Low production cost, tax incentives from developed countries and rising expenses in competing countries such as India and China are benefitting the Bangladesh readymade (RMG) sector, said Bangladesh Commerce Minister Ghulam Muhammed Quader.
Rising production cost in neighboring countries like India and China is attracting more apparel buyers to Bangladesh, he said in an interview during his visit to India to attend the Confederation of Indian Industry (CII) Summit at Agra, SME Times reported.
The Minister informed that the monthly wage of workers in India is Rs. 7000 per person, whereas in Bangladesh, the wage is just around Rs. 2,500.
While apparel exports from India attract 9.6 percent export duty, Bangladesh enjoys the advantage of tax incentives since the country is categorized as Least Developed Country (LDC) and this helps the country to develop its clothing sector, he added.
According to him, several Chinese companies have shifted their production units to Bangladesh in order to take benefit of lower labor cost.
Bangladesh apparel sector accounts for more than 80 percent of the country’s exports.