In the past six months, foreign buyers have canceled nearly 20% of garment orders in Bangladesh due to ongoing worker unrest. As a result, manufacturers are struggling to regain trust. Entrepreneurs have expressed concerns about the factories in the Ashulia area, stating that they are finding it hard to regain confidence from buyers.

According to the BGMEA and BKMEA, if the situation does not improve, approximately 100 factories nationwide are expected to shut down in the next six months. There are 450 garment factories in the Savar and Ashulia areas, and after the worker unrest following the July political upheaval, many factories have faced serious challenges. Nearly 200 factories listed with BGMEA and BKMEA have already shut down.

Business owners have stated that foreign buyers are closely monitoring the labor unrest in the Ashulia area and are hesitant to place orders with these factories.

Mohammad Hatem, president of the BKMEA, mentioned that brands and buyers are now being very cautious about working with any factories in the Ashulia belt. They are facing a lack of trust and will soon see proof that orders are being diverted elsewhere.

Industry leaders say the effects of the unrest in the past six months will continue to be felt until June next year. If the situation is not resolved, another 100 factories could be at risk of closing in the next six months.

Mohammad Hatem also added that factory owners may try to negotiate w ith banks to reopen their factories. However, if they cannot reach an agreement, many may permanently shut down. The sector is expecting that around 100 factories may close in the next year if the situation does not improve.

Shams Mahmud, the managing director of Shasha Denims, stated that they can only keep their factories operating if they can maintain 100% capacity. With only 20% of their capacity operational, they are struggling to stay financially stable.

However, economists suggest that multinational companies are still buying average-priced garments from Bangladesh, making them reliant on the country’s manufacturing. Therefore, although there is temporary discomfort, there is little concern about a large-scale loss of market share in the long term.