বঙ্গাব্দের জন্মকথা

 Daily observer Newspaper 
 Saturday, 8 November, 2025 at 12:00 AM
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Our RMG industry reels from crisis 

Published : Saturday, 8 November, 2025 at 12:00 AM  Count : 626

Progga Das

The ready-made garment (RMG) sector and other manufacturing industries are the backbone of Bangladesh's economy - the largest source of export earnings and employment. These industries sustain millions of livelihoods, power urban growth, and keep the national economy running. Yet today, this backbone is under severe strain. Political uncertainty, loan complications, declining foreign orders, LC disruptions, and labour unrest have pushed the industrial sector to the edge.

In the months that followed, from August to October 2024, over 300 more factories shut down because of unrest, political instability, and supply disruptions. By November 2025, closures exceeded 500, with the garment sector accounting for 70 percent. Nearly half a million workers lost jobs - about 1.5 percent of the national labour force. For a sector contributing 11 percent of GDP and 84 percent of export earnings, this is a major shock.

Foreign investor confidence has also declined. The European Union and the United States, which together buy about 60 percent of Bangladesh's apparel exports, began cutting orders after the uprising. A WTO report shows RMG exports fell by 12 percent in 2024-25, dropping from 42 billion USD to 37 billion USD. This decline is more than a number - it threatens the economy's foundation.

Multiple factors lie behind this crisis: disrupted supply chains, the dollar shortage, erratic gas and electricity supply, and continuous worker unrest. Many factories have been forced to remain idle for six to eight hours a day. At the same time, the banking crisis has made it difficult to open LCs or access affordable loans. Owners struggle to pay wages or import raw materials, worsening tensions with workers. Protests have spread across Gazipur, Narayanganj, and Savar, slowing production even further.

In September 2024 alone, 150 factories closed, and over 200 followed in October. The interim government, already under domestic and international pressure, has found it hard to restore stability. Negative international coverage has further discouraged buyers, while competitor countries like Vietnam and Cambodia have quickly taken over market share once dominated by Bangladesh.

The damage has not been limited to garments. In late 2024, 150 textile mills shut down, costing 100,000 jobs. The leather industry saw 80 factories close due to environmental restrictions and lower exports. Furniture and ceramic factories also suffered - over 100 ceramic plants around Dhaka stopped production amid gas shortages and labour shortages. Because women make up around 80 percent of the garment workforce, these shutdowns have deepened gender inequality and household vulnerability.

Still, the crisis is not irreversible. The government must act swiftly to rebuild confidence and cooperation. Immediate dialogue between the interim administration, factory owners, and labour representatives is essential. Low-interest loans should be offered to struggling industries, and the banking system stabilized. Ensuring fair wages, enforcing labour rights, and improving workplace safety can reduce unrest and restore productivity.

Bangladesh must also invest in modern, digital, and environmentally sustainable production to stay competitive. Rebuilding relationships with global buyers and exploring new markets in Asia and Africa will help diversify exports. Above all, transparent governance and efficient management are crucial to restore international trust.

The factories once filled with light and promise now stand uncertain, mirroring a nation in transition. The fire of the July uprising may have sparked change, but true progress depends on what Bangladesh builds from its ashes. Through good governance, unity, and decisive reform, the country can still revive its industrial strength and reclaim its future.

The writer is a student, Department of Economics, Eden Mohila College