182 RMG factories closed in a year, 166 new ones opened: Buying house association
The impact of factory closures will be seen in the coming months, they said
Some 182 export-oriented ready-made garment factories have shut down over the past year due to various reasons, the Bangladesh Garment Buying House Association (BGBA), representing global buyers in Bangladesh, has said.
During the same period, 166 new factories were launched, the association said at a press conference today (12 October) in Uttara, Dhaka.
Saifur Rahman, vice president of BGBA, told The Business Standard, "Although 166 new factories have started operations during this period, they will only be able to fulfil 20% of the orders from the factories that closed. A significant portion of the closed factories were relatively large. Most closures were due to reduced orders."
Keep updated, follow The Business Standard's Google news channel
Mofazzal Hosen Pabel, president of the association, said in a written statement, "Factory closures have led to reduced employment and difficulties in repaying bank loans. The closure of a single factory affects multiple buying houses, erodes buyer confidence, and damages the country's image."
Despite the factory closures, exports increased over the past year, except for a decline in August and September.
Commenting on the rising exports, Saifur Rahman said, "Exports will decline over the next two months (October-November). The effects of factory closures on exports will become evident in the coming months."
To address these challenges, BGBA proposed a seven-point plan, including measures by government entities to create an export-friendly environment and ensure timely LC processing by factories and banks.
They also recommended enforcing strict factory safety and compliance, supporting technology adoption to expand markets, maintaining uninterrupted utility supply, organising Export Processing Bureau (EPB)-led fairs to explore untapped markets, and reconsidering policies related to LDC graduation.
