FICCI Condemns Vandalism Against Retailers of Foreign-Made Smartphones
The Foreign Investors’ Chamber of Commerce & Industry (FICCI), the leading organization representing multinational corporations in Bangladesh, has expressed its vehement disapproval of the recent spate of vandalism and intimidation directed at retail outlets selling smartphones produced by foreign-invested firms.
In a press release disseminated on January 14, FICCI articulated its profound concern regarding the incidents in which protestors have vandalized the Bangladesh Telecommunication Regulatory Commission (BTRC) offices and unlawfully shuttered legally operating mobile phone retail establishments across various regions of the country.
These unlawful acts have incited widespread trepidation within the industry, pushing several smartphone manufacturing facilities towards the precipice of closure, the chamber asserted.
This condemnation emerges in light of recent governmental policy initiatives aimed at regulating the mobile handset market.
Effective January 1, the government introduced the National Equipment Identity Register (NEIR) system to combat the circulation of illicit handsets, while simultaneously slashing the import duty on smartphones from 25 percent to a more manageable 10 percent, thereby promoting lawful imports and aiming to stabilize the market.
FICCI highlighted that the business community had welcomed these timely and judicious measures.
Notably, a faction of traders involved in the illegal handset trade has escalated their protests against these new regulations, resorting to violence as a means of resistance.
Consequently, local smartphone manufacturers are now grappling with substantial financial repercussions and psychological distress, as the ongoing disruptions impact their production, sales, and distribution channels.
Currently, Bangladesh’s mobile phone manufacturing sector comprises 18 factories, including at least four that have attracted foreign direct investment (FDI), with total investments surpassing Tk 3,000 crore, as stated by the chamber.
This sector provides direct employment to approximately 50,000 skilled workers and sustains another 50,000 livelihoods indirectly through dealers, distributor sales representatives, service centers, and retail networks.
Women constitute about 30 percent of the workforce. The industry contributes more than Tk 2,000 crore annually in tax revenue, alongside roughly Tk 500 crore in wages and Tk 400 crore in utility payments, according to FICCI.
FICCI cautioned that ongoing unrest could tarnish Bangladesh’s reputation among global investors and jeopardize future FDI inflows.
The chamber urged authorities to act swiftly and decisively against those responsible, ensuring the safety of legitimate businesses and the endurance of a stable, investment-friendly climate.
Source link: Thedailystar.net.
