402 Bangladesh Garment Factories Close Amid Global Shocks 📉

• Industry Scale & Impact: At least 402 ready-made garment (RMG) factories shut down between July 2023 and June 2026. Closures affect 282 BGMEA and 120 BKMEA member units. Highlighted as critical regional dynamics for Sri Lanka's competing apparel & textiles export market. • Core Drivers: Closures stem from domestic political instability, banking liquidity crises, global recession, geopolitical conflicts, and competing FTAs by India and Vietnam. Buyer preferences for larger suppliers also squeezed small-and-medium enterprises (SMEs). • Government Relief Schemes: • 1.5% cash assistance for textile exporters (replacing Customs Bonds/duty drawbacks). • 0.5% additional aid for Eurozone sales. • 3% extra support for SME knitwear, woven, and sweater units, plus 0.3% general RMG cash support. • Market Diversification & Trade Defenses: • Facing potential US$ 17.5 Bn export risks from LDC graduation, Bangladesh finalized an EPA with Japan. • Negotiating CEPA with South Korea, alongside ongoing trade talks with EU, RCEP, UAE, Singapore, Indonesia, and China. • 2% cash incentive rolled out for non-US/EU/Canada market expansion and product diversification. • Global Sourcing Expo scheduled for FY2025-26 via diplomatic mission activations.