The agreement was signed between Bangladesh Textile Mills Assokiation (BTMA) and Taiwan Textilm Federation (TTF) at the BTMA conference room.

BTMA Chairman MA Awal and TTF Chairman Roland Tsai initialled the agreement in presence of Board of Investment (BOI) Executive Chairman Mahmudur Rahman and Taiwanese Vice Minister for Economic Affairs Chii-Ming Yiin.

"From now on we like to enjoy not only friendship but also family ship," Yiin told the signing ceremony explaining the significance of the deal.

He is leading an 18-member Taiwan Investment Delegation, which arrived in Dhaka on Saturday on a four-day visit to Bangladesh for a pre-investment feasibility study as they eye for Bangladesh's easily trainable cheap workforce and concessional market access.

BTMA leaders were not willing to divulge details of the agreement amid fears of a diplomatic row over Taiwanese investment in Bangladesh.

But the agreement is expected to mutually benefit the industry in both the countries in terms of exchanging technology and technical know-how, investments, production atmosphere and export markets.

Yiin said Bangladesh's textile industry needs replacement of some machinery to face the post-MFA challenges particularly from China, Vietnam and few other countries. He expressed the interest to help Bangladesh survive the competition through replacing the machinery.

TTF Chairman Roland Tsai praised the development in the textile sector of Bangladesh, as they earlier visited three textile units here.

Speaking of the factory visits, Tsai said they found the units quite up-to-date and felt they have also something to learn from Bangladesh. Before the visits, he said, he felt that they have only to give Bangladesh.

"We hope Taiwan as our global partner will come very strongly to develop our backward linkage industry and establish our primary textile sector on a strong footing," an upbeat BTMA chairman Awal told the meeting.

He expected a long-lasting economic cooperation to benefit both the peoples to start with the agreement as well as another one with Taiwan Textile Research Institute (TTRI) signed earlier on September 21 when a BTMA delegation visited Taiwan.