RMG sees $400m impact amid labour unrest

Staff Reporter :

Bangladesh’s apparel industry has experienced a production loss of around $400 million due to recent worker unrest in September and October, particularly in the Savar, Ashulia, and Gazipur industrial areas. Some work orders were also shifted to competitor countries due to concerns over law and order, according to Khandoker Rafiqul Islam, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

At a press conference held at the BGMEA office on Saturday, Rafiqul Islam noted that Bangladesh is lagging in export growth compared to other countries. “We have fallen somewhat behind. In August, U.S. apparel imports rose by 1.5 per cent, but imports from Bangladesh decreased by 3.8 per cent. Imports from China increased by 3.6 per cent, Vietnam by 5.2 per cent, India by 7.6 per cent, and Cambodia by 7.7 per cent,” he explained.

Between January and July, European imports grew by 3.3 per cent, but Bangladesh’s exports only increased by 2.8 per cent. In contrast, imports from India rose by 5.18 per cent, Cambodia by 18.35 per cent, and Vietnam by 12.61 per cent.

Despite these challenges, the BGMEA president highlighted that some international fashion retailers and brands are returning as normalcy gradually restores in the sector. Rafiqul emphasized that law and order, along with discipline, are critical challenges for the country’s RMG industry.

He acknowledged that factories are operating normally again, thanks to collective efforts from the government, law enforcement agencies, labor leaders, and BGMEA.

The BGMEA president also requested the government to refrain from disconnecting utility services like gas and electricity for the next three months, as many factories were affected by the unrest. Additionally, he urged the government to reduce bank interest rates to single digits and to allow apparel makers to bring CNG from filling stations to support production during the national gas shortage.

Regarding future orders, Rafiqul Islam noted a nearly 10 per cent decline in apparel work orders for the autumn and winter seasons of 2025, compared to previous years, due to the shocks caused by the nationwide student movement and labor unrest in key industrial zones over the past two and a half months.

However, the situation is improving, with nearly 99.26 per cent of garment factories in Savar, Ashulia, and Gazipur now open, as reported by the chief adviser’s press wing on October 15. This return to normalcy has encouraged international fashion retailers and brands to re-engage with Bangladeshi factories.