Overcoming challenges crucial for RMG to sustain economy

THIS newspaper, quoting BGMEA on Sunday, reported that recent labor unrest in key RMG industrial zones, such as Savar, Ashulia, and Gazipur, has led to a staggering production loss of approximately $400 million over just two months.

We are appalled with this shocking development in our apparel sector, as several international work orders have been shifted to competing countries, raising concerns about the future of this vital industry.

Bangladesh’s export growth has been eclipsed by competitors such as China, Vietnam, India, and Cambodia, all of which are gaining a larger share of global apparel markets. For example, while US imports of apparel rose by 1.5 per cent in August; Bangladesh saw a 3.8 per cent decline, while countries like India and Cambodia experienced growth as high as 7.7 percent. Similar trends were observed in European markets, where Bangladesh’s exports lagged behind those of other nations.

This stark reality is a wake-up call. The Bangladesh RMG industry is battling both internal disruptions and fierce global competition. Worker unrest has undeniably tarnished the country’s image as a stable and reliable supplier of garments, causing international brands to seek alternatives.

However, there is some cause for optimism. With concerted efforts from the government, law enforcement agencies, labor leaders, and the BGMEA, most factories have resumed operations. As of mid-October, 99.26 per cent of factories in the affected areas are back to normal, offering a glimmer of hope that international brands and retailers will continue to place their trust in Bangladeshi manufacturers.

Bangladesh’s competitiveness in the global market hinges not only on the low cost of labor but also on its ability to maintain a stable business environment. Repeated disruptions could irreparably harm the country’s reputation as a reliable supplier.

Perhaps the most concerning trend is the nearly 10 percent decline in work orders for the autumn and winter seasons of 2025. This signals that the effects of the unrest will be felt well into the future, affecting not just the current year’s output but potentially eroding confidence in Bangladesh’s RMG sector for years to come.

With global apparel brands diversifying their supply chains, Bangladesh cannot afford to lose its competitive edge.

Only through a collective effort to stabilize the industry can Bangladesh regain its footing in the global apparel market and continue to thrive as a leader in garment manufacturing.