Home / Knowledge / News / Apparel/Garments / Over 300 garment factories in Bangladesh to close down
Over 300 garment factories in Bangladesh to close down
16
May '16
Despite its booming garment exports, all is not well in Bangladesh's garment sector. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said that 319 factories are set to shut shop due to intense global competition and challenges like devaluation of the US dollar.

At a press conference in Dhaka, BGMEA President Siddiqur Rahman conceded that the imminent closure of more than 300 garment factories is a matter of concern.

“It is a matter of concern that 618 factories shut down in past three years after their productivities dropped due to various reasons. 319 more factories are also going to close down,” he said.

The garment sector is facing the challenge of gas and power crisis, high interest rate of bank loans, devaluation of the US dollar, and fall in price of its products, Rahman said.

He demanded halving the tax at source for the sector to 0.3 per cent in 2016-17 like the previous fiscal.

He also suggested that no value added tax should be imposed on garment accessories, and duty-free import of fire extinguishers should be allowed to help the entrepreneurs tackle the challenges.

Rahman said the export from the sector has been growing by an average of 10 per cent over past five years, but warned that it may not be enough to reach the country's export target for 2021.

“We need 12 per cent annual growth in order to reach the export target of $50 billion by 2021. But the growth was only 6.81 percent over past 22 months,” he said.

“So we are 3.19 percentage points behind from the expected average growth and 5.19 percentage points behind from the expected growth for the 2021 target,” he added.

Bangladesh is second only to China in apparel exporter of western brands. Sixty per cent of the export contracts of western brands are with European buyers and about 40 per cent with American buyers. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search