BGMEA President Points to Bigger Set of Problems

Bangladesh Apparel Factories Stay Open

As Bangladesh buckles down to keep coronavirus from spreading in the country, factories there are still open. The country’s efforts at lockdown don’t appear as extreme as what India put in place earlier this week.

The apparel industry is Bangladesh’s biggest export earner with value of over $30.61 billion of exports in 2017-18 financial year.

Source BGMEA


Many of Cambodia’s garment sector are suspending operations or slowing production because of a lack of raw materials from China, as a result of supply chain disruption caused by the outbreak. Nearly 200 factories face a shortage of raw materials.

Additionally, Cambodia’s garment industry is likely to be heavily hit by the EU’s withdrawal of trade preferences. Price-conscious retailers could look to shift production to other sourcing hubs, such as Vietnam – which agreed a free trade deal with the EU in February – and Bangladesh.

Growth story

Cambodia has been growing as a garment manufacturing hub since the 1990s, thanks to foreign investment and preferential trade agreements. Nike, for example, has 12 factories and employs 37,540 people in Cambodia. VF Corporation sources 11% of its products from Cambodia.

Cambodia’s garment sector, estimated at 10 billion is the backbone of the country’s export-driven economy and employs 86 percent of all factory workers. About 40 percent of Cambodia’s GDP comes from garment exports, while more than 800,000 people are employed in garment factories around the country.

Source: Vietnam News & The Star


India in Lockdown, Apparel Factories Closed

The government has ordered a nationwide lockdown for 21 days

NEW DELHI, India  Prime Minister Narendra Modi on Tuesday mandated a complete nationwide lockdown, including all apparel and other factories, for 21 days from Tuesday midnight to help stem the outbreak of the coronavirus.

Market Size

The Indian textiles industry, currently estimated at around US$ 105 billion in 2019, contributes two per cent to the GDP of India, 15 percent of India earnings, and employs more than 45 million people.

Source: IBEF


HÀ NỘI — Many Vietnamese garment and textile businesses have received notices from their North American and EU partners that they will temporarily stop receiving goods for three weeks to one month.

According to Phạm Xuân Hồng, Chairman of the HCM City Association of Garment Textile Embroidery and Knitting, customers said they needed to stop receiving goods due to the rapid spread of COVID-19 in North America and EU, prompting governments to declare states of emergency and tighten border controls.

“They asked Vietnamese businesses to suspend orders, including those being transported until borders are reopened,” Hồng said.

Vietnam is the fourth largest exporter for textiles, garments and clothing worldwide after China, and reached an export turnover of more than 36 billion U.S. dollars, making it the third strongest export commodity in the country.