Bangladesh National Board of Revenue (NBR) chairman Ghulam Hussain has suggested that the small and medium enterprises (SMEs) in the garment industry should opt for mergers for making investments in compliance to safeguard their businesses.
The chairman was speaking at a meeting hosted by Bangladesh-German Chamber of Commerce and Industry (BGCCI) for the German multinational software company SAP, as it had proposed to offer technological solutions to help run Bangladesh’s garment industry.
Mr. Hussain said that many small garment enterprise owners have the tendency to not leave their companies despite of incurring losses, and one of the answers to their problems could be mergers and acquisitions.
Most of the Bangladeshi garment enterprises are SMEs that cannot afford big investments in compliance issues, and they are in fear of losing out on orders because of not having the right kind of factories, and for this reason too, mergers are the best option, he added.
The NBR chief explained that although compliance has a cost, it has certain rewards too, as once the compliance is paid, the cost of production reduces, factories get better, and workers get the knowledge, experience and training, that ultimately increases the production.
In this regard, the NBR chief has also urged the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to take proper initiatives.
At the meeting, German ambassador Albrecht Conze stressed on the need to resolve the present crisis prevailing in the Bangladeshi garment sector as soon as possible, to retain the image the country has lost due to several tragic incidents that occurred in the garment factories.