Falling Investment In Bangladesh Textile Industry

The textile and garment industry is regarded as the largest foreign exchange earning industry in Bangladesh.

But in recent years, environmental degradation has made it difficult for the textile and garment industry to develop smoothly.

The statistics released by Bangladesh Investment Bureau provided clear evidence that investment fell by 26% between July 2007 and June 2008.

According to experts, investment in the 2006-2007 fiscal year was about $184 million, and plummeted to $146 million last year.

The contribution rate of textile industry to national income is about 75%.

Insiders say that the sharp reduction in investment is worrying because it may affect exports next year.

Mr Fazlul Hoque, President of Bangladesh Knitting Manufacturers and Exporters Association (BKMEA), said there were many reasons for reduced investment.

Investors are dissatisfied with the business environment of the whole country.

Electricity and natural gas are not enough, there is not enough financing channels, political instability, all these reasons lead entrepreneurs to dare to invest hastily.

At present, the country lacks 250 million cubic feet of natural gas and 2000 megawatts of electricity every day.

Many factories were forced to close their production equipment.

There are labour problems all over the world, but the problem is even more prominent in poor countries.

Inflation has left Bangladesh workers unable to survive.

In recent years, food prices have risen 30-40%.