Published:  02:12 AM, 13 August 2017

RMG makers oppose FDI

The government has decided to allow foreign entrepreneurs in readymade garment (RMG) sector which will be helpful to increase foreign direct  investment (FDI) in the country. But local entrepreneurs are not happy at the decision of the government in the finished appeal products.

In recent time, a number of entrepreneurs from different countries including China, Japan, UK and Australia have showed their interest to invest in garment sector.  They want to setup factories with latest technology which will be helpful to manufacture quality products.

But from the beginning, the local entrepreneur's have stood against this initiative. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has met several times the commerce ministry for initiatives to discourage overseas investment in the area.

Local entrepreneurs said they are playing vital role to build strong position in the country's RMG sector. They are quite able to invest in this sector. There is no need of foreign investments.

They said if the government allow foreign investments, it will seriously affected on appeal sector. Siddiqur Rahman, President of BGMEA said any foreign entrepreneur can make investment in the RMG sector outside of the EPZ. But in this present situation foreign investment is not applicable.

He said the local  entrepreneurs are quite capable to bring ahead the apparel sector. The foreign entrepreneurs can investment in backward link of apparel industry as still the sector is facing shortage of backward linkage industry. He said, we have observed several times the foreign entrepreneurs started their business at a small factory. If they cannot run the business smoothly, then they leave without paying workers salaries.

Sirajul Islam Rony, President of Bangladesh National Garment Workers and Employees League (BNGWEL) said, I would like to congratulate to foreign entrepreneurs as the initiative will be helpful to create more employment. Recently, he said a number of RMG factories have totally closed as the owners cannot run their industries. As a result, many garment workers have lost their jobs. 

He said there is no reason to get panicked due to foreign entrepreneurs in the RMG sector. They will follow labor law of the country and terms and conditions of the agreement. 

Under the BGMEA, there are over 4300 RMG factories across the country. About 2000 knitwear manufacturers and exporters represent BKMEA. Of them, around 40 percent factories are knitwear and sweater manufactures and the rest 60 percent are woven garment manufactures.

BGMEA member factories account for 100 percent woven garment exports of the country and more than 95 percent of sweater exports. The BKMEA member factories manufacture knitwears and export across the world.

Leave Your Comments

Latest News

More From Frontpage

Go to Home Page »

Site Index The Asian Age