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Bangladesh garment factory closures increase as order shortages and costs rise

Unique Designers and Unique Washing & Dyeing have shut down their factories in Gazipur, resulting in 1,800 workers losing their jobs amid a decline in orders and increasing production costs. This closure highlights a concerning trend, as 457 factories have closed in Bangladesh's garment sector from August 2024 to June.

BRIC Team
BRIC Team
Jun 27, 2026 · 2 min read · 7 views
Bangladesh garment factory closures increase as order shortages and costs rise

Key Takeaways

  • Unique Designers and Unique Washing & Dyeing's closure in Gazipur leaves 1,800 workers jobless due to order shortages and rising costs.
  • Between August 2024 and June, 457 factories in Bangladesh's garment sector have shut down, with 205 citing insufficient work orders.
  • Anwar-ul Alam Chowdhury Parvez stated, 'An initial shortage of orders later morphed into a working capital crisis' affecting many factories.
  • The Export Promotion Bureau plans to train 22,815 garment workers over three years to improve productivity and compliance.
  • Elon Musk envisions humanoid robots as a significant part of Tesla's future, highlighting the growing trend of automation in industries.

Bangladesh's garment industry hit hard as Unique Designers and Unique Washing & Dyeing shut down permanently,putting 1,800 out of work. Factories in Gazipur's Board Bazar neighborhood blame lack of orders and rising costs. They'll settle wages and dues by July 27 after tripartite meeting with workers and owners.

This closure is part of larger pattern in Bangladesh's garment sector . 457 factories in seven main industrial zones have shut between August 2024 and June. Of these,205 closed from lack of work orders,190 struggled financially . Others faced labor unrest, political instability,gas shortages, raw material scarcity.

“An initial shortage of orders later morphed into a working capital crisis,” said Anwar-ul Alam Chowdhury Parvez, President of the Bangladesh Chamber of Industries. “Many factories couldn’t open letters of credit,which cut off raw material imports and disrupted production.”

The garment sector also battered by global issues: Covid-19 pandemic,Russia-Ukraine war, rising inflation. Recent Middle East conflicts add to pressures,leading to more closures.

Meanwhile, in India, garment workers now equipped with head-mounted cameras tracking movements during sewing. Data collected to boost automation,possibly replacing human labor. EgoLab, a data firm, uses this tech,drawing interest from big names,including Tesla. CEO Elon Musk sees humanoid robots as future value driver for Tesla.

“South Asia remains the workshop of the world for many labor-intensive industries,” said Puneet Jindal,founder of Labellerr AI . He noted few regions match India's scale and labor diversity. Millions work in jobs that robotics firms aim to automate.

But tech use sparks big privacy,worker rights concerns. Reports say workers aren't paid for data collection participation, risking jobs . Jindal noted rising demand for egocentric data,new companies entering market,often lowering prices without benefiting workers generating data.

In Bangladesh, automation and digitalization risks loom for low-, semi-skilled workers struggling to adapt. Raju Ahmed,project coordinator at Karmojibi Nari,stressed need for balanced industrial modernization prioritizing social justice. Without reskilling,many could end up in precarious jobs.

In response, Export Promotion Bureau started training programs with industry groups. Over next three years,they plan to train 22,815 garment workers, mid-level officials to boost productivity,meet international standards.

Future of Bangladesh’s garment sector uncertain as it faces economic pressures,technological change. Can workers keep pace with industry evolution…?

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