DHAK – Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has advised the Ministry of Labour and Employment to close 46 garment factories for failing to pay worker salaries for the month of March. It is claimed the overwhelming majority – 99 per cent – of Bangladesh ready-made garment (RMG) factories paid workers for March.
Our conversations with owners and industry insiders suggest that a huge rationalisation of the RMG industry in Bangladesh will take place in the coming months. Some believe up to 50 per cent of factories will go bust, with buyers from other countries already said to be waiting in the wings to asset strip parts of the industry. Excess capacity was a serious issue long before Covid-19 came along.
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