Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell has emphasized the critical opportunity for Bangladesh to attract foreign direct investment (FDI) as numerous companies in China are shutting down operations. This trend is driven by China’s shift towards high-end industries, increasing labour costs, and additional import duties imposed by the United States on Chinese exports.
Speaking on the sidelines of a press conference at the Pan Pacific Sonargaon Hotel regarding the upcoming Dhaka International Textile & Garment Machinery Exhibition (DTG) 2025, Russell noted that Chinese firms are relocating their investments to other countries, presenting a timely opportunity for Bangladesh to secure these investments. He highlighted that capturing some of this investment could significantly create job opportunities in the country.
Russell stressed the importance of the Government providing stable utility prices and an uninterrupted supply of resources to attract foreign investment. He pointed out that the recent 10 per cent import duty imposed by the US on Chinese goods has prompted companies to consider relocating their operations.
“To attract this investment, the government must ensure stable utility prices and a consistent supply of fuel and gas,” he said. “Amidst the current dollar shortage, foreign investment can help generate employment. However, stability in gas prices and supply is essential.”
In light of the upcoming national elections, which are expected to be held by December, Russell welcomed the announcement, viewing it as a positive signal accepted by all parties involved. He urged the Government to ensure that textile and apparel exporters have representation on the boards of organizations such as the Bangladesh Petroleum Corporation (BPC) and Titas Gas Distribution Company, allowing them to oversee the gas procurement process.
During the press conference, Russell warned that further hikes in gas prices could lead to a wave of factory closures in the textile sector. Despite a staggering 179 per cent increase in gas prices in 2023, he noted that authorities have still not managed to provide a reliable supply to industries. He reiterated that rising business costs, particularly due to increasing utility prices, have eroded the competitiveness of the textile industry in Bangladesh.
