In light of Tarique Rahman’s pledge to create 10 million jobs within five years, the central challenge is not the ambition itself, but identifying a realistic and effective pathway to achieve it. For Bangladesh, where industrial employment is heavily concentrated in one sector, the answer must be grounded in existing economic structures rather than new, time-intensive expansions.
At the core of this reality is the Ready-Made Garment (RMG) sector—the country’s largest export earner and primary driver of industrial employment. Any serious strategy to generate large-scale jobs and accelerate export growth must begin by assessing the true condition and untapped capacity within this sector.
Yet, while the sector remains fundamentally strong, it is under sustained financial and operational pressure. Over the past six years, it has faced a series of overlapping shocks. The COVID-19 pandemic triggered sudden order cancellations and demand contraction. This was followed by global instability stemming from the Russia–Ukraine conflict, which weakened consumer markets in key destinations such as Europe and North America.
Global inflation further reduced purchasing power, leading to lower apparel demand. Domestically, the situation has been compounded by high interest rates, energy shortages, rising production costs, and increasing labor expenses. Looking ahead, Bangladesh’s LDC graduation will gradually reduce trade privileges, intensifying competitive pressure.
Just as the sector was beginning to stabilize, political unrest during July–August caused another disruption. Factory operations were partially or fully halted in many cases, worker attendance declined, and congestion at Chattogram Port led to shipment delays and missed delivery deadlines.
These disruptions extended beyond immediate operational losses. They affected buyer confidence. Even after stability returned, cautious purchasing behavior persisted, resulting in reduced order volumes and increased cash flow pressure—particularly for small and medium-sized factories.
In essence, the sector has endured a sequence of shocks, each compounding the effects of the previous one.
Also Read: Industry Voices: Energy Shock and Uncertain Demand Redefine Bangladesh’s Garment Sector
Against this backdrop, the government’s initiative to reopen closed factories is a positive step. However, a critical question arises: is this the most effective starting point?
The structure of the RMG sector provides important insight. Bangladesh has approximately 4,000 factories. Of these, an estimated 400 to 700 have closed at various points in recent years, resulting in around 150,000 lost jobs and an export loss of USD 1 to 1.5 billion.
A closer breakdown suggests that among roughly 500 large factories, about 184 have closed, while among approximately 3,500 SME factories, around 374 have ceased operations.
(Sources: BGMEA, Daily Sun, The Daily Star, Textile Focus, Textile Magazine)
Data at a Glance
| Category | Total Factories | Closed Factories | Employment Loss | Export Loss (USD) |
|---|---|---|---|---|
| Total Sector | 4000 | 400–700 | 150,000 | 1–1.5 Billion |
| Large Factories | 500 | 184 | — | — |
| SME Factories | 3500 | 374 | — | — |
| Potential Jobs (Closed Factories) | — | — | 150,000 | — |
| Potential Jobs (Weak Factories Revived) | — | — | ~1,000,000 | — |
These figures not only highlight the extent of the crisis—they also provide a critical direction forward.
If we categorize the sector into three segments—large factories, weak but operational factories, and closed factories—one thing becomes clear:
The fastest and most effective results can be achieved from factories that are still operating but are in a weakened condition.
These factories represent the “middle strength” of Bangladesh’s RMG sector—they are surviving, but struggling. They have retained workers, maintained production, and in many cases preserved buyer relationships. In other words, they do not need to be rebuilt from scratch—they need to be strengthened.
If these factories are supported with low-interest financing, effective working capital, stable energy costs, and compliance support, they can increase production within a few months. This means export growth will accelerate, foreign currency inflow will rise, and most importantly—employment will increase rapidly.
Based on practical analysis, while reopening closed factories may create around 150,000 jobs, revitalizing these weak but operational factories could quickly generate approximately 1,000,000 (1 million) jobs.
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This difference is the most critical factor in decision-making. On the other hand, reopening closed factories is far more time-consuming and risky in practice. Restarting a closed factory requires financing, management restructuring, and rebuilding buyer confidence—all of which must begin anew. This process can take anywhere from 6 to 18 months.
More importantly, not all factories closed due to external factors. In many cases, internal weaknesses, governance issues, and management failures were also responsible. Without properly addressing these issues, reopening such factories risks repeating the same problems.
There is also a practical limitation in the case of large factories. They are already operating at high efficiency, often near full capacity. Therefore, additional investment here will not significantly increase employment, and the margin for export growth remains limited.
This entire picture sends a clear message—Bangladesh’s challenge is not a lack of capacity, but rather the inability to fully utilize existing capacity. In today’s economic reality—where global demand is uncertain, inflation remains high, and political and geopolitical risks persist—the most rational approach is to focus on areas that can deliver quick results. That area is the weak but operational factories.
Because they have already proven their resilience—they have survived adversity. With the right support, they can recover quickly, increase exports, and generate employment for millions.
Ultimately, the future of Bangladesh’s RMG sector depends on this “middle strength”—those who are still standing, still fighting, and ready to drive the country forward if given the opportunity.
Therefore, in today’s reality, the most effective decision is clear—not rebuilding from zero, but fully utilizing what already exists.
Strengthen those who have survived first—then gradually rebuild the rest. Revive the survivors first, rebuild the rest later.
