Government overthrow in Bangladesh: “All factories are expected to be fully operational again from today”

Bangladesh is the world’s largest garment supplier after China. What does the political unrest of recent weeks mean for the fashion industry and what will happen now that the government has collapsed?

After weeks of violent unrest in Bangladesh, in which around three hundred people have died and curfews have been imposed, there is growing hope for a peaceful and democratic future. Prime Minister Sheikh Hasina, against whose policies the mass demonstrations were directed, has left the country and parliament has been dissolved. This paves the way for new elections. Until then, a transitional government is to be formed.

On Monday, Mostafiz Uddin, organiser of the Bangladesh Denim Expo, CEO of Denim Expert Limited and CEO of Bangladesh Apparel Exchange, published an open letter to the fashion industry calling on it to continue to support the country while a new political leadership is being established. FashionUnited spoke to Uddin about the current situation in Bangladesh.

Violent riots between the people and the police have been going on in Bangladesh for weeks. Is it just the capital or the whole country?

There have been protests across many parts of the country but the main clashes have occurred in the capital, Dhaka.

The trigger was the reintroduction of the quota system for civil servants. But there had also been protests in the months before for an increase in the minimum wage, but as far as I know that hasn’t happened. Is the unrest in your country just about quotas, or is it about something more?

No, the protests are all about the quotas. The minimum wage issue was settled long before.

Even the internet has been cut off – is it possible to work under these conditions?

Obviously, it was more challenging to work without the internet, but the internet is working properly now and everything is as usual. Also our manufacturers are very adaptable, resourceful and resilient.

You are a denim manufacturer yourself, but not in Dhaka. Has your business come to a standstill?

No, my business has not come to a standstill. Yes, there have been disruptions but there has been nothing which has been insurmountable. And now, of course, the curfew has been lifted.

How is the unrest affecting garment production in Bangladesh? Are factories closed?

Garment factories were closed for a period, but the curfew has now been lifted. Business in Bangladesh is back after about a month-long protest. All factories located in Export Processing Zones (EPZs), including ours Denim Expert Limited, are running from today (6th August) morning. Banks have been opened. Schools have been resumed. People have started their normal daily life. So, all the apparel factories of the country are expected to start in full swing from tomorrow (7th August).

How are your customers reacting?

We have great relationships with our customers and have kept them up to date with the situation here. They understand our position.

What could buyers do to avoid making the situation worse in your country?

I would ask that they continue to stand by suppliers and place orders. There is no need to shift production to other countries. We are now over this period and stability has been restored to Bangladesh.

Bangladesh always values the trust of global fashion buyers in its apparel industry. So, it’s time for Bangladesh to look forward with its fashion partners.

What impact could the current situation have on the garment sector in Bangladesh?

By the time, the name of Professor Dr. Muhammad Yunus has been suggested as the Chief Adviser of the interim government. Dr. Yunus is the first and only Bangladeshi who was awarded the Nobel Peace Prize. Dr. Yunus is also a veteran Professor of Economics who by founding Grameen Bank has changed the fates of thousands of poor Bangladeshi women. So, he has an international reputation and acceptance.

The interim government will arrange a free and fair national election and by handing over power to an elected government will restore democracy. So, the political stability will be there.

Bangladesh’s garment industry remains a cornerstone of our economy. The industry provides employment to millions of people, particularly women. Our garment industry has been one of the key unifying forces for Bangladesh, bringing vital export earnings and prosperity.

Since one of the important prerequisites of steady apparel business is political stability, I believe that our fashion buyers could consider Bangladesh their long-term sourcing partner in the coming days and years.

Do you fear an exodus of international buyers?

No, I don’t’. I think brands these days recognize the importance of standing by suppliers through good and bad times. Also remember that all countries face their challenges. The political situation is not always smooth in other parts of Asia where brands source from. That’s the nature of global sourcing and buyers understand that.

You are planning the next Bangladesh Denim Expo in November. Do the current events have any impact on this?

No. Bangladesh Denim Expo will be organised on the scheduled date.