In the last 14 months, a total of 353 factories have shut down in Savar, Gazipur, Chattogram, Narayanganj and Narsingdi. As a result, 119,842 workers have become unemployed, according to the BGMEA.
According to the garment industry owners’ association, the biggest shock was in Savar, where 214 factories closed — 122 permanently and 92 temporarily — leaving around 31,000 workers jobless. Major factories such as Chain Apparels, Generation Next Fashion, and Safwan Outerwear are among those that shut down.
In Gazipur, 72 factories closed, leading to unemployment for more than 73,000 workers, including the permanent closure of 13 Beximco Group garment units, considered a major blow.
However, data from the Export Promotion Bureau (EPB) shows that although exports in July — the first month of the fiscal year — grew by 25% compared to the previous year, the following three months saw continuous negative growth. In October, export earnings fell by over 7%, a decline of $510 million (around Tk 6,120 crore). Export earnings dropped from $4.13 billion last October to $3.62 billion this October. Still, overall export growth in the first four months of the fiscal year stands at 2%, higher than last year.
Meanwhile, the government has recently approved the Bangladesh Labour Act (Amendment) Ordinance 2025 in principle and in final form, though some amendments have displeased factory owners. Commenting on the factory closures, the Chief Adviser’s Press Secretary Shafiqul Alam said that shutting down non-compliant factories is not a bad thing — it is necessary for the sustainable development of the industry.
BGMEA President Mahmud Hasan Babu told the media that the sector is passing through uncertainty. “We haven’t collapsed, but we missed opportunities — especially due to the additional U.S. tariffs on China and India, which could have benefited us,” he said.
Former BGMEA Vice-President A.B.M. Shamsuddin said owners are not in a good position. “Buyers are waiting for an elected government. Small factories cannot survive; they are closing down. The Labour Act amendment has created further complications. It feels like this sector has no guardian — it is surviving like an orphan,” he stated.
Kalpona Akter, Executive Director of the Bangladesh Center for Worker Solidarity, said that workers who participated in the July–August uprising are seeing no improvement in their situation. The disparities that led to protests still remain unresolved. Many workers who lost their jobs cannot run their households, she added.
The ready-made garment (RMG) sector is Bangladesh’s largest source of export income. According to former BKMEA president Fazlul Hoque, the crisis will impact not just owners but the broader economy. Global demand slowdown, the U.S. market slump, and political uncertainty are restricting exports. “Buyers will not place orders amid uncertainty,” he said. “A stable elected government could change things.”
Dr. Golam Moazzem, Distinguished Fellow at the Center for Policy Dialogue (CPD), argued that the situation is not as bad as factory owners portray. Export indicators do not match their claims of massive order losses. “Exports have generally remained strong, except for the last month,” he said, suggesting that larger factories may still be performing well while smaller ones suffer.
BGMEA President Mahmud Hasan Khan criticized the Labour Act amendment, saying it will increase instability, reduce foreign investment, weaken export performance, and harm the economy.
He termed the amendment “imbalanced” and “irrational,” particularly objecting to the provision allowing a trade union to be formed with only 20 workers, which he said could lead to non-industry actors forming unions and destabilizing production environments.
He urged the government to reconsider the ordinance and create laws aligned with industrial and economic realities.
Jolly Talukder, Vice-President of the Bangladesh Garments Workers Trade Union Centre, said that 200,000–300,000 workers lost jobs under the current government, and four workers were shot dead during protests. “Workers’ benefits have not increased; the situation is becoming worse,” she stated.
