The Current Status of Bangladesh’s Apparel Industry

How many days were the factories actually closed during the protests?

The garment industry in Bangladesh remained operational during the protests, with exceptions only during the 7 days of curfew. The curfew was enforced from July 19 to July 23, relaxed on July 24, and then reimposed on August 4 and 5. After the government fell on August 5, factories reopened on August 6. It's important to clarify that factories were not closed from the start of the protests on July 2. From 10th August 100 percent apparel factories are open and 98 percent people are present at the factories, according to media reports.

During the COVID-19 pandemic, factories were closed for 66 days, from March 26 to May 30, 2020. We overcame that challenging period, and we are confident that the current situation will also be managed effectively.

By the time, a transitional government headed by Professor Dr. Muhammad Yunus as Chief Adviser and 13 other advisers took oath. Dr. Yunus is the first and only Bangladeshi who was awarded the Nobel Peace Prize. he has an international reputation and acceptance. Dr. Yunus is also a veteran Professor of Economics who by founding Grameen Bank has changed the fates of thousands of poor Bangladeshi women. The interim government will be the transitory government to hand over power to the elected government and restore democracy. So, political stability will be there.

Since one of the important pre-requisites of steady apparel business is political stability and trust, I believe that our fashion partners having it would also consider Bangladesh their long-term sourcing partners in the coming days and years.

I will not say that there will be no challenge. Challenges are there like readjusting the government systems, establishing the rule of law, curbing corruptions, ensuring transparency and accountability across the public and private services. However, we are optimistic considering the wise guidance of the transitional government and our firm conviction is that it will create an enabling environment for economic growth, including efficient support for the sustainable growth of the country’s apparel industry.

Will the workers get the salaries for the closed days of the curfew or money from their monthly wages will be deducted for the closed days?

The workers will get the full salary with no deduction of wage for the closed days. I can cite the example of our factory Denim Expert Limited. We have already disbursed the salaries in August and we have not deducted any money for the closed days during curfew in the July. Similarly, all other apparel factories are also giving full salaries to the workers. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also gave the directive to all its members for not to deduct any money for the closed days and giving full salaries to the workers.

How many days of delay are expected for your goods due to these disruptions?

Due to the recent disruptions, our goods are experiencing delays of approximately 7 to 10 days. However, we are confident that these delays can be overcome easily as operations have already returned to normal.

Are you extending factory hours or pushing workers to work overtime to cover the delay?

We are committed to maintaining fair working conditions, so we have not extended factory hours or required any overtime from our workers. Instead, we’re focusing on other strategies to manage the delays.

The trigger was the reintroduction of the quota system for civil servants. But there had also been protests in the months before for an increase in the minimum wage. Is the unrest in your country just about quotas, or is it about something more?

No, the protests were all about the quotas – the abolition of quota system from the government jobs recruitment. The minimum wage issue was settled long before.

How are you managing to overcome this delay without extending hours?

We have proactively requested deadline extensions to manage the delays, and I'm pleased to share that many of our buyers have been very understanding. They’ve not only granted the extensions but in some cases, have even initiated the offer themselves. This collaboration reflects the strong partnerships we’ve built with our clients.

Are buyers requesting discounts due to the delays?

No, our buyers have not been asking for discounts. In fact, they've been incredibly supportive and understanding of the situation. Their cooperation has been instrumental in helping us navigate these delays without any additional financial strain.

Are any buyers considering moving their production elsewhere due to the delays and current situation?

No one is considering moving their production. Shifting orders overnight is not a feasible option. Our buyers understand this and remain committed to working with us. Their continued trust and support reflect the strong relationships we've built over the years, and they know we’ll overcome these temporary challenges together.

Are buyers reducing their order quantities due to the current situation?

Not at all. Our buyers have shown continued confidence in us and are not reducing their order quantities. They understand the temporary nature of the situation and so remain fully committed to maintaining their production levels with us.

Are your buyers concerned about the future due to the current situation?

I haven't sensed any worry from our buyers. They understand Bangladesh well and have complete confidence in our ability to manage challenges. Their trust in our resilience and stability remains strong.

Do you believe the new government will prioritize the apparel industry?

