Despite recovering from the setbacks of July and August and returning to a positive trend, the Bangladesh's export growth has brought significant relief to the economy.
However, garment owners have not been able to shake off the pressure.
Although exports have increased compared to last year, the sector's entrepreneurs have not seen a rise in income. On the contrary, costs have surged.
Many owners have recently been forced to ship orders by air freight at their own expense to meet buyers' lead times, leading to losses for most entrepreneurs.
To date, three garment factories have yet to pay October salaries.
According to the Export Promotion Bureau (EPB), over 80% of Bangladesh's export income comes from the garment sector.
In November, the annual growth rate of this sector exceeded 16%. Of these, woven garment exports increased by 20%.
EPB data shows that in November, garment exports reached $3.306 billion, compared to $2.844 billion during the same period last year.
While this surge in exports has brought some relief to the economy, garment sector entrepreneurs remain under significant pressure.
They report that recent labor unrest in the industry has led to factory closures and various uncertainties, which have not been entirely resolved.
Additionally, rising interest rates have made loan repayments challenging for many.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: "Despite the increase in exports, the pressure on entrepreneurs has not lessened." He explained that costs have risen for various reasons, forcing many to operate at a loss.
Detailing these challenges, he said: "The price of yarn has increased, workers' wages have risen, and increments will be necessary next year, further increasing expenses. Moreover, during the political and labor unrest from July to September, foreign buyers took advantage by forcing lower prices. Buyers are still pressuring for discounts."
He added: "We incurred losses on every shipment sent by air freight just to retain buyers. Despite the increase in export earnings, we are worried as orders are decreasing."
Mohammad Hatem mentioned rejecting an order because it would have led to significant losses.
Meanwhile, the garment industry’s instability has not been entirely resolved.
Reports of labor unrest and work stoppages continue in Dhaka, Chittagong, Narayanganj, and Gazipur.
As of Saturday, wages for October have been paid in all but three of the 2,093 factories in Dhaka and Chittagong.
In addition, one BGMEA-member factory in Gazipur and Mymensingh remains closed.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) previously said in an October 19 press conference that labor unrest following the change of power has disrupted production worth at least $400 million.
Multiple exporters have said that many orders from July, August, and September were not shipped on time.
These delayed orders were later exported. Moreover, the European Union and US markets are gradually recovering, and spring and summer orders from these major markets have increased.
The shipment of these products has also begun, contributing to the export growth.
Upcoming events, including Christmas and other festivals, along with the completion of previous orders, have further boosted exports.
Improvements in law and order, including joint forces deployment in industrial areas, have also had a positive impact.
However, due to liquidity shortages in banks, entrepreneurs are not receiving loans as expected, and lengthy procedures in opening letters of credit for raw material imports are disrupting production.
Former BGMEA president Faruque Hassan said: "Increased exports don’t necessarily mean higher profits or better conditions for us. To retain buyers, many factories are currently accepting orders at prices equal to or even lower than production costs."
Similarly, former BGMEA director Mohiuddin Rubel said: "While export volume has increased, factory owners' incomes have not. Rising costs of yarn and other materials have added to the financial strain."
He noted that foreign buyers exploited the recent unrest to reduce prices and that air freight for timely delivery has incurred significant losses.
Shipping garments from Dhaka to Europe via air cargo costs $6 per kilogram, while the cost for shipments to the US ranges from $7.50 to $8 per kilogram.
