Bangladesh’s readymade garment (RMG) industry suffered an estimated production loss of around $400 million due to the recent workers’ unrest in September and October in Savar, Ashulia, and Gazipur.
Besides, some work orders were diverted to competing countries due to concerns over the law and order situation, said Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Khandokar Rafiqul Islam at a press conference at the BGMEA complex on Saturday.
“We have fallen somewhat behind. In August, imports of US apparel increased by 1.5%. However, imports from Bangladesh decreased by 3.8%. Imports from China rose by 3.6%, Vietnam by 5.2%, India by 7.6%, and Cambodia by 7.7%,” he said.
From January to July in Europe, imports increased by 3.3%, while those from Bangladesh grew by only 2.8%. In contrast, imports from India rose by 5.18%, Cambodia by 18.35%, and Vietnam by 12.61%.
This data indicates that Bangladesh is significantly lagging in export growth compared to other countries, he said.
However, the garment industry has successfully achieved stability after passing the challenging period, said Rafiqul Islam.
He said collaboration among the government, owners, workers, the Bangladesh Army, and law enforcement agencies enabled the BGMEA board to tackle the adverse situation effectively.
Rafiqul Islam said Bangladesh’s garment sector is regaining buyers’ trust.
A joint task force, led by the army, was established to ensure the security of garment factories, regularly patrolling garment-dense areas, he said adding that the BGMEA, with military support, initiated community policing.
Uncertainties were created regarding the payment of August salaries for garment factories. In response, BGMEA reached out Finance Adviser and met the governor of the central bank. Following BGMEA’s request, Bangladesh Bank has directed banks to facilitate the payment of salaries for August, said BGMEA leaders.
In response to a journalist’s query, the BGMEA president said many factories are still facing risks, although he could not provide a specific number.
The BGMEA president mentioned that 39 garment factories affected by labour unrest in Ashulia were unable to pay salaries for September. BGMEA requested the Ministry of Finance to arrange for interest-free loans on easy terms to ensure salary payments for these factories.
Furthermore, a programme was launched to sell essential commodities at fair prices to 40 lakh workers in the garment industry.
On October 16, Labour and Employment Adviser Asif Mahmud inaugurated this initiative.
The press conference also revealed that in response to BGMEA’s request, the requirement for Fire Resistance Rating for steel structures in garment factories has been relaxed.
