200 RMG factories in Ctg facing closure due to fall in export orders
Sunday, 21 October 2007
Fakhrul Alam
CHITTAGONG, Oct 20: With declining export orders, ready made garments (RMG) industries in Chittagong are facing serious crisis. Around 200 garments factories are now on the verge of closure, sources said.
There are 690 RMG factories in Chittagong out of which 180 units have already been closed down.
According to the BGMEA sources, around 200 factories are suffering from economic hardship of extreme nature. These are now being closed gradually. Sweater factories are the worst hit and fifty percent have already been closed.
In view of the reduction in export orders on the one hand and attempts by RMG owners to implement the minimum salary structure, RMG industries in general are in a deplorable stage.
Sources further said, a large portion of RMG products of Bangladesh is exported to the US. The biggest buyer Wal-Mart has reduced its volume of import on different grounds.
Moreover, the political unrest that paralysed the country at the end of last year had an adverse affect on the RMG sector. The buyer community abroad feel they can no longer rely on Bangladesh for RMG products and are diverting their orders elsewhere.
On the other hand, as the normal production in the garments industries was disrupted, RMG owners are not able to meet regular expenditures on different heads. In order to overcome this situation they have sought cooperation of the government to lower the rate of interest on their bank loans to a justified and acceptable level.
CHITTAGONG, Oct 20: With declining export orders, ready made garments (RMG) industries in Chittagong are facing serious crisis. Around 200 garments factories are now on the verge of closure, sources said.
There are 690 RMG factories in Chittagong out of which 180 units have already been closed down.
According to the BGMEA sources, around 200 factories are suffering from economic hardship of extreme nature. These are now being closed gradually. Sweater factories are the worst hit and fifty percent have already been closed.
In view of the reduction in export orders on the one hand and attempts by RMG owners to implement the minimum salary structure, RMG industries in general are in a deplorable stage.
Sources further said, a large portion of RMG products of Bangladesh is exported to the US. The biggest buyer Wal-Mart has reduced its volume of import on different grounds.
Moreover, the political unrest that paralysed the country at the end of last year had an adverse affect on the RMG sector. The buyer community abroad feel they can no longer rely on Bangladesh for RMG products and are diverting their orders elsewhere.
On the other hand, as the normal production in the garments industries was disrupted, RMG owners are not able to meet regular expenditures on different heads. In order to overcome this situation they have sought cooperation of the government to lower the rate of interest on their bank loans to a justified and acceptable level.