Among the garment manufacturing nations in Asia, Bangladesh is perhaps one of the worst affected by COVID-19, more so considering the fact garment exports contribute to around 80 per cent of Bangladesh’s total export earnings.
The lifeline of the country’s economy, the garment manufacturing sector also provides mass employment with around 4 million workers, majority women, depending on this industry for their livelihoods.
However, the global outbreak of coronavirus has changed the very dynamics of the industry consequent to mass order cancellations by global buyers, amounting to a massive US $ 3.18 billion, aggravated further by demands for discounts and extended payment terms.
What is interesting to note, of this US $ 3.18 billion work order cancellations, European buyers reportedly accounted for more than 50 per cent of the cancelled orders.
A western media report maintained this quoting the President of Bangladesh’s apex garment makers’ body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Dr. Rubana Huq.
The BGMEA President in an article published in Deutsche Welle claimed such a development ‘unfortunate’ considering the fact that European Union is Bangladesh’s biggest apparel export destination, with which the latter shares close economic ties.
She also added that such large-scale order cancellations have rendered many factories to shut shop since March, the number of which could go up further in the days to come, while also acknowledging the fact that contractors in Europe are also struggling due to store closures but underlined that calling off orders which consequently leads to financial loss of one party is not fair.
