It's high time to attract FDI: BTMA president

There is an opportunity for Bangladesh to attract foreign direct investment (FDI) as many companies in China are closing their operations due to several factors – a shift towards high-end industries, rising labour wages, and additional duties imposed by the US on Chinese exports, said Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell.

Following these developments, Chinese companies are relocating their investments to other countries. Now is the right time to attract FDI to Bangladesh, as Chinese factories are gradually exiting the textile, garments, and footwear sectors, Russell told TBS today, on the sideline of a press conference at the Pan Pacific Sonargaon Hotel in the capital about the upcoming Dhaka International Textile & Garment Machinery Exhibition (DTG) 2025.

"If we can secure some of these investments, it will help create job opportunities," he said, emphasising that the government must ensure stable utility prices and an uninterrupted supply of resources to attract investment.

The newly elected US President, Donald Trump, has imposed an additional 10% import duty on Chinese goods, prompting some businesses to move their operations elsewhere.

"To attract this investment, the government must ensure stable utility prices and an uninterrupted supply of fuel and gas. If we can secure some of these investments, it will help create employment in our country," he added.

"Amidst this dollar shortage, foreign investment will help generate employment. However, the government must ensure stable gas prices and an uninterrupted supply," he said.

He also expressed concerns over frequent policy changes. "If we fail to attract investment and create jobs, some people may turn to extortion as a means of livelihood," he warned.

"As an investor, I must think twice before making any investment at this time," Russell added.

He welcomed the announcement that the national election will be held by December, noting that it is a clear signal accepted by all parties.

He also urged the government to ensure textile and apparel exporters have representation on the boards of organisations like the Bangladesh Petroleum Corporation (BPC) and Titas Gas Distribution Company, enabling them to observe the gas procurement process.

Further gas price hikes will lead to factory closures

Speaking at the press conference, the BTMA president said that the textile sector in Bangladesh may experience a surge in factory closures as a result of a further hike in gas prices.

He also noted that despite the nearly 179% increase in gas prices in 2023, the authorities still cannot ensure an uninterrupted supply to industries.

Russell reiterated that the textile industry has lost its competitiveness due to rising business costs, particularly as utility prices continue to increase.

Four-day textile machinery expo to start on 20 Feb

The BTMA, in partnership with Yorkers Trade & Marketing Service Co Ltd, Hong Kong, will host the 19th DTG from 20 to 23 February at ICCB, Dhaka. The exhibition will be inaugurated by Sheikh Bashir Uddin, adviser to the Ministry of Commerce and the Ministry of Textiles.

DTG 2025, Bangladesh's largest textile machinery exhibition, will feature 1,600 stalls and over 1,100 top brands from 33 countries. Companies from China, Germany, India, Italy, Japan, South Korea, and Turkey will participate, showcasing innovations in textile machinery, fabric production, dyeing technology, and accessories.

The four-day event will include discussions, seminars, and the DTG Fashion Show on 21-22 February in Hall 3 of ICCB.