Bangladesh garment factory closures reach 400, group says

Bangladesh's garment industry has seen about 400 of its roughly 4,000 apparel factories shut over the past two years, eliminating tens of thousands of jobs, the Bangladesh Garment Manufacturers and Exporters Association said.

The closures and layoffs reflect pressure on a sector that provides around 80 percent of Bangladesh's export earnings and employs more than 4.5 million people, most of them women. The industry is facing slowing exports, weak customer demand and competition from India and Vietnam.

In Gazipur, garment worker Mosammat Aklima said she was one of 3,000 people laid off in July by Lithe Garments after eight years at the factory. Aklima, 27, said she is three months pregnant and does not know how she will find another job. Her family is now relying on her husband's factory wage.

Mahmudul Hasan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, said some factories had closed because they could not survive falling exports in a highly competitive global market.

Bangladesh also faces longer-term trade pressure in Europe, its largest market. India and Vietnam have gained ground through free-trade agreements, while Bangladesh is scheduled to lose duty-free preferential market access in Europe and other countries when its least-developed country status expires in 2029.

Dhaka University professor Selim Raihan said Bangladesh could lose competitiveness if it fails to secure free-trade agreements after the preferential trade regime ends. Eurostat data show European Union apparel imports fell in the first five months of the year, with Bangladesh recording the steepest decline among major suppliers.

The industry remains focused on low-margin products such as T-shirts and jeans, while rivals have moved into higher-value products using synthetic fibre. Bangladesh earned about $39 billion from garment exports in 2025 but relies heavily on imported cotton and other fibres, raising production costs.

Mohiuddin Rubel, founder and chief executive of Apparel Voice, said Bangladesh had expanded without consolidating infrastructure and had become stuck with basic products. A World Bank study found most garment factories in Bangladesh still rely on semi-automated, labour-intensive processes, while rivals such as Vietnam are moving toward advanced manufacturing.

Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies, said he had not seen an integrated government policy to manage the manufacturing transition. Government adviser Rashed Al Mahmud Titumir said authorities were focusing on training to help workers adapt to changing industrial needs.