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Political unrest in Bangladesh is expected to delay clothing manufacturing for fashion retailers such as H&M and Zara in the run-up to the key holiday season, Reuters has reported.
It comes as Bangladesh has seen a rise in violence since July, which has forced Prime Minister Sheikh Hasina to resign yesterday (Monday 5 August) and flee the country.
Hundreds of people have been killed in a crackdown on demonstrations that demanded the PM be ousted.
As a result of the political unrest, garment factories in the country have been closed indefinitely.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the readymade garment industry accounts for 83% of the country’s total export earnings.
Last year, Bangladesh ranked third-largest garment exporter in the world, after China and the European Union, data from the World Trade Organization revealed, exporting $38.4bn (£30.1bn) worth of clothes.
H&M, which is based in Sweden, has 1,000 factories in Bangladesh, according to a supplier list found on its website. The group expressed “concern about the developments” in Bangladesh yesterday.
Meanwhile, Spain-based Zara has 12 manufacturing clusters where 98% of its production was concentrated in 2022, according to an annual filing. The group declined to comment on Bangladesh’s political unrest.
