The readymade garment sector is one of the major driving forces of Bangladesh's economy. This export-oriented sector is contributing to the GDP as well as generating employment.
According to the World Trade Organisation (WTO)'s report, 'World Trade Statistics 2023: The Insights and Trends', in 2023 Bangladesh remained at the second top place globally in readymade garment (RMG) exports, as in 2022. Exporting RMG less than Bangladesh by 7 billion dollars, Vietnam ranks third. And at the top place, as always, is China.
According to the WTO report, Bangladesh exported RMG worth 38 billion dollars (3,800 crore dollars) worth of readymade garments last year. In 2023 Bangladesh’s share of the global RMG market was 7.38 per cent. The year before, that is 2022, the volume of RMG exports totaled 45 billion dollars (4,500 crore dollars).
However, political unrest, the fall of the government and the recent labour unrest has created concern that a large chunk of the work orders may be diverted to other countries. This is being viewed as a potential crisis for this export sector.
If factories are closed, unemployment will mount, leading to further unrest. The office of the chief advisor has assured that the situation is under control. However, apprehensions persist that the miscreants may instigate trouble at any time
Down the years, Bangladesh’s RMG sector has steadily advanced to reach this position. All those involved in this sector have toiled tirelessly for the development and expansion of this industry. However, it has been noted that since the fall of the last government there have been certain efforts to disrupt the sector.
After the change in political landscape, labour unrest has emerged in Savar and Ashulia of Dhaka, Kaliakoir of Gazipur, Araihazar of Narayanganj and other industrial belts. Certain vested quarters are trying to use this unrest in their own interests.
Several reasons behind the labour unrest in the country’s RMG sector are coming to the fore. There is the conflict over the ‘jhut’ (waste fabric) trade, ownership problems, outstanding dues, instigation by outsiders and certain new demands being raised by the workers.
A look at the unrest in the RMG sector over the past one month will reveal that after the political changeover, the leaders and activists of various parties have begun to assert themselves. This has appeared in reports of a leading newspaper of the country too.
Even a large party like BNP has taken action against these elements following the allegations. The report mentions that certain names of the party’s leaders too, though action remains pending. One of the accused persons even reportedly demanded benefits from the export-oriented Fakir Group in Narayanganj.
If a look is taken at the problems that have befallen the RMG sector till mid-August, it will be seen that the RMG factories, textile mills and even spinning mills have been under lock and key.
Later, after acquiescing to extortion, these factories were restarted. Only when promised to be paid “toll”, did a group of these activists, under political shelter, reopen the locks of around 57 establishments in Narayanganj’s Araihazar, Satgram, Gopaldi and Duptara. Many of the accused have been expelled from the party.
Concerning these errant BNP men who have been using the party’s name, BNP’s senior joint secretary general Ruhul Kabir Rizvi has said, “I request all persons including the concerned establishments to be alert concerning such motivated aggression. These people do not represent BNP.”
It must be understood that after the mass uprising, a constructive mindset has emerged among the people of Bangladesh. The national elections will be held. The political parties like BNP need to undergo reforms to tally with the mindset of the people and only then can they be totally ensured of the people’s mandate.
No establishment gathers strength on its own. There are thousands of workers and international brands involved. Production worth millions of taka and the supply chain of the RMG and other industries and sectors, are involved too. If cases and attacks continue on political considerations in this manner, what message will this deliver to our buyers abroad! Who is benefitting from this unrest? It is for the government to find out. The government and all concerned quarters must pay attention to these signs and speedily find a solution.
The situation is gradually improving, but it will take time to fully recover. Former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Rubana Huq, recently told the media, the two-week closure has caused harm to the industry. But the biggest harm is that our buyers are moving elsewhere. The fact is within December, 25 to 30 per cent of the orders will move away. Bangladesh National Labour Federation's general secretary Marium Akhter feels that outsiders are behind the worker unrest. It is still unclear when this promising sector will be fully functional again.
Bangladesh's reputation has been harmed considerably as a brand in the outside world. The factories are being shut down due to the political unrest and labour demands. Production has been hampered. In the meantime, new orders in the RMG sector are being diverted to Vietnam, India, Myanmar and other such countries.
A recent report quoting figures from the US Department of Commerce's Office of Textiles and Apparel (OTEXA), said that in the eight months from January to August, Bangladesh exported readymade garments worth 4.71 billion (471 crore US dollars) In the corresponding period last year 7.29 billion US dollars of readymade garments were exported. Presently Bangladesh is the third highest exporter of readymade garments to the US.
Bangladesh at present faces serious economic damage. Money has been laundered in huge sums, banks have been riddled with uncontrolled corruption, inflation has spiralled and there has also been a spate of natural calamities, all contributing to pushing the economy to the brink.
At this juncture, if the readymade garment industry is chucked into dire straits, the entire country's economy will be harmed. If factories are closed, unemployment will mount, leading to further unrest. The office of the chief advisor has assured that the situation is under control. However, apprehensions persist that the miscreants may instigate trouble at any time.
* Ashfaq Ahmed is a journalist and writer