Some 400 textile and readymade garment factories have closed operations during the last three years, leaving more than 0.11 million workers jobless in different industrial zones. In contrast, a total of 259 new units were set up during the period, Industrial Police data shows. About 60,636 have been employed in the new factories, the data revealed. The data was collected from the zones such as Ashulia, Gazipur, Narayanganj and Chattogram. Industry people said entrepreneurs are making fresh investments in setting up new units with safety compliance, modern and green technology while the small and non-compliant ones are failing to sustain in the highly-competitive market. They also identified insolvency of the owners followed by rising production cost, failure to maintain the strict compliance and wage structure for the shut-down. Out of the 400 closed factories, some 318 units were members of the Bangladesh Garment Manufacturers and Exporters Association, or BGMEA, 71 were registered with the Bangladesh Knitwear Manufacturers and Exporter Association, or BKMEA, while 13 were associated with the Bangladesh Textile Mills Association, or BTMA, according to data. In 2018, Gazipur witnessed the highest number of factory closure, followed by 97 in Ashulia, 57 in Narayanganj and 28 in Chattogram. On the other hand, 118 new textile and garment factories have been set up in Ashulia zone. During the period, 72 factories registered with the BGMEA and the BKMEA have been established in Gazipur, in Chattogram and nine in Narayanganj. The BGMEA has presently around 4,500 member factories. Around 40 per cent of BGMEA member factories are knitwear and sweater manufacturers, and the remaining 60 per cent are woven garment manufacturers, according to the trade body. Woven garment exports account for 100 per cent member factories of the BGMEA and more than 95 per cent of sweater exports, while around half of the light knitwear exports are made by them. On the other hand, some 1,100 factories are registered with the BKMEA and the BTMA has 1,500 members. The country earned $ 34.13 billion from exports of knit and woven items during the last fiscal year, according to official data. RMG exports, however, witnessed a negative growth of 5.53 per cent to $ 21.84 billion during the July-February period of the current fiscal year (FY 2019-20).
