FICCI condemns attacks on foreign-invested smartphone retailers

The Foreign Investors’ Chamber of Commerce & Industry (FICCI), the apex chamber representing multinational companies operating in Bangladesh, has condemned recent acts of vandalism and intimidation targeting retail enterprises selling smartphones manufactured by foreign-invested companies.

In a press release issued on January 14, FICCI expressed deep concern over incidents in which protestors vandalised offices of the Bangladesh Telecommunication Regulatory Commission (BTRC) and forcibly shut down legally operating mobile phone retail outlets in different parts of the country.

The chamber said such unlawful activities have created panic across the industry and pushed several smartphone manufacturing plants towards the risk of shutdown.

The condemnation comes against the backdrop of recent policy measures taken by the government to regulate the mobile handset market.

On January 1 this year, the government implemented the National Equipment Identity Register (NEIR) system to curb illegal handsets, while import duty on smartphones was reduced to 10 percent from 25 percent to encourage lawful imports and ensure market stability.

FICCI said the business community had welcomed these timely and pragmatic decisions.

According to the chamber, a section of traders engaged in illegal handset businesses has been protesting against the new measures and resorting to violence.

As a result, local smartphone manufacturers are facing severe financial losses and mental distress, with disruptions affecting production, sales, and distribution.

Bangladesh’s mobile phone manufacturing sector currently comprises 18 factories, including at least four with foreign direct investment (FDI), with total investments exceeding Tk 3,000 crore, the statement said.

The sector provides direct employment to around 50,000 skilled workers and indirect livelihoods to another 50,000 people through dealers, distributor sales representatives, service centres, and retail networks.

About 30 percent of the workforce are women. The industry contributes more than Tk 2,000 crore in annual tax revenue, alongside roughly Tk 500 crore in wages and Tk 400 crore in utility payments, it claimed.

FICCI warned that continued unrest could damage Bangladesh’s image among global investors and undermine future FDI prospects.

The chamber urged the authorities to take swift legal action against those responsible, ensure the safety of legitimate businesses, and protect a stable, investment-friendly environment.