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文章

2024年5月15日

作者:
Ittefaq

Bangladesh: Garment factories forced to take orders at discounted prices to survive, employers' association president reports

"Factories forced to take orders at discounted prices to survive: BGMEA president", 15 May 2024

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) SM Mannan Kochi said the cost of electricity, gas, diesel and transport has increased. The average cost of production has increased by 50 percent in the last five years due to the high rate of bank interest, including the increase in workers' wages. In this situation, factories are forced to take orders with discounts to survive. He said it will be difficult to survive if the current challenges of the garment sector are not tackled on an urgent basis. According to him, the cost of doing business should be reduced by reducing complexities related to customs, bonds, ports, ensuring fair prices of goods, increasing efficiency and productivity and upgrading technology. Above all, it is possible to overcome the current problem if small and medium industries are brought under special policy support and financing facilities...

Ittefaq: Several garment factories have been closed in the last few years due to various reasons. What is the reason for the closure of these factories even if the business of the big factories is going well?

SM Mannan: The main reason is the loss of business ability to cope with the increase in costs. Many factories have closed for a number of reasons, including compliance obligations, non-payment from buyers, and the Corona epidemic. Buyers are not raising prices after increasing the minimum wage, which is also a reason for the closure of factories. However, due to the cooperation of the government during various crises, the industry has reached $ 47 billion export today. Through the direction of the Prime Minister, we were able to avert a catastrophe during Corona due to the government's policy support, low-interest loans and extension of loan installment payments. If this cooperation continues, we can move forward...

[Translation via Google Translate]

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