In the last 6 months, about 20 percent of ready-made garment orders have been canceled by foreign buyers. They are still not getting confidence in labor unrest. Entrepreneurs said that they have little confidence in the factories in Ashulia area. According to BGMEA and BKME, about 100 factories across the country will be closed in the next 6 months if the situation does not improve.
The number of small and large garment factories in Savar and Ashulia is 450. Factories in this area were hit by labor unrest after the July coup. About 200 factories listed under BGMEA and BKMEA have been closed.
BKMEA president Mohammad Hatem said, 'Brands and buyers are now very careful and aware in giving work to any factory in the Ashulia belt. They suffer from lack of confidence. The evidence that our order is going to another place will be available ahead.
Traders say that the stress of 6 months of instability will last until June next year. If the situation is not resolved, there is a risk that 100 more factories will be closed in the next 6 months.
Mohammad Hatim said, "They may be trying to negotiate with the bank and go to a stage and start it again if they can." Otherwise they may be permanently closed. In other words, we fear that hundreds more factories will be closed in the next 1 year.
Traders say that the stress of 6 months of instability will last until June next year. If the situation is not resolved, there is a risk that 100 more factories will be closed in the next 6 months.
Mohammad Hatim said, "They may be trying to negotiate with the bank and go to a stage and start it again if they can." Otherwise they may be permanently closed. In other words, we fear that hundreds more factories will be closed in the next 1 year.
Shams Mahmud, managing director of Shasha Denims, said, "Only if we can keep the factory running, but we will be able to pay off the bank loan or keep the salary of the employees going." But now if I have to run the factory at 20% capacity then I will not be financially strong.
However, economists say, multinational companies are buying cheap clothes from Bangladesh on average. As a result they are also dependent on Bangladesh. So there is no danger of losing the market on a large scale even if there is temporary discomfort.
CPD research director Khandaker Golam Moazzem said, "Vietnam says Cambodia, no one has such a large supply base." So there is no danger of market shift from here. However, due to temporary reasons, some orders may be different for some time
Shams Mahmud, managing director of Shasha Denims, said, "Only if we can keep the factory running, but we will be able to pay off the bank loan or keep the salary of the employees going." But now if I have to run the factory at 20% capacity then I will not be financially strong.
However, economists say, multinational companies are buying cheap clothes from Bangladesh on average. As a result they are also dependent on Bangladesh. So there is no danger of losing the market on a large scale even if there is temporary discomfort.
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