Foreign investment in readymade garment sector can only be encouraged for backward linkage industry and high value products in order to protect the local business, said speakers at a discussion meeting on Wednesday. The meeting, TexApp Bangladesh 20014, was jointly organised by CEMS Global and The Daily Star on the sidelines of Textech Bangladesh 2014 International Expo at Bangabandhu Conference Centre in the capital.
‘We do not discourage foreign investors in RMG sector but such investment is not welcome for making shirts or basic apparel items like those,’ Bangladesh Garment Manufactures and Exporters Association president Atiqul Islam said.
He said the local garment industry is yet to diversify their business to the high end products which are mostly capital intensive.
‘Making high value products like suit, lingerie requires sophisticated machineries where I believe foreign investment is welcome,’ he said.
Atiqul said that Bangladesh was also working to explore new markets other than North America and Europe.
‘We have to rebuild our image in the world after last year’s tragic accidents in garment sector. But we showed strong export growth despite all the odds,’ he said.
‘Unfortunately the commercial councillors at our foreign missions are not playing the proper role to help us in this regard,’ he observed while replying to a question.
Bangladesh Knitwear Manufacturers and Exporters Association first vice president Mohammad Hatem said that financing is a crucial problem for the local garments businessman and new entrepreneurs.
‘Banks are not helping the new entrepreneurs who want to get into the backward linkage industry of the garments sector. At the same time, the central bank also restricted the deferred payment for capital machineries for the sector which is hampering the
progress,’ he said.
He also said that foreign investment in RMG should be in high-value products.
National Board of Revenue member Aminul Karim said that government always patronised the garment industry.
‘But the garment sector also need to go for value adding production as they have reached to a certain maturity,’ he said.
World Bank lead economist Zahid Hussain said that there are many obstacles in the garment sector to grab the next big potential market share in the world.
‘Our main problem now is poor infrastructure. What I would like to say is that we need to build special economic zones to meet that challenge,’ he said.
-With New Age input
