Mobile phone manufacturers have alleged that protesting handset traders are preventing the opening of authorised showrooms, outlets that exclusively sell locally produced mobile phones of foreign brands, as demonstrations continue against the government's National Equipment Identity Register (NEIR) programme.

Manufacturers have also accused protesters of assaulting showroom staff who attempted to open outlets. 

According to Xiaomi officials, the situation has forced around 100 showrooms of various foreign brands across the country to remain closed for several days.

The Bangladesh China Chamber of Commerce and Industry (BCCCI) warned that if the situation continues, it could damage Bangladesh's image abroad and discourage foreign investment. 

In a statement issued yesterday, the chamber said, "Legal mobile phone retail outlets across various parts of the country have been forcibly shut down, while mobs have carried out acts of vandalism."

"As a result, local smartphone manufacturers have been suffering from severe financial and mental distress, and smartphone manufacturing factories are now on the verge of shutdown," the statement said.

China is a major source of foreign investment in Bangladesh's mobile phone handset manufacturing and assembling sector, industry insiders said.

The Foreign Investors' Chamber of Commerce and Industry (FICCI) also condemned the vandalism. In a statement signed by FICCI's Executive Director TIM Nurul Kabir, it called for legal action and enhanced security for lawful mobile handset businesses.

Xiaomi outlets remain shut

Ziauddin Chowdhury, country manager of Xiaomi Bangladesh, told The Business Standard that the company's showrooms have been unable to operate normally since the start of the protests.

"When we tried to open our showrooms at Jamuna Future Park in the capital, they were forcibly kept closed. Showroom staff were assaulted," he said.

Xiaomi has 12 showrooms at Jamuna Future Park, but since 1 January they have been able to open for only two days, Ziauddin said. A similar situation has prevailed at Bashundhara City Shopping Complex, where the showrooms were open for just one day during the same period.

"Besides this, we[Xiaomi], including Samsung, Vivo, Oppo, have had to keep nearly 100 showrooms closed in Dhaka, Chattogram and other parts of the country. The situation was the same on Thursday as well," he added.

Foreign investment concerns

According to BCCCI, Bangladesh's mobile phone industry has grown into a strong and established sector, with 18 manufacturing plants currently in operation. At least four of these involve foreign investment, with total investments exceeding Tk3,000 crore.

In the statement signed by BCCCI President Khorshed Alam, the chamber said, "We strongly condemn these violent and reprehensible acts targeting foreign-invested manufacturing enterprises."

"We urge the relevant government authorities to take immediate and appropriate legal action against those responsible, ensure the security of legitimate business establishments, and safeguard an overall conducive business environment," it said.

Protest leaders deny allegations

However, leaders behind the recent NEIR protests have denied the allegations. 

Shamim Mollah, vice-president of the Mobile Business Community Bangladesh, told The Business Standard that while their strike is continuing, no one is stopping brand showrooms from opening.

"Our strike is ongoing, but no one is preventing brand shops from opening," he said. "Their showrooms and shops are opening across the country."

He also claimed that 90% of shop owners support the movement.

Retail mobile phone shop owners across Bangladesh have been protesting against the rollout of the NEIR system and have been observing a strike since 1 January.

NEIR / mobile phone