Bangladesh Garment Industry Faces Major Layoffs as Factories Close
Approximately 400 of Bangladesh's 4,000 garment factories have closed in the past two years, resulting in significant job losses. The industry, which is critical for the nation's economy, faces challenges from declining exports, heightened competition, and an impending loss of trade benefits.
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The Bangladesh garment sector has seen the closure of about 400 factories, with tens of thousands of jobs lost amid declining exports and competition from countries like India and Vietnam. The industry, which employs over 4.5 million workers, largely women, contributes to 80% of the nation's export earnings.
Analysts warn that the expiration of Bangladesh's least-developed country status in 2029 could further impact competitiveness, especially in the European market where imports have decreased. The sector remains focused on low-margin products, with structural weaknesses hindering growth into higher-value segments. Without a cohesive policy for transitioning to advanced manufacturing and addressing automation, the future stability of the workforce is uncertain.
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