh’s exportfocused readymade garment industry continues to attract new investments in spite of the country’s economic crises, political unrest, and student upheavals.Even though this has led to the creation of new job prospects, many factories have closed simultaneously, which has caused many workers to lose their jobs.
In the 15 months between January of last year and March of this year, 128 factories became new members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), an association of owners of the ready-made garment industry, according to a trustworthy source. When these factories reach full output, an estimated 74,000 additional employment will be generated.
During this timeframe, 113 member factories of BGMEA have ceased operations, leading to the loss of 96,104 jobs for workers. Notably, since last August, 69 factories have shut down, affecting 76,504 employees.
Despite these challenges, there has been a notable increase in garment exports. The Export Promotion Bureau (EPB) reports that ready-made garment exports from July to March of the 2024-25 fiscal year reached $3.25 billion, reflecting a 10.84 percent rise compared to the previous fiscal year.
Among the 128 newly established factories are:
AKH Outerwear, AZ Composite, Nexton, LSA Apparels, Citec Fashion, Sparrow Greentech, and Supreme Outfit.
Of these, 18 factories intend to hire over 1,000 workers, indicating that many are small and medium-sized enterprises.
AZ Composite has commenced trial production in Gazipur, currently employing 150 workers. However, the company’s Managing Director, Zahirul Hasan, stated that once operations fully ramp up after Eid-ul-Azha, the workforce will expand to 700-800 employees.
Conversely, Sparrow Group of Industries, a prominent exporter in the country, inaugurated a new factory named Sparrow Greentech in Gazipur last September, which currently employs 1,800 workers. The group has a total of 18,000 jobs across its four factories.
Sparrow Group’s Managing Director, Shovon Islam, noted that while the new factory is performing well, there has been a slight decline in orders due to counter-tariffs imposed by the United States, leading to some uncertainty.
The factories that have closed include:
24 from the Beximco Group (14 of which are situated in Beximco Industrial Park),
4 from the Keya Group,
4 from TNZ,
Virgo MH, Modish Attire, Ciroc Apparels, and Odish Craft are among the companies involved. Currently, 31,679 workers and 1,565 officials and employees are employed in these factories. The government has disbursed Tk 525.46 crore to cover their dues, yet many individuals have not received their payments.
Mohiuddin Rubel, a former director of BGMEA, noted that large and medium-sized factories are enhancing their production capabilities through investments in technology and artificial intelligence (AI), which is contributing to an increase in exports. In contrast, smaller companies are struggling to manage their operational costs.
Mahmud Hasan Khan, a former vice-president of BGMEA, mentioned that the cycle of opening new factories while closing older ones is ongoing. However, the tariff policies implemented by the Trump administration have instilled caution among investors. Furthermore, despite improvements in the law and order situation, many are hesitant to make significant decisions until after the national elections.
While there is new investment and growth in exports within the ready-made garment sector, the industry faces challenges due to political instability, international tariff regulations, and rising business costs. The sector’s future hinges on government actions and global trade policies.
