At least 402 ready-made garment (RMG) factories have shut down across Bangladesh over the past three years, spanning from July 2023 to June 2026, Commerce Minister Khandoker Abdul Muktadir informed the National Parliament. The closures were driven by a combination of global economic downturns, international geopolitical volatility, a drop in export orders, and domestic operational challenges.
The Commerce Minister presented these figures on Thursday (September 3, 2026) in a written response to a query from Member of Parliament Ruhul Amin. Citing a report dated June 22 from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), he specified that among the closed units, 282 were members of the BGMEA and 120 were affiliated with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Minister Muktadir explained that post-pandemic economic fallout, the Russia-Ukraine war, the Israel-Palestine conflict, tensions involving Iran, global inflation, and a worldwide recession led to a sharp contraction in international buyers’ orders. Domestically, factors such as political instability, liquidity shortages in the banking sector caused by capital flight, Free Trade Agreements (FTAs) signed by competitors like India and Vietnam with European markets, and declining interest from foreign buyers contributed to the factory closures. However, to revitalize the RMG sector, the government continues to offer various incentive packages, including a 1.5 percent cash incentive as an alternative to customs bond and duty drawback, an additional 0.50 percent special assistance for exports to the Eurozone, a 3 percent additional facility for small and medium-sized RMG enterprises (SMEs), and a 0.30 percent special cash incentive for the overall apparel sector.
