More than a hundred readymade garment factories in Bangladesh have closed their doors over the past 15 months, resulting in widespread job losses despite steady export growth in the sector.

According to figures from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), a total of 113 factory units under its membership ceased operations between January 2024 and March 2025, leading to the displacement of approximately 96,104 workers.

During the same period, 128 new factories secured BGMEA membership, offering fresh employment to about 74,081 workers.

Industry leaders said that while this entry-and-exit dynamic was a regular feature of the private sector, the scale and context of recent closures had brought fresh scrutiny, particularly following the political upheaval in August 2024 that saw the ousting of then prime minister Sheikh Hasina.

Data from the Export Promotion Bureau showed that Bangladesh’s RMG exports grew by 10.84 per cent year-on-year in the July–March period of the financial year 2024-25, reaching $30.25 billion, indicating that the sector, in aggregate, remained resilient.

However, industry leader have pointed to a combination of financial instability, political fallout, and utility crises as key drivers behind the recent wave of factory shutdowns—particularly affecting small and medium-sized enterprises that were already struggling to remain competitive.

Since August 2024, at least 69 factories have been permanently closed, many of them reportedly owned by individuals with close ties to the former ruling party.

Several high-profile companies—including Beximco, Nassa Group, TNZ and Generation Next—have been impacted, with some owners reportedly in hiding or in custody due to financial irregularities and alleged misuse of bank loans.

Nazma Akter, president of the Sammilita Garment Workers Federation, estimated that more than 100,000 workers were initially affected by the closures, with only about 75,000 finding alternative employment.

‘We want the government to take urgent steps to create new job opportunities for the rest of the affected workers,’ she said.

Former BGMEA president Faruque Hassan acknowledged the dual nature of the sector’s current situation—where new factories are opening even as others close.

He said that this was part of the sector’s ongoing evolution, but admitted that the closure of several prominent factories following the political transition had drawn added attention.

He also cited internal management issues, labour unrest, and economic pressures as contributing factors.

Despite the recent turbulence, stakeholders remained cautiously optimistic that the sector would continue to adjust and recover.