No new investment made in knitwear sector in 3 years

No fresh investment has been made in the knitwear sector in the last three years though there are opportunities to expand its export market share.

Leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said despite the rising demand for Bangladeshi global brand products, the sector failed to attract new investments.

"We do not have the capacity to meet the growing demand for knitwear garments in the export market but still new investments are not being made", a BKMEA leader said.

He said energy and power crisis, labour unrest and the new wage structure are behind hindrance to fresh investments.

According to BKMEA data, over the last three years fewer than 30 new small-scale factories were established in manufacturing knitwear fabrics.

The data says in the year 2011 there were more than 1,500 factories but now only 800 factories are regular members of the BKMEA.

The data also reveals that the sector has not only failed to attract new investments but also many existing owners are shutting down their factories.

BKMEA vice president Mohiuddin Faruqui said due to the new wage board structure and shortage of gas and power many factory owners are closing their business.

He said if the problems of unrest and utility services are removed, fresh investments would be made again.

Mr Faruqui said failure in attracting fresh investments and shutting down of the existing factories may create unemployment problem in the upcoming days.

Mohammad Hatem, first vice president of the association, said there are still immense opportunities for local global quality ready-made knitwear in the international market.

He said though if the government establishes a planned industrial estate, fresh investments would start coming.

Mr Hatem said after declaration of the new wage board many factory owners have shut down their units after paying all the dues to the workers.

He said a number of owners have also closed their factories as they failed to pay the increased salaries and arrears.

He said the problem could be solved by setting up factories with all the compliance facilities.

Another leader of the association said disastrous incidents over the last couple of years and the buyers' strictness of maintaining compliance have changed trend of investing money in the knitwear sector.

He said new investments would certainly come to the sector if the government helps set up an industrial park where all the compliances would be maintained.

Speaking on the issue an entrepreneur said, "I had a plan to invest in the knitwear sector but accidents and unavailability of power and gas are the main problems at this moment."

"If these problems are solved, then I will try again to invest some money in the sector", he said.