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Taiwanese enterprise shift base from China & Vietnam
23
Jul '08
Most of the Taiwanese enterprises that are based in China and Vietnam are now shifting their manufacturing units to Bangladesh. The main reason for this relocation is the anti dumping duties that EU and US have imposed on these two nations, due to which exports have been affected to a great extent.

Official sources from Taipei Representative Office, Dhaka, informed Fibre2fashion, “Mainly industries related to tent fabric manufacturing, footwear, ceramics and furniture are shifting their base. Nearly 36 companies have already relocated themselves, out of which 26 are manufacturing enterprises and rest are trading companies.

“Entrepreneurs had to make this tough decision as investment policies in China have changed, and has harmed labour oriented industries the most. The labour cost has risen significantly, resulting in reduced profit margins. Even RMB appreciation has adversely affected the entire industrial sector as production cost has risen to quite an extant. Last year companies based in China made 30 percent more profit compared to this fiscal.”

As many important units have moved to Bangladesh now, the country has earned more than US $200 million of foreign direct investment (FDI)from these Taiwanese companies in the first six months of 2008. This sum is nearly 2/3 of total investment that was received by Bangladesh Export Processing Zones Authority (Bepza) in 2007- 08. Taiwanese investment in India has also jumped to $600 million in 2008.

Eusebio, one of the biggest Taiwanese sleeping bag, rucksack and tent producing company has invested almost $50 million for shifting its plant in Comilla EPZ. Even globally renowned furniture maker Trendex has made a capital investment of around $55 million in April, for setting up a new unit at Karnaphuli EPZ in Chittagong.

However, industry insiders believe that Bangladesh EPZs do not have adequate plots for the Taiwanese firms. If the Bangladeshi Government considers allotting exclusive industrial plots to Taiwanese entrepreneurs, it will attract more enterprises from Taiwan to establish their firms here, resulting in more flow of investment in to the country.


Fibre2fashion News Desk - India


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