As per Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), though demand for knitwear products made in Bangladesh is on the rise, the segment has failed to get fresh investments in the last three years. The segment is in need of funds to become competitive to be able to cater to the export demand. However, recent incidences of fire and other calamities that brought to light the poor working conditions in factories are also one of the reasons why investors are staying away.

The industry body said that the sector is bogged down with issues like power crisis, labour unrest and a new wage structure, which further is causing a roadblock to fresh investments. According to BKMEA data, over the last three years, fewer than 30 new small-scale factories were established in manufacturing knitwear fabrics. In 2011 there were more than 1,500 factories but now only 800 factories are regular members of the BKMEA. The data also reveals that the sector has not only failed to attract new investments but also many existing owners are shutting down their factories.

The segment is waiting to get impending issues resolved so that investors start looking at it once again. There is also fear of rising unemployment due to shutting down of existing factories. The organization is seeking government assistance to establish a planned industrial estate, which could bring in fresh investments. 

www.bkmea.com