Airport fire causes huge intangible loss to RMG exporters, say industry leaders
Orders being shifted to other countries as buyers’ confidence shaken, buying house association says
The country's ready-made garment (RMG) owners have expressed deep concern that the recent fire at Dhaka's Hazrat Shahjalal International Airport could lead to the loss of export orders, further straining the already struggling apparel sector.
At a discussion titled "The Current Crisis and Path to Recovery of Bangladesh's Ready-Made Garment (RMG) Industry," organised by the Bangladesh Garment Buying House Association in Dhaka today (2 November), industry leaders warned that the incident had badly damaged Bangladesh's reputation as a reliable sourcing destination.
Shawkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said, "The world will think twice before placing orders in a country where even the international airport catches fire. Factories are burning, homes are burning – now the airport too. The tangible loss is significant, but the intangible loss is far greater, though invisible to the eye."
Referring to the worsening business environment, he added, "Businesses are shutting down, banks are closing. Please, give us elections so that we can conduct business freely."
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Concerns over declining buyer confidence
Mohammad Mofazzal Hosen Pabel, president of the Garment Buying House Association, said the airport fire had shaken buyers' confidence. "Bangladesh's apparel export industry is now under threat. Buyers no longer trust that future orders will be delivered on time, so they are shifting orders to other countries at higher prices," he said, adding that "around 250 factories are already on the verge of closure."
Faisal Samad, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), warned that the loss of samples and accessories in the airport fire could disrupt upcoming business seasons. "If an order's sample is destroyed, it may affect next season's deals. A burnt accessory worth only $2,000 might cost us a $20,000 business opportunity," he said.
He further complained that bureaucratic complications at the airport had paralysed courier services, preventing the smooth delivery of imported goods. "The BGMEA and the BKMEA jointly arranged temporary tents with financial assistance, but due to bureaucratic delays, couriers still cannot place imported goods properly, leading to delivery failures," Samad said.
Industry under severe pressure
Shovon Islam, managing director of Sparrow Group, one of Bangladesh's leading apparel exporters, said orders had been declining for the past three months without any policy support from the government. "The situation is worse than during Covid-19," he said, noting that several factories had been classified as defaulters after failing to repay loans.
He also criticised the government's move to allow the formation of trade unions with as few as 20 workers, saying such a measure would be disastrous for the industry.
Former commerce minister and BNP standing committee member Amir Khasru Mahmud Chowdhury, who attended the event as chief guest, said Bangladesh's business environment suffers from "overregulation," which increases operational costs. "If the BNP returns to power, we will move towards deregulation, even if it is painful," he said.
Chief adviser's press secretary slammed
In a separate, sharp rebuke, Shawkat Aziz Russell strongly criticised Shafiqul Alam, the chief adviser's press secretary, describing his public statements as "talking like a lunatic."
The BTMA president questioned the competence of government appointments, stating, "If the right person does not go to the right place, the right decision will not be made." He backed the recent complaint made by the BGMEA president, who has struggled to secure a meeting with the chief adviser, asking: "It is a matter of great sadness that the BGMEA president has not yet secured a meeting with the chief adviser. Then why did you (the chief adviser) take on this responsibility?"
Russell directly addressed the press secretary, stating, "We are all dying, factories are closing, people are losing their jobs... Do you not see this?" He then reiterated his demand for an election to rescue the country from the crisis.
