Home / Knowledge / News / Apparel/Garments / Nepal to set up garment processing zone
Nepal to set up garment processing zone
02
Mar '16
The Nepalese government is preparing to develop a garment processing zone (GPZ) within Simara Special Economic Zone (SEZ), located in Bara district, to enhance the competitiveness in production of readymade garments, The Himalayan Times has reported.

The government's move is expected to bring down the production and export costs. Production cost in Nepal is considered to be relatively high in the region.

The GPZ concept gained traction after the US extended zero tariff preference for 66 products, including apparels, into its market through 'Trade Facilitation and Trade Enforcement Act'. The world's largest economy is all set to provide preference for Nepali products through a separate act to support the country's aspiration to graduate to the league of developing nations by 2022 through sustainable and robust economic growth.

Nepali apparel entrepreneurs are excited with the recent development because the US was a major export market for Nepali apparels until Multi Fibre Agreement (MFA) was phased out on January 1, 2005. Nepal had exported readymade garments worth Rs 12.5 billion in fiscal 2001-02. The country's garment industry, which is on the verge of collapse after MFA was phased out, is expected to revive once again, the report said.

As per SEZ Development Committee, the GPZ in Simara SEZ will be completed within three years, will house 69 blocks for garment industries and will be equipped with all required facilities -power, road connectivity, water supply and sanitation, among others.

However, apparel entrepreneurs have also been demanding for a separate labour law within SEZ. The SEZ Development Committee has sought Rs 2.5 billion with Ministry of Finance for the development of GPZ, according to Chandika Prasad Bhatta, Executive Director of SEZ Development Committee.

According to the report, the GPZ is expected to compensate high transport and shipment costs due to Nepal's landlocked status because the proposed zone is located near the country's only rail-linked dry port in Birgunj. Apparel entrepreneurs are also optimistic about the government's initiative to develop separate zone for garment factories and its ancillary industries.

“A separate GPZ will also help lure foreign direct investment,” said Chandi Prasad Aryal, acting president of Garment Association Nepal.

Entrepreneurs have also sought implementation of 'cargo ambulance' concept that Bangladesh has been extending to exporters. Neighbouring Bangladesh is a giant exporter of readymade garments in the markets of developed economies. Apparel entrepreneurs here are confident they can compete with the products of other exporters in the US market by utilising zero tariff preference.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 20th Feb 2020

Bangla garment accessories sector may lose Tk 1500 cr

Bangladesh's garments accessories and packaging sector may incur a...

Pic: Shutterstock

Textiles | On 20th Feb 2020

CV outbreak lowered China's cotton consumption: USDA

The novel coronavirus (CV) outbreak and its potential ramifications...

Pic: paul prescott / Shutterstock.com

Textiles | On 20th Feb 2020

Sri Lanka's textile exports earn $5.596 bn in 2019

Sri Lanka’s earnings from textiles and garments exports increased by...

Interviews View All

Viral Desai, Zenitex Mill Pvt Ltd

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Top executives, Textile Industry

Top executives
Textile Industry

We will move away from mass production to production in micro-factories

Top executives, Textile industry

Top executives
Textile industry

RoSCTL is need of the hour

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

C Dhandayuthapani,

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Mario Castro,

Mario Castro

Fibraltex is an integral factory dedicated to the production of denim...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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


February 2020

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


Advanced Search