Smuggler-linked protests disrupt legal mobile production in Bangladesh

Legal mobile handset manufacturers in Bangladesh are facing serious operational disruptions as protests by smuggler-backed retailers block showrooms, in some cases resorting to vandalism and attacks on staff.

The unrest comes in response to the government’s National Equipment Identity Register (NEIR) programme, aimed at curbing mobile phone smuggling.

According to industry officials, showrooms selling locally manufactured mobile phones of foreign brands, including Xiaomi, have been forced to close in major commercial hubs such as Jamuna Future Park and Bashundhara City.

Ziauddin Chowdhury, country manager of Xiaomi Bangladesh, said the company’s showrooms have been unable to remain open regularly since the protests began on January 1. “Only 12 showrooms at Jamuna Future Park and one at Bashundhara City have operated for more than a day. Across Dhaka and Chattogram, nearly 100 Xiaomi outlets remain closed,” he said.

The Bangladesh-China Chamber of Commerce and Industry (BCCCI) expressed concern that the forced closures and attacks could tarnish Bangladesh’s investment climate and discourage foreign investors. The chamber noted that the country has 18 mobile phone manufacturing plants, including four with foreign investment, representing a total investment of over BDT 3,000 crore.

BCCCI President Khorshed Alam strongly condemned attacks on foreign-invested enterprises and urged the government to ensure a secure business environment. The Foreign Investors’ Chamber of Commerce and Industry (FICCI) also called for strict legal action against illegal operators and protective measures for lawful mobile retailers.

Protest organisers, however, rejected these allegations. Shamim Molla, vice president of the Mobile Business Community Bangladesh, said the strike is peaceful and that showrooms of legal brands are not being obstructed. “About 90 percent of shop owners support the movement,” he added.

The NEIR system, implemented by the government, aims to register all mobile devices to prevent smuggling and protect legitimate manufacturers. Retailers reliant on smuggled devices have opposed the initiative, leading to ongoing tensions that threaten the operations of lawful businesses.