* Islamic State claims it killed two foreigners; govt
rejects claims
* Garment suppliers say some customers cancelled trips
* Others wanted to meet outside Bangladesh or hold video
calls
By Ruma Paul
DHAKA, Oct 15 (Reuters) - Business executives from global
clothing giants H&M HmB.St Inditex ITX.MC and Gap GPS.N
have cancelled trips to Dhaka this month after the killings of
two foreigners, industry sources said, causing anxiety for
Bangladesh's $25 billion garment export sector.
Bangladeshi suppliers to the world's top brands said they
didn't expect the disruptions to hurt their orders for the
year-end Christmas season.
But the attacks, claimed by the Islamic State, increase the
pressure on an industry which faces competition from other
low-wage countries and is trying to repair its safety image
after several fatal accidents.
The United States and Canada have asked their diplomats to
restrict their movements, and Britain warned of more attacks
urn:newsml:reuters.com:*:nL3N11Z2QM after an Italian aid worker and a Japanese man were
shot dead a few days apart. urn:newsml:reuters.com:*:nL3N12404H Australia cancelled a
cricket tour. urn:newsml:reuters.com:*:nL3N12108T
Bangladesh's government, however, rejected the claim by the
Islamic State and blamed the growing violence in the country on
its domestic political opponents trying to show it in poor
light. The attacks on foreigners, while rare, follow the
killings of four Bangladeshi bloggers this year by
machete-wielding assailants, and have spawned fear among the
foreign community. urn:newsml:reuters.com:*:nL3N10I43W
"Our Western buyers panicked after the killing of the two
foreigners within five days. Some buyers cancelled their visits
during this peak time when they are supposed to place more
orders," said Siddiqur Rahman, chief of the Bangladesh Garment
Manufacturers and Exporters Association.
Shahidullah Azim, a garment exporter who supplies to Sears
SCC.TO , Loblaws L.TO and Perry Ellis PERY.O among others
said one of his buyers asked him to come to Dubai instead, along
with the clothing samples.
Other foreign business executives asked for video
conferences with their Bangladeshi counterparts, saying they
couldn't travel to Dhaka because of the warnings issued by their
governments.
"We are monitoring the situation in Bangladesh closely and
we are taking the appropriate security measures. We are also in
close dialogue with other brands regarding the situation," H&M
spokeswoman Anna Eriksson said.
Marks & Spencer MKS.L said the firm stopped travel to
Bangladesh for seven days a few weeks ago. Travel has since
resumed, a spokeswoman said, and added there was no impact on
business orders.
Gap declined to comment on a change in its travel plans.
Tesco TSCO.L said it had not stopped business travel to
Bangladesh, but had asked its employees to be vigilant and
consider their movements carefully.
MASKED MEN ON BIKES
Bangladesh has deployed paramilitary soldiers on nighttime
patrols in the diplomatic quarter of Dhaka and issued a
nationwide ban on people riding pillion after the two attacks
were carried out by masked men riding bikes.
Home Minister Asaduzzaman Khan, who has dismissed claims
that the Islamic State was operating in the Muslim majority
country of 160 million, said on Wednesday that police were close
to a breakthrough on the killings.
"We have taken these attacks very seriously. We won't spare
the killers," he said.
Prime Minister Sheikh Hasina has blamed the rising tide of
violence on the opposition Bangladesh Nationalist Party and its
key ally, Jamaat-e-Islami, many of whose leaders are being
prosecuted for war crimes during the 1971 war of independence.
The opposition denies any involvement.
A Dhaka-based garment manufacturer said the government had
increased security in the area where foreigners lived, police
had spoken to them and confidence was returning. Business was
strong, but if there is another attack on a foreigner, it could
hurt the sector.
Azim warned of an even broader impact. "If this Islamic
State issue persists for long it will not only hurt our
businesses, it will destroy the country's image," he said. "The
government should act promptly to bring the perpetrators to
justice and let the world know that Bangladesh is safe."
The readymade garments industry is the economic lifeblood of
the country, employing around 4 million people, most of them
women. It is in the midst of a massive safety overhaul after the
collapse of the Rana Plaza in 2013 in which more than 1,100
workers were killed and exposed the unsafe working conditions.
In recent years, Bangladesh has also faced competition from
Vietnam, Cambodia and Myanmar, although its wages remain low.
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Bangladesh opposition says foreigner killings sign of deeper
crisis urn:newsml:reuters.com:*:nL3N1251CO
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