Home / Knowledge / News / Apparel/Garments / Nepalese commerce dept calls for garment EPZ
Nepalese commerce dept calls for garment EPZ
22
Dec '15
With a new ray of hope for Nepal's tottering readymade garment industry, the Government's Department of Commerce and Supply Management (DoCSM) has backed calls for establishment of Garment Export Processing Zone to revive the RMG industry, a leading Nepalese newspaper has reported.

This follows the US Senate endorsing a Bill that paves the way for duty-free entry of 66 Nepali goods, including readymade garments, into the world's largest economy.

“To take advantage from the Bill, Garment Export Processing Zone (GEPZ) should be established, as it would help resurrect the readymade garment industry,” DoCSM Director General Shambhu Koirala told reporters in Kathmandu.

The GEPZ would also help address the issue of 'labour flexibility', which the garment sector has been raising, said Shankar Sharma, former vice chairman of the National Planning Commission and ex-Nepali ambassador to the US.

“But along with flexible labour laws, training for people working in the garment sector is also essential so as to churn out quality human resources,” Sharma said, adding focus must be laid on designing and marketing.

Nepal's readymade garment industry has been on the verge of collapse since the expiry of Multi Fibre Agreement (MFA) in January 2005, which provided duty free access for Nepali garments into the US.

Prior to the phasing out of the quota system, Nepal was exporting Rs 12 billion worth of garments and was generating around 500,000 jobs in the sector. During that time, the sector had drawn investment to the tune of Rs six billion.

Since then, over 85 per cent of garment factories have pulled down their shutters and in the last fiscal year exports fell to Rs 4.26 billion. Currently, only 50 readymade garment factories are in operation, according to Garment Association Nepal (GAN).

But endorsement of Trade Facilitation and Trade Enforcement Bill by the US House and Senate has once again generated hopes for revival of the dying industry. This is because transformation of the Bill into an Act will make Nepali garments 17 per cent cheaper for buyers in the US.

“This arrangement definitely provides us an advantage. But to capitalise on it, we also need the government's assistance,” said GAN Acting President Chandi Prasad Aryal. “In this regard, the government must provide us income tax rebate for five years, provide 10 per cent cash incentive on garment exports, help us obtain cheaper loans and address labour-related issues.” (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Robert Lighthizer speaking at the opening of the ministerial plenary of the 16th Forum of AGOA, in Lome. Courtesy: US Embassy in Togo

Textiles | On 17th Aug 2017

US committed to Africa, Lighthizer tells AGOA forum

The United States and Africa can jointly create a better business...

Textiles | On 17th Aug 2017

Sri Lankan textile exports down 4.1% in May 2017

After showing positive trend for two consecutive months, Sri Lankan...

Courtesy: CBEC

Textiles | On 17th Aug 2017

E-commerce firms need to file monthly statements: CBEC

India’s Central Board of Excise and Customs (CBEC) has clarified that ...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.0%
No
17.2%
Skip
13.8%

Total Votes: 29

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
41.4%
No
37.9%
Skip
20.7%

Total Votes: 29

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
82.8%
No
6.9%
Skip
10.3%

Total Votes: 29

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
58.6%
No
10.3%
Skip
31.0%

Total Votes: 29


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X