The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) revealed data indicating that nearly 4,000 member factories have experienced closures for various reasons since the country emerged as a key player in apparel manufacturing in the late 1970s.
This is as per reports, which added BGMEA President Faruque Hassan emphasised the challenges faced by the multi-billion-dollar industry, the world’s second-largest, over the past four decades.
These figures were shared in a letter addressed to BGMEA members.
Against the backdrop of a decline in export orders, labour unrest, factory closures, and worker resistance to the new minimum wage, the data paints a picture of the industry’s struggle.
Since the establishment of Desh Garments in 1979, the first apparel factory in the country, approximately 6,885 factories have been set up in Bangladesh.
Out of these, 3,964 factories have been closed due to reasons such as a downturn in work orders, loan defaults, order cancellations, management failures, and fraud by buyers.
Of the remaining 2,921 industrial units, 2,339 had their memberships renewed last year, with 1,600 factories directly exporting garment items. The rest operate on a subcontracting basis due to limited capacity.
