Bangladesh’s garment manufacturers body has called for a complete shutdown of all facilities causing a major disruption to the nation’s key industry, according to a BBC report. This comes a day after Prime Minister Sheikh Hasina stepped down and fled the country.
This shutdown of garment factories will particularly hit global apparel giants like H&M and Zara according to the report, as Bangladesh is a prime hub for garment production for these companies.
H&M sources garments from more than 1,000 Bangladesh factories, while Zara’s key manufacturing clusters are based in Bangladesh, says the report. These companies are awaiting orders from Bangladeshi manufacturers and are facing delays in sourcing their garments.
Moreover, the ready-made garment industry contributes about 83 per cent of Bangladesh’s total earnings, with Bangladesh exporting US $ 38.4 billion worth of clothes in 2023, as per World Trade Organisation (WTO) data.
Bangladesh also ranks number 3 after China and the European Union (EU) when it comes to apparel exports. Apparel giants like H&M and Zara, with a global presence, require the industries from where they source to deliver orders on time and the continued unrest has lead to them having to wait for orders to be completed.
