Bangladesh can attract investment of up to Tk 500 billion in its primary textile sector alone in next five years through addressing existing bottlenecks like inadequate power and gas supply and land scarcity, textile operators said on Monday.
According to them, the sector witnessed a slow growth of investments in last five years mainly due to a shortage of gas and electricity and scarcity of land.
A total of 44 new textile mills registered with Bangladesh Textile Mills Association (BTMA) have invested Tk 68.96 billion since 2014.
Out of the 44 mills, 19 are spinning, 23 fabrics and two dyeing mills, said BTMA president Md Ali Khokon.
"There could be more investment. Inadequate supply of gas and electricity and scarcity of land were the major impediments to the growth of investment during last five years," he said.
"The primary textile sector has the potential to attract investment worth Tk 500 billion in next five years if the required facilities including land, gas and electricity supply are provided," he said while addressing a press conference organised at the association's conference room in the city.
The conference was organised to brief on the 16th Dhaka International Textile and Garment Machinery Exhibition (DTG) 2019 to begin from tomorrow (Wednesday).
The four-day DTG 2019 jointly organised by BTMA and Hong Kong-based Yorkers Trade and Marketing Services Co Ltd will take place at International Convention City, Bashundhara.
The BTMA board members and Yorkers Trade and Marketing Services president Judy Wang, among others, were present.
The BTMA president said 50,000 to 60,000 looms were shut down during last two years resulting in a declining trend in the processing capacity of woven dyeing mills.
He attributed import of yarn, fabric and other materials, misuse of bonded warehouse facility to the declining processing capacity of woven mills.
Currently, spinning millers meet about 80 to 85 per cent of the knitwear sector's requirements while woven millers can meet 35 to 40 per cent of the readymade garment exporters' requirements of woven fabric, Mr Khokon added.
Welcoming foreign direct investment in the sector especially in woven sub-sector, he said majority of the woven fabric requirements is met through import mainly from China and India.
The local woven fabric capacity can be increased up to 60 per cent in next five years if all the bottlenecks are addressed, he noted.
Responding to a question, the BTMA chief said any textile miller is yet to get new gas connection after liquefied natural gas (LNG) has been imported.
He demanded rational gas price after LNG gasification for certain acceptable period and gradual hike.
He also requested the government to allocate at least 25 economic zones, ensuring all required facilities, out of the proposed 110 for the primary textile sector to attract investment.
Terming the DTG an effective platform for textile and apparel sector's further growth, the BTMA leader said millers and exporters can buy machinery from the exhibition venue.
Some 1200 textile and machinery manufacturing companies from 37 countries including Australia, China, France, Germany, India, Italy, Japan, Korea, Taiwan, UAE, UK and USA will display their products at 1650 booths, organisers said. They will display their products at 11 halls where China, Hong Kong, Korea, Turkey and Taiwan will have their pavilions at halls 3, 6, 1 (A), 2 and 1 and 7 respectively for smooth display of their products and easy movement of visitors, they added.
The last DTG got spot orders worth US$ 280 million, they said expressing the hope that 2019 DTG will get higher spot orders than 2018.
[email protected]
