Many factories in Bangladesh’s readymade garment sector are shutting down. Almost 60 garment factories have shut down and 25,900 workers have lost their jobs in the last seven months. The sector registered a negative growth of 7.64 per cent. Most factories that shut down come under the small and medium enterprise category. They failed to maintain strict compliance and pay their workers under the new wage structure. Unplanned industrialisation, lack of skilled workers, lack of proper research and development, cost of doing business and the downward trend of prices in international market add to the challenges.
After China, Bangladesh is the world’s biggest garment exporter. This sector experienced negative growth in the first six months of fiscal 2019-20. But has immense potential for bagging more work orders. Currently, the accessories and packaging manufacturing sector has more than 1,700 factories. West Bengal in India and Myanmar are potential markets because they have started setting up new factories. So there is ample opportunity to supply more accessory items to them. Entrepreneurs need bank loans at a lower interest rate. Policy development, research, and incentives are necessary for further advancement of the garment industry.