Bangladesh has become the world’s second-largest garment exporter, solidifying its place as a major player in the global apparel market. The garment sector is essential to the national economy, contributing to employment, foreign trade, and gross domestic product (GDP). 

The 1980s saw the beginning of the apparel business, and its rise to prominence in the textile and garment sector is evidence of its adaptability and tenacity.

There are currently over 4,000 factories in the industry. RMG exports a wide range of knitwear and woven textile goods from Bangladesh, such as shirts, slacks, T-shirts, jeans, jackets, sweaters, and more.

The country also has 229 green-certified factories today, showing its significant progress toward sustainability trends in manufacturing. 

However, changes in political establishment followed by persistent labor unrest have pushed the industry near the edge. What’s ahead for the industry? How can it get back to normalcy? The executive president of the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), Mr. Fazlee Shamim Ehsan shared his thoughts with Industry Insider regarding these issues.

“The overall scenario is not favorable. We are still in a precarious position,” said Mr. Fazlee Shamim Ehsan.

“Restoring law and order is one of the interim government’s foremost duties. We frequently see people entering the factory under the guise of protesters or demonstrations, causing chaos. They do not come to bring their demands at all. They only come for vandalism,” said Mr. Ehsan, expressing concerns regarding the industry. 

“We are not getting enough protection in this situation since the law-and-order situation has not improved sufficiently.”

“We are mostly concerned about international buyers, who are worried about the labor situation in the country. It is understandable since it is an investment concern for them,” remarked Mr. Ehsan.

Nevertheless, if orders are transferred to other countries, there will be consequences for the country and the economy. Despite having good intentions, the interim government has been unable to control the situation as demand from various stakeholders rises. 

The business climate is unfavorable at the moment. “We have already lost many orders. If we don’t take proper steps now, this loss will be intensified,” warned Mr. Ehsan. 

“If any chaos happens, say in an Ashulia factory, it swiftly spreads to the nearby areas.”

Asked about the gross estimation of their loss, Ehsan said, “We couldn’t complete our total assessment as unrest is still ongoing, including Gazipur and other areas.”

“For example, at least 20 factories have been closed today (December 10, 2024) in Konabari area of Gazipur. We have seen this happen in Zirani and Ashulia also. At least 300 factories have been affected directly in recent times, both financially and physically.”

So, how will the industry recover from this shock? “We can reach the recovery stage when the situation becomes normal. We can actually reach a recovery stage only by continuing the business amid challenges. Those who don’t cope with the hard situation drop out of the race,” Mr. Ehsan explained. 

“On the other hand, many banks are not in good health now. It only deepens the crisis. 10 to 12 banks are not accepting LC orders at this moment. After all, we want a stable situation to recover the overall losses.”

Asked about government regulation and policy support, the industry expert sought cooperation from the National Board of Revenue.

“We seek cooperation from NBR rather than incentives or support as if no employee harasses us willingly,” he said.

 He also praised the role of newly appointed NBR Chairman Md Abdur Rahman Khan.

“He (Khan) is trying his best to ensure proper regulation. We want to change the mentality of the NBR officials, including revenue officers,” said Shameem.

However, the BKMEA executive president thinks they can reach a recovery stage only by doing their business smoothly.

“We want to regain foreign buyer’s trust through our hard work,” he said.