Bangladesh, the second largest readymade garment (RMG) manufacturer in the world after China, is witnessing a dip in new investments in the field of textile in last two years. Bangladesh apparel makers are worried about the shortage in fabrics in the domestic market since fabrics for manufacturing are mostly imported from other countries.
The Bangladesh textile sector, especially the woven textiles, have attracted nearly Tk 1 billion investments in 2011, which is a sharp decline from investments of Tk 10.7 billion in 2009.
According to the clothing manufacturers of Bangladesh, the decline in fresh investments is due to shortage of electricity and gas supply.
In a conversation with fibre2fashion, president of Bangladesh Textile Mills Association, Mr. Jahangir Alamin said, “There is a decrease in the number of new investors entering into the textile industry mainly due to the shortage in power and gas supply.”
Echoing him, CEO of MB Knit Fashion, Mr. Muhammad Hatem says, “The lack or unavailability of electricity and gas in sufficient quantities is a deterrent for new investors eager to venture into the field of textiles in Bangladesh.”
“Though we are expanding the production capacities of existing textile factories, we cannot expect a rapid growth in the clothing sector this year,” he opines.
It is because the textile sector requires investment in large amounts. For example, setting up a high-tech woven spinning mill would require an investment between Tk 2 billion to Tk 3 billion.
Currently, Bangladesh RMG makers are importing 65 percent of their fabric requirements from neighboring countries including China to meet their production demands.
According to the figures released by the Export Promotion Bureau (EPB), apparel exports fetched US$ 13.83 billion during the initial eight months of the current fiscal year that began on July 1, 2012.
