Bangladesh’s readymade garment industry grapples with a challenging scenario marked by insufficient work orders, a currency crisis, escalating gas and electricity prices, and soaring production costs.
Failing to navigate these difficulties, owners have shuttered 113 readymade garment factories in the port town of Chittagong.
Media reports claimed this adding demand for Bangladeshi apparel has dwindled in European and US markets, with sluggish new export orders, compounded by the Russia-Ukraine war impacting Western consumers’ purchasing power.
Notably, Reliance Apparel Ltd., an export-oriented factory, faced prolonged work order shortages, prompting the cancellation of its bond license by the Chittagong Bond Commissionerate due to a financial crisis.
SN Sportswear Limited and Amazon Apparels Ltd similarly grappled with work order challenges, leading to the cancellation of their bond licenses.
As a substantial player, Bangladesh’s garment industry heavily relies on European and US markets, contributing 6 per cent to the global market and ranking as the second-largest apparel exporter worldwide after China.
