The port city of Chittagong, which boasts of a flourishing garment manufacturing industry with around 689 garment manufacturing units according to some estimates, is going through some tough times on account of order cancellations, worth around Taka 100 billion, that has put in jeopardy the existence of the small and medium-level players in particular, claims media report.
As per the report, which spoke to industry leaders including officials of the country’s apex garment makers’ body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), apart from around 241 bigger players, others are finding it difficult to keep going in face of such massive order cancellations and lack of new orders.
The scenario is so dire that many factories have reportedly failed to pay wages to their workers and now industry insiders fear that many would have to wind up business for good, as they have no other options left.
Many factories are finding it difficult to disburse workers’ wages, reportedly underlined Vice-President of BGMEA in Chittagong, MA Salam while adding that orders worth Taka 100 billion have been cancelled by global buyers.
Also, with hardly any fresh work orders coming in from Europe, which together with USA reportedly accounts for 60 per cent of Chittagong’s total apparel exports, garment makers in the port city are in a fix, Salam reportedly claimed.
The BGMEA Vice-President further also added that garment manufacturers in Chittagong would have to wait for COVID-19 crisis to ease in US and Europe to get any new work orders but expressed apprehension as to how many factories would be able to survive till then.
