Muhammad Ayub Ali :
The ready-made garment (RMG) industry, Bangladesh’s main export earner, is facing multiple challenges, including a sluggish economy, political unrest, unpaid wages, and aggressive marketing by competitors in the European Union, industry sources say.
After the imposition of Trump-era tariffs, Bangladesh had hoped to gain an edge over rival countries. However, the results have been disappointing, with exports declining despite the country’s strong potential.
The export sector is particularly affected as Chinese exporters, facing high US tariffs, have aggressively targeted the EU market with low-priced products, leading to production slowdowns and declining shipments, industry insiders noted.
Former BGMEA Director Mohiuddin Rubel highlighted that around 70–80 percent of Bangladesh’s RMG exports go to the US and EU. Yet, demand in these markets remains weak and unpredictable, while competitors like China and India have adopted aggressive marketing strategies, preventing Bangladesh from fully capitalizing on its advantages.
Economic and political challenges at home, coupled with global volatility stemming from US tariffs, have further complicated the situation.
Inamul Haq Khan, Senior Vice President between 5 August 2024 and 10 November 2025, said 182 factories across Savar, Gazipur, Chittagong, Narayanganj, Narsingdi, and other industrial hubs have been closed, leaving around 300,000 workers unemployed.
He added that the actual number of closures is likely higher.
Most small and medium-sized factories have shut down due to labour shortages, worker unrest, and unpaid wages, with some issues linked to owners formerly associated with the Awami League, including the Beximco Group, Gazi Group, and Bengal Group of Industries.
In contrast, 103 factories obtained BGMEA licenses in 2024, while only about 70 new factories were licensed up to September 2025, highlighting the slowdown in sector growth, he added.
Data from the Export Promotion Bureau (EPB) shows that Bangladesh’s overall exports grew 25 percent in July compared to the same month last year, signaling a strong start to the fiscal year.
However, exports have declined for three consecutive months, with October seeing a 7 percent drop, equivalent to $510 million (Tk 6,120 crore), as shipments fell from $4.13 billion last October to $3.62 billion this year.
Export trends are reflected in the utilization declaration (UD) data, which tracks raw material imports based on export orders.
UD figures indicate that apparel orders fell by $390 million in October to $2.2 billion, down from $2.45 billion in September. Orders from Dhaka factories declined 15 percent to $2.1 billion, while Chittagong factories saw a 26 percent fall to $103.8 million.
Exporters attribute the decline largely to US counter-tariffs, as competitors like China and India gain market share in the EU with lower-priced products, leaving Bangladesh struggling to adapt.
Long-term data shows that Bangladesh’s garment exports to the EU grew 58 percent between 2015 and 2024, while China’s fell 4 percent.
However, Eurostat reports that from January to August this year, Bangladesh’s exports rose 13 percent to $13.48 billion, while China’s increased over 17 percent to around $17 billion, reflecting intensifying competition in key markets.
Former lead economist at the World Bank’s Dhaka office Dr Zahid Hussain told The New Nation that to cope with the situation, the government should create a business-friendly environment, as political unrest is causing buyers to hesitate.
Bangladesh’s tariffs are lower than India’s, and it is hoped that improved political stability will help the situation recover.
