BGMEA eyes Chinese investment, tech partnership

Bangladesh’s garment manufacturers and Chinese business leaders have agreed to explore joint ventures, technology transfer and sustainable manufacturing initiatives to attract more Chinese investment and strengthen the country’s ready-made garment (RMG) sector.

The understanding came at a high-level meeting between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Overseas Chinese Association in Bangladesh (OCAIB) at the BGMEA Complex in Uttara, Dhaka, on Saturday.

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Inamul Haq Khan, senior vice president of BGMEA, chaired the meeting, which was attended by BGMEA Vice Presidents Md Rezwan Selim, Vidiya Amrit Khan and Shehab Udduza Chowdhury.

The 13-member Chinese delegation was headed by OCAIB President Felix Chang WYC, along with Vice Presidents Andy Chan, Cliff Ren, Lisa Lu and Joel Wong.

According to a BGMEA press release, the discussions focused on four key areas: joint ventures and factory acquisitions, streamlined customs and regulatory procedures, sustainability and green initiatives, and automation and technological modernisation.

The two sides discussed encouraging direct Chinese investment and joint ventures in Bangladesh’s RMG and backward linkage industries. They also explored reviving struggling or closed factories through full ownership acquisitions or joint equity partnerships to bring in fresh investment.

They stressed the need for an effective one-stop service to reduce bureaucratic delays in customs and bond procedures, speed up machinery clearance and shorten lead times, helping lower the cost of doing business.

The meeting also explored using China’s advanced green technologies and expertise to promote circular fashion, renewable energy and reduce carbon emissions in Bangladeshi factories.

Both sides discussed expanding technical cooperation to integrate artificial intelligence (AI) technologies and automated machinery to help prepare the RMG sector for the Fourth Industrial Revolution (4IR).

The OCAIB delegation also expressed interest in developing a carbon trading market in Bangladesh and proposed an exchange scheme for the sweater industry, offering to supply modern machinery in return for older jacquard machines.

However, the delegation said these initiatives could face delays due to complex customs procedures and administrative bottlenecks, and sought BGMEA’s support in addressing the issues.

In response, BGMEA leaders said they would raise the regulatory concerns with the National Board of Revenue (NBR) and the relevant ministries. They also said that local entrepreneurs were keen to partner with Chinese investors in both running and closed factories and pledged to create an effective matchmaking platform.

BGMEA leaders said Bangladesh is focusing on producing higher-value products and expanding sustainable apparel manufacturing. They added that closer cooperation with OCAIB would help the industry benefit from China’s expertise in backward linkage industries and advanced technologies, strengthening the global competitiveness of Bangladesh’s RMG sector.

OCAIB President Felix Chang praised the resilience and growth of Bangladesh’s garment industry and reaffirmed the association’s commitment to bringing new investment and technical support to the sector.