As per media reports, Bangladesh textile industry witnessed investments worth BDT 6,900 crore in the last five years. The surge in investment can be due to the growing demand for fabric and yarn in the country.
Bangladesh Textile Mills Association (BTMA) said that from 2014 to 2018, local entrepreneurs invested an average of BDT 1,380 crore per year in the textile sector. Further, Bangladesh Bank (BB) states that in 2017, Bangladesh’s textile and garment sector received FDI worth US $ 421.68 million, up from US $ 364.44 million in 2016.
BTMA President Md Mohammad Ali Khokon reportedly told: “Textile sector of Bangladesh has turned into very a strong backward linkage industry for the RMG sector. Currently, local manufactures are capable of supplying 85 percent of yarn and fabric, along with 40 percent of woven fabric, required by the knitwear sector.”
“This means the primary textile sector has been unable to fulfill 60 percent demand of woven fabrics, resulting in investors pouring in funds to grab the remaining market share,” he added.
Notably, there’re 430 yarn manufacturing mills, 802 fabrics manufacturing mills, 244 dyeing-printing finishing mills, 32 denim fabrics manufacturing mills and 22 home textile manufacturing mills in Bangladesh.