Despite numerous challenges like labour unrest, energy crisis, high interest rate and rising production costs, the country’s readymade garment (RMG) sector has sustained a moderate export growth this year.
According to the Export Promotion Bureau (EPB), Bangladesh received US$37.71 billion from January to November in 2024, marking a 6.23-percent growth. In comparison, export earnings from the sector were US$32.64 billion during the corresponding period of 2023, EPB revised data show.
Exporters highlighted that recurring workers’ protests especially in the industrial belt of Ashulia over a number of demands have been a cause of concern among buyers. They are still worried, as law and order situation has not fully improved. They said that 2025 could offer a better outlook if these pressing issues, including energy supply and law and order, are addressed.
Talking to the FE, Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the sector has been adversely affected by a number of domestic issues.
“The industry has witnessed a critical period in 2024 due to the energy crisis and turmoil in the banking sector,” he said. Regarding the export growth, he, however, said that they are yet to be convinced by the data, saying the situation does not match the reality.
A good number of factories were shut while many are on the verge of closure and many have failed to pay wages to workers. He alleged that buyers are exerting unfair pressure on suppliers, forcing them to accept orders below production costs, which is exacerbating the situation further.
When asked, Faruque Hassan, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), however, opined that the sector has performed well throughout the year despite significant challenges.
Echoing the view of Mohammad Hatem, Mr Hassan said law and order situation is still ‘very poor’ with bribery and extortion continuing unchecked.
He is optimistic that the next year would be better, as global retail market is improving. The industry has taken a number of measures like branding, product diversification and workplace safety improvement, he added.
Managing Director of Plummy Fashions Ltd Fazlul Hoque, also the former president of BKMEA, said, “The global market is improving. The question is how much we can take advantage of the global market improvement.”
He also stressed the need for improved law and order situation, uninterrupted gas supply, assistance from the banking sector and a solution to the labour unrest.
Labour-related challenges persist, with issues ranging from workers’ rights to wages and there have been labour protests especially after the uprising.
Ashulia zone became the centre of attention due to the month-long labour unrest especially in September over a number of demands including rise in different allowances, annual increment and wage hike. The unrest was further fueled by changes in the political landscape, leading to factory closures and production disruptions.
A landmark agreement between workers and employers in Ashulia was reached on September 24 after days of escalating labour unrest that has raised hopes for harmonious industrial relations and long-term peace in the sector.
Later, the interim government on December 09 increased the annual increment to 9.0 per cent from 5.0 per cent effective from December 2024.
Talking to the FE, Nazma Akter, president of Sammilito Garment Sramik Federation, highlighted that a good number of workers faced cases and attacks in early 2024 due to protests that began at the end of 2023.
She said the hike in wages should be in line with the inflation rate. She underscored the need for ensuring rights to organise and engage in collective bargaining. While union registrations have increased, Akter noted that the right to effective collective bargaining remains unfulfilled. https://thefinancialexpress.com.bd
