Bangladesh's textile industry is hanging in a tight spot-part opportunity, part missed chance. Despite being a $22 billion powerhouse and the backbone of the country's export economy, the sector is gasping for breath. The recent Investment Summit held in Dhaka this April brought back hope, sure, but hope alone won't cut it. We need real moves, fast and focused, if we're serious about attracting meaningful foreign direct investment (FDI) or even bolstering domestic investment.
The summit itself was timely. The theme-"Resilient Future Through Investment"-was well chosen. It's no secret the caretaker government is trying hard to reset the investment climate. But unless we tackle the root-level issues affecting our core industries, especially textiles, all the buzz will stay on paper. Investors need clarity, not just in policy but in practice.
The textile industry isn't short on investment. In fact, it already holds over $22 billion in capital and uses some of the most advanced machinery sourced from Europe and the US. But guess what? Almost 30% of that machinery is idle-around $7 billion worth. Why? Simple. Not enough gas. Not enough electricity. The problem's been lingering for years, and it's eating away at our competitiveness.
Look around, and you'll see what's going on. Spinning mills are operating at 40% capacity. Weaving units have slashed shifts. Dyeing houses are running three days a week, if that. Some factory owners in denim and yarn production are even putting up "For Sale" signs on their gates. And these aren't marginal players. They're the very people who bet big on this country back when things looked brighter.
The government needs to stop pretending this is a temporary hiccup. It's a structural crisis. And while talks about reforms, energy transition, and ease-of-doing-business policies are great for keynote speeches, the folks on the ground need results they can feel.
One smart idea deserves real attention. Why not repurpose the underperforming textile mills? If we've got land, buildings, and even partial infrastructure already in place, why go hunting for virgin plots? The Bangladesh Investment Development Authority (BIDA) could step in here. It can buy or lease low-performing units, then offer them up for joint ventures or fresh ownership. Investors-foreign or local-could walk in, make deals, revamp the machinery, and restart operations.
It's not just about salvaging what's broken. It's about cutting down time and cost. Setting up a new mill from scratch takes at least 18 months, often longer. But if you've got an old setup with bones in place, you're cutting that time by half or more. You're also saving the country from chewing up more farmland and stressing its already fragile energy grid.
There's another piece to this puzzle that's been floating in industry circles for years-state-owned textile and jute mills. Most of them, especially those under the Bangladesh Textile Mills Corporation (BTMC), have been lying idle for decades. Some were shut down due to losses; others just faded out with time. But the land's still there. The buildings? Still usable with a bit of refurbishment. Why not open them up for private investment? Let the private sector lease, modernize, and operate them under a clear regulatory framework.
“The government needs to stop pretending this is a temporary hiccup.
It's a structural crisis. And while talks about reforms, energy
transition, and ease-of-doing-business policies are great for keynote
speeches, the folks on the ground need results they can feel.
And then comes the forward-looking part-diversification. The global market is shifting towards man-made fibers (MMF). Cotton is still big, no doubt. But MMF-based products are what global brands are pushing more now, driven by consumer trends and sustainability goals. Bangladesh is way behind in this race. Setting up a MMF plant isn't cheap. It'll take around Tk 12,000 crore, at least 100 acres of coastal land, and 30 megawatts of steady power. But the returns? Enormous. A single plant like that could add up to 65% value to our RMG exports, provided we hit a 45% value addition benchmark and stay below 55% import content.
Think about that for a second. Instead of importing synthetic yarn from China or Indonesia and losing foreign currency, we could be producing it right here, adding value, and exporting it with our garments. That's a game-changer. But again, it'll stay a dream unless someone steps up and delivers land, power, and credit facilities to make it real.
There's also a tax angle we can't ignore. The bonded warehouse facility has been a blessing for exporters but also a loophole for misuse. Some shady players have taken advantage of it-importing more raw material than they need, dumping leftovers in the domestic market, and dodging duties in the process. That hurts compliant businesses and distorts market prices.
The National Board of Revenue (NBR) has taken some steps. They've been talking about fully automating the bonded system. That's good. But they need to go further. A dedicated monitoring cell with real-time tracking, audit capability, and cross-checking with export declarations is what's needed. Let's be clear: if you can't enforce the rules, it's the honest investor who suffers most.
Let's not forget, the whole investment ecosystem depends on trust. When investors-local or foreign-see outdated machinery rotting under dust because there's no gas to run them, they think twice. When they hear that permits take months and gas connections take years, they hesitate. And when they learn that 30 per cent of an industry's capacity is just sitting idle, unused, they back off.
We can't afford to keep letting this happen. Bangladesh has one of the youngest workforces in the region. We've got location advantages. We've got brand power in the RMG market. But without serious policy shifts, infrastructure reliability, and strategic asset reuse, we're letting that edge slip.
This isn't just a sectoral issue. It's a national issue. Idle machines mean idle workers. Idle workers mean shrinking household incomes. Shrinking incomes mean less demand across the board-from food to transport to healthcare. And that's how economic slowdown creeps in, quietly but surely.
So what's the takeaway? It's time to move beyond summits and start solving real problems. Let's fix our gas and power allocation. Let's breathe life into underused mills. Let's diversify with man-made fibers and technology. Let's clean up the bonded warehouse mess. Let's act, not talk.
Because if we don't, we're not just missing investments-we're watching an entire opportunity pass us by.
The writer is chairman of Little Group and a Director of Bangladesh Textile Mills Association
