A multitude of challenges, including a global demand downturn, soaring production costs, and US dollar-related issues, has led to the closure of a significant number of garment factories throughout Bangladesh even as a financial crisis, exacerbated by sluggish global demand and banking intricacies, has further contributed to the demise of these factories since the onset of 2023.
This is as per reports, which added majority of the affected factories are of small to medium size, and many engaged in export activities struggled to stay afloat due to losses incurred from currency exchange rate disparities.
Meanwhile, Industrial Police data revealed that, from January to December 2023, 134 textile and readymade garment factories under its jurisdiction have shuttered, of which 99 were members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 23 listed with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and 12 textile mills registered with the Bangladesh Textile Mills Association (BTMA).
Beyond the textile and apparel sector, six units under the Bangladesh Export Processing Zones Authority (BEPZA) and a total of 303 non-RMG factories, predominantly cottage industries, also had to cease operations last year, according to official records.
These closures impacted a workforce of 78,815 individuals, with the 134 garment manufacturers alone accommodating 45,944 workers, as indicated by the data.