Absolutely. The apparel industry is vital to Bangladesh's economy, contributing around 11% to the GDP and accounting for over 80% of the country's export earnings. Given its significance, no government can afford to overlook this sector. It’s an economic cornerstone that drives growth, provides employment to millions, and plays a crucial role in our international trade relations.

Were any workers injured during the protests?

No, there was no report of workers’ injury during the protests. The demonstrations were primarily student-led. The protests and our operations were kept separate to ensure the safety and well-being of everyone involved.

How did workers manage to get to the factory during the curfew and protests?

As I mentioned, the garment industry is a top priority in Bangladesh. During the curfew, worker passes were treated as curfew passes, allowing our workers to travel to the factories without any issues.

How safe are the factories to continue their operations now?

Factories are safe. The army is ensuring safety of the factories by patrolling in the apparel production hubs. The factories themselves also made arrangements for the safety and security.

What is the condition of Chittagong Sea Port which operation was halted we heard during the protests?

The movement of export and import goods, which had been disrupted already accelerated. According to port data, on 7 August, only 2,238 TEUs (twenty-foot equivalent units) of containers were delivered from the port yards. By 8 August, this number had nearly doubled to 3,924 TEUs, and by 9 August, the port delivered 4,437 TEUs. Container handling has also seen a rise, with 7,119 TEUs handled in the 24 hours between 8 am on 8 August and 8 am on 9 August, compared to 6,309 TEUs in the previous 24 hours.

The Secretary of Chittagong Port Authority Mr. Omer Faruque told the media on 10th August that while container congestion at the port had been gradually easing, it might take only 7-10 days to return to normal levels.

What is the situation of moving goods through road transportation, especially what’s the current state of Dhaka-Ctg highway the major transport route of the country through which goods are carried to Chittagong Port??

The transportation sector has rebounded with the improvement in law and order over the past few days. According to media reports over 2,300 covered vans carrying export goods entered the ICDs between 8th August evening and 9th August afternoon, a substantial increase from the previous days.

Chowdhury Zafar Ahmed, Secretary General of the Bangladesh Truck Covered Van Owners Association said to the media on 10th August that there had been an increase in the availability of trucks, covered vans, and prime movers, along with a drop in fares on 9th August.

Are the raw-materials for garment production available, as there had been disruption in the supply chain?

Since the delivery of imported goods and the receipt of export containers increased in last few days, there will be no problem in raw materials. Most importantly, the factories of backward linkage in Bangladesh also resumed operations in full swing. It should be mentioned here that Bangladesh is sell-sufficient in the supply of knit fabrics and all types of garment accessories. The country’s textile industry also meets about 70 percent demand of woven fabrics of the export-oriented apparel industry. So, there is a steady flow of raw materials.

Is it true that cash transactions are prohibited in Bangladesh? How are you paying salaries?

That’s not entirely accurate. The restriction was mainly on cash withdrawals, and it was only in place for one day. Even then, we ensured that our workers were paid on time through digital banking, which continued to operate smoothly during that period.

What about small and medium-sized factories—can they manage under these restrictions?

It was challenging for small and medium-sized factories, but the restrictions have been lifted as of Sunday. Everything is expected to return to normal, allowing all factories to get back on track.

Which situation posed a greater challenge for you—COVID-19 or the recent unrest?

COVID-19 was definitely the bigger challenge for us. During the pandemic, both we and our buyers were facing difficulties—our offices were closed, their offices were closed, and their businesses were affected just like ours. The impact was global and prolonged. While the recent unrest was difficult, it was shorter in duration, and we've been able to manage the situation more effectively. Thanks to the experience and resilience we developed during the pandemic.

What has been the most significant support you've received from your brands so far?

?The biggest support we've received has been the mental support and understanding from our brands. Their empathy and willingness to adapt to the situation have made a huge difference, helping us navigate these challenging times with confidence.

We've heard that there's no law and order, and the police are absent in Bangladesh. Is that true?

That's not accurate. Law and order are being effectively restored, with the country coming back stronger. The interim government has appointed a new Inspector General of Police (IGP), who has ordered the police force to operate at full capacity. 538 police stations countrywide started duty today and the number will increase every single day in next few days as the advisers of the interim government (like ministers), including the adviser for Home Ministry, took their offices. The army is playing a crucial role, coordinating security efforts nationwide and ensuring stability. Together, the police and army, supported by the people, are reinforcing security and rebuilding confidence across Bangladesh.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).