The garment industry in Bangladesh, an important part of the economy, is struggling with various challenges that could harm its competitiveness worldwide.
Recent floods have severely disrupted cotton supplies, adding to existing problems from earlier political unrest and ongoing energy shortages.
The recent floods have crippled transportation networks, preventing factories from receiving cotton shipments from Chattogram port. This disruption follows political turmoil that had already caused significant production delays, as reported by The Business Standard.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, noted a staggering 50 percent drop in garment production. He told the publication,
“The industry is under immense pressure to meet deadlines,”
emphasizing the risk of further deterioration in the supply chain without prompt action.
As the world’s third-largest clothing exporter, following China and the European Union, Bangladesh’s garment sector is crucial to its economy, making up over 80 percent of total export earnings. In 2023, the country exported $38.4 billion worth of clothing. Industry leaders are worried about the potential long-term impacts of these disruptions.
Rubana Huq, a factory owner and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), mentioned that a full recovery could take at least six months, with the possibility of losing 10-15 percent of business to competing countries.
The disruptions in Bangladesh are already affecting global cotton trade flows. The garments produced locally supply many of the world’s leading fast fashion and mid-tier brands, meaning countries like Vietnam and Pakistan may see an increase in factory orders as a result.
