Chinese investment sought to strengthen Bangladesh RMG backward linkage: BGMEA

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has launched a special initiative in collaboration with the Overseas Chinese Association in Bangladesh (OCAIB) to attract Chinese investment and promote joint ventures aimed at strengthening the backward linkage and upstream supply chain of the country's readymade garment (RMG) sector.

The initiative also seeks to bring fresh capital and advanced technology into both operational and closed factories, according to a BGMEA press release issued on Tuesday. 

The decision was taken at a bilateral meeting held at the BGMEA Complex in Uttara, Dhaka, today between BGMEA leaders and a high-level delegation from OCAIB, according to BSS report. 

BGMEA President Mahmud Hasan Khan led the BGMEA delegation. Vice-President (Finance) Mijanur Rahman, Directors Shah Rayeed Chowdhury, Joarder Mohammad Hosne Komar Alam and Samiha Azim also attended the meeting.

The OCAIB delegation included Vice President Lisa Lou, Vice President and Secretary General Vivian Huang, Executive Director Steven Zhang and Secretary Tina Hu.

During the meeting, the Chinese delegation said foreign investment is essential to modernise and strengthen Bangladesh's upstream garment supply chain. 

They noted that many Chinese companies are interested in establishing factories, transferring technology and expanding business operations in Bangladesh but often face difficulties in making investment decisions due to the lack of accurate and reliable information.

They sought BGMEA's active support in providing relevant information and facilitating coordination with potential local partners.

Responding to the proposal, BGMEA President Mahmud Hasan Khan said the association would collect information from its member factories through email.

He said factory owners interested in bringing Chinese capital and advanced technology into their operating or closed factories, or those seeking joint venture partners through full or partial ownership transfer, would be requested to submit detailed information to BGMEA.

The requested information includes the factory's name and profile, factory space, machinery details and quantity, current operational status, and the nature of the expected partnership.