Some RMG buyers shifting work orders for strategic reasons

Some long-time international clothing retailers and brands have been shifting their work orders from Bangladesh to other countries for strategic reasons, according to the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Buyers shift their sourcing based on strategic needs as they always want good-quality products at lower prices, said Mahmud Hasan Khan at a press conference at the trade body’s office in Dhaka yesterday.

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“That is why we are trying to bring new buyers here. As for the internal strategies of buyers – the sourcing strategy I am referring to – they will not necessarily purchase all their products from a single source,” said the BGMEA president.

“That is a challenge for them, just as it is a challenge for us. It is their job to determine their strategy, and we will determine ours. We want new buyers to come here continuously, while the existing buyers continue their business with us,” he added.

Mahmud declined to disclose the volume or names of the buyers looking to shift work orders away from Bangladesh.

He, however, said the BGMEA has taken a series of initiatives to bring in new international clothing retailers and brands and to woo existing buyers into increasing their purchase volumes from Bangladesh.

As part of the efforts, the BGMEA chief said, the association will inaugurate a dedicated Japan desk at its office on September 23 to capture a larger share of the $12 billion Japanese clothing import market.

They are also scheduled to hold the Bangladesh Apparel Roadshow 2026 in Hong Kong on October 28 to attract foreign and new garment buyers.

Mahmud said the proposed three-year deferment of Bangladesh’s graduation from least developed country (LDC) status sends a message to international retailers and brands, as local exporters will be able to supply garments at competitive prices for longer as a result.

The BGMEA chief also said he was hopeful that the government could sign a free trade agreement with the European Union within the next three to four years, calling this necessary instead of pursuing GSP Plus status in the European Union market.

On the gas supply situation, he said conditions have improved over the last few days following the government’s announcement on the matter.

Asked about factory closures, the BGMEA chief said no garment factory had shut down due to the recent gas crisis, though the crisis did have an adverse impact on operations.

Factories are using AI in shipping, marketing, management and automation to improve efficiency and stay competitive in international markets, he said, adding that this has had no impact on workers’ job prospects.

He also said since January 2026, 30 garment factories were closed for various reasons, resulting in 14,000 job losses.

During the same period, however, 53 new factories were granted membership, employing 24,000 workers.

He lauded the incumbent government’s cooperation in sparing time to meet with the trade body to discuss issues concerning business improvement.

At the press conference, he unveiled the logo for the Bangladesh Apparel and Textile Exhibition (BATEXPO) 2026.

He stressed the need to streamline trade documentation, noting that starting a business currently requires 21 licences, causing significant delays.

To improve logistics, the BGMEA chief demanded a permanent and safe import cargo shed at Hazrat Shahjalal International Airport to safeguard incoming goods.