Home / Knowledge / News / Apparel/Garments / Nepal's 1st garment processing zone to be complete by Apr

Nepal's 1st garment processing zone to be complete by Apr

25
Feb '19
Pic: David Bartus from Pexels
Pic: David Bartus from Pexels
Nepal’s first garment processing zone in Bara district’s Simara is likely to be completed by April. The Rs 2.5-billion facility will facilitate export of Nepalese readymade garments (RMG) and minimise production costs, enabling those to compete in the international market, according to the Garment Association of Nepal. There are 52 RMG units in the country.

The garment processing zone, whose construction started in January last year, is expected to compensate high transport and shipment costs due to Nepal's landlocked status as the zone is located near the country's only rail-linked dry port in Birgunj.

The garment processing zone concept gained traction after the United States extended zero tariff preference for 66 products, including apparels, into its market through Trade Facilitation and Trade Enforcement Act.

The price of Nepali RMG rises 15-20 per cent when those reach global markets, said association president Chandi Prasad Aryal.

The government’s a 3-per cent cash incentive to RMG exporters is not sufficient to make Nepalese products competitive in the global markets, a report in a Kathmandu daily quoted Aryal as saying.

The production costs of Nepali readymade garments are high due to the high cost of raw materials, imported mainly from India and China, he said.

According to Nepal Rastra Bank, the country exported readymade garments worth Rs 2.27 billion in the first six months of the current fiscal year, against Rs 2.29 billion in the same period in the last fiscal year. Nepal’s garment exports totalled Rs 5.9 billion in the last fiscal year.

Aryal said Nepal’s RMG industry collapsed after the expiry of the Multi Fibre Agreement in January 2005, which provided duty-free access for Nepali garments to the United States. More than 85 per cent of the RMG factories shut down after that. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

European Union offers UK more time to leave bloc

Textiles | On 22nd Mar 2019

European Union offers UK more time to leave bloc

Prime Minister Theresa May has been offered two weeks’ Brexit...

Introduction of Trade Act is unacceptable: AmCham Cambodia

Textiles | On 22nd Mar 2019

Introduction of Trade Act is unacceptable: AmCham Cambodia

The American Chamber of Commerce (AmCham) Cambodia is deeply...

Indian e-com, consumer internet firms raise $7 bn in PE-VC

Apparel/Garments | On 22nd Mar 2019

Indian e-com, consumer internet firms raise $7 bn in PE-VC

Indian e-commerce and consumer internet companies have raised over $7 ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

DK Sharma, Velocity Apparelz

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

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

Leave your Comments


March 2019

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

news category


Related Categories:

Advanced Search