Interviews
Investors opt for Cambodia & Bangladesh as replacement to Vietnam
19 Jun '08
2 min read
Financial crisis in Vietnam has impelled many Chinese textile enterprises to reconsider their decision of shifting their production base. In midst of these chaotic conditions in the country, Cambodia has emerged to be the most suitable destination for investors.
For instance, Jiangsu Hongdou Group of China, a home textile producing company, has set up a factory in Cambodia which has already started production.
An analysis made on the Vietnamese market shows that even after 10 years of development, there is limited room for growth for expansion in the country. Moreover, ties between China and Vietnam have also been a little strained. Additionally, US and EU also does not allow duty-free entry of textile goods from the country.
In comparison to this, Cambodia stands as a more lucrative business destination offering favorable policies and special grants from US and EU. Besides, it also provides tremendous growth opportunities for 400 Chinese investor companies and alongwith maintained a very cordial relation with China for the past many decades.
As a matter of fact Bangladesh has also attracted a large number of Chinese enterprises. So far, there are about 100 Chinese textile enterprises in the country. But considering the fact that availability of labor is cheap, Bangladesh is likely to have more number of Chinese production units coming up in the years to follow.
For instance, Jiangsu Hongdou Group of China, a home textile producing company, has set up a factory in Cambodia which has already started production.
An analysis made on the Vietnamese market shows that even after 10 years of development, there is limited room for growth for expansion in the country. Moreover, ties between China and Vietnam have also been a little strained. Additionally, US and EU also does not allow duty-free entry of textile goods from the country.
In comparison to this, Cambodia stands as a more lucrative business destination offering favorable policies and special grants from US and EU. Besides, it also provides tremendous growth opportunities for 400 Chinese investor companies and alongwith maintained a very cordial relation with China for the past many decades.
As a matter of fact Bangladesh has also attracted a large number of Chinese enterprises. So far, there are about 100 Chinese textile enterprises in the country. But considering the fact that availability of labor is cheap, Bangladesh is likely to have more number of Chinese production units coming up in the years to follow.
Fibre2fashion News Desk - China
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