Garment exporters in Bangladesh are ramping up production to recover from months of disruption caused by nationwide protests, political upheaval, and labor unrest. Factories are operating 24/7 to meet deadlines for Western orders, especially for Christmas, and to secure autumn and winter bookings. Many exporters are relying on subcontractors and requesting deadline extensions from international retailers to maintain relationships.
If the instability persists, up to 10% of Bangladesh’s ready-made garment (RMG) export orders could shift to competitors like India and Vietnam, according to Indian rating agency CareEdge Ratings. Exporters fear they may face order cancellations or need to offer heavy discounts due to delays, with expensive air shipments being the only alternative to meet tight deadlines.
Exporters are hopeful that retailers will grant extensions, taking into account the labor unrest and political changes. Ha-Meem Group’s chairman, AK Azad, has already requested extensions and sought subcontractors to ensure timely deliveries. Labor unrest flared up after the ousting of the Awami League government in August, with workers demanding better attendance bonuses and allowances.
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