The readymade garment (RMG) industry has suffered an estimated loss of $300 million to $400 million due to workers’ unrest in the country since August 5.
“Efforts are underway to fully assess the financial losses,” said Khondaker Rafiqul Islam, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), while speaking at a press conference held at BGMEA Complex at Uttara on Saturday.
As per the initial data, he said, losses caused by labour unrest might increase further.
“Our industry is not doing well. Imports of garment products are declining. During the period between January and August this year, US imports increased by 1.5 per cent, but overall imports from Bangladesh decreased by 3.8 percent.”
On the other hand, he said, apparel imports from China rose by 3.6 percent, from Vietnam by 5. percent, from India by 7.6 percent, and from Cambodia by 7.7 percent.
From January to July, overall imports grew by 3.3 percent in Europe while the country’s share increased by only 2.8 percent.
China’s exports to Europe increased by 6.4 percent, India’s by 5.18 percent, Cambodia’s by 18.35 percent, Vietnam’s by 12.61 percent, and Pakistan’s by 14.41 percent.
In the third quarter of this year, the country’s export growth was 5.34 percent while it was 15.57 percent in Vietnam and 13.45 percent in India.
The slowdown in export growth suggests that export orders are shifting to competitive countries, he added.
Rafiqul also said that due to unrest in certain industrial areas, production and exports worth an estimated $250 million to $300 million were disrupted in September alone.
The garment sector is facing problem due to the reduction in cash incentives as Bangladesh is graduating from least developed country (LDC) status.
He also pointed out that many entrepreneurs are struggling to survive in the face of these challenges, and called for formulation a ‘safe exit policy’ for those who are going through a difficult time to continue their business.
Other BGMEA members were also present at the press conference.
