400 garment factories shut in 3 years, more at risk: BGMEA
Rising costs and weak business climate cited for slowdown
Around 400 garment factories have shut over the past three years, and many more are at risk, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said.
The claim was made in a written statement presented at a pre-budget discussion at the NBR headquarters in Agargaon today (26 April).
"The country's top export-earning garment sector is going through a difficult time. Around 400 factories have closed in the past three years, and many more are in a financially vulnerable position," the BGMEA said in the statement.
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It said two structural factors are mainly behind the current slowdown in the industry – rising cost of doing business and lack of a business-friendly environment.
Policy uncertainty, institutional complexities and infrastructure limitations, along with rising financing and logistics costs, are collectively affecting the sector, the statement added.
BGMEA President Mahmud Hasan Khan Babu and other leaders of the apparel sector attended the meeting.
