Major brands have sharply reduced orders for clothing and footwear production in Bangladesh amid mass protests in that country, Kommersant reports, citing the Financial Times.
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Bangladesh has seen large-scale protests and clashes with police since June. Protesters have set fire to several factories belonging to supporters Prime Minister Sheikh Hasina , including suppliers to H&M and Zara. Many factories and deliveries were suspended for weeks.
Bangladeshi clothing manufacturers have promised to compensate for this by working overtime in the near future, but some major brands have already moved some orders to other countries.
As Mamun Rashid, a consultant to garment manufacturers in Bangladesh , points out, some of them have found out when they contacted customers that they had “shifted 40% of their orders to Cambodia or Indonesia.” According to Syed Nasim Mansoor, managing director of Apex Footwear , which supplies Decathlon and Uniqlo, the unrest has undermined the trust of international brands in Bangladeshi manufacturers.
Producing clothes for foreign brands is one of Bangladesh's major sources of income. Last year, the country exported $47 billion worth of clothes.
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