Investments In Bangladesh Textile Sector Almost Dry Up In 2023
Investments in the Bangladesh textile industry which is worth around $25 billion, almost dried up in 2023 as nor were new textile mills set up nor did any start operations.
Only a Narsingdi based spinning mill said it would invest Tk 700 crore to manufacture cotton and MMF yarn, but even that plant will be set up in 2024.
“In 2022, Russia invaded Ukraine, but even in that year, 13 new textile plants were set up at a cost of Tk 4,137 crore,” the Daily Star reported.
Monsoor Ahmed, CEO of Bangladesh Textile Mills Association (BTMA) was quoted as saying that even imports of machinery, cotton, yarn and fabrics fell 28 percent in 2023 compared to 2022.
Ahmed further stated that even production capacity expansion for fabrics and yarns were lower in 2023 than those in 2022.
Data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) revealed that even in case of garment factories, only 134 new factories were started in 2023 as against 182 in 2022
According to BGMEA President Faruque Hassan, the main reason for the low investment in the garment sector was due to slowing down of export orders.
“Among other reasons contributing to the low investments include rising costs of manufacturing, a volatile US dollar and low pressure of gas supplied to garment factories,” he added.
