So far, some 4,300 readymade garment factories have been shut down for multifarious reasons including lack of sufficient work order from foreign buyers, higher production cost, strong Taka against dollar and worldwide recession, according to the stakeholders of the RMG sector.The small and medium factories have already closed down their business. Near about one thousand more factories are going to shut down soon, according to sources. Most of the factories were located at Malibagh, Khilkhat and other areas of the capital Dhaka as well as in Tongi areas.Readymade Garments (RMG) sector is losing international market because Bangladeshi stakeholders have mostly failed to compete with the garment manufacturers and suppliers of other countries like China, India, Vietnam and Pakistan.Those countries are offering lower cost of garment products for the buyers because their governments are facilitating them in various ways. The buyers are placing more orders to them.Medium scale industries are losing their capabilities to operate their business smoothly. The orders of this type of industries have drastically declined. As a result, they failed to operate their business.Many factories have shut down due to no work order and low price. A good number of factories went to the relocated premises as per the instruction of Accord and Alliance but they still did not get the utility connections. So, their production has been suspended forcing their owners to close business.Yet the garments sector provides the backbone of Bangladesh economy with around 80 per cent of total export earnings still being generated by the RMG products. This sector is also the biggest employer in the industrial sector providing jobs to around 40 lakh people, majority of them women. But export earnings are gradually declining in the recent months, which is alarming for the country’s economy. Buyers are offering low rate for the RMG products, which is one of the major reasons for the decline in earnings and reduction in orders. Besides, a strong local currency, Taka, against US Dollar also impacts the economy negatively.Production expenditure of RMG products is increasing in Bangladesh including operational cost, wages and high price of accessories. Siddiqur Rahman, President of Bangladesh Garment Manufacturer and Exporter Association (BGMEA) told the Daily Observer, a strong Taka against the dollar is one of the major reasons for the decline in export earnings.Actually, in the competitor countries local money are devaluated against the dollar, as a result Bangladeshi exporters face a gloomy situation. “Some garments factories have already closed and many are very close to winding up their businesses,” he said. The BGMEA President, however, expects that the RMG business will run better in future and it will create more earnings for the betterment of country’s economy.Policy support is a must to develop further the RMG sector, he said, and urged the government to take a rational decision regarding the matter for the sake of the country’s garment sector.Abdus Salam Murshedy, former president of BGMEA and President of Exporters Association of Bangladesh (EAB) said there are many garment factories located in Dhaka city but some of them find it hard to stay in business.Shahedul Islam, a former BGMEA leader and Managing Director of Rupa Garment, said a large number of garment factories pulled their shutters due to lack of adequate orders from the buyers.On the other hand, India, China, Vietnam, Pakistan and Turkmenistan are offering lower cost to the buyers. “So, why the buyers will place their orders in Bangladesh?” he questioned.Nasir Uddin, another BGMEA leader, said there are 4,300 garment factories countrywide but the number of “working” industries is 3,300 only. The other factories are not running anymore.
