Middle East Conflict Sparks Fears of Loss in RMG Export Orders

DBL Group, a prominent garment exporter, typically ships apparel worth about $50 million monthly. However, due to recent violence surrounding a quota reform movement and a nationwide curfew, their shipments will plummet by at least 30% this month. The group's production facilities, which include spinning, dyeing, and garment factories, were forcibly closed during the unrest, resulting in significant financial setbacks. 

Tamijuddin Textile Mills is currently investigated by the Bangladesh Securities and Exchange Commission (BSEC) for reportedly taking more than Tk 330 million in stock dividends that were not publicly distributed. Shareholders who were not entitled to bonus shares are believed to have received them from the corporation.

In the very recent ten years, Bangladesh and Vietnam are expected to become major players in the global cotton industry. These nations' competitive labor and production costs are projected contributing to a rapid increase in cotton use and trade, according to a recent OECD-FAO analysis.

Bangladesh's apparel exporters are grappling with a substantial decline in orders, ranging from 25% to 40%, attributed to persistent energy crises, escalating business costs, and shipment delays. Production costs have surged by 20% to 33%, while global buyers are offering prices up to 20% lower than before.

Chinese clothing company High Hope Zhongtian Corporation, part of Jiangsu SOHO Holdings Group, plans to establish an office in Dhaka to explore investment opportunities in Bangladesh's textile and apparel sector.

Four garment factories in Bangladesh have recently achieved LEED certification for their environmentally friendly practices. These factories, located in Gazipur and Gazipur Sadar, include Ananta Jeanswear Ltd., Big Boss Corporation & Aptech Casual Wear Ltd., and Basic Shirts. This brings the total number of LEED-certified textile factories in Bangladesh to 224.