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Wednesday, June 26, 2024

Bangladesh textile industry attracted almost nil investments in 2023

The Bangladesh textile industry, worth nearly $25 billion, attracted almost nil investment new textile mills needed to be set up or started operations in 2023.

In 2023, only one unit of a spinning mill in Narsingdi reported that they would invest Taka 700 crore to produce cotton and manmade fiber yarn, but that factory will be set up in 2024.

“Even in 2022, when Russia launched a war against Ukraine, 14 new textile units were set up at an investment of Taka 4,147 crore, mainly in the manmade fiber sector,” media reports stated.

“Even imports of machinery, cotton, yarn, and fabrics dropped around 28% in 2023 against 2022,” media reports quoted Monsoor Ahmed, CEO of Bangladesh Textile Mills Association (BTMA), as saying.

“Even expansion of production capacity for yarns or fabrics was less in 2023, although it is very much required,” Ahmed added.

“However, 134 new garment plants started operations in 2023, although they were less than 182 in 2022,” data of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) informed.

“The primary reason for slow investment in the apparel industry was a slowdown in orders from global brands and retailers,” BGMEA President Faruque Hassan said.

“Other reasons include a volatile dollar market, rising costs of production, and low pressure of gas and electricity in factories,” Hassan added.

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