Bangladesh’s Garment Sector Faces Demand & Energy Crises

The world’s second exporter of garments – Bangladesh, faced new challenges from slowing global demand and energy crisis.

Managing Director Fazlul Hoque of Plummy Fashions Ltd., a supplier to the parent company of fashion brand Tommy Hilfiger, and Inditex SA’s Zara, said new orders in July dropped by 20% from a year earlier.

“Retailers in both European and US markets is either deferring the shipments of finished products or delaying orders. As inflation is soaring in our export destinations, it has a serious impact on us,” Hoque said.

Meanwhile, as waning orders posed a risk to the economy, Bangladesh authorities are resorting to power cuts to preserve fuel reserves amid a region-wide energy crisis.

“Uninterrupted energy supply is the key to delivering products in time. We are facing a combination of multiple problems at home and abroad,” Hoque said.

The garment industry in Bangladesh makes up more than 10% of gross domestic product and employs 4.4 million people in the country.


© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.