Finance Minister Abul Maal Abdul Muhith said on a visit to India on Friday that last week's collapse of the garment factory building is not "really serious," as the death toll from the incident topped 500.Voice of America reported that Muhith said Friday the collapse was an "accident," and that he is "not worried" that it will influence foreign garment retailers to leave the country. He said such incidents happen everywhere. Bangladesh's $20bn textile industry accounts for nearly 80% of the country's exports.
Meanwhile, police in Bangladesh arrested an engineer who warned of cracks in the eight-story factory complex near Dhaka.
On Thursday, Prime Minister Sheikh Hasina told the US television network CNN her country's garment industry is beset with problems. But she said her government is moving to fix them, noting a committee has been formed to ensure the safety of buildings and workers.
Meanwhile, The Wall Street Journal reported that The Walt Disney Co, the world's largest licenser, told licensees in March that they could no longer manufacture its branded merchandise in Bangladesh. The move was part of a larger effort to shift the production of Disney-branded goods out of what it considers countries where factories run a high-risk of safety problems, including Bangladesh, Pakistan and Venezuela.
Other retailers, such as Target Corp and Nike Inc, have also said they have reduced the number of factories they use in Bangladesh. Regular political protests and strikes ahead of elections next year have further disrupted business, and buyers have begun redirecting orders to neighbouring India, Bangladeshi exporters said.
However, H&M, the Swedish retail giant, which is Bangladesh’s biggest buyer with purchases of $1.5 bn annually, said in a statement it was “in Bangladesh for the long term.”
