The textile sector of Bangladesh got fresh investment worth Tk4,148 crore from fourteen textile millers, according to the media reports.
Millers invested stepped up with the investment to tackle the elevated demand for locally produced fabric and yarn as a global supply chain disruption made imports unfeasible.
However, the fresh investment of 2022 is 31.55% lower than the investment of 2021 when 26 factories invested nearly Tk 6,060 crore in this sector.
According to the data from the Bangladesh Textile Mills Association (BTMA), man-made fibre (MMF) currently dominates nearly 72% of the global market share and has huge possibilities in Bangladesh. But only one factory invested in the sector in 2022.
BTMA data also stated that among the 14 factories that invested Tk 4,148.14 crore, 12 factories invested for yarn manufacturing, one for fabrics, and one for yarn and fabrics.
These factories will manufacture 153,575 tonnes of yarn and 7,800 tonnes of fabrics annually, show the BTMA data.
The apex body is optimistic that the new investments will help generate 1.5 lakh new employment opportunities when the above-mentioned factories go into full-phase operations.
Currently, the sector has nearly 1.1 million workers.
Bangladesh has 510 yarn and 901 fabric manufacturing mills, and most of the factories are manufacturing cotton yarn and fabrics, stated BTMA.
Industry insiders say they expected more investments in 2022 than what actually came in.
But due to the many hurdles, such as the global financial crisis, Bangladesh’s energy shortage, and lack of adequate policy support, many investments are yet to come.
Speaking to the media, BTMA President Mohammad Ali Khokon said that investments are not static. Those depend on factors such as supply and demand. As the demand for fabrics and yarn is rising, more investment will come in this year and the next.
However, the ongoing gas and electricity supply shortage is severely impacting the performance, and that is why many investors are hesitating, he added.
He also said that the government should solve the crisis as soon as possible to attract more investments.