The pandemic coronavirus is gradually posing severe threats to the country’s production sectors, especially the apparel industry as a good number of foreign export orders have been cancelled already. As a result, many factory owners are considering shutting down their production units temporarily.
Amid the prevailing critical situation many foreign buyers are revising their business strategies. Global brands and retailers are informing the country’s garments owners not to ship any consignment right now until situation improves further. According to Bangladesh Garment Manufacturers and Exporters and Association (BGMEA), a total of 69 apparel makers have faced order cancellation worth $93 million. Meanwhile, 13 members of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have also work orders worth $40 million cancelled, which continues to rise every day.
In this regard BGMEA vice president SM Mannan Kochi told Bangladesh Post, “We all are aware about the outbreak for which export orders are being cancelled. In this situation we are having several meetings with the government to discuss our perspective”. To face the outbreak, BGMEA sought three benefits such as, emergency fund, loan guarantee scheme and back-to-back lending policy to Bangladesh Bank.
Labor and Employment Secretary KM Ali Azam recently at a press briefing at his office said no decision has been taken to close the garments and mill factories so far because of the Coronavirus. “We have advised all the factory owners to provide hand sanitizers and masks to the workers before entering their respective workplaces”, he added.
Institute of Epidemiology, Disease Control and Research (IEDCR) director Meerjady Sabrina Flora urged factory owners not to allow any worker with fever and cold to enter the factory.
Dr Khondaker Golam Moazzem, Additional Research Director of Centre for Policy Dialogue, told Bangladesh Post, “For pandemic coronavirus outbreak, foreign countries have shut down their markets and canceled work orders. If such a virus spreads in the country's factories, it will be a catastrophe for us”.
“Exporters and owners should ensure necessary health support, to prevent the virus spread among the workers”, he added. A Dhaka based factory owner on condition not to be named said, “We have ramadan ahead, and besides salary huge amount of bonus will have to be given to the workers. As our buyers are cancelling orders, we shall have to incur huge amount of loss. We may have to close down our factories temporarily until situation changes”.
The Asian Development Bank (ADB) recently said in a report that the potential damage to Bangladesh's economy, inflicted by coronavirus pandemic, could be as high as $3.21 billion which is equivalent to Tk 25,600 crore, equal to 0.1 percent of Bangladesh's gross domestic product (GDP).
Industry concerned said that, “Last year the industry has exported RMG worth $32 billion and this year it has a target to earn $ 50 billion from the sector. But in this situation it seems very difficult to meet the target”. According to concerned businessmen, the major market of the garment made in Bangladesh is Europe and America. In 27 European countries, 60 percent of the garment is exported. All these exports are shutting down gradually.
