At least 402 garment factories have closed in Bangladesh between July 2023 and June 2026, Bangladesh Commerce Minister Khandakhar Abdul Mukhtadir told the country's parliament.
Of the factories that have closed, 282 are members of the Bangladesh Garment Manufacturers and Exporters Association, and 120 are members of the Bangladesh Knitwear Manufacturers and Exporters Association, he said.
The Covid-19 pandemic, the Russia-Ukraine war, the Middle East crisis, the US-Iran conflict, the global economic downturn, domestic political instability and the liquidity crisis in the banking sector caused by money laundering have been the main factors that have affected the closure of these factories.
In addition, the free trade agreements signed by India and Vietnam with Europe and the restriction of foreign buyers from placing orders with small and medium-sized factories have also contributed to this situation.
To overcome this crisis, the Bangladesh government has introduced various tax and concessional benefits, including a 1.5% cash subsidy scheme for textile manufacturers for export.