Despite recent unrest in the garment sector, long-term prospects for its growth remain strong, according to industry insiders. Though some work orders have been shifted to other countries, they said, its impact is not significant.
These work orders for garment products are expected to be restored soon as the situation in industrial belt improves, they added.
Mohiuddin Rubel, Director at Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the Bangladesh Post, “Although we lack specific data, we estimate that 15-20 percent of our total orders have been affected. But we are confident that these orders will come back to Bangladesh shortly.”
According to sources, recent turmoil in the garment industry has caused a loss of orders, tarnishing the country’s image abroad. Industry officials estimate that around $3 billion worth of ready-made garment orders have been shifted to competing countries such as India
and Vietnam in the last two months.
Rubel further said, “A congenial environment has been created in the ready-made garment industry, especially due to efforts of the chief adviser to the interim government. A relationship of trust has developed with foreign buyers, thanks to the positive image of Dr Muhammad Yunus. We plan to leverage this trust to boost our export orders."
Despite these optimistic views, garment industry owners remain cautious about the future as exports have declined by 20-30 percent over the last two months. Many factories, especially mid-sized ones, are struggling to get sufficient orders for the upcoming holiday season.
BGMEA leaders have expressed concerns about a lack of support from banks. While the government has directed banks to provide loans equivalent to one month’s salary for garment factory workers, traders claim that high interest rates and lack of cooperation are hindering the progress.
Vice President of BGMEA Rakibul Alam Chowdhury said, “We are not receiving expected support from some banks, and interest rates are too high. Small and medium industries are struggling to access necessary funds.”
In the current fiscal year 2024-25, the total export target for goods and services sector has been set at $57 billion, but the Commerce Ministry has not yet announced the target for the clothing sector.
According to the latest report published by Bangladesh Bank, RMG exports have decreased in the outgoing fiscal year.
