Home / Knowledge / News / Apparel/Garments / Garment producers grudge FDI flow
Garment producers grudge FDI flow
22
Jun '11
Bangladesh's domestic garment producers are frowning over foreign investment in the biggest export-earning sector of the country.

The domestic apparel producers are firmly resisting the foreign direct investment (FDI) in the country's ready-made garments (RMG) industry, even as more and more foreign-owned firms are eager to invest in this flourishing industry of the country.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has written to the Board of Investment (BoI) and the Ministry of Commerce (MoC) asking them to impose a ban on entry of foreign investments in the country's garments sector.

Several foreign investors, particularly from countries like China and India, are on the look out for investment opportunities in Bangladesh's RMG sector. The interest of these countries is mainly due to the generalised system of preference (GSP) rules that allow Bangladesh to duty-free export its goods to the 27 European Union member nations.

In view of the request made by BGMEA, till 2000, BoI did not allow the foreign-owned firms to invest in the country's RMG sector outside the export processing zones (EPZs). However, the norms were relaxed thereafter, and from 2005 onwards, BoI has allowed full FDI participation in the domestic industry.

The industry has expanded in terms of exports and investments as the factories are either building their capacities or establishing new units to meet the soaring demand, both domestically as well as globally.

During the initial 11 months of the current fiscal year, knitwear items and woven garments, which are the country's key export items, posted a year-on-year growth of 46.76 and 39.44 percent, respectively.

The RMG sector's average exports during July-May period came to US$ 15.95 billion, with knitwear items contributing US$ 8.44 billion and woven garments US$ 7.51 billion.

Several marketing officials-cum-entrepreneurs from abroad are lobbying hard to invest in the country, the BGMEA leaders have contended.

The BoI received a maximum 229 proposals for investment in the textile and garments sector during July-April 2011 period. These proposals registered with the BoI are either from fully foreign-owned companies or joint venture enterprises.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Thrace-LINQ expanding Dorchester County operations

Thrace-LINQ, a global supplier of fabrics for the textile industry,...

Courtesy: Levis

Fashion | On 26th Sep 2017

Google unveils smart denim jacket with Levi Strauss

Ending the months-long wait, Google has unveiled its smart denim...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
75.5%
No
12.2%
Skip
12.2%

Total Votes: 49

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.3%
No
24.5%
Skip
12.2%

Total Votes: 49

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.8%
No
6.1%
Skip
6.1%

Total Votes: 49

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
71.4%
No
10.2%
Skip
18.4%

Total Votes: 49


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search