The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively low-cost labour, in addition to duty-free and quota-free exports to the countries of the European Union, Asean, Canada, China, Japan and South Korea.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
The cost of production of basic apparels such as shirts, slacks and sweaters is about 30 percent lower in Bangladesh compared to China, according to estimates.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
Earlier, sweaters were usually made by hand or by using semi-automatic production techniques in China. At that time, China had advantage owing to good quality of its hand-knitted sweaters and lower price.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
However, now the wage growth in China has surpassed the productivity growth rate. At present, the average wage of garment workers in China is about US$ 2 per hour and the wages are continuing to rise.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
In comparison, the daily wage of garment workers in Bangladesh is about US$ 1.5, even after a substantial 3,000 taka per month (about US$ 43) increase in the minimum wage of garment workers in 2010.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
Besides wages, the costs of almost all raw materials of garment industry have risen in China. The prices of acrylic and threads used by the Chinese apparel industry have increased by nearly 50 percent in recent period.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
In view of the current scenario, it is expected that both Chinese as well as US-based companies may relocate their factories from China to other lower cost countries, mainly in Southeast Asia, in the future.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
These companies will, however, face some problems while shifting their garment enterprises from China to Bangladesh or Southeast Asian countries.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
Lack of infrastructure, ensuring product quality, shortening production cycles, dealing with logistics like transportation of fabrics, accessories and apparels are some of the problems that the garment companies planning to relocate would have to address.
The garment sector is the pillar of Bangladesh economy, which enjoys advantage of relatively #
Fibre2fashion News Desk - China