Labour cost affects apparel prices

02 Apr '07

3 min read

He adds, “For US, their own goods like cars etc. can enjoy a competitive pricing as no duty will be charged on them. Similarly, Westpoint Steven, a leading US bed sheet manufacturer has taken over a local textile company called Manama Textiles and is running their operations will possibly get all the advantage the country offers at the cost of local manufacturers.”

Country's textile and apparel manufacturers will save by way of 18 to 33 percent estimated cuts on duties, Lamba concedes that FTA does provide major advantage in terms of pricing leverage that can help Bahrain out compete apparel manufacturing and exporting countries like Vietnam or Bangladesh.

“Duty saving is a lot. It will at least make our business more competitive than that of other nations,” Lamba quips.

Turning to the future of textile and apparel industries, Lamba is critical stating, “I do not see any growth opportunities. Bahrain relies on expatriate labour which is very expensive for operations within the country. The least I visualize is that the five companies that operate may survive and go up the value addition chain to survive.”

Fibre2fashion News Desk

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