Bangladesh’s garment industry, the backbone of its economy and accounting for nearly 84% of its foreign exchange earnings, is facing a severe crisis. Over the past year, dozens of factories have closed, leaving tens of thousands unemployed. The crisis is fuelled by automation, labour unrest, and political instability, threatening the livelihoods of millions dependent on this sector.
A report by Apparel Resources states that at least 76 garment factories have shut down in the past year,Why garment factories are rapidly shutting down?
Automation reshapes RMG industries, but at what cost?
In one of Dhaka’s largest garment factories, a young woman swiftly sewed a piece of grey fabric and passed it down the production line. She impatiently awaited the next piece, willing her colleague to work faster.
Above her sewing machine, a screen emitted a red warning—she had completed only seven pieces so far, against a daily target of 101. The screen’s colour would shift to orange as she progressed and turn green if she met her target. Failure to maintain pace consistently could result in dismissal.
* Automation in garment factories is leading to job cuts, especially for women.
* Smart surveillance devices monitor workers as factories struggle t...
Price deflation pressures Bangladesh’s RMG industry
The outlook for Bangladesh’s apparel sector in the global market remains positive, with work orders expected to rise, sustaining growth momentum into 2025. Industry insiders have indicated that buyer confidence is recovering, leading to an expansion of sourcing activities in Bangladesh, which will help maintain this upward trend.
Official data shows that the European Union's apparel imports between January and December 2024 experienced a modest 1.53% increase in value, reaching $92.56 billion. However, a substantial 8.98% rise in import volume was accompanied by a 6.83% decline in average unit prices, exerting downward pressure on major sourcing countries, including Bangladesh.Swiss agency DG wraps up Bangladesh visit
Jakob Granit, the Director-General of the Swedish International Development Cooperation Agency (Sida), wrapped up his visit to Bangladesh on Monday. Accompanied by senior members of Sida and an official from the Swedish Ministry of Foreign Affairs, Granit held constructive discussions with various representatives of the Bangladeshi Government, including Chief Adviser Muhammad Yunus and Adviser Syeda Rizwana Hasan from the Ministry of Environment, Forest and Climate Change.
The delegation engaged with a diverse range of st...
Footwear sector expands, but challenges persist
Bangladesh’s footwear sector is set for substantial expansion, presenting lucrative investment opportunities in both leather and non-leather segments. The Bangladesh Investment Development Authority (BIDA) highlighted this potential in a recent newsletter while also acknowledging the challenges that must be addressed to sustain growth and enhance competitiveness.
Shah Mohammad Mahboob, an executive member of BIDA, underscored the industry's vast pot...
Garment workers block roads at Narayanganj for dues
The workers of Beka Garments and Textiles of Adamji EPZ are protesting by blocking the road, demanding wages in the area of Chasara Narayanganj. On Wednesday (April 27) afternoon, they blocked one side of Bangabandhu Road in front of Narayanganj Press Club.
During this period, the workers demanded that their dues be explained in time. The workers said that at least 8 to 900 workers work in Beka Garments and Textiles, located in the Adamji EPZ area of Siddirganj. Some of them have two months' salary pending, and some have three months' salary pending.
Beka Garments and Texti...
