NewsTextiles & Apparel

Orders are gradually returning in RMG sector

BTJ Desk Report
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Orders are gradually returning in RMG sector

After a period of political unrest and labor strikes, international apparel retailers and brands are gradually returning to Bangladesh, placing work orders for upcoming autumn and winter seasons. Local garment suppliers report that Western buyers are visiting factories again, with orders resuming despite earlier disruptions.

However, some manufacturers face increased costs due to air shipments needed to meet delayed deadlines caused by the unrest. Factories were forced to close in major industrial hubs during September and October, leading to a loss of production and relocation of some summer orders to competitor countries.

Although larger factories are receiving new orders, challenges remain for small and medium-sized enterprises, which were hit hard by the unrest. Additionally, many manufacturers struggle with liquidity issues, as banks face a shortage of US dollars and difficulties in opening letters of credit.

Energy supply issues, such as gas shortages and power outages, further complicate production for textile millers. Yarn production, for instance, has been halved in some factories due to these shortages. BGMEA is working to rebuild buyer’s confidence, with plans for a meeting with international retailers to reassure them of the restored stability. Despite the challenges, industry leaders remain optimistic about the upcoming seasons, expecting business to recover if stability continues.

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