Following recent worker unrest that resulted in production losses of about US $ 400 million and the diversion of US $ 2 billion in orders to rival nations, Bangladesh’s ready-made garment (RMG) industry is expressing optimism. As law and order situations improve and international fashion stores return with new orders, industry executives report a considerable comeback.
The Government, law enforcement, labour leaders and Bangladesh Garments Manufacturers and Exporters Association (BGMEA) have all worked together to restore buyer confidence, which has helped the industry recover, according to Khandoker Rafiqul Islam, President of the BGMEA. Due to the economic recovery in key areas including the USA, UK and Germany, factories are allegedly operating properly once more and many are already getting orders that exceed their capacity to produce.
However, some orders—roughly 5–6 per cent of Bangladesh’s exports—were diverted to regional rivals like India, Pakistan, Sri Lanka, and Vietnam during the turmoil that affected important manufacturing regions like Savar, Ashulia, and Gazipur. Islam emphasised that 400 firms, with a combined export worth nearly US $ 7.5 billion, lost production for 15 days as a result of the unrest.
The BGMEA has urged the government to provide soft loans to industries affected by the unrest so they can fulfil their wage obligations, especially for 39 factories that were unable to pay employee salaries. The BGMEA also called on the government to allow clothing manufacturers to use compressed natural gas (CNG) for manufacturing amid the existing gas supply crisis and to refrain from reducing utility supplies for three months.
Manufacturers’ acceptance of the workers’ 18-point demand—of which 16 points were adopted by almost all factories—was a significant development. This week, a meeting with purchasers is planned to go over the latest developments in the RMG industry.
Concerns about operational profitability are voiced by industry experts, who stress that factories need to operate at more than 80 per cent capacity in order to be sustainable. The Chairman of Envoy Textiles Mills, Kutubuddin Ahmed, stated that several months of continuous manufacturing would be necessary for a complete recovery.
Executives from several companies highlighted their growth goals, pointing out that exporters are receiving more orders than they can fulfil. According to Shovon Islam, managing director of Sparrow Group, US textile imports could increase by 7–10 per cent by the end of the year, and Bangladesh might be able to take a sizable portion of those orders. While Shams Mahmud of Shasha Denims noted a notable increase in his company’s order quantities, Faruque Hassan of Giant Group confirmed rising demand from US merchants.
During the July–September period of FY ’25, exports to the US increased by 11.73 per cent, while exports to Germany and the UK also shown advances. Exports to Italy and Spain, on the other hand, decreased as a result of shifting orders and economic difficulties.